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Accounting Policies of Dhampure Specialty Sugars Ltd. Company
Mar 31, 2025
1. COMPANY OVERVIEW Corporate Information
DHAMPURE SPECIALITY SUGARS LIMITED (''the Company'') having CIN: L24112UP1992PLC014478 is a leading manufacturer, processor, dealers, sellers, importers and exporters of sugar product of every kind and description including inverted sugar, raw sugar, gur, khandsari, processed or manufactured by use of any of the products, bye products waste or scraps of sugar mills either with or without conjunction or mixture of any other material, article or thing.
The Company is a public limited company incorporated and domiciled in India and has its registered office at Village Pallawala, Uttar Pradesh, India. The company has its primary listings on the BSE Limited.
2. SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies applied by the Company in the preparation of its financial statements are listed below. Such accounting policies have been applied consistently to all the periods presented in these financial statements, unless otherwise indicated.
i. Basis of preparation and presentation
a) Compliance with Ind AS
The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (the Act) read with the Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and relevant amendment rules thereafter and accounting principles generally accepted in India.
These financial statements are approved and adopted by Board of Directors in their meeting held on Friday, May 30, 2025.
The financial statements have been prepared on the historical cost basis except for certain financial assets and liabilities that are measured at fair values at the end of each reporting period, assets for defined benefit plans are measured at fair value, assets held for sale which are measured at lower of cost and fair value less cost to sell as explained further in notes to standalone financial statements
c) Functional and presentation currency
The financial statements are presented in Indian rupees (Rs.) and all values are rounded to the nearest Lakh and two decimals thereof, except if otherwise stated.
All assets and liabilities have been classified as current and non-current as per the Company''s normal operating cycle criteria set out below which are in accordance with the Schedule III to the Act. Based on the nature of services and time between the acquisition of assets for providing of services and their realisation in Cash and Cash equivalent, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.
ii. Current versus non-current classification
The company presents assets and liabilities in the balance sheet based on current / non-current classification.
An asset is treated as current when it satisfies any of the following criteria:
⢠Expected to be realised or intended to be sold or consumed in the normal operating cycle
⢠Held primarily for the purpose of trading;
⢠Expected to be realised within twelve months after the reporting date; or
⢠Cash or cash equivalent unless restricted from being exchanged or used to settle liability for at least twelve months after the reporting date.
Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.
A liability is treated as current when it satisfies any of the following criteria:
⢠Expected to be settled in the companyâs normal operating cycle;
⢠Held primarily for the purpose of trading;
⢠Due to be settled within twelve months after the reporting date; or
⢠The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date
Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
Current liabilities include the current portion of non-current financial liabilities. All other liabilities are classified as non-current.
The Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.
iii. Property, plant and equipment & capital work-in-progress
Property, plant and equipment (PPE) are tangible items that are held for use in the production or supply for goods and services, rental to others or for administrative purposes and are expected to be used during more than one period.
The cost of an item of property, plant and equipment is being recognised as an asset if and only if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Subsequent costs are included in the assetâs carrying amount only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.
Freehold lands are stated at cost. All other items of property, plant and equipment are stated at cost, net of recoverable taxes less accumulated depreciation and impairment loss, if any.
The cost of an asset includes the purchase cost of material, including import duties, non-refundable taxes and directly attributable costs of bringing an asset to the location and condition of its intended use and trial run expenditure (Net of amount realised on goods produced during trial run). For this purpose, cost includes carrying value as Deemed cost on the date of transition. Interest on borrowings used to finance the construction of qualifying assets are capitalized as part of the cost of the asset until such time that the asset is ready for its intended use.
Items of spare parts, stand-by equipment and servicing equipment which meet the definition of property, plant and equipment are capitalized. Other spare parts are carried as inventory and recognized in the statement of profit and loss on consumption. When parts of an item of PPE have different useful lives, they are accounted for as separate component.
When significant parts of Property, Plant and Equipment are required to be replaced at intervals, the Company derecognized the carrying amount of replaced parts and recognized the new parts with owned associated useful life and depreciate it accordingly likewise when a major inspection is performed, its cost is recognised in carrying amount of the plant and equipment, if recognition criteria are satisfied. All other repair and maintenance costs are recognized in the Statement of Profit and Loss as incurred.
The present value of the expected cost for the decommissioning of an asset after its use, if any, is included in the cost of the respective asset if the recognition criteria for a provision are met.
The cost and related accumulated depreciation are eliminated from the financial statement upon sale or retirement of the asset and resultant gain or loss are recognized in the Statement of Profit and Loss.
Assets identified and technically evaluated as obsolete are retired from active use and held for disposal are stated at the lower of its carrying amount and fair value less cost to sell.
Capital work-in-progress, representing expenditure incurred in respect of assets under development and not ready for their intended use, are carried at cost. Cost includes related acquisition expenses, construction cost, related borrowing cost and other direct expenditure, and trial run expenditure.
Intangible assets are recognized when it is probable that the future benefits that are attributable to the assets will flow to the Company and the cost of assets can be measured reliably.
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses. For this purpose, cost includes carrying value as Deemed cost on the date of transition.
Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred.
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, is recognised in the statement of profit and loss.
Investment Properties are measured initially at cost including transaction cost. Subsequent to such recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any. The cost includes cost of replacing parts and borrowing cost for long term construction projects, if the recognition criteria are met. When significant parts of investment property are required to be replaced at intervals, the Company depreciate them separately based on their specific useful lives.
All other repairs and maintenance costs are recognised in the Statement of Profit & Loss as and when incurred. The investment properties are derecognized either when they have been disposed off or when they are permanently withdrawn from use and no future economic benefit is expected. The difference between the net disposal proceeds and the carrying amount of the assets is recognised in the Statement of Profit and Loss in the period of derecognition.
vi. Depreciation and amortization
The classification of plant and machinery into continuous and non-continuous process is done as per their use and depreciation thereon is provided accordingly. Depreciation commences when the assets are available for their intended use. Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives.
The management has estimated the useful lives and residual values of all property, plant and equipment and adopted useful lives as stated in Schedule II of the Companies Act, 2013.
The Company has used the following useful lives to provide depreciation on its tangible assets:
|
Assets |
Useful lives |
|
Building |
03-60 Years |
|
Plant & Machinery |
15-40 Years |
|
Office Equipment |
05 Years |
|
Furniture & Fixture |
10 Years |
|
Vehicles |
08 Years |
Intangible assets are amortized on a straight-line basis over the estimated useful economic life of the assets. The Company uses a rebuttable presumption that the useful life of intangible assets is ten years from the date when the assets is available for use.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each financial year and are given effect to wherever appropriate.
vii. Foreign currency translations/Conversion
Transactions in foreign currencies are initially recorded at the functional currency spot rate prevailing at the date the transaction first qualifies for recognition.
Monetary assets and liabilities related to foreign currency transactions remaining outstanding at the balance sheet date are translated at the functional currency spot rate of exchange prevailing at the balance sheet date. Any income or expense arising on account of foreign exchange difference either on settlement or on translation is recognised in the Statement of Profit and Loss.
Non-monetary items which are carried at historical cost denominated in a foreign currency are translated using the exchange rate at the date of the initial transaction.
Raw material, process chemicals, stores and packing material are measured at weighted average cost.
