Accounting Policies of Prudential Sugar Corporation Ltd. Company

Mar 31, 2025

Basis of preparation:

The financial statements of the Company have been prepared in accordance with generally accepted accounting
principles in India (Indian GAAP). These financial statements have been prepared to comply in all material respects
with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the
relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost
convention on an accrual basis and going concern basis. The accounting policies have been consistently applied by the
company are consistent with those used in the previous year.

Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent liabilities at the date of the financial statements and the results of operations during the reporting period.
Although these estimates are based upon management''s best knowledge of current events and actions, actual results
could differ from these estimates.

1. Tangible Fixed Assets:

• Fixed assets are stated at cost less accumulated depreciation and impairment losses if any. Cost comprises
the purchase price and directly attributable cost of bringing the asset to its working condition for its intended
use. Any trade discounts and rebates are deducted in arriving at the purchase price.

• Borrowing costs relating to acquisition of tangible assets which takes substantial period of time to get ready
for its intended use are also included to the extent they relate to the period till such assets are ready to be
put to use. Assets under installation or under construction as at the Balance Sheet date are shown as Capital
Work in Progress.

2. Intangible Fixed Assets:

• Intangible assets are recognized when it is probable that the future economic benefits that are attributable
to the asset will flow to the enterprise and the cost of the asset can be measured reliably

3. Impairment of Assets:

• The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment
based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an
asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price
and value in use. In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of money and
risks specific to the asset. Net selling price is the amount obtainable from the sale of an asset in an arm''s
length transaction between knowledgeable, willing parties, less the costs of disposal.

• After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining
useful life.

4. Depreciation and Amortization:

• Depreciation on the fixed assets is provided under WDV method as per the rates prescribed in Schedule XIV
to the Companies Act, 2013 or at rates permissible under applicable local laws so as to charge off the cost of
assets to the Statement of Profit and Loss over their estimated useful life, except on the following categories
of assets:

• Leasehold land and leasehold improvements are amortized over the primary period of lease.

• Intangible assets are amortized over their useful life of 5 years.

5. Investments:

• Investments, which are readily realizable and intended to be held for not more than one year from the date on
which such investments are made, are classified as current investments. All other investments are classified
as long-term investments.

• On initial recognition, all investments are measured at cost. The cost comprises the purchase price and
directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or
partly acquired by the issue of shares or the other securities, the acquisition cost is the fair value of securities
issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference
to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever
is more clearly evident.

• Current investments are carried at the lower of cost and fair value determined on an individual investment
basis. Long- term investments are carried at cost. However, provision for diminution in value is made to
recognize a decline other than temporary in the value of the long term investments.

• On disposal of an investment, the difference between its carrying amount and net disposal proceeds is
charged or credited to the statement of profit and loss.

6. Employee Benefits:

• Employee benefits include provident fund, employee state insurance scheme, gratuity fund and Compensated
absences.

• Gratuity provision would be made at the time of payment.

7. Inventories:

• Stock in trade, stores and spares are valued at the lower of the cost or net realizable value. Net realizable value is

the estimated selling price in the ordinary course of business.

8. Borrowing Costs:

• Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of
the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing
costs consist of interest, exchange differences arising from foreign currency borrowings to the extent they
are regarded as an adjustment to the interest cost and other costs that an entity incurs in connection with
the borrowing of funds.

9. Revenue Recognition:

• Revenue is recognized to the extent that it is probable that the economic benefits with flow to the company
and the revenue can be reliably measured , regardless of when the payment is being made. Revenue is
measured at the fair value of the consideration received or receivable, taking into account contractually
defined terms of payment and excluding taxes or duties collected on behalf of the government.

The specific recognition criteria described below must also be met before revenue is recognised.

• Revenue from the sale of goods is recognised when the significant risks and reward of ownership of the goods
have passed to the buyer, usually on delivery of the goods. Revenue from the sale of goods is measured at
the fair value of the consideration received or receivable , net of returns and allowances, trade discounts and
volume rebates.

Other income

• Interest income is recognized on time proportion basis taking into account the amount outstanding and the
rate applicable.

• Dividend income is recognized when right to receive is established.

10. Taxation:

Tax expense comprises Current and Deferred Tax. Current income tax expense comprises taxes on income
from operations in India and in foreign jurisdictions. Income tax payable in India is determined in accordance
with the provisions of the Income Tax Act, 1961 and tax expense relating to overseas operations is determined
in accordance with tax laws applicable in countries where such operations are domiciled.

• Deferred tax expense or benefit is recognized on timing differences being the difference between taxable
incomes and accounting income that originate in one period and are capable of reversal in one or more
subsequent periods.

• Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date. Deferred income tax relating to items recognized directly
in equity is recognized in equity and not in the statement of profit and loss. Deferred tax assets and deferred
tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax
liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by the
same governing taxation laws

• Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized
only to the extent that there is reasonable certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. In situations where the Company has unabsorbed
depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty
supported by convincing evidence that they can be realized against future taxable profits. In the situations
where the Company is entitled to a tax holiday under the Income realized against future taxable profits. In
the situations where the Company is entitled to a tax holiday under the Income Tax Act, 1961 enacted in India,
no deferred tax (asset or liability) is recognized in respect of timing differences which reverse during the tax
holiday period, to the extent the Company''s gross total income is subject to the deduction during the tax
holiday period. Deferred tax in respect of timing differences which reverse after the tax holiday period is
recognized in the year in which the timing differences originate.

