Mar 31, 2015
(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
These financial statements of the Company have been prepared the under
historical cost convention on accrual basis in accordance with the
Generally Accepted Accounting Principles in India to comply with the
Accounting Standards notified under the Companies (Indian Accounting
Standards) Rules, 2015 and the relevant provisions of the Companies
Act, 2013. The accounting policies have been consistently applied by
the company unless otherwise stated.
(b) USE OF ESTIMATES
The preparation of the financial statements in conformity with Indian
GAAP requires management to make estimates and assumptions that affect
the reported amount of assets and liabilities and disclosures relating
to contingent liabilities as at the date of the financial statements
and the reported amounts of revenue and expenses during the reporting
period. Although these estimates are based upon management's best
knowledge of current events and actions, the difference between the
actual results and estimates are recognized in the period in which the
results are known / materialized.
(c) FIXED ASSETS :
All Tangible Fixed Assets including of its expansion project are stated
at their original cost less depreciation (Net of Modat/Cenvat, VAT and
Service Tax). The Preoperative and Project expenses including borrowing
cost, installation cost and any cost directly attributable to bringing
the assets to its working condition for its intended use and which are
not attributable to a particular assets have been allocated between
Plant and Machineries and Building in the ratio of investment. Company
has identified that there is no material impairment of assets and as
such no provision is made as per AS-28 issued by Institute of Chartered
Accountants of India.
(d) INVESTMENT :
The Long-term investments are carried individually at cost less
provision for diminution, other than temporary, in the value of
investment whereas the current investments are carried individually, at
lower of cost and fair value. The cost of investments includes
acquisition charges such as brokerage, fees and duties.
(e) Foreign Currency Loans availed for acquiring fixed assets had been
translated at the exchange rate prevailing at the end of the year. The
exchange difference on conversion was adjusted to cost of fixed assets.
(f) DEPRECIAITION :
Depreciation on Fixed Assets is provided to the extent of depreciable
amount on the straight line method (SLM). Depreciation is provided
based on useful life of the assets as prescribed in Schedule II to the
Companies Act, 2013 and on addition/deletion during the year on
pro-rata quarterly basis including the quarter of addition/deletion in
accordance with the provision of Schedule II of the Act. In case of
fixed assets which have completed their useful life as on 1st April
2014, the carrying value (Net of residual value) amounting to
Rs.8,58,928.96 (Net of deferred tax Rs.4,42,271.00) as a transitional
provision has been recognized in the retained earning.
i) Further in case of other assets acquired prior to 1st April, 2014
the carrying value of assets (Net of residual values) is depreciated
over the remaining useful life as determined effecting from 1st April
2014.
ii) Depreciation for the year would have been lower by Rs.1,25,950.78
had the company continued with the previous assessment of useful life
of such assets.
(g) BORROWING COSTS
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to the Profit and Loss Statement in the
period in which they are incurred.
(h) REVENUE RECOGNITION
Revenue from sale of goods is recognized only when risks and rewards
incidental to ownership are transferred to the customer, it can be
reliably measured and it is reasonable to expect ultimate collection.
Revenue from operations includes sale of goods, excise duty and sales
during trial run period net of trade discounts. Revenue from sale of
services, interest and other income are recognized on accrual basis but
the dividend, government grants/subsidies (Including Capital and
Revenue) is recognized in the year of receipt.
(i) INVENTORIES :
The Inventories are valued as under :
(i) Stores & Spares (at cost on FIFO basis) : It includes Coal,
Sulpher, Lime, Alum, Salt, Furnace Oil, Activated Carbon, Enzymes and
Packing Materials and other stores items.
(ii) Raw Material-Maize (At cost on FIFO Basis).
(iii) Stock in Process (At cost)
(a) Quantity and value of Stock in Process of Raw Starch is not
ascertainable on regular basis due to constant change in its contents,
which is complex and technical in nature, therefore, at the year end on
actual & technical basis quantity and value was ascertained.
(b) Quantity of stock in process of Dextrose Plant is ascertained on
the basis of daily records maintained by the company and value is
ascertained on the basis of actual & technical valuation.