Work in progress, traded and finished goods (other than by products and scraps) are measured at lower of cost or net realizable value. Cost of finished goods and work in progress comprises of raw material cost (net of realizable value of By-products), variable and fixed production overhead, which are allocated to work in progress and finished goods on full absorption cost basis. Cost of inventory also includes all other cost incurred in bringing the inventories to their respective present location and condition. Borrowing costs are not included in the value of inventories. Cost of traded goods is measured on FIFO basis and it includes incidental expenses.
Net realizable value (NRV) is the estimated selling price in the ordinary course of business less estimated costs of completion and the estimated costs necessary to make the sale.
The Company derives revenue primarily from sale of Jaggery and other byproducts produced from processing of sugar cane, sale of power and sale of chemicals.
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration, the company expect to receive in exchange of those products or services. Revenue is inclusive of excise duty and excluding estimated discount, pricing incentives, rebates, other similar allowances to the customers and excluding GST and other taxes and amounts collected on behalf of third parties or government, if any.
Revenue from the sale of goods is recognised when the goods are delivered and titles have passed, at which time all the following conditions are satisfied:
⢠the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;
⢠the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
⢠the amount of revenue can be measured reliably;
⢠it is probable that the economic benefits associated with the transaction will flow to the Company; and
⢠the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Dividend income is recognised when the Companyâs right to receive the dividend is established, it is probable that the economic benefits associated with the dividend will flow to the entity and the amount of the dividend can be measured reliably i.e. in case of interim dividend, on the date of declaration by the Board of Directors; whereas in case of final dividend, on the date of approval by the shareholders.
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that assetâs net carrying amount on initial recognition.
Insurance claim are accounted for on the basis of claims admitted / expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.
Export incentives are accounted for in the year of exports based on eligibility and when there is no significant uncertainty in receiving the same.
All other incomes are accounted on accrual basis.
All expenses are accounted for on accrual basis.
Long term borrowings are initially recognised at net of material transaction costs incurred and measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Profit and Loss over the period of the borrowings using the effective interest method.
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial time to get ready for their intended use or sale. Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds. Borrowing costs also include exchange differences to the extent regarded as an adjustment to the borrowing costs. Other borrowing costs are expensed in the period in which they are incurred.
Leases under which the company assumes substantially all the risks and rewards of ownership are classified as finance leases. When acquired, such assets are capitalized at fair value or present value of minimum lease payments at the inception of lease, whichever is lower. Lease under which the risks and rewards incidental to ownership are not transferred to lessee, is classified as operating lease. Lease payments under operating leases are recognized as an expense on a straight-line basis in net profit in the statement of profit and loss over the lease term.
xiv. Provision for current and deferred taxa. Current income tax:
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Current tax expense is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized in OCI or equity.
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and established provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.
The Company Offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognised amounts and where it intends either to settle on a net basis or to realise the assets and settle the liabilities simultaneously.
The Company will update the amount in the financial statement if facts and circumstance change as a result of examination or action by tax authorities.
Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax assets is realised or the deferred income tax liability is settled.
Deferred tax is recognized in Statement of profit and loss except to the extent that it relates to items recognized directly in OCI or equity, in which case it is recognized in OCI or equity.
Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Minimum Alternate Tax (MAT) credits is recognised as deferred tax assets in the Balance Sheet only when the asset can be measured reliably and to the extent there is convincing evidence that sufficient taxable profit will be available against which the MAT credits can be utilised by the company in future.
xv. Impairment of non-financial assets
Intangible assets that have an indefinite useful life are not subject to amortisation but are tested annually for impairment.
Other intangible assets and property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
The Carrying amount of assets is reviewed at each balance sheet date, if there is any indication of impairment based on internal/external factor. An asset is impaired when the carrying amount of the assets exceeds the recoverable amount. Impairment is charged to the profit and loss account in the year in which an asset is identified as impaired.
An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.
xvi. Provisions, contingent liabilities and assets
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of profit or loss net of any reimbursement. Provisions are not recognised for future operating losses.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote.
A contingent asset is not recognised but disclosed, when probable asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.
Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.
xvii. Cash and cash equivalents
Cash and cash equivalents include cash on hand, cheques on hand, balance with banks on current accounts and short term, highly liquid investments with an original maturity of three months or less and which are subject to an insignificant risk of changes in value.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
A. Financial assetsInitial recognition and measurement
All financial assets, except trade receivables are initially recognized at fair value. Trade receivables are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets, which are not at fair value through profit or loss, are adjusted to the fair value of the financial assets, as appropriate, on initial recognition.
For purposes of subsequent measurement, financial assets are classified in following categories:
a) Financial assets carried at amortised cost
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial assets give rise to cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding.
Amortised cost is determined using the Effective Interest Rate (EIR) method. Discount or premium on acquisition and fees or costs forms an integral part of the EIR.
b) Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest income for these financial assets is included in other income using the effective interest rate method.
c) Financial assets at fair value through profit or loss (FVTPL)
FVTPL is a residual category for financial instruments. Any financial instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.
In addition, the Company may elect to classify a financial instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as âaccounting mismatchâ). Financial instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.
All equity investments, except investments in subsidiaries are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company decides to classify the same either as at FVTOCI or FVTPL. The Company makes such election on an instrument by instrument basis. The classification is made on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.
Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.
Equity investments in subsidiaries are carried at cost less impairment losses, if any, except for the equity investments in subsidiaries as at the transition date which are carried at deemed cost being fair value as at the date of transition.
Impairment of financial assets:
The company assesses on a forward looking basis the expected credit losses associated with the assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.
For trade receivables, the company applies the simplified approach permitted by Ind AS 109 âFinancial Instrumentsâ which requires expected lifetime losses to be recognised from initial recognition of receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rate are reviewed and changes in the forward looking estimates are analysed.
Derecognition of financial assets:
The Company derecognizes a financial asset when, and only when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and substantially all risks and rewards of ownership of the asset to another entity.
If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the assets and an associated liability for amounts it may have to pay.
B. Financial liabilitiesInitial recognition and measurement
Financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial liabilities (other than financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial liabilities, as appropriate, on initial recognition.
Financial liabilities are carried at amortized cost using the effective interest method or at FVTPL.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.
For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
Derecognition of financial liabilities
A financial liability (or a part of a financial liability) is derecognized from the Company''s Balance Sheet when, and only when the obligation specified in the contract is discharged or cancelled or expires.
C. Offsetting of financial instruments
Financial assets and financial liabilities including derivative instruments are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
The Company measures financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability or
- In the absence of a principal market, in the most advantageous market for the asset or liability
A fair value measurement of a non-financial asset takes into account a market participantâs ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Entity uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For the purpose of fair value disclosures, the Company has determined classes of assets & liabilities on the basis of the nature, characteristics and the risks of the asset or liability and the level of the fair value hierarchy as explained above.
a. Short-term obligations
Short-term obligations for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service up to the end of the reporting period are recognised and measured at the undiscounted amounts expected to be paid when the liabilities are settled.
b. Post-employment obligations
i Defined contribution plans
The eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make contribution at a specified percentage of the covered employeeâs salary. The contributions, as specified under Defined Contribution Plan to Regional Provident Fund Commissioner and the Central Provident Fund recognised as expense during the period in the statement of profit and loss.
The Company provides for gratuity, a defined benefit retirement plan (''the Gratuity Plan'') covering eligible employees of the company. The Gratuity Plan provides a lumpsum payment to vested employees at retirement, death, or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment with the company.
The cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuation being carried out at each balance sheet date.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and is included in finance cost expenses in the Statement of Profit and Loss.
The service cost on the net defined benefit liability/(asset) is included in employeesâ benefits expenses in the statement of profit and loss.