• At each balance sheet date the Company re-assesses recognized and unrecognized deferred tax assets.
The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer
reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be
available against which the deferred tax asset can be realized. Any such write-down is reversed to the extent
that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable
income will be available. The Company recognizes unrecognized deferred tax assets to the extent that it has
become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will
be available against which such deferred tax assets can be realized.

11. Earnings per share:

• Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.

• 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 year are adjusted
for the effects of all dilutive potential equity shares.

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Mar 31, 2024

Significant Accounting Policies:

Basis of preparation:

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). These financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on an accrual basis and going concern basis. The accounting policies have been consistently applied by the company are consistent with those used in the previous year.

Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

1. Tangible Fixed Assets:

• Fixed assets are stated at cost less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and directly attributable cost of bringing the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

• Borrowing costs relating to acquisition of tangible assets which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use. Assets under installation or under construction as at the Balance Sheet date are shown as Capital Work in Progress.

2. Intangible Fixed Assets:

• Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably

3. Impairment of Assets:

• The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset. Net selling price is the amount obtainable from the sale of an asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal.

• After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

4. Depreciation and Amortization:

• Depreciation on the fixed assets is provided under WDV method as per the rates prescribed in Schedule XIV to the Companies Act, 2013 or at rates permissible under applicable local laws so as to charge off the cost of assets to the Statement of Profit and Loss over their estimated useful life, except on the following categories of assets:

• Leasehold land and leasehold improvements are amortized over the primary period of lease.

• Intangible assets are amortized over their useful life of 5 years.

5. Investments:

• Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

• On initial recognition, all investments are measured at cost. The cost comprises the purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired by the issue of shares or the other securities, the acquisition cost is the fair value of securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.

• Current investments are carried at the lower of cost and fair value determined on an individual investment basis. Long- term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the long term investments.

• On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

6. Employee Benefits:

• Employee benefits include provident fund, employee state insurance scheme, gratuity fund and Compensated absences.

• Gratuity provision would be made at the time of payment.

7. Inventories:

• Stock in trade, stores and spares are valued at the lower of the cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business.

8. Borrowing Costs:

• Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest, exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost and other costs that an entity incurs in connection with the borrowing of funds.

9. Revenue Recognition:

• Revenue is recognized to the extent that it is probable that the economic benefits with flow to the company and the revenue can be reliably measured , regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

The specific recognition criteria described below must also be met before revenue is recognised.

• Revenue from the sale of goods is recognised when the significant risks and reward of ownership of the goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable , net of returns and allowances, trade discounts and volume rebates.

Other income

• Interest income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

• Dividend income is recognized when right to receive is established.

10. Taxation:

Tax expense comprises Current and Deferred Tax. Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961 and tax expense relating to overseas operations is determined in accordance with tax laws applicable in countries where such operations are domiciled.

• Deferred tax expense or benefit is recognized on timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

• Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by the same governing taxation laws

• Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. In the situations where the Company is entitled to a tax holiday under the Income realized against future taxable profits. In the situations where the Company is entitled to a tax holiday under the Income Tax Act, 1961 enacted in India, no deferred tax (asset or liability) is recognized in respect of timing differences which reverse during the tax holiday period, to the extent the Company''s gross total income is subject to the deduction during the tax holiday period. Deferred tax in respect of timing differences which reverse after the tax holiday period is recognized in the year in which the timing differences originate.

• At each balance sheet date the Company re-assesses recognized and unrecognized deferred tax assets. The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which the deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available. The Company recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

11. Earnings per share:

• Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

• 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 year are adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2023

Significant Accounting Policies:

Basis of preparation:

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). These financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on an accrual basis and going concern basis. The accounting policies have been consistently applied by the company are consistent with those used in the previous year.

Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

1. Tangible Fixed Assets:

• Fixed assets are stated at cost less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and directly attributable cost of bringing the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

• Borrowing costs relating to acquisition of tangible assets which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use. Assets under installation or under construction as at the Balance Sheet date are shown as Capital Work in Progress.

2. Intangible fixed Assets:

Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the

asset will flow to the enterprise and the cost of the asset can be measured reliably

3. Impairment of Assets:

• The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset. Net selling price is the amount obtainable from the sale of an asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal.

• After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

4. Depreciation and Amortization:

• Depreciation on the fixed assets is provided under WDV method as per the rates prescribed in Schedule XIV to the Companies Act, 2013 or at rates permissible under applicable local laws so as to charge off the cost of assets to the Statement of Profit and Loss over their estimated useful life, except on the following categories of assets:

• Leasehold land and leasehold improvements are amortized over the primary period of lease.

• Intangible assets are amortized over their useful life of 5 years.

5 Investments:

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises the purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired by the issue of shares or the other securities, the acquisition cost is the fair value of securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.

Current investments are carried at the lower of cost and fair value determined on an individual investment basis. Long- term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the long term investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

6. Employee Benefits:

Employee benefits include provident fund, employee state insurance scheme, gratuity fund and Compensated absences.

Gratuity provision would be made at the time of payment.

7. Inventories:

Stock in trade, stores and spares are valued at the lower of the cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business.

8. Borrowing Costs:

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest, exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost and other costs that an entity incurs in connection with the borrowing of funds.

9. Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits with flow to the company and the revenue can be reliably measured , regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

The specific recognition criteria described below must also be met before revenue is recognised.

Revenue from the sale of goods is recognised when the significant risks and reward of ownership of the goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable , net of returns and allowances, trade discounts and volume rebates.

Other income

• Interest income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

• Dividend income is recognized when right to receive is established.

