a) Basis of Accounting
The Financial Statements are prepared under the historical cost
convention, except stated otherwise, on an accrual basis and in
accordance with generally accepted Accounting