(iv) Finished Goods (At cost or market value whichever is lower)
excluding DAH & DMH.
(v) By-products and DAH & DMH (At realisable value).
(vi) The Stock on Consignment lying with other parties duly
acknowledged by the custodians are included in the inventories at
Market value including Excise Duty paid thereon. The Closing Stock is
ascertained on the basis of records available with the Company and the
sale will be recognized only after receipt of Statement of Sales if
any.
(vii) The sale on consignment basis is treated as sales on receipt of
sales advice from the consignee.
(viii) The consignment sale is accounted for on net of expenses basis
but excise, insurance and commission, freight & other expenses related
to consignment are included in consignment sales separately amounting
to Rs.70,25,782/- (74,98,406/-).
(j) Certain directly attributable pre-operative expenses during
construction period for expansion are included under Capital work in
progress and have been capitalized at the commencement of production
and when the assets were put in use and in case of other expenses 33%
(12.5%) of employee benefit expenses and 30% (10%) of administrative
expenses and 25% of power and fuel expenses during the trial run and
implementation of the project during the year have been allocated to
preoperative and project expenses account for expansion and have been
allocated to Fixed Assets.
(k) CENVAT CREDIT :
a. Cenvat Credit on Capital Goods has been treated as Cenvat Credit
receivable by reducing the cost of fixed assets and balance if any, is
included in other advances recoverable in cash or in kind or for value
to be received.
b. For claim of CENVAT Credit on Capital Goods and inputs the
classification between Capital Goods and inputs are made on the basis
of Excise records.
c. Modvat/Centvat Credit on Purchase of raw & other material is
reduced from the cost of such materials purchased at the time of
purchase itself in excise records and the same is accounted for at year
end in the accounts.
d. Credit for Service Tax on services is availed by reducing the cost
of respective services.
(l) Interdivisional transfer is not treated as sales and Raw Material
Consumption in view of announcement made by the Institute of Chartered
Accountants of India on Accounting Standard (AS) 9. It is not affecting
the Profit/Loss of the Company.
(m) EMPLOYEE BENEFITS:
The Company has taken a Group Gratuity Policy for providing gratuity
benefits under Group Gratuity Scheme for Life Insurance Corporation of
India (LIC) and the premium paid to the LIC is charged to Profit & Loss
A/c. The payment is made as per computation made by LIC therefore no
note is taken of the difference in the amount of actuarial liability
and the balance in the fund with LIC.
The company is in process to implement it in terms of Revised AS-15
issued by the Institute of Chartered Accountants of India as regards
the other employee benefit and presently recognizing the same on the
actual payment basis and charged to Profit and Loss Account in the year
it has been incurred.
(n) EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net profit or
loss after tax attributable to equity shareholders, including deferred
tax provision, by the weighted average number of equity shares
outstanding during the year and has been computed in accordance with
Accounting Standard 20 issued by the Institute of Chartered Accountants
of India.
(o) TAXATION:
Tax expenses comprises of current tax & deferred tax. Current tax is
determined as per the provisions of the Income tax Act, 1961 in respect
of Taxable Income for the year. Deferred Tax Liability is computed as
per Accounting Standard [AS-22]. Deferred Tax Assets and Deferred Tax
Liability are recognized for all timing differences subject to
consideration of prudence, applying the tax rates that have been
substantively enacted on closing date.
Minimum Alternative Tax (MAT) credit is recognized as an asset only
when and to the extent there is convincing evidence that the Company
will pay normal income tax during the specified period. In the year in
which the MAT credit becomes eligible to be recognized as an asset in
accordance with the recommendations contained in Guidance Note issued
by the Institute of Chartered Accountant of India.
(p) IMPAIRMENT OF ASSETS:
All the fixed assets including intangible assets, if any, are assessed
for any indication of impairment at the end financial year. On such
indication, the impairment (being the excess of carrying value over the
asset) is charged to the Profit and Loss account in the respective
financial year. Recoverable amount is higher of the net selling price
of an asset and its value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value at
the weighted average cost of capital. After impairment, depreciation is
provided on the revised carrying amount of the asset over its remaining
useful life.