10. Taxation:

• Tax expense comprises Current and Deferred Tax. Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961 and tax expense relating to overseas operations is determined in accordance with tax laws applicable in countries where such operations are domiciled.

• Deferred tax expense or benefit is recognized on timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

• Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by the same governing taxation laws

• Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. In the situations where the Company is entitled to a tax holiday under the Income realized against future taxable profits. In the situations where the Company is entitled to a tax holiday under the Income Tax Act, 1961 enacted in India, no deferred tax (asset or liability) is recognized in respect of timing differences which reverse during the tax holiday period, to the extent the Company''s gross total income is subject to the deduction during the tax holiday period. Deferred tax in respect of timing differences which reverse after the tax holiday period is recognized in the year in which the timing differences originate.

• At each balance sheet date the Company re-assesses recognized and unrecognized deferred tax assets. The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which the deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available. The Company recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

11. Earnings per share:

• Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

• 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 year are adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2014

A. General

Financial statements are prepared under the historical cost convention and in accordance with generally accepted accounting standards.

b. Fixed Assets and Depreciation

1. Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive of freight, duties, taxes & incidental expenses and net of Cenvat/Modvat credit, if any.

2. Depreciation has been provided on Fixed Assets under straight line method as per rates prescribed by schedule XIV of the Companies Act, 1956. In case of sugar work rollers, eligible depreciation under schedule XIV is 100% but the depreciation on the same has been considered by the Company at 5.28%.

c. Investments

Investments are stated at cost price.

d. Inventories

1. Sugar is valued at cost price or net realizable value which ever is less.

2. Molasses and Bagasse (By products) valued at net realizable value.

3. Stores and Spares, Stock-in-process and other inventories valued at cost or Net Realizable value whichever is lower. Cost is determined by using weighted average method.

e. Revenue recognition

1. Revenue/Income and Cost/Expenditure are generally accounted on accrual basis except as stated other wise.

2. Sales are inclusive of Excise duty.

f. Capital Grants

Investment subsidy from State Government towards capital cost has been considered as Capital Reserve.

g. Retirement Benefits

Contribution to Provident Fund is made monthly, at a predetermined rate, to the Commissioner of Provident Fund and debited to the Profit & Loss Account on accrual basis.

h. Cenvat Credit on Capital goods

Cenvat credit on capital goods is adjusted and taken credit out of the sale proceeds.

i. Miscellaneous Expenditure

Capital Issue Expenses/Preliminary Expenses are being amortized over a period of 10 years.

j. Taxes

Provision for current tax is made after taking into consideration benefits under the provision of the Income-Tax Act, 1961.

Deferred Tax is provided and recognized on timing differences between taxable income and accounting income subject to consideration of prudence.

k. Foreign Currency Transaction

Transaction in foreign currency are accounted for at the exchange rates prevailing on the date of transaction. Foreign currency current assets and current liabilities as at the year and other than those relating to fixed assets are translated at the applicable year and exchange rate and exchange differences, if any, are recognized in the Profit & Loss account. Foreign currency transactions covered under forward contracts are accounted for at the contracted rates.

l. Impairment of Assets

An Asset is treated as impaired when the carrying cost of the Asset exceeds its recoverable value. An Impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

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Mar 31, 2013

A. General

Financial statements are prepared under the historical cost convention and in accordance with generally accepted accounting standards.

b. Fixed Assets and Depreciation

1. Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive of freight, duties, taxes & incidental expenses and net of Convert/ Modvat credit, if any.

2. Depreciation has been provided on Fixed Assets under straight line method as per rates prescribed by schedule XIV of the Companies Act, 1956. In case of sugar work rollers, eligible depreciation under schedule XIV is 100% but the depreciation on the same has been considered by the Company at 5.28%.

c. Investments

Investments are stated at cost price.

d. Inventories

1. Sugar is valued at cost price or net realizable value which ever is less.

2. Molasses and Bagasse (By products) valued at net realizable value.

3. Stores and Spares, Stock-in-process and other inventories valued at cost or Net Realizable value whichever is lower. Cost is determined by using weighted average method.

e. Revenue recognition

1. Revenue/Income and Cost/Expenditure are generally accounted on accrual basis except as stated otherwise.

2. Sales are inclusive of Excise duty.

f. Capital Grants

Investment subsidy from State Government towards capital cost has been considered as Capital Reserve.

g. Retirement Benefits

Contribution to Provident Fund is made monthly, at a predetermined rate, to the Commissioner of Provident Fund and debited to the Profit & Loss Account on accrual basis.

h. Convert Credit on Capital goods

Convert credit on capital goods is adjusted and taken credit out of the sale proceeds

i. Miscellaneous Expenditure

Capital Issue Expenses / Preliminary Expenses are being amortized over a period of 10 years.

j. Taxes

Provision for current tax is made after taking into consideration benefits under the provision of the Income-Tax Act, 1961.

Deferred Tax is provided and recognized on timing differences between taxable income and accounting income subject to consideration of prudence.

k. Foreign Currency Transaction

Transaction in foreign currency are accounted for at the exchange rates prevailing on the date of transaction. Foreign currency current assets and current liabilities as at the year and other than those relating to fixed assets are translated at the applicable year and exchange rate and exchange differences, if any, are recognized in the Profit & Loss account. Foreign currency transactions covered under forward contracts are accounted for at the contracted rates.