The employees of the Company are entitled to compensated absences which are both accumulating and non- accumulating in nature. The cost of accumulating compensated absences which are expected to be carried forward beyond twelve months from the reporting date are treated as long term benefits for measurement purposes and are provided for based on actuarial valuation using projected unit credit method for the unused entitlement.
The benefits are discounted using the market yields as at the end of the balance sheet date that has terms approximating to the terms of the related obligation and accounted for on the same principles as followed in the case of gratuity plan as stated hereinabove.
d. Voluntary retirement scheme
Compensation to employees who have opted for retirement under the âVoluntary Retirement schemeâ is charged to the profit and loss account in the year of retirement
Cash flows are stated using the indirect method, whereby profit/loss before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of incomes and expenses associated with investing or financing flows. The cash flows from operating, investing and financing activities of the Company are segregated.
Basic earnings per share are calculated by dividing the profit / (loss) for the year (before other comprehensive income), attributable to the equity shareholders, by the weighted average number of equity shares outstanding during the year.
Diluted earnings per share are calculated by dividing the profit/(loss) for the year (before other comprehensive income), adjusting the after tax effect of interest and other financing costs associated with dilutive potential equity shares, attributable to the equity shareholders, by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares.
The company operates in one reportable business segment i.e." Manufacturing and trading of Jaggery & Sugar and allied activities.â
3. USE OF ESTIMATES AND MANAGEMENT JUDGEMENTS
The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) requires management of the company to make judgements estimates and assumptions that affect the reported amount of revenues, expenses, assets, liabilities and related disclosures concerning the items involved as well as contingent assets and liabilities at the balance sheet date.
The estimates and managementâs judgements are based on previous experience and other factors considered reasonable and prudent in the circumstances. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
The areas involving critical judgement are as follows:
i. Useful lives of Property, plant and equipment / intangible assets
Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation / amortisation to be recorded during any reporting
period. The useful lives and residual values are based on the Companyâs historical experience with similar assets and take into account anticipated technological changes. The depreciation / amortisation for future periods is revised if there are significant changes from previous estimates
ii. Provisions and contingencies
The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Ind AS 37, âProvisions, Contingent Liabilities and Contingent Assetsâ. The evaluation of the likelihood of the contingent events has required best judgement by management regarding the probability of exposure to potential loss. The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change.
iii. Post-employment benefit plans
Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, the rate of salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate and documented. However, any changes in these assumptions may have a material impact on the resulting calculations.
iv. Provision for income taxes and deferred tax assets
The Companyâs tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/ recovered for uncertain tax positions Deferred tax assets are recognised for unused tax losses and unused tax credit to the extent that it is probable that taxable profit would be available against which the losses could be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
v. Impairment of investments in subsidiary
The Company reviews its carrying value of investments carried at cost (net of impairment, if any) annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for in the statement of profit and loss.
The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgement. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate.
The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable period of a lease.
The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.
vii. Fair value measurement of financial instruments
When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted price in markets, then fair value is measured using valuation techniques including the Discounted Cash Flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
Mar 31, 2024
2. SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies applied by the Company in the preparation of its financial statements are listed below. Such accounting policies have been applied consistently to all the periods presented in these financial statements, unless otherwise indicated.
i. Basis of preparation and presentation
a) Compliance with Ind AS
The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (the Act) read with the Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and relevant amendment rules thereafter and accounting principles generally accepted in India.
These financial statements are approved and adopted by Board of Directors in their meeting held on Thursday , May 30, 2024.
b) Basis of preparation
The financial statements have been prepared on the historical cost basis except for certain financial assets and liabilities that are measured at fair values at the end of each reporting period, assets for defined benefit plans are measured at fair value, assets held for sale which are measured at lower of cost and fair value less cost to sell as explained further in notes to standalone financial statements
c) Functional and presentation currency
The financial statements are presented in Indian rupees (Rs.) and all values are rounded to the nearest Lakh and two decimals thereof, except if otherwise stated.
d) Operating Cycle
All assets and liabilities has been classified as current and non-current as per the Company''s normal operating cycle criteria set out below which are in accordance with the Schedule III to the Act. Based on the nature of services
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and time between the acquisition of assets for providing of services and their realisation in Cash and
Cash equivalent, the Company has ascertained its operating cycle as 12 months for the purpose of current/ non-current classification of assets and liabilities
ii. Current versus non-current classification
The company presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset is treated as current when it satisfies any of the following criteria:
⢠Expected to be realised or intended to be sold or consumed in the normal operating cycle
⢠Held primarily for the purpose of trading;
⢠Expected to be realised within twelve months after the reporting date; or
⢠Cash or cash equivalent unless restricted from being exchanged or used to settle liability for at least twelve months after the reporting date.
Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.
A liability is treated as current when it satisfies any of the following criteria:
⢠Expected to be settled in the company''s normal operating cycle;
⢠Held primarily for the purpose of trading;
⢠Due to be settled within twelve months after the reporting date; or
⢠The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date
Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
Current liabilities include the current portion of non-current financial liabilities. All other liabilities are classified as non-current.
The Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.
iii. Property, plant and equipment & capital work-in-progress
Property, plant and equipment (PPE) are tangible items that are held for use in the production or supply for goods and services, rental to others or for administrative purposes and are expected to be used during more than one period.
The cost of an item of property, plant and equipment is being recognised as an asset if and only if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Subsequent costs are included in the asset''s carrying amount only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.
Freehold lands are stated at cost. All other items of property, plant and equipment are stated at cost, net of recoverable taxes less accumulated depreciation and impairment loss, if any.
The cost of an asset includes the purchase cost of material, including import duties, non-refundable taxes and directly attributable costs of bringing an asset to the location and condition of its intended use and trial run expenditure (Net of amount realised on goods produced during trial run). For this purpose, cost includes carrying
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value as Deemed cost on the date of transition. Interest on borrowings used to finance the construction of qualifying assets are capitalized as part of the cost of the asset until such time that the asset is ready for its intended use.
Items of spare parts, stand-by equipment and servicing equipment which meet the definition of property, plant and equipment are capitalized. Other spare parts are carried as inventory and recognized in the statement of profit and loss on consumption. When parts of an item of PPE have different useful lives, they are accounted for as separate component.
When significant parts of Property, Plant and Equipment are required to be replaced at intervals, the Company derecognized the carrying amount of replaced parts and recognized the new parts with owned associated useful life and depreciate it accordingly. likewise when a major inspection is performed, its cost is recognised in carrying amount
of the plant and equipment, if recognition criteria are satisfied. All other repair and maintenance costs are recognized in the Statement of Profit and Loss as incurred.
The present value of the expected cost for the decommissioning of an asset after its use, if any, is included in the cost of the respective asset if the recognition criteria for a provision are met.
The cost and related accumulated depreciation are eliminated from the financial statement upon sale or retirement of the asset and resultant gain or loss are recognized in the Statement of Profit and Loss.
Assets identified and technically evaluated as obsolete are retired from active use and held for disposal are stated at the lower of its carrying amount and fair value less cost to sell.
Capital work-in-progress, representing expenditure incurred in respect of assets under development and not ready for their intended use, are carried at cost. Cost includes related acquisition expenses, construction cost, related borrowing cost and other direct expenditure, and trial run expenditure.
iv. Intangible assets
Intangible assets are recognized when it is probable that the future benefits that are attributable to the assets will flow to the Company and the cost of assets can be measured reliably.