A previously recognized impairment loss is increased or reversed
depending on changes in circumstances. However the carrying value after
reversal is not increased beyond the carrying value that would have
prevailed by charging usual depreciation if there was no impairment.
(q) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
The company recognizes a provision when there is present obligation as
a result of a past event that probably requires an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. A disclosure for a contingent liability
made when there is a possible obligation or a present obligation that
may, but probably will not, require an outflow of resources. When there
is a possible obligation or a present obligation and the likelihood of
outflow of resources is remote, no provision or disclosure for
contingent liability is made.
Mar 31, 2014
(a) FIXED ASSETS:
All Tangible Fixed Assets are staged at their original cost less
depreciation (Net of Medvat VA1 and Service Tax). Preoperation expanses
are capitalised. Company has identfied that there is no material
impairment of assets and as such no provison is mace as per AS-28
issued by Institute of Chartered Accountants of India The Company is in
process of sot of its expansion project and the expenses related
thereto have been kept as capital work in progress & No depreciation
has been charged thereon
(b) INVESTMENT
Investments are carried at cost
(C) Foreign Currency loans evailed for acquiring fixed assets had beer
translated at the exchange rate prevailing at the end of the year The
exchange difference on conversion was adjusted to cost of fixed assets
(1) DEPRECIAITICN
Depreciation has beer provided an straight line method el the rotes
specified in Schedule XIV of the Companies Act. 1656 so amended on
prorata basis.
(e) INVENTORIES
The Inventories are valued as under
(i) Stores & Spares (at cost on FIFO basis)
It includes Coal. Sulpher, Lime Alum Sail. Funacs Oil. Activated
Carbon, Enzymes and Packing Materials and other stores items
(ii) Raw Material-Maize At cos: on MFO Baser
(iII) Stock in Process (At cost)
(a) Quantity and value of Stock in Process uf Raw Starch is not
ascerainable on regular basis due to constant change in its contents
which is complex technical in nature, there are at the year end on
actual & technical basis quantity and value was ascertained
(bi Quantity of stock In process of Dextrose? Plant are ascertained on
the basis of daily records maintained by the company and value is
ascertained on the basis of actual & technics vauation
(iv) Finished Goods (At cost or market value whichever is lower)
excluding DAH & DMH,
(v) By-products and DAH & DMH (At -realisable value)
(vi) The-Stock on Consignment lying with other parity duly acknowledged
by the custodians are included in the riventories at Market value
including Excise Duty pad thereon The Cosing Stock is ascertained on
the basis of records available with the Company and the sale will be
recognized only after receipt of Statement of Sales if any
(vi) The sale or Consignnnent basis are treated as Sales on receipt of
sales Advice from He consignee
(viii) The Consignment sale is accounted for on net of expenses basis
but excise, insurance and commission, freight & othe- expenses related
to consignment are included in consignment sales separately amounting
to Rs. 74,98 406/- 63.31 ,616,r ).
(f) Certain directly attributable pre-operative expenses curing
construction period for expansion are included under Capital work in
progress and in case of other expenses 12.5% (16%) of employee benefit
expenses and 10% (10%) of administrative expenses have been allocated
to preoperative and project expenses account for expans on anc also
included under Capital work in progress one' these exponses will be
allocated to Fixed Assets when the same are ready for intended use
(g) The Preliminary and Public Issue Expenses are written off equaly
ever a period of 1C years from the year of commencement of production
at Dextrose Plant The expenses not related to public issue bad been
transferred to Deferred Revenue Expenditure and had been written off
equally over a period of 5 years from the year of commencement of
production at Dextrose Plant.
(h) Cenvat Credit:
(i) Modvat Credit on Capital Goods has been treated as Cenvat Credit
Receivable by reducing the cos: of fixed assets aid balance if any s
included in other advances recoverable in cash or in kind or for value
to be received
(ii) For claim of CENVAT Credit on Capital Gooes and inputs the
classification between Capital Goods and inputs are made on the basis
of Excise records
(iii) Modval Credit on Purchase of raw & other materials is reduced
from the cost of such materials purchased at :he time of purchase
itself in excise records and the same is accounted for at year end ir
the accounts
(iv) Credit lor Service Tax on Services are availed by reducing the
Cost of respective services.
