a. BASIS OF ACCOUNTING:
Financial statements are prepared under the historical cost convention
and as a going concern, on accrual basis and in accordance with the
normally accepted accounting standards.
b. FIXED ASSETS:
Fixed Assets are stated at cost less accumulated depreciation. Cost is
inclusive of freight, duties, taxes and any directly attributable cost
of bringing the assets to their working condition for intended use.
Depreciation is provided on Straight Line Method at the rates specified
in Schedule XIV of the Companies Act, 1956 on pro-rata basis. However,
for Assets given on Lease, Depreciation has been charged equally over
the lease period.
As the Operations in Distillery Division at Goa have been suspended for
the past eleven years, the stocks maintained were unusable for
commercial purpose and hence have been fully written off.
Investments are long term and stated at cost. Provision has been
created in the accounts for permanent diminution in the value of
f. FOREIGN CURRENCYTRANSACTIONS:
All foreign currency transactions are accounted for at the rates
prevailing on the dates of the transaction. Foreign currency
liabilities are converted at the year end rates as applicable.
The exchange difference on settlement / conversion is adjusted to a)
cost of fixed assets, if the foreign currency liability relates to
fixed assets and b) Profit and Loss account in all other cases.
g. REVENUE RECOGNITION:
Revenue is recognised at agreed rates on transfer of property in goods.
With respect to operating lease, lease rentals are accounted as and
h. RETIREMENT BENEFITS:
Contribution to Provident Fund, Family Pension Fund and approved LIC
Group Gratuity Scheme are charged in the year in which they are
incurred. Provisions for Leave Encashment have been made as per the
eligibility of the employees as at the end of the year on actual basis.
i. TAXES ON INCOME:
Tax on Income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of I ncome Tax Act 1961.
Deferred Tax is recognised on timing differences between the accounting
income and the taxable income for the year and quantified using the tax
rates and laws that are enacted or substantially enacted as on the
Balance Sheet date, where there is a carry forward loss or
depreciation. Deferred tax asset is recognised in books of accounts
only when there is reasonable certainty with respect to the future
j. BORROWING COSTS:
Borrowing costs that are attributable to construction of qualifying
assets are capitalised as part of cost of such assets till such time
the asset is ready for its intended use. A qualifying asset is an asset
that necessarily requires a substantial period of time to get ready for
its intended use. All other borrowing costs are recognised as an
expense in the period in which they are incurred.
a. Alpic Finance Ltd: The Company has accepted the OTS for the said
amount, which was payable by 30.09.2002. However, the Company has not
complied with the terms of OTS.
b. East India Hotels Ltd: This amount is payable on account of
termination of technical services agreement
with the party, and the said amount is payable by the Company by
31.12.2002 vide agreement dated 04.02.2002. The Company has made
default in repaying the amount along with interest.