I. Impairment of Assets

An Asset is treated as impaired when the carrying cost of the Asset exceeds its recoverable value. An Impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount

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Mar 31, 2012

A. General

Financial statements are prepared under the historical cost convention and in accordance with generally accepted accounting standards.

b. Fixed Assets and Depreciation:

1. Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive of freight, duties, taxes & incidental expenses and net of Cenvat/Modvat credit, if any.

2. Depreciation has been provided on Fixed Assets under straight line method as per rates prescribed by schedule XIV of the Companies Act, 1956. In case of sugar work rollers, eligible depreciation under schedule XIV is 100% but the depreciation on the same has been considered by the Company at 5.28%.

c. Investments

Investments are stated at cost price.

d. Inventories

1. Sugar is valued at cost price or net realizable value which ever is less.

2. Molasses and Bagasse (By products) valued at net realizable value.

3. Stores and Spares, Stock-in-process and other inventories valued at cost or Net Realizable value whichever is lower. Cost is determined by using weighted average method.

e. Revenue recognition

1. Revenue/Income and Cost/Expenditure are generally accounted on accrual basis except as stated other wise.

2. Sales are inclusive of Excise duty.

f. Capital Grants

Investment subsidy from State Government towards capital cost has been considered as Capital

Reserve. .

g. Retirement Benefits

Contribution to Provident Fund is made monthly, at a predetermined rate, to the Commissioner of

Provident Fund and debited to the Profit & Loss Account on accrual basis.

h. Cenvat Credit on Capital goods

Cenvat credit on capital goods is adjusted and taken credit out of the sale proceeds

i. Miscellaneous Expenditure

Capital Issue Expenses / Preliminary Expenses are being amortized over a period of 10 years, j. Taxes

Provision for current tax is made after taking into consideration benefits under the provision of the Income-Tax Act, 1961.

Deferred Tax is provided and recognized on timing differences between taxable income and accounting income subject to consideration of prudence.

k. Foreign Currency Transaction

Transaction in foreign currency are accounted for at the exchange rates prevailing on the date of transaction. Foreign currency current assets and current liabilities as at the year and other than those relating to fixed assets are translated at the applicable year and exchange rate and exchange differences, if any, are recognized in the Profit & Loss account. Foreign currency transactions covered under forward contracts are accounted for at the contracted rates.

I. Impairment of Assets

An Asset is treated as impaired when the carrying cost of the Asset exceeds its recoverable value. An Impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount

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Mar 31, 2011

1. General

Financial statements are prepared under the historical cost convention and in accordance with generally accepted accounting standards.

2. Fixed Assets and Depreciation

a. Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive of freight, duties, taxes & incidental expenses and net of Cenvat/Modvat credit, if any.

b. Depreciation has been provided on Fixed Assets under straight line method as per rates prescribed by schedule XIV of the Companies Act, 1956. In case of sugar work rollers, eligible depreciation under schedule XIV is 100% but the depreciation on the same has been considered by the Company at 5.28%.

3. Investments

Investments are stated at cost price.

4. Inventories

a. Sugar is valued at cost or net realizable value, whichever is less.

b. Molasses and Bagasse (By products) valued at net realizable value.

c. Stores and Spares, Stock-in-process and other inventories valued at cost or Net Realizable value whichever is lower. Cost is determined by using weighted average method.

5. Revenue recognition

a. Revenue/Income and Cost/Expenditure are generally accounted on accrual basis except as stated other wise.

b. Sales are inclusive of Excise duty.

6. Capital Grants

Investment subsidy from State Government towards capital cost has been considered as Capital Reserve.

7. Retirement Benefits

Contribution to Provident Fund is made monthly, at a predetermined rate, to the Commissioner of Provident Fund and debited to the Profit & Loss Account on accrual basis. Leave Encashment and Gratuity is provided on the basis as if all the eligible employees retire on the date of Balance Sheet.

8. Cenvat Credit on Capital goods

Cenvat credit on capital goods is adjusted and taken credit out of the sale proceeds

9. Miscellaneous Expenditure

Capital Issue Expenses / Preliminary Expenses are being amortized over a period of 10 years. 10.Taxes

Provision for current tax is made after taking into consideration benefits under the provision of the Income-Tax Act, 1961.

Deferred Ta x is provided and recognized on timing differences between taxable income and accounting income subject to consideration of prudence.

11.Foreign Currency Transaction

Transaction in foreign currency are accounted for at the exchange rates prevailing on the date of transaction. Foreign currency current assets and current liabilities as at the year and other than those relating to fixed assets are translated at the applicable year and exchange rate and exchange differences, if any, are recognized in the Profit & Loss account. Foreign currency transactions covered under forward contracts are accounted for at the contracted rates.

12.Impairment of Assets

An Asset is treated as impaired when the carrying cost of the Asset exceeds its recoverable value. An Impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

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Mar 31, 2010

1. General

Financial statements are prepared under the historical cost convention and in accordance with generally accepted accounting standards.

2. Fixed Assets and Depreciation

a. Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive of freight, duties, taxes & incidental expenses and net of Cenvat/Modvat credit, if any.

b. Depreciation has been provided on Fixed Assets under straight line method as per rates prescribed by schedule XIV of the Companies Act, 1956. In case of sugar work rollers, eligible depreciation under schedule XIV is 100% but the depreciation on the same has been considered by the Company at 5.28%.

3. Investments

Investments are stated at cost price.

4. Inventories

a. Sugar is valued at cost or net realizable value, whichever is less.

b. Molasses and Bagasse (By products) valued at net realizable value.

c. Stores and Spares, Stock-in-process and other inventories valued at cost or Net Realizable value whichever is lower. Cost is determined by using weighted average method.