(i) Interdivisional transfer is no! treated as Sales and Raw Material
Consumption in view of announcement made by the institute of Chartered
Accountants of India on Accounting Standard (AS) G. It is not affecting
the Profit/loss of the company,
(j) No provision has been made towards iiabibility for leave encashment
benefits. The company is in process to implement i: in terms of Revised
AS 15 issued by the Institute of Chartered Accountants of India The
amount is not ascertainable as or Balance Sheet date and further the
company is in process of implemention,
(k) The Company has taken a Group Gratuity Policy for providing
gratuity benefits unde" Group Gratuity Scheme for Life insurance
Corporation of India (LJC) and the premium paid to the LIC is charged
to Profit & loss A/c. The payment is made as per compation made by LIC
therefore no note is taken of the difference in the amount of actuarial
liablily and the balance in the fund with -IC The same is subject to
approval of Scheme by Commissoner of Income Tax.
The Company had opted for Group Superannuation Scheme of LIC of India
for its Directors and the contribution paid to LlC of India was charged
to the Statement of Profit & Loss. The same was also subject to approva
of Scheme by Commissioner of income Tax During the year the company has
made a payment of Rs. 36.00,000/- towards contribution tc LIC GGCA
Scheme. During the year, alI the whole time directors had decided not
to take remuneration w.e.f November 2013 hence there after they are
continuing as the Director's and they have withdrawn the amount payable
to them under the Lic GGCA Scheme,
Mar 31, 2013
(a) FIXED ASSETS :
All Tangible Fixed Assets are stated at their original cost less
depreciation (Net of Modvat VAT and Service Tax). Preoperation
expenses are capitalised. Company has identified that there is no
material impairment of assets and as such no provision is made as per
AS-28 issued by Institute of Chartered Accountants of India. The
Company is in process of set of its expansion project and the expenses
related thereto have been kept as capital work in progress & No
depreciation has been charged thereon.
(b) INVESTMENT : Investments are carried at cost.
(c) Foreign Currency Loans availed for acquiring fixed assets had been
translated at the exchange rate prevailing at the end of the year. The
exchange difference on conversion was adjusted to cost of fixed assets.
(d) DEPRECIAITION :
Depreciation has been provided on straight line method at the rates
specified in Schedule XIV of the Companies Act, 1956 as amended on
prorata basis.
(e) INVENTORIES :
The Inventories are valued as under :
(i) Stores & Spares (at cost on FIFO basis) : It includes Coal,
Sulpher, Lime, Alum, Salt, Furnace Oil, Activated Carbon, Enzymes and
Packing Materials and other stores items.
(ii) Raw Material-Maize (At cost on FIFO Basis).
(iii) Stock in Process (At cost)
(a) Quantity and value of Stock in Process of Raw Starch is not
ascertainable on regular basis due to constant change in its contents,
which is complex technical in nature, therefore, at the year end on
actual & technical basis quantity and value was ascertained.
(b) Quantity of stock in process of Dextrose Plant are ascertained on
the basis of daily records maintained by the company and value is
ascertained on the basis of actual & technical valuation.
(iv) Finished Goods (At cost or market value whichever is lower)
excluding DAH & DMH.
(v) By-products and DAH & DMH (At realisable value).
(vi) The Stock on Consignment lying with other parties duly
acknowledged by the custodians are included in the inventories at
Market value including Excise Duty paid thereon. The Closing Stock is
ascertained on the basis of records available with the Company and the
sale will be recognized only after receipt of Statement of Sales if
any.
(vii) The sale on Consignment basis are treated as Sales on receipt of
Sales Advice from the consignee.
(viii) The Consignment sale is accounted for on net of expenses basis
but excise, insurance and commission, freight & other expenses related
to consignment are included in consignment sales separately amounting
to Rs. 63,31,916/- (71,32,665/-).
(f) 20% of the preoperative expenses incurred till the commencement of
production had been treated as Deferred Revenue Expenditure and the
same are written off equally over a period of 5 years from the year of
commencement of production at Dextrose plant.