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses. For this purpose, cost includes carrying value as Deemed cost on the date of transition.
Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred.
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An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, is recognised in the statement of profit and loss.
v. Investment Properties
Investment Properties are measured initially at cost including transaction cost. Subsequent to such recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairement loss, if any. The cost includes cost of replacing parts and borrowing cost for long term construction projects, if the recognition criteria are met. When signifincant parts of investment property are required to be replaced at intervals, the Company depreciate them separately based on their specific useful lives.
All other repairs and maintenance costs are recognised in the Statement of Profit & Loss as and when incurred. The investment properties are derecognized either when they have been disposed off or when they are permanently withdrawn from use and no future economic benefit is expected. The difference between the net disposal proceeds and the carrying amount of the assets is recognised in the Statement of Profit and Loss in the period of de-recognition.
vi. Depreciation and amortization
The classification of plant and machinery into continuous and non-continuous process is done as per their use and depreciation thereon is provided accordingly. Depreciation commences when the assets are available for their intended use. Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives.
The management has estimated the useful lives and residual values of all property, plant and equipment and adopted useful lives as stated in Schedule II of the Companies Act, 2013.
The Company has used the following useful lives to provide depreciation on its tangible assets:
|
Assets |
Useful lives |
|
Building |
03-60 Years |
|
Plant & Machinery |
15-40 Years |
|
Office Equipment |
05 Years |
|
Furniture & Fixture |
10 Years |
|
Vehicles |
08 Years |
Intangible assets are amortized on a straight-line basis over the estimated useful economic life of the assets. The Company uses a rebuttable presumption that the useful life of intangible assets is ten years from the date when the assets is available for use.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each financial year and are given effect to wherever appropriate.
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vii. Foreign currency translations/Conversion
Transactions in foreign currencies are initially recorded at the functional currency spot rate prevailing at the date the transaction first qualifies for recognition.
Monetary assets and liabilities related to foreign currency transactions remaining outstanding at the balance sheet date are translated at the functional currency spot rate of exchange prevailing at the balance sheet date. Any income or expense arising on account of foreign exchange difference either on settlement or on translation is recognised in the Statement of Profit and Loss.
Non-monetary items which are carried at historical cost denominated in a foreign currency are translated using the exchange rate at the date of the initial transaction.
viii. Inventories
Raw material, process chemicals, stores and packing material are measured at weighted average cost.
Work in progress, traded and finished goods (other than by products and scraps) are measured at lower of cost or net realizable value. Cost of finished goods and work in progress comprises of raw material cost (net of realizable value of By-products), variable and fixed production overhead, which are allocated to work in progress and finished goods on full absorption cost basis. Cost of inventory also includes all other cost incurred in bringing the inventories to their respective present location and condition. Borrowing costs are not included in the value of inventories. Cost of traded goods is measured on FIFO basis and it includes incidental expenses.
Net realizable value (NRV) is the estimated selling price in the ordinary course of business less estimated costs of completion and the estimated costs necessary to make the sale.
ix. Revenue recognition
The Company derives revenue primarily from sale of Jaggery and other by-products produced from processing of sugar cane, sale of power and sale of chemicals.
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration, the company expect to receive in exchange of those products or services. Revenue is inclusive of excise duty and excluding estimated discount, pricing incentives, rebates, other similar allowances to the customers and excluding GST and other taxes and amounts collected on behalf of third parties or government, if any.
Sale of goods
Revenue from the sale of goods is recognised when the goods are delivered and titles have passed, at which time all the following conditions are satisfied:
⢠the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;
⢠the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
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⢠the amount of revenue can be measured reliably;
⢠it is probable that the economic benefits associated with the transaction will flow to the Company; and
⢠the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Dividend income
Dividend income is recognised when the Company''s right to receive the dividend is established, it is probable that the economic benefits associated with the dividend will flow to the entity and the amount of the dividend can be measured reliably i.e. in case of interim dividend, on the date of declaration by the Board of Directors; whereas in case of final dividend, on the date of approval by the shareholders.
Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.
Insurance claims
Insurance claim are accounted for on the basis of claims admitted / expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.
Export incentives
Export incentives are accounted for in the year of exports based on eligibility and when there is no significant uncertainty in receiving the same.
Other incomes
All other incomes are accounted on accrual basis.
x. Expenses
All expenses are accounted for on accrual basis.
xi. Long term borrowings
Long term borrowings are initially recognised at net of material transaction costs incurred and measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Profit and Loss over the period of the borrowings using the effective interest method.
xii. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial time to get ready for their intended use or sale. Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds. Borrowing costs also include exchange differences to the extent regarded as an adjustment to the borrowing costs. Other borrowing costs are expensed in the period in which they are incurred.
xiii. Leases
Leases under which the company assumes substantially all the risks and rewards of ownership are classified as finance leases. When acquired, such assets are capitalized at fair value or present value of minimum lease payments at the inception of lease, whichever is lower. Lease under which the risks and rewards incidental to ownership are not transferred to lessee, is classified as operating lease. Lease payments under operating leases are recognized as an expense on a straight-line basis in net profit in the statement of profit and loss over the lease term.
xiv. Provision for current and deferred tax
a. Current income tax :
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Current tax expense is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized in OCI or equity.
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and established provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.
The Company Offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognised amounts and where it intends either to settle on a net basis or to realise the assets and settle the liabilities simultaneously.
The Company will update the amount in the financial statement if facts and circumstance change as a result of examination or action by tax authorities.
b. Deferred tax:
Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities
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for financial reporting purposes and the amounts used for taxation purposes. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax assets is realised or the deferred income tax liability is settled.
Deferred tax is recognized in Statement of profit and loss except to the extent that it relates to items recognized directly in OCI or equity, in which case it is recognized in OCI or equity.
Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Minimum Alternate Tax (MAT) credits is recognised as deferred tax assets in the Balance Sheet only when the asset can be measured reliably and to the extent there is convincing evidence that sufficient taxable profit will be available against which the MAT credits can be utilised by the company in future.
xv. Impairment of non-financial assets
Intangible assets that have an indefinite useful life are not subject to amortisation but are tested annually for impairment.
Other intangible assets and property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-inuse) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
The Carrying amount of assets is reviewed at each balance sheet date, if there is any indication of impairment based on internal/external factor. An asset is impaired when the carrying amount of the assets exceeds the recoverable amount. Impairment is charged to the profit and loss account in the year in which an asset is identified as impaired.
An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.
Mar 31, 2023
2. SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies applied by the Company in the preparation of its financial statements are listed below. Such accounting policies have been applied consistently to all the periods presented in these financial statements, unless otherwise indicated.
i. Basis of preparation and presentation
a) Compliance with Ind AS
The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (the Act) read with the Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and relevant amendment rules thereafter and accounting principles generally accepted in India.
These financial statements are approved and adopted by Board of Directors in their meeting held on Saturday, May 27, 2023.
b) Basis of preparation
The financial statements have been prepared on the historical cost basis except for certain financial assets and liabilities that are measured at fair values at the end of each reporting period, assets for defined benefit plans are measured at fair value, assets held for sale which are measured at lower of cost and fair value less cost to
sell as explained further in notes to standalone financial statements
c) Functional and presentation currency
The financial statements are presented in Indian rupees (Rs.) and all values are rounded to the nearest Lakh and two decimals thereof, except if otherwise stated.
d) Operating Cycle
All assets and liabilities has been classified as current and non-current as per the Company''s normal operating cycle criteria set out below which are in accordance with the Schedule III to the Act. Based on the nature of services
and time between the acquisition of assets for providing of services and their realisation in Cash and
Cash equivalent, the Company has ascertained its operating cycle as 12 months for the purpose of current/ non-current classification of assets and liabilities
ii. Current versus non-current classification
The company presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset is treated as current when it satisfies any of the following criteria:
⢠Expected to be realised or intended to be sold or consumed in the normal operating cycle
⢠Held primarily for the purpose of trading;
⢠Expected to be realised within twelve months after the reporting date; or
⢠Cash or cash equivalent unless restricted from being exchanged or used to settle liability for at least twelve months after the reporting date.
Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.
A liability is treated as current when it satisfies any of the following criteria:
⢠Expected to be settled in the company''s normal operating cycle;
⢠Held primarily for the purpose of trading;
⢠Due to be settled within twelve months after the reporting date; or
⢠The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date
Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
Current liabilities include the current portion of non-current financial liabilities. All other liabilities are classified as non-current.
The Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.
iii. Property, plant and equipment & capital work-in-progress
Property, plant and equipment (PPE) are tangible items that are held for use in the production or supply for goods and services, rental to others or for administrative purposes and are expected to be used during more than one period.
The cost of an item of property, plant and equipment is being recognised as an asset if and only if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Subsequent costs are included in the asset''s carrying amount only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.
Freehold lands are stated at cost. All other items of property, plant and equipment are stated at cost, net of recoverable taxes less accumulated depreciation and impairment loss, if any.
The cost of an asset includes the purchase cost of material, including import duties, non-refundable taxes and directly attributable costs of bringing an asset to the location and condition of its intended use and trial run expenditure (Net of amount realised on goods produced during trial run). For this purpose, cost includes carrying
value as Deemed cost on the date of transition. Interest on borrowings used to finance the construction of qualifying assets are capitalized as part of the cost of the asset until such time that the asset is ready for its intended use.
Items of spare parts, stand-by equipment and servicing equipment which meet the definition of property, plant and equipment are capitalized. Other spare parts are carried as inventory and recognized in the statement of profit and loss on consumption. When parts of an item of PPE have different useful lives, they are accounted for as separate component.
When significant parts of Property, Plant and Equipment are required to be replaced at intervals, the Company derecognized the carrying amount of replaced parts and recognized the new parts with owned associated useful life and depreciate it accordingly. likewise when a major inspection is performed, its cost is recognised in carrying amount
of the plant and equipment, if recognition criteria are satisfied. All other repair and maintenance costs are recognized in the Statement of Profit and Loss as incurred.
The present value of the expected cost for the decommissioning of an asset after its use, if any, is included in the cost of the respective asset if the recognition criteria for a provision are met.
The cost and related accumulated depreciation are eliminated from the financial statement upon sale or retirement of the asset and resultant gain or loss are recognized in the Statement of Profit and Loss.
Assets identified and technically evaluated as obsolete are retired from active use and held for disposal are stated at the lower of its carrying amount and fair value less cost to sell.
Capital work-in-progress, representing expenditure incurred in respect of assets under development and not ready for their intended use, are carried at cost. Cost includes related acquisition expenses, construction cost, related borrowing cost and other direct expenditure, and trial run expenditure.
iv. Intangible assets
Intangible assets are recognized when it is probable that the future benefits that are attributable to the assets will flow to the Company and the cost of assets can be measured reliably.
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses. For this purpose, cost includes carrying value as Deemed cost on the date of transition.
Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred.
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, is recognised in the statement of profit and loss.
v. Investment Properties
Investment Properties are measured initially at cost including transaction cost. Subsequent to such recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairement loss, if any. The cost includes cost of replacing parts and borrowing cost for long term construction projects, if the recognition criteria are met. When signifincant parts of investment property are required to be replaced at intervals, the Company depreciate them separately based on their specific useful lives.
All other repairs and maintenance costs are recognised in the Statement of Profit & Loss as and when incurred. The investment properties are derecognized either when they have been disposed off or when they are permanently withdrawn from use and no future economic benefit is expected. The difference between the net disposal proceeds and the carrying amount of the assets is recognised in the Statement of Profit and Loss in the period of de-recognition.
vi. Depreciation and amortization
The classification of plant and machinery into continuous and non-continuous process is done as per their use and depreciation thereon is provided accordingly. Depreciation commences when the assets are available for their intended use. Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives.
The management has estimated the useful lives and residual values of all property, plant and equipment and adopted useful lives as stated in Schedule II of the Companies Act, 2013.
The Company has used the following useful lives to provide depreciation on its tangible assets:
Intangible assets are amortized on a straight-line basis over the estimated useful economic life of the assets. The Company uses a rebuttable presumption that the useful life of intangible assets is ten years from the date when the assets is available for use.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each financial year and are given effect to wherever appropriate.
vii. Foreign currency translations/Conversion
Transactions in foreign currencies are initially recorded at the functional currency spot rate prevailing at the date the transaction first qualifies for recognition.
Monetary assets and liabilities related to foreign currency transactions remaining outstanding at the balance sheet date are translated at the functional currency spot rate of exchange prevailing at the balance sheet date. Any income or expense arising on account of foreign exchange difference either on settlement or on translation is recognised in the Statement of Profit and Loss.
Non-monetary items which are carried at historical cost denominated in a foreign currency are translated using the exchange rate at the date of the initial transaction.
viii. Inventories
Raw material, process chemicals, stores and packing material are measured at weighted average cost.
Work in progress, traded and finished goods (other than by products and scraps) are measured at lower of cost or net realizable value. Cost of finished goods and work in progress comprises of raw material cost (net of realizable value of By-products), variable and fixed production overhead, which are allocated to work in progress and finished goods on full absorption cost basis. Cost of inventory also includes all other cost incurred in bringing the inventories to their respective present location and condition. Borrowing costs are not included in the value of inventories. Cost of traded goods is measured on FIFO basis and it includes incidental expenses.
Net realizable value (NRV) is the estimated selling price in the ordinary course of business less estimated costs of completion and the estimated costs necessary to make the sale.
ix. Revenue recognition
The Company derives revenue primarily from sale of Jaggery and other by-products produced from processing of sugar cane, sale of power and sale of chemicals.
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration, the company expect to receive in exchange of those products or services. Revenue is inclusive of excise duty and excluding estimated discount, pricing incentives, rebates, other similar allowances to the customers and excluding GST and other taxes and amounts collected on behalf of third parties or government, if any.
Sale of goods
Revenue from the sale of goods is recognised when the goods are delivered and titles have passed, at which time all the following conditions are satisfied:
⢠the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;
⢠the Company retains neither continuing managerial involvement to the degree usually associated with ownership
nor effective control over the goods sold;
⢠the amount of revenue can be measured reliably;
⢠it is probable that the economic benefits associated with the transaction will flow to the Company; and
⢠the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Dividend income
Dividend income is recognised when the Company''s right to receive the dividend is established, it is probable that the economic benefits associated with the dividend will flow to the entity and the amount of the dividend can be measured reliably i.e. in case of interim dividend, on the date of declaration by the Board of Directors; whereas in case of final dividend, on the date of approval by the shareholders.
Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.
Insurance claims
Insurance claim are accounted for on the basis of claims admitted / expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.
Export incentives
Export incentives are accounted for in the year of exports based on eligibility and when there is no significant uncertainty in receiving the same.