5. Revenue recognition

a. Revenue/Income and Cost/Expenditure are generally accounted on accrual basis except as stated other wise.

b. Sales are inclusive of Excise duty.

6. Grants

a. Grants relating to capital cost is treated capital reserve.

b. Grants relating to revenue is treated as income.

7. Retirement Benefits

Contribution to Provident Fund ir made monthly, at a predetermined rate, to the Commissioner of Provident Fund and debited to the Profit & Loss Account on accrual basis. Leave Encashment and Gratuity is provided on the basis as if all the eligible employees retire on the date of Balance Sheet.

8. Cenvat Credit on Capital goods

Cenvat credit on capital goods is adjusted and taken credit out of the sale proceeds

9. Miscellaneous Expenditure

Capital Issue Expenses / Preliminary Expenses are being amortized over a period of 10 years.

10. Taxes

Provision for current tax is made after taking into consideration benefits under the provision of the Income-Tax Act, 1961.

Deferred Tax is provided and recognized on timing differences between taxable income and accounting income subject to consideration of prudence.

11. Foreign Currency Transaction

Transaction in foreign currency are accounted for at the exchange rates prevailing on the date of transaction. Foreign currency current assets and current liabilities as at the year and other than those relating to fixed assets are translated at the applicable year and exchange rate and exchange differences, if any, are recognized in the Profit & Loss account. Foreign currency transactions covered under forward contracts are accounted for at the contracted rates.

12. Impairment of Assets

An Asset is treated as impaired when the carrying cost of the Asset exceeds its recoverable value. An Impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

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Mar 31, 2009

1. General

Financial statements are prepared under the historical cost convention and in accordance with generally accepted accounting standards.

2. Fixed Assets and Depreciation

a. Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive of freight, duties, taxes & incidental expenses and net of Cenvat/Modvat credit, if any.

b. Depreciation has been provided on Fixed Assets under straight line method as per rates prescribed by schedule XIV of the Companies Act, 1956. In case of sugar work rollers, eligible, depreciation under schedule XIV is 100% but the depreciation on the same has been considered by the Company at 5.28%.

3. Investments

Investments are stated at cost price.

4. Inventories

a. Sugar is valued at cost or net realizable value, whichever is less.

b. Molasses and Bagasse (By products) valued at net realizable value.

c. Stores and Spares, Stock-in-process and other inventories valued at cost or Net Realizable value whichever is lower. Cost is determined by using weighted average method.

5. Revenue recognition

a. Revenue/Income and Cost/Expenditure are generally accounted on accrual basis except as stated other wise.

b. Sales are inclusive of Excise duty.

6. Grants

a. Grants relating to capital cost is treated capital reserve.

b. Grants relating to revenue is treated as income.

7. Retirement Benefits

Contribution to Provident Fund is made monthly, at a predetermined rate, to the Commissioner of Provident Fund and debited to the Profit & Loss Account on accrualbasis. Leave Encashment and Gratuity is provided on the basis as if all the eligible employees retire on the date of Baiance Sheet.

8. Cenvat Credit on Capital goods

Cenvat credit on capital goods is adjusted and taken credit out of the sale proceeds

9. Miscellaneous Expenditure

a. Capital Issue Expenses / Preliminary Expenses are being amortized over a period of 10 Years.

b. All expenditure, the benefit of which is spread over a number of years are amortized over subsequent years on the basis of the benefit derived in each year.

10. Taxes

a. Deferred Tax is provided and recognized on timing differences between taxable income and accounting income subject to consideration of prudence.

b. Minimum Alternate Tax (MAT) is treated as current Assets in view of eligibility cf credit in future years.The Company reviews the same at each balance sheet date and the adjustment is made accordingly.

11. Foreign Currency Transaction

Transaction in foreign currency are accounted for at the exchange rates prevailing on the date of transaction. Foreign currency current assets and current liabilities as at the year end (other than those relating to fixed assets) are translated at the applicable year end exchange rate and exchange differences, if any, are recognized in the Profit & Loss account. Foreign Currency transactions covered under forward contracts are accounted for at the contracted rates.

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Mar 31, 2008

1. General

Financial statements are prepared under the historical cost convention and in accordance with generally accepted accounting standards.

2. Fixed Assets and Depreciation:

a. Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive of freight, duties, taxes & incidental expenses and net of Cenvat/Modvat credit, if any.

b. Depreciation has been provided on Fixed Assets under straight line method as per rates prescribed by schedule XIV of the Companies Act, 1956. In case of sugar work rollers, eligible depreciation under schedule XIV is 100% but the depreciation on the same has been considered by the Company at 5.28%.

3. Investments

Investments are stated at cost price.

4. Inventories

a. Sugar is valued at cost.

b. Molasses and Bagasse (By products) valued at net realizable value.

c. Stores and Spares, Stock-in-process and other inventories valued at cost or Net Realizable value whichever is lower. Cost is determined by using weighted average method.

5. Revenue recognition

a. Revenue/Income and Cost/Expenditure are generally accounted on accrual basis except as stated other wise.

b. Sales are inclusive of Excise duty.

6. Capital Grants

Investment subsidy from State Government towards capital cost has been considered as Capital Reserve.

7. Retirement Benefits

Contribution to Provident Fund is made monthly, at a predetermined rate, to the Commissioner of Provident Fund and debited to the Profit & Loss Account on accrual basis. Leave Encashment and Gratuity is provided on the basis as if all the eligible employees retire on the date of Balance Sheet.