(g) The Preliminary and Public Issue Expenses are written off equally
over a period of 10 years from the year of commencement of production
at Dextrose Plant. The expenses not related to public issue had been
transferred to Deferred Revenue Expenditure and had been written off
equally over a period of 5 years from the year of commencement of
production at Dextrose Plant.
(h) Cenvat Credit :
(i) Modvat Credit on Capital Goods has been treated as Cenvat Credit
Receivable by reducing the cost of fixed assets and balance if any is
included in other advances recoverable in cash or in kind or for value
to be received.
(ii) For claim of CENVAT Credit on Capital Goods and inputs the
classification between Capital Goods and inputs are made on the basis
of Excise records.
(iii) Modvat Credit on Purchase of raw & other material is reduced from
the cost of such materials purchased at the time of purchase itself in
excise records and the same accounted for at year end in the accounts.
(iv) Credit for Service Tax on Services are availed by reducing the
Cost of respective services.
(i) Interdivisional transfer is not treated as Sales and Raw Material
Consumption in view of announcement made by the Institute of Chartered
Accountants of India on Accounting Standard (AS) 9. It is not affecting
the Profit/loss of the company.
(j) No provision has been made towards liability for leave encashment
benefits. The company is in process to implement it in terms of Revised
AS-15 issued by the Institute of Chartered Accountants of India. The
amount is not ascertainable as on Balance Sheet date and further the
company is in process of implementation.
(k) The Company has taken a Group Gratuity Policy for providing
gratuity benefits under Group Gratuity Scheme for Life Insurance
Corporation of India (LIC) and the premium paid to the LIC is charged
to Profit & Loss A/c. The payment is made as per computation made by
LIC therefore no note is taken of the difference in the amount of
actuarial liability and the balance in the fund with LIC. The same is
subject to approval of Scheme by Commissioner of Income Tax.
The Company had opted for Group Supreannuation Scheme of LIC of India
for its Directors and the contribution paid to LIC of India was charged
to the Statement of Profit & Loss. The same was also subject to
approval of Scheme by Commissioner of Income Tax. During the year the
company has made a payment of Rs.Nil (Nil).
Mar 31, 2012
(a) FIXED ASSETS:
All Tangible Fixed Assets are stated at their original cost less
depreciation (Net of Modvat VAT and Service Tax). Preoperation
expenses are capitalised. Company has identified that there is no
material impairment of assets and as such no provision is made as per
AS-28 issued by Institute of Chartered Accountants of India. The
Company is in process of set of its expansion project and the expenses
related theretohave been kept as capital work in progress & no
depreciation has been charged thereon.
(b) INVESTMENT:
Investments are carried at cost.
(c) Foreign Currency Loans availed for acquiring fixed assets had been
translated at the exchange rate prevailing at the end of the year. The
exchange difference on conversion was adjusted to cost of fixed assets.
(d) DEPRECIATION:
' Depreciation has been provided on straight line method at the rates
specified in Schedule XIV of the Companies Act, 1956 as amended on
prorata basis.
(e) INVENTORIES:
The Inventories are valued as under:
(i) Stores & Spares (at cost on FIFO basis): It includes Coal, Sulpher,
Lime, Alum, Salt, Furnace Oil, Activated Carbon, Enzymes and Packing
Materials and other stores items.
(ii) Raw Material-Maize (At cost on FIFO Basis).
(iii) Stock in Process (At cost)
(a) Quantity and value of Stock in Process of Raw Starch is not
ascertainable on regular basis due to constant change in its contents,
which is complex technical in nature, therefore, at the year end on
actual & technical basis quantity and value was ascertained.
(b) Quantity of stock in process of Dextrose Plant are ascertained on
the basis of daily records maintained by the company and value is
ascertained on the basis of actual & technical valuation.
(iv) Finished Goods (At cost or market value whichever is lower)
excluding DAH & DMH.
(v) By-products and DAH & DMH (At realisable value).