Other incomes
All other incomes are accounted on accrual basis.
x. Expenses
All expenses are accounted for on accrual basis.
xi. Long term borrowings
Long term borrowings are initially recognised at net of material transaction costs incurred and measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Profit and Loss over the period of the borrowings using the effective interest method.
xii. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial time to get ready for their intended use or sale. Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds. Borrowing costs also include exchange differences to the extent regarded as an adjustment to the borrowing costs. Other borrowing costs are expensed in the period in which they are incurred.
xiii. Leases
Leases under which the company assumes substantially all the risks and rewards of ownership are classified as finance leases. When acquired, such assets are capitalized at fair value or present value of minimum lease payments at the inception of lease, whichever is lower. Lease under which the risks and rewards incidental to ownership are not transferred to lessee, is classified as operating lease. Lease payments under operating leases are recognized as an expense on a straight-line basis in net profit in the statement of profit and loss over the lease term.
xiv. Provision for current and deferred tax
a. Current income tax :
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Current tax expense is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized in OCI or equity.
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and established provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.
The Company Offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognised amounts and where it intends either to settle on a net basis or to realise the assets and settle the liabilities simultaneously.
The Company will update the amount in the financial statement if facts and circumstance change as a result of examination or action by tax authorities.
b. Deferred tax:
Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax assets is realised or the deferred income tax liability is settled.
Deferred tax is recognized in Statement of profit and loss except to the extent that it relates to items recognized directly in OCI or equity, in which case it is recognized in OCI or equity.
Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Minimum Alternate Tax (MAT) credits is recognised as deferred tax assets in the Balance Sheet only when the asset can be measured reliably and to the extent there is convincing evidence that sufficient taxable profit will be available against which the MAT credits can be utilised by the company in future.
xv. Impairment of non-financial assets
Intangible assets that have an indefinite useful life are not subject to amortisation but are tested annually for impairment.
Other intangible assets and property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-inuse) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
The Carrying amount of assets is reviewed at each balance sheet date, if there is any indication of impairment based on internal/external factor. An asset is impaired when the carrying amount of the assets exceeds the recoverable amount. Impairment is charged to the profit and loss account in the year in which an asset is identified as impaired.
An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.
Mar 31, 2015
A. Method of Accounting
The financial statement are prepared under the historical cost
convention and are in accordance with applicable mandatory Accounting
Standards notified by the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956.
b. Impairment of Assets
The Company identifies impairable tangible fixed assets at the year end
in term of cash generating unit concept for the purpose of arriving at
impairment loss thereon being the difference between the book value and
recoverable value of relevant assets if indication of impairment exists
within the meaning of Para 5 to 13 of AS-28 issued by ICAI. Impairment
loss if any when crystallizes in charged against revenue of the year.
c. Inventories
Inventories are valued at lower of cost or net realizable value. Cost
is determined on FIRST IN FIRST OUT basis. Cost is comprises of all
cost of purchase, cost of conversion and other costs incurred in bring
the inventories to their present location and condition. Raw material
and Packing material cost is exclusive of excise duty paid / payable on
purchases, as the same has been set off against excise duty payable on
sale of finished goods under CENVAT scheme.
d. Revenue Recognition
Revenue is recognized when there is reasonable certainty of its
ultimate realization / collection.
e. Investments
Investments are stated at costs. Provision is made, where; there is a
permanent fall in the value of investments.
f. Provision for Taxation
(i) Provision for income tax is made on the basis of the estimated
taxable income for the current accounting period in accordance with the
Income Tax Act, 1961.
(ii) Deferred tax resulting from timing difference between book and tax
profit is accounted for under liability method at the current rate of
tax to the extent that the timing differences are capable of reversal
in one or more subsequent periods. Deferred tax assets are not
recognized on unabsorbed depreciation and carry forward of losses
unless there is virtual certainty that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
g. Fixed Assets and Depreciation
(a) Fixed Assets are stated at cost including all direct incidental
expenses.
(b) Depreciation on Fixed Assets is provided on Straight line method at
the rates and in the manner prescribed in Schedule XIV of the Companies
Act, 1956.
h. Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized when the company has a present obligation as
a result of a past event, it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the Balance Sheet date. A disclosure of
contingent liability is made when there is a possible obligation or a
present obligation that may, but probably will not, require an outflow
of resources. Where there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources
is remote, no provision or disclosure is made. Contingent assets are
neither recognized nor disclosed in the financial statements.
i. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average
number of equity shares outstanding during the year. For the purpose of
calculating diluted earnings per share, the net profit or loss for the
period attributable to equity shareholders and the weighted average
number of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares. The dilutive potential
equity shares are deemed converted as of the beginning of the period,
unless they have been issued at a later date.
j. Foreign Exchange Transactions
(i) Transactions in foreign currencies are recorded at the exchange
rates prevailing at the date of transactions.
(ii) The exchange rate fluctuation in revenue accounts is adjusted in
the respective head in Statement of Profit and Loss.
k. Employee Retirement Benefits Short term employee benefits
All employee benefits payable/available within twelve months of
rendering the service are classified as short term employee benefits.
Benefits such as salaries, wages and bonus etc., are recognised in the
statement of profit and loss in the period in which the employee
renders the related service.
Defined benefit plans
Defined benefit plans of the company consist of gratuity and leave
encashment. Gratuity :
The Company has an obligation towards gratuity, a defined benefit
retirement plan covering eligible employees. The plan provides for a
lump sum payment to the vested employees at retirement, death while in
employment or on termination of employment of an amount based on the
respective employee's salary and tenure of employment. Vesting occurs
upon completion of five years of service.
Leave Encashment
As per company's policy, eligible leaves have paid on every year basis.
Defined contribution plans- Defined contribution plans of the company
consist of Provident fund.
Provident Fund
The company makes specified monthly contribution towards the employees'
provident fund for the eligible employees. The contribution made to
provident fund are charged to the statement of profit and loss as and
when these become payable.
Mar 31, 2014
A. Method of Accounting
The financial statement are prepared under the historical cost
convention and are in accordance with applicable mandatory Accounting
Standards notified by the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956.
b. Impairment of Assets
The Company identifies impairable tangible fixed assets at the year end
in term of cash generating unit concept for the purpose of arriving at
impairment loss thereon being the difference between the book value and
recoverable value of relevant assets if indication of impairment exists
within the meaning of Para 5 to 13 of AS-28 issued by ICAI. Impairment
loss if any when crystallizes in charged against revenue of the year.
c. Inventories
Inventories are valued at lower of cost or net realizable value. Cost
is determined on FIRST IN FIRST OUT basis. Cost is comprises of all
cost of purchase, cost of conversion and other costs incurred in bring
the inventories to their present location and condition. Raw material
and Packing material cost is exclusive of excise duty paid / payable on
purchases, as the same has been set off against excise duty payable on
sale of finished goods under CENVAT scheme.
d. Revenue Recognition
Revenue is recognized when there is reasonable certainty of its
ultimate realization / collection.
e. Investments
Investments are stated at costs. Provision is made, where, there is a
permanent fall in the value of investments.
f. Provision for Taxation
(i) Provision for income tax is made on the basis of the estimated
taxable income for the current accounting period in accordance with the
Income Tax Act, 1961.
(ii) Deferred tax resulting from timing difference between book and tax
profit is accounted for under liability method at the current rate of
tax to the extent that the timing differences are capable of reversal
in one or more subsequent periods. Deferred tax assets are not
recognized on unabsorbed depreciation and carry forward of losses
unless there is virtual certainty that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
g. Fixed Assets and Depreciation
(a) Fixed Assets are stated at cost including all direct incidental
expenses.