8. Cenvat Credit on Capital goods

Cenvat credit on capital goods is adjusted and taken credit out of the sale proceeds

9. Miscellaneous Expenditure

a. Capital Issue Expenses / Preliminary Expenses are being amortized over a period of 10 years.

b. All expenditure, the benefit of which is spread over a number of years are amortized over subsequent years on the basis of the benefit derived in each year.

10. Taxes

a. Deferred Tax is provided and recognized on timing differences between taxable income and accounting income subject to consideration of prudence.

b. Minimum Alternate Tax (MAT) is treated as current Assets in view of eligibility of credit in future years.The Company reviews the same at each balance sheet date and the adjustment is made accordingly.

11. Foreign Currency Transaction

Transaction in foreign currency are accounted for at the exchange rates prevailing on the date of transaction. Foreign currency current assets and current liabilities as at the year end (other than those relating to fixed assets) are translated at the applicable year end exchange rate and exchange differences, if any, are recognized in the Profit & Loss account. Foreign Currency transactions covered under forward contracts are accounted for at the contracted rates.

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Mar 31, 2007

1. General

Financial statements are prepared under the historical cost convention and in accordance with generally accepted accounting standards.

2. Fixed Assets and Depreciation:

a. Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive of freight, duties, taxes & incidental expenses and net of Cenvat/Modvat credit, if any.

b. Depreciation has been provided on Fixed Assets under straight line method as per rates prescribed by schedule XIV of the Companies Act, 1956. In case of sugar work rollers, eligible depreciation under schedule XIV is 100% but the depreciation on the same has been considered by the Company at 5.28%.

3. Investments

Investments are stated at cost price.

4. Inventories

a. Sugar is valued at cost.

b. Molasses and Bagasse (By products) valued at net realizable value.

c. Stores and Spares, Stock-in-process and other inventories valued at cost or Net Realizable value whichever is lower. Cost is determined by using weighted average method.

5. Revenue recognition

a. Revenue/Income and Cost/Expenditure are generally accounted on accrual basis except as stated other wise.

b. Sales are inclusive of Excise duty.

6. Capital Grants

Investment subsidy from State Government towards capital cost has been considered as Capital Reserve.

7. Retirement Benefits

Contribution to Provident Fund is made monthly, at a predetermined rate, to the Commissioner of Provident Fund and debited to the Profit & Loss. Account on accrual basis. Leave Encashment and Gratuity is provided on the basis as if all the eligible employees retire on the date of Balance Sheet.

8. Cenvat Credit on Capital goods

Cenvat credit on capital goods is adjusted and taken credit out of the sale proceeds

9. Miscellaneous Expenditure

a. Capital Issue Expenses / Preliminary Expenses are being amortized over a period of 10 years.

b. All expenditure, the benefit of which is spread over a number of years are amortized over subsequent years on the basis of the benefit derived in each year.

10. Taxes

a. Deferred Tax is provided and recognized on timing differences between taxable income and accounting income subject to consideration of prudence.

b. Minimum Alternate Tax (MAT) is treated as current Assets in view of eligibility of credit in future years. The Company reviews the same at each balance sheet date and the adjustment is made accordingly.

11. Foreign Currency Transaction

Transaction in foreign currency are accounted for at the exchange rates prevailing on the date of transaction. Foreign currency current assets and current liabilities as at the year end (other than those relating to fixed assets) are translated at the applicable year end exchange rate and exchange differences, if any, are recognized in the Profit & Loss account. Foreign Currency transactions covered under forward contracts are accounted for at the contracted rates.

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Mar 31, 2005

1. General

Financial statements are prepared under the historical cost convention and in accordance with generally accepted accounting standards.

2. Fixed Assets and Depreciation

a. Fixed assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive of freight, duties, taxes & incidental expenses and net of Cenvat/Modvat credit, if any.

b. Depreciation has been provided on Fixed Assets under straight line method as per rates prescribed by schedule XIV of the Companies Act, 1956. In case of sugar work rollers, eligible depreciation under schedule XIV is 100% but the depreciation on the same has been considered by the Company at 5.26%.

3. Investments:

Investments are stated at cost price.

4. Inventories

a. Sugar is valued at cost. Cost is determined by using weighted average method.

b. Molasses and Bagasse (By-products) valued at net realisable value.

c. Stores and Spares, Stock-in-process and other inventories valued at Cost or Net Realisable value whichever is lower. Cost is determined by using weighted average method.

5. Revenue recognition

a. Revenue/Income and Cost/Expenditure are generally accounted on accrual basis except as stated otherwise.

b. Sales are inclusive of Excise Duty.

6. Capital Grants

Investment subsidy from state government towards capital cost has been considered as capital reserve.

7. Retirement Benefits

Contribution to Provident Fund is made monthly, at a predetermined rate, to the Commissioner of Provident Fund and debited to the Profit & Loss Account on accrual basis. Leave Encashment and Gratuity is provided on the basis as if all the eligible employees retire on the date of Balance Sheet.

8. Cenvat credit on capital goods

Cenvat credit on capital goods is adjusted and taken credit out of the sale proceeds.

9. Miscellaneous Expenditure

a. Capital Issue Expenses/Preliminary Expenses are being amortised over a period of 10 years.

b. All expenditure, the benefit of which is spread over a number of years are amortised over subsequent years on the basis of the benefit derived in each year.

10. Deferred Tax

Deferred Tax is provided and recognised on timing differences between taxable income and accounting income subject to consideration of prudence.