(vi) The Stock on Consignment lying with other parties duly
acknowledged by the custodians are included in the inventories at
Market value including Excise Duty paid thereon. The Closing Stock is
ascertained on the basis of records available with the Company and the
sale will be recognized only after receipt of Statement of Sales if
any.
(vii) The sale on Consignment basis are treated as Sales on receipt of
Sales Advice from the consignee.
(viii) The Consignment sale is accounted for on net of expenses basis
but excise, insurance and commission, freight & other expenses related
to consignment are included in consignment sales separately amounting
to Rs.71,32,665/-. (30,69,301/-).
(f) 20% of the preoperative expenses incurred till the commencement of
production had been treated as Deferred Revenue Expenditure and the
same are written off equally over a period of 5 years from the year of
commencement of production at Dextrose plant.
(g) The Preliminary and Public Issue Expenses are written off equally
over a period of 10 years from the year of commence- ment of production
at Dextrose Plant. The expenses not related to public issue had been
transferred to Deferred Revenue Expenditure and had been written off
equally over a period of 5 years from the year of commencement of
production at Dextrose Plant.
(h) Cenvat Credit:
(i) Modvat Credit on Capital Goods has been treated as Cenvat Credit
Receivable by reducing the cost of fixed assets and balance if any is
included in other advances recoverable in cash or in kind or for value
to be received.
(ii) For claim of CENVAT Credit on Capital Goods and inputs the
classification between Capital Goods and inputs are made on the basis
of Excise records.
(iii) Modvat Credit on Purchase of raw & other material is reduced from
the cost of such materials purchased at the time of purchase itself in
excise records and the same accounted for at year end in the accounts.
(iv) Credit for Service Tax on Services are availed by reducing the
Cost of respective services.
(i) Interdivisional transfer is not treated as Sales and Raw Material
Consumption in view of announcement made by the Institute of Chartered
Accountants of India on Accounting Standard (AS) 9. It is not affecting
the Profit/loss of the company.
(i) No provision has been made towards liability for leave encashment
benefits. The company is in process to implement it in terms of Revised
AS-15 issued by the Institute of Chartered Accountants of India. The
amount is not ascertainable as on Balance Sheet date and further the
company is in process of implementation.
(k) The Company has taken a Group Gratuity Policy for providing
gratuity benefits under Group Gratuity Scheme from Life Insurance
Corporation of India (LIC) and the premium paid to the LIC is charged
to Profit & Loss A/c. The payment is made as per computation made by
LIC therefore no note is taken of the difference in the amount of
actuarial liability and the balance in the fund with LIC. The same is
subject to approval of Scheme by Commissioner of Income Tax.
The Company had opted for Group Supreannuation Scheme of LIC of India
for its Directors and the contribution paid to LIC of India was charged
to Profit & Loss Account. The same was also subject to approval of
Scheme by Commissioner of Income Tax. During the year the company has
made a payment of Rs. Nil (6,37,200/-).
Mar 31, 2011
(a) FIXED ASSETS:
All Tangible Fixed Assets are stated at their original cost less
depreciation (Net of Modvat VAT and Service Tax). Preparation
expenses are capitalised. Company has identified that there is no
material impairment of assets and as such no provision is made as per
AS-28 issued by Institute of Chartered Accountants of India.
(b) INVESTMENT:
Investments are carried at cost.
(c) Foreign Currency Loans availed for acquiring fixed assets had been
translated at the exchange rate prevailing at the end of the year. The
exchange difference on conversion was adjusted to cost of fixed assets.
(d) DEPRECIATION:
Depreciation has been provided on straight line method at the rates
specified in Schedule XIV of the Companies Act, 1956 as amended on
prorata basis.
(e) INVENTORIES:
The Inventories are valued as under:
(i) Stores & Spares (at cost oh FIFO basis) : It includes Coal,
Sulpher, Lime, Alum, Salt, Furnace Oil, Activated Carbon, Enzymes and
Packing Materials and other stores items.
(ii) Raw Material-Maize (At cost on FIFO Basis).
(iii) Stock in Process (At cost)
(a) Quantity and value of Stock in Process of Raw Starch is not
ascertainable on regular basis due to constant change in its contents,
which is complex technical in nature, therefore, at the year end on
actual & technical basis quantity and value was ascertained.