(b) Depreciation on Fixed Assets is provided on Straight line method at
the rates and in the manner prescribed in Schedule XIV of the Companies
Act, 1956.
h. Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized when the company has a present obligation as
a result of a past event, it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the Balance Sheet date. A disclosure of
contingent liability is made when there is a possible obligation or a
present obligation that may, but probably will not, require an outflow
of resources. Where there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources
is remote, no provision or disclosure is made. Contingent assets are
neither recognized nor disclosed in the financial statements.
i. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average
number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares. The
dilutive potential equity shares are deemed converted as of the
beginning of the period, unless they have been issued at a later date.
j. Foreign Exchange Transactions
(i) Transactions in foreign currencies are recorded at the exchange
rates prevailing at the date of transactions.
(ii) The exchange rate fluctuation in revenue accounts is adjusted in
the respective head in Statement of Profit and Loss.
k. Employee Retirement Benefits Short term employee benefits
All employee benefits payable/available within twelve months of
rendering the service are classified as short term employee benefits.
Benefits such as salaries, wages and bonus etc., are recognised in the
statement of profit and loss in the period in which the employee
renders the related service.
Defined benefit plans
Defined benefit plans of the company consist of gratuity and leave
encashment.
* Gratuity
The Company has an obligation towards gratuity, a defined benefit
retirement plan covering eligible employees. The plan provides for a
lump sum payment to the vested employees at retirement, death while in
employment or on termination of employment of an amount based on the
respective employee''s salary and tenure of employment. Vesting occurs
upon completion of five years of service.
* Leave Encashment
As per company''s policy, eligible leaves have paid on every year basis.
Defined contribution plans-
Defined contribution plans of the company consist of Provident fund.
* Provident Fund
The company makes specified monthly contribution towards the employees''
provident fund for the eligible employees. The contribution made to
provident fund are charged to the statement of profit and loss as and
when these become payable.
Mar 31, 2013
A. Method of Accounting
The financial statement are prepared under the historical cost
convention and are in accordance with applicable mandatory Accounting
Standards notified by the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956.
b. Impairment of Assets
The Company identifies impairable tangible fixed assets at the year end
in term of cash generating unit concept for the purpose of arriving at
impairment loss thereon being the difference between the book value and
recoverable value of relevant assets if indication of impairment exists
within the meaning of para 5 to 13 of AS-28 issued by ICAI. Impair-
ment loss if any when crystallizes in charged against revenue of the
year.
c. Inventories
Inventories are valued at lower of cost or net realizable value. Cost
is determined on FIRST IN FIRST OUT basis. Cost is comprises of all
cost of purchase, cost of conversion and other costs incurred in bring
the inventories to their present location and condition. Raw material
cost is exclusive of excise duty paid / payable on purchases, as the
same has been set off against excise duty payable on sale of finished
goods under CENVAT scheme.
d. Revenue Recognition
Revenue is recognized when there is reasonable certainty of its
ultimate realization/ collection.
e. Provision for Taxation
(i)Provision for income tax as made on the basis of the estimated
taxable income for the current accounting period in accordance with the
Income Tax Act, 1961.
(ii)Deferred tax resulting from timing difference between book and tax
profit is accounted for under liability method at the current rate of
tax to the extent that the timing differences are capable of reversal
in one or more subsequent periods. Deferred tax assets are not
recognized on unabsorbed depreciation and carry forward of losses
unless there is virtual certainty that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
f. Bonus, Gratuity and Leave Encashment
Bonus, Gratuity and leave encashment are accounted on due basis.
g. Fixed Assets and Depreciation
(a) Fixed Assets are stated at cost including all direct incidental
expenses.
(b) Depreciation on Fixed Assets is provided on Straight line method at
the rates and in the manner prescribed in Schedule XIV of the Companies
Act, 1956.
h. Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized when the company has a present obligation as
a result of a past event, it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the Balance Sheet date. A disclosure of
contingent liability is made when there is a possible obligation or a
present obligation that may, but probably will not, require an outflow
of resources. Where there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources
is remote, no provision or disclosure is made. Contingent assets are
neither recognized nor disclosed in the financial statements.
i. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average
number of equity shares out- standing during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares. The
dilutive potential equity shares are deemed converted as of the
beginning of the period, unless they have been issued at a later date.
j. Foreign Exchange Transactions
(i) Transactions in foreign currencies are recorded at the exchange
rates prevailing at the date of transactions. (ii) The exchange rate
fluctuation in revenue accounts is adjusted in the respective head in
Profit and Loss Accounts.
Mar 31, 2012
A. Method of Accounting
The financial statement are prepared under the historical cost
convention and are in accordance with applicable mandatory Accounting
Standards notified by the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956.
b. Change in Accounting Policy
During the year ended 31 March 2012, the revised Schedule VI notified
under the Companies Act 1956, has become appli- cable to the company
for preparation and presentation of its financial statements. The
adoption of revised schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However it has signifi- cant impact on presentation and
disclosures made in financial statements. The company has also
reclassified the previous year figures in accordance with the
requirements applicable in the current year.
c. Impairment of Assets
The Company identifies impairable tangible fixed assets at the year end
in term of cash generating unit concept for the purpose of arriving at
impairment loss thereon being the difference between the book value and
recoverable value of relevant assets if indication of impairment exists
within the meaning of para 5 to 13 of AS-28 issued by ICAI. Impairment
loss if any when crystallizes in charged against revenue of the year.
d. Inventories
Inventories are valued at lower of cost or net realizable value. Cost
is determined on FIRST IN FIRST OUT basis. Cost is comprises of all
cost of purchase, cost of conversion and other costs incurred in bring
the inventories to their present location and condition. Raw material
cost is exclusive of excise duty paid / payable on purchases, as the
same has been set off against excise duty payable on sale of finished
goods under CENVAT scheme.
e. Revenue Recognition
Revenue is recognized when there is reasonable certainty of its
ultimate realization/ collection.
f. Provision for Taxation
(i)Provision for income tax as made on the basis of the estimated
taxable income for the current accounting period in accordance with the
Income Tax Act, 1961.
(ii)Deferred tax resulting from timing difference between book and tax
profit is accounted for under liability method at the current rate of
tax to the extent that the timing differences are capable of reversal
in one or more subsequent periods. Deferred tax assets are not
recognized on unabsorbed depreciation and carry forward of losses
unless there is virtual certainty that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
g. Bonus, Gratuity and Leave Encashment
Bonus, Gratuity and leave encashment are accounted on due basis.
h. Fixed Assets and Depreciation
(a) Fixed Assets are stated at cost including all direct incidental
expenses.
(b) Depreciation on Fixed Assets is provided on Straight line method at
the rates and in the manner prescribed in Schedule XIV of the Companies
Act, 1956.
i. Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized when the company has a present obligation as
a result of a past event, it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the Balance Sheet date. A disclosure of
contingent liability is made when there is a possible obligation or a
present obligation that may, but probably will not, require an outflow
of resources. Where there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources
is remote, no provision or disclosure is made. Contingent assets are
neither recognized nor disclosed in the financial statements.
j. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average
number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity sharehold- ers and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares. The
dilutive potential equity shares are deemed converted as of the
beginning of the period, unless they have been issued at a later date.
k. Foreign Exchange Transactions
(i) Transactions in foreign currencies are recorded at the exchange
rates prevailing at the date of transactions.