For and on behalf of the Board As per our report of even date For Lakshminiwas & Jain Chartered Accountants Place: Hyderabad Vinod Bald U.C. Bhandari B. Ramesh Kumar Date: 06.06.2005 Chairman & Director Partner Managing Director Membership No. 200304

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Mar 31, 2003

1. General

Financial statements are prepared under the historical cost convention and in accordance with generally accepted accounting standards.

2. Fixed Assets and Depreciation

a. Fixed assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive of freight, duties, taxes, incidental expenses and net of Cenvat/Modvat credit, if any.

b. Depreciation has been provided on Fixed Assets under straight line method as per rates prescribed by schedule XIV of the Companies Act, 1956. However, in case of sugar work rollers, eligible depreciation under schedule XIV is 100% but the depreciation on the same has been considered by the Company at 5.28%.

3. Investments

Investments are stated at cost.

4. Inventories

i. Stock in Trade - Sugar valued at cost price. Hitherto the same was valued at market price. Sugar is valued at an estimated cost inclusive of Excise duty, depreciation, financial charges and other cost.

ii. Molasses and Bagasse (By-products) valued at net realisable value.

iii. Stores and Spares, Stock-in-process and other inventories valued at cost or Net Realisable value whichever is lower. Cost is determined by using weighted average method.

5. Revenue recognition

a. Revenue/Income and Cost/Expenditure are generally accounted on accrual basis except as stated otherwise.

b. Sales are inclusive of Excise Duty.

6. Capital Grants

Investment subsidy from state government towards capital cost has been considered as capital reserve.

7. Retirement Benefits

Contribution to Provident Fund is made monthly, at a predetermined rate, to the Commissioner of Provident Fund and debited to the Profit and Loss Account on accrual basis. Leave Encashment and Gratuity is provided on the basis as if all the eligible employees retire on the date of Balance Sheet.

8. Cenvat Credit on capital goods

Cenvat credit on capital goods is adjusted and taken credit out of the sale proceeds.

9. Miscellaneous Expenditure

a. Capital Issue Expenses/Preliminary Expenses are being amortised over a period of 10 years.

b. All expenditure, the benefit of which is spread over a number of years are amortised over subsequent years on the basis of the benefit derived in each year.

10. Deferred Tax

Deferred Tax is provided and recognised on timing differences between taxable income and accounting income subject to consideration of prudence.

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Jun 30, 2000

B. SIGNIFICANT ACCOUNTING POLICIES

1. General :

Financial statements are prepared under the historical cost convention and in accordance with generally accepted accounting standards

2. Fixed Assets and Depreciation :

a. Fixed assets are stated at cost less accumulated depreciation Cost of acquisition of Fixed Assets is inclusive of freight duties, taxes & incidental expenses.

b. Depreciation has been provided on Fixed assets under straight line method as per rates prescribed by schedule XIV of the companies Act 1956. However in case of sugar work rollers eligible depreciation under schedule XIV is 100% but the depreciation on the same has been considered by the Company at 5 28%.

J. Investments :

Investments are stated at cost.

4. Inventories :

i. Stock in Trade - Sugar valued at market price.

ii. Molasses and Bagasse ( By products) valued at market price.

iii. Stores and Spares, stock-in-Process and other inventories valued at Cost or Net Realisable value whichever is lower.

5. Revenue recognition

a. Revenue/ Income and Cost/ Expenditure are generally accounted on accrual basis except as stated otherwise.

6. Capital Grants

Investment subsidy from state government towards capital cost has been considered as capital reserve.

7. Retirement Benefits

Contribution to Provident Fund is charged to revenue. Leave Encashment and Gratuity are accounted as and when paid.

8. Modvat credit on Capital goods

Modvat credit on capital goods is adjusted and taken credit out of the sale proceeds.

d. Miscellaneous Expenditure

a. Capital Issue Expenses / Preliminary Expenses are being amortised over a period of 10 years.

b. All expenditure the benefit of which is spread over a number of years are amortised over subsequent years on the basis of the benefit derived in each year.

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Jun 30, 1999

1. General :

Financial statements are prepared under the historical cost convention and in accordance with generally accepted Accounting standards.

2. Fixed Assets and Depreciation :

a. Fixed assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive of freight, duties, taxes & incidental expenses.

b. Depreciation has been provided on Fixed Assets under Straight line method as per rates prescribed by schedule XIV of the Companies Act, 1956 However in case of sugar work rollers, eligible depreciation under schedule XIV is 100% but the depreciation on the same has been considered by the Company at 5.28%.

3. Investments : Investments are stated at cost 4. Inventories :

i. Stock in Trade - Sugar valued at marked price.

ii. Molasses and Bagasse (By-products) valued at market price.

iii. Stores and Spares, stock-in-process and other inventories valued at cost or Net Realisable value whichever is lower.

5. Revenue recognition

a. Revenue/Income and Cost/Expenditure are generally accounted on accrual basis except as stated otherwise.

b. Sales are inclusive of Excise Duty.

6. Capital Grants

Investment subsidy from state government towards capital cost has been considered as capital reserve.

7. Retirement Benefits

Contribution to Provident Fund is charged to Revenue. Leave encashment and Gratuity are accounted as and when paid.

8. Modvat credit on capital goods

Modvat credit on capital goods is adjusted and taken credit out of the sale proceeds.

9. Miscellaneous Expenditure

a. Capital Issue Expenses/Preliminary expenses are being amortised over a period of 10 years

b. All expenditure, the benefit of which is spread over a number of years are amortised over subsequent years on the basis of the benefit derived in each year.