(b) Quantity of stock in process of Dextrose Plant are ascertained on
the basis of daily records maintained by the company and value is
ascertained on the basis of actual & technical valuation.
(iv) Finished Goods (At cost or market value whichever is lower)
excluding DAH & DMH.
(v) By-products and DAH & DMH (At realisable value).
(vi) The Stock on Consignment lying with other parties duly
acknowledged by the custodians are included in the inventories at
Market value including Excise Duty paid thereon. The Closing Stock is
ascertained on the basis of records available with the Company and the
sale will be recognized only after receipt of Statement of Sales if
any.
(vii) The sale on Consignment basis are treated as Sales on receipt of
Sales Advice from the consignee.
(viii) The Consignment sale is accounted for on net of expenses basis
but excise, insurance and commission, freight & other expenses related
to consignment are included in consignment sales separately amounting
to Rs.30,69,301/-. (33,67,782/-).
(f) 20% of the preoperative expenses incurred till the commencement of
production had been treated as Deferred Revenue Expenditure and the
same are written off equally over a period of 5 years from the year of
commencement of production at Dextrose plant.
(g) The Preliminary and Public Issue Expenses are written off equally
over a period of 10 years from the year of commence- ment of production
at Dextrose Plant. The expenses not related to public issue had been
transferred to Deferred Revenue Expenditure and had been written off
equally over a period of 5 years from the year of commencement of
production at Dextrose Plant.
(h) Cenvat Credit:
(i) Modvat Credit on Capital Goods has been treated as Cenvat Credit
Receivable by reducing the cost of fixed assets and balance if any is
included in other advances recoverable in cash or in kind or for value
to be received.
(ii) For claim of CENVAT Credit on Capital Goods and inputs the
classification between Capital Goods and inputs are made on the basis
of Excise records.
(iii) Modvat Credit on Purchase of raw & other material is reduced from
the cost of such materials purchased at the time of purchase itself in
excise records and the same accounted for at year end in the accounts.
(iv) Credit for Service Tax on Services are availed by reducing the
Cost of respective services.
(i) Interdivisional transfer is not treated as Sales and Raw Material
Consumption in view of announcement made by the Institute of Chartered
Accountants of India on Accounting Standard (AS) 9. It is not affecting
the Profit/loss of the company.
(j) No provision has been made towards liability for leave encashment
benefits. The company is in process to implement it in terms of Revised
AS-15 issued by the Institute of Chartered Accountants of India. The
amount is not ascertainable as on Balance Sheet date and further the
company is in process of implementation.
(k) The Company has taken a Group Gratuity Policy for providing
gratuity benefits under Group Gratuity Scheme from Life Insurance
Corporation of India (LIC) and the premium paid to the LIC is charged
to Profit & Loss A/c. The payment is made as per computation made by
LIC therefore no note is taken of the difference in the amount of
actuarial liability and the balance in the fund with LIC. The same is
subject to approval of Scheme by Commissioner of Income Tax.
The Company had opted for Group Superannuation Scheme of LIC of India
for its Directors and the contribution paid to LIC of India was charged
to Profit & Loss Account. The same was also subject to approval of
Scheme by Commissioner of Income Tax. During the year the company has
made a payment of Rs. 6,37,200/-.
Mar 31, 2010
(a) FIXED ASSETS:
All Tangible Fixed Assets are stated at their original cost less
depreciation (Net of Modvat VAT and Service Tax). Preoperation expenses
are capitalised. Company has identified that there is no material
impairment of assets and as such no provision is made as per AS-28
issued by Institute of Chartered Accountants of India.
(b) INVESTMENT: Investments are carried at cost.
(c) Foreign Currency Loans availed for acquiring fixed assets had been
translated at the exchange rate prevailing at the end of the year. The
exchange difference on conversion was adjusted to cost of fixed assets.
(d) DEPRECIATION:
Depreciation has been provided on straight line method at the rates
specified in Schedule XIV of the Companies Act, 1956 as amended on
prorata basis.