(ii) The exchange rate fluctuation in revenue accounts is adjusted in
the respective head in Profit and Loss Accounts.
Mar 31, 2011
(a) BASIS OF ACCOUNTING
The financial statement are prepared under historical cost convention,
on an accrual basis and in are in accordance with applicable mandatory
accounting standards nottified by The Companies (Accounting Standards)
Rules, 2006 and the relevant provisions of the companies act. 1956.
(b) FIXED ASSETS & DEPRECIATION
All fixed assets are stated at cost of acquisition less depreciation.
Costs of acquisition include related pre-operational expenses.
Depreciation on fixed assets (other than Land & Live Stock where no
depreciations is provided) has been provided on straight line method at
the rates specified in Schedule XIV to the Companies Act, 1956 on
prorata basis.
(c) IMPAIRMENT OF ASSETS
The Company identifies improbable tangible fixed assets at the year end
in term of cash generating unit concept for the purpose of arriving at
impairment loss thereon being the difference between the book value and
recoverable value of relevant assets if indication of impairment exists
within the meaning of para 5 to 13 of AS-28 issued by ICAI. Impairment
loss if any when crystallizes in charged against revenue of the year.
(d) INVENTORIES
Inventories are valued at lower of cost of net realizable value. Cost
is determined on FIRST IN FIRST OUT basis. Cost is comprises of all
cost of purchase, cost of conversion and other costs incurred in bring
the inventories to their present location and condition. Raw material
cost is exclusive of excise duty paid / payable on purchases, as the
same has been set off against excise duty payable on sale of finished
goods under CENVAT scheme.
(e) INVESTMENTS
Investments are stated at cost. However, diminution in value other than
temporary is provided. The profit / loss arising on accounts of sales
is recognized in the Profit & Loss Account.
(f) REVENUE RECOGNITION
Revenue is recognized on sale of goods. Sales are inclusive of excise
duty but net of Sales Tax. Duty draw back is accounted for on accrual
basis. Commission is recognized at the time of delivery of goods
effected by the principal. Transportation services are recognized on
provision of services. Income from securities transaction is recognized
on "Settlement date basis. Income on speculative transaction in made
on settlement basis.
(g) FOREIGN EXCHANGE TRANSACTIONS
(i) Transactions in foreign currencies are recorded at the exchange
rates prevailing at the date of transactions.
(ii) The exchange rate fluctuation in revenue accounts is adjusted in
the respective head in Profit and Loss Accounts.
(h) RESEARCH & DEVELOPMENT
Research & Development expenses of revenue nature are charged to Profit
& Loss Account in the year in which these are incurred.
(i) PRIOR PERIOD ITEMS
The expenditure and income pertaining to prior period are included
under the respective head of accounts in the Profit & Loss Accounts.
(j) INCOME TAXES AND DEFERRED TAX
Income tax expenses comprise current tax and deferred tax charge of
credit. The deferred tax charge or credit is recognized using current
tax rates. Deferred tax assets arising from unabsorbed depreciation or
carry forward losses are recognized only if there is virtual the extent
there is reasonable certainty of realization in future. Such assets are
to be reviewed at each Balance Sheet date to reassess the reliability
(k) RETIREMENT BENEFITS
(i) The Company''s contribution to Provident Fund & Family Pension
Scheme is charged to the Profit & Loss Account. (ii) Accrued liability
for Gratuity in accordance with the provision of the Payment of
Gratuity Act, 1972 calculated on the assumption that such benefits are
payable to all the employees at the end of accounting year, has been
charged to Profit and Loss Account.
(I) Accounting policies not specifically referred to are otherwise
consistent and in consonance with generally accepted accounting practices.
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ഓഹരി വിപണി 11 മാസത്തെ താഴ്ചയില്, നിഫ്റ്റി, സെന്സെക്സ് കൂപ്പുകുത്തി, കാരണങ്ങളറിയാം -
പശ്ചിമേഷ്യന് സംഘര്ഷം; ഇന്ത്യന് ഓഹരി വിപണിയ്ക്ക് എന്ത് സംഭവിക്കും, എസ്ഐപി നിര്ത്തേണ്ടതുണ്ടോ? -
ഇന്ത്യന് ഓഹരി വിപണി വെള്ളിയാഴ്ച കൂപ്പുകുത്തി, കാരണങ്ങളും ഭാവി സൂചനകളും അറിയാം -
എയ്ഞ്ചല് വണ് ഓഹരി ഒറ്റ സെഷനില് നേരിട്ടത് 90 ശതമാനം ഇടിവ്? എന്താണ് സംഭവിച്ചതെന്നറിയാം -
590 കോടി രൂപയുടെ തട്ടിപ്പ്, ഐഡിഎഫ്സി ഫസ്റ്റ്ബാങ്ക് ഓഹരി കൂപ്പുകുത്തി, നിക്ഷേപകര് എന്തു ചെയ്യണം? -
1:2 ഓഹരി വിഭജനം, 1:2 ബോണസ് ഇഷ്യു, മൂന്നാംപാദ ഫലങ്ങള്: കുതിപ്പ് നടത്തി ടെക്സ്റ്റൈല് ഓഹരി -
ഇന്ത്യന് ഓഹരി വിപണിയില് കനത്ത ഇടിവ്, നിക്ഷേപകര്ക്ക് നഷ്ടം 6.5 ലക്ഷം കോടി രൂപ; കാരണങ്ങളും സാധ്യതകളുമറിയാം -
മുത്തൂറ്റ് ഫിനാന്സ് ഓഹരി കുറഞ്ഞ വിലയില്; ഇപ്പോള് വാങ്ങിയാല് ബംപര് നേട്ടം, ബ്രോക്കറേജ് നിര്ദ്ദേശങ്ങള് -
ഈ ഓഹരികള് ഇപ്പോള് വാങ്ങിയാല് ബംപര് ആദായം കീശയിലാക്കാം -
ഇന്ത്യയ്ക്കെതിരായ തീരുവ യുഎസ് കുറച്ചു: ഓഹരി വിപണിയില് കുതിപ്പ്, ഈ ഓഹരികള് നേട്ടമുണ്ടാക്കും -
കേന്ദ്രബജറ്റ് സെഷന് 2026: ഇടിവോടെ തുടങ്ങി നിഫ്റ്റിയും സെന്സെക്സും, നിക്ഷേപകര് പ്രതീക്ഷിക്കുന്നതെന്ത്? -
9 മാസത്തില് 314 ശതമാനം ഉയര്ന്ന് ഹിന്ദുസ്ഥാന് കോപ്പര് ഓഹരി, ഭാവി സാധ്യതകള് -
മികച്ച നേട്ടവുമായി നിഫ്റ്റിയും സെന്സെക്സും; നാളെ എന്ത് പ്രതീക്ഷിക്കാം -
1065 പോയിന്റ് ഇടിഞ്ഞ് സെന്സെക്സ്, നിഫ്റ്റി 25250 ന് താഴെ; ഭാവി പ്രവണതകള് -
2025 ലെ മികച്ച ഓഹരി; കുതിപ്പ് തുടരാൻ ശ്രീറാം ഫിനാൻസ്; ലക്ഷ്യവില ഇങ്ങനെ -
തളരുന്ന രൂപയും കൊഴിയുന്ന വിദേശ നിക്ഷേപവും: നിഫ്റ്റിക്ക് മുന്നേറ്റമോ? ഈ ആഴ്ച സ്വാധീനിക്കുന്ന ഘടകങ്ങൾ
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