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Jun 30, 1998

1. General

Financial statements are prepared under the historical cost convention and in accordance with generally accepted Accounting standards.

2. Fixed Assets and Depreciation

A. Fixed assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive of freight, duties, taxes & incidental expenses.

B. Depreciation has been provided on Fixed Assets under Straight line method as per rates prescribed by schedule XIV of the Companies Act, 1956. However, in case of sugar work Rollers, eligible depreciation under Schedule XIV is 100%, but the depreciation on the same has been considered by the Company at 5.28%.

3. Investments : Investments are stated at cost.

4. Inventories :

a. Stock-in-Trade - Sugar valued at market price.

b. Molasses and Bagasse (By-Product) valued at uniform price as is sold on enforceable agreed price.

c. Stores and Spares, Stock in Process and other inventories have been valued at Cost or Net Realisable value whichever is lower.

5. Revenue Recognition

a. Revenue/Income and Cost/Expenditure are generally accounted on accrual basis except as stated otherwise.

b. Sales are inclusive of excise duty.

6. Retirement Benefits

Contribution to Provident Fund is charged to Revenue. Leave encashment and Gratuity are accounted as and when paid.

7. Modvat Credit on Capital Goods

Modvat credit on capital goods is considered on actual realisation at the time of sale.

8. Miscellaneous Expenditure

a. Capital Issue Expenses are being amortised over a period of 10 years.

b. Preliminary Expenses are being amortised over a period of 10 years.

c. All expenditure, the benefit of which is spread over a number of years are amortised over subsequent years on the basis of the benefit derived in each year.

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Jun 30, 1997

1. GENERAL

Financial statements are prepared under the historical cost convention and in accordance with generally accepted Accounting standards.

2. FIXED ASSETS AND DEPRECIATION

i. Fixed assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive of freight, duties, taxes & incidental expenses.

ii. Depreciation has been provided on Fixed Assets under Straight line method as per rates prescribed by schedule XIV of the Companies Act, 1956. However, in case of sugar work Rollers, eligible depreciation under Schedule XIV is 100%, but the depreciation on the same has been considered by the Company at 5.28%.

3. INVESTMENTS Investments are stated at cost.

4. INVENTORIES i. STOCK-IN-TRADE - Sugar valued at market price. Hitherto the company was valuing the finished stocks at cost or market value which ever is lower.

ii. Molasses and Bagasse (By-Product) valued at uniform price as is sold on enforceable agreed price.

iii. Stores and Spares, Stock in Process and other inventories have been valued at Cost or Net Realisable value whichever is lower.

5. REVENUE RECOGNITION

i. Revenue/Income and Cost/Expenditure are generally accounted on accrual basis except as stated otherwise.

ii. Sales are inclusive of excise duty.

6. RETIREMENT BENEFITS

Provident Fund Act and Gratuity Act are not yet applicable to the company. As such liability of the same is not considered. Leave encashment is accounted as and when paid.

7. MODVAT CREDIT ON CAPITAL GOODS

Modvat credit on capital goods is considered on actual realisation at the time of sale.

8. DEFERRED REVENUE EXPENDITURE

All expenditure, the benefit of which is spread over a number of years are grouped under preliminary expenditure and will be amortised over subsequent years on the basis of the benefit derived in each year.

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Jun 30, 1996

1. GENERAL

Financial statements are prepared under the historical cost convention and in accordance with generally accepted Accounting Standards.

2. FIXED ASSETS AND DEPRECIATION

A. Fixed assets are stated at cost less accumulated depreciation. Cost of aquisition of Fixed Assets is inclusive of freight, duties & taxes, incidental expenses.

B. Depreciation is provided in accordance with the rates and rules prescribed under schedule XIV of the Companies Act, 1956 on Straight line basis.

3. INVESTMENTS

Investments are stated at cost.

4. INVENTORIES

a. Finished goods are valued at cost or market value whichever is lower.

b. Molasses (by product) valued at uniform price as is sold on enforceable agreed price.

c. Work in progress, raw materials, stores, spares, material in transit etc. are valued at cost.

5. SALES

Sales are inclusive of excise duty.

6. RETIREMENT BENEFITS

Provident Fund Act and Gratuity Act are not yet applicable to the company. As such liability of the same is not considered.

7. MODVAT CREDIT ON CAPITAL GOODS

Modvat credit on capital goods is considered on actual realisation at the time of sale.

8. DEFERRED REVENUE EXPENDITURE

All expenditure, the benefit of which is spread over a number of years are grouped under miscellaneous expenditure and will be amortised over subsequent years on the basis of the benefit derived in each year.

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Mar 31, 1995

1. Accounting concepts

The Accounts are prepared on the Historical cost basis and on the Accounting principles of going concern.

2. Fixed Assets Fixed Assets are stated at cost which includes Installation and other expenses.

3. Depreciation

Depreciation has been provided on Fixed Assets under Straight line method as per rates prescribed by Schedule XIV of the Companies Act, 1956. In respect of the Assets whose actual cost does not exceed Rs.5000/-depreciation has been charged @ 100%.

4. Expenditure During Construction Period

Expenditure incurred during the construction period will be allocated to the capital cost on completion/commercial production of the project.

5. Deferred Revenue Expenditure

All expenditure, the benefit of which is spread over a number of years are grouped under miscellaneous expenditure and will be amortised over subsequent years on the basis of the benefit derived in each year.

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Mar 31, 1994

Not available.