(e) INVENTORIES:
The Inventories are valued as under :
(i) Stores & Spares (at cost on FIFO basis): Valuation on should be
with Freight (Coal & Maize) It includes Coal, Sulpher, Lime, Alum,
Salt, Furnace Oil, Activated Carbon, Enzymes and Packing Materials and
other stores items.
(ii) Raw Material-Maize (At cost on FIFO Basis).
(iii) Stock in Process (At cost)
(a) Quantity and value of Stock in Process of Raw Starch is not
ascertainable on regular basis due to constant change in its contents,
which is complex technical in nature, therefore, at the year end on
actual & technical basis quantity and value was ascertained.
(b) Quantity of stock in process of Dextrose Plant are ascertained on
the basis of daily records maintained by the company and value is
ascertained on the basis of actual & technical valuation.
(iv) Finished Goods (At cost or market value whichever is lower)
excluding DAH & DMH.
(v) By-products and DAH & DMH (At realisable value).
(vi) The Stock on Consignment lying with other parties duly
acknowledged by the custodians are included in the inventories at
Market value including Excise Duty paid thereon. The Closing Stock is
ascertained on the basis of records available with the Company and the
sale will be recognized only after receipt of Statement of Sales if
any.
(vii) The sale on Consignment basis are treated as Sales on receipt of
Sales Advice from the consignee.
(viii) The Consignment sale is accounted for on net of expenses basis
but excise, insurance and commission, freight & other expenses related
to consignment are included in consignment sales separately amounting
to Rs.33,67,782./-(36,55,018/-).
(f) 20% of the preoperative expenses incurred till the commencement of
production had been treated as Deferred Revenue Expenditure and the
same are written off equally over a period of 5 years from the year of
commencement of production at Dextrose plant.
(g) The Preliminary and Public Issue Expenses are written off equally
over a period of 10 years from the year of commencement of production
at Dextrose Plant. The expenses not related to public issue had been
transferred to Deferred Revenue Expenditure and had been written off
equally over a period of 5 years from the year of commencement of
production at Dextrose Plant.
(h) Cenvat Credit:
(i) Modvat Credit on Capital Goods has been treated as Cenvat Credit
Receivable by reducing the cost of fixed assets and balance il any is
included in other advances recoverabte in cash or in kind or for value
to be received.
(ii) For claim of CENVAT Credit on Capital Goods and inputs the
classification between Capital Goods and inputs are made on the basis
of Excise records.
(iii) Modvat Credit on Purchase of raw & other material is reduced from
the cost of such materials purchased at the time of purchase itself in
excise records and is accounted for at year end in the accounts.
(iv) Credit for Service Tax on Services are availed by reducing the
Cost of respective services.
(i) Interdivisional transfer is not treated as Sales and Raw Material
Consumption in view of announcement made by the Institute of Chartered
Accountants of India on Accounting Standard (AS) 9. It is not affecting
the Profit/loss of the company.
(j) No provision has been made towards liability for leave encashment
benefits. The company is in process to implement it in terms of Revised
AS-15 issued by the Institute of Chartered Accountants of India. The
amount is not ascertainable as on Balance Sheet date and further the
company is in process of implementation. During the year leave
encashment of Rs. 25,29,000/- has been paid to Directors for encashment
of leave up to 31.03.2010
(k) The Company has taken a Group Gratuity Policy for providing
gratuity benefits under Group Gratuity Scheme from Life Insurance
Corporation of India (LIC) and the premium paid to the LIC is charged
to Profit & Loss A/c. The payment is made as per computation made by
LIC therefore no note was taken of the difference in the amount of
actuarial liability and the balance in the fund with LIC. The same is
subject to approval of Scheme by Commissioner of Income Tax during the
year. During the year no computation was received from LIC and
therefore provisional payments were made to LIC and it is subject to
ascertainment of actuarial liability.
The Company had opted for Group Supreannuation Scheme of LIC of India
for its Directors and the contribution paid to LIC of India was charged
to Profit & Loss Account. The same was also subject to approval of
Scheme by Commissioner of Income Tax. During the year the company has
made a payment of Rs. 4,99,050/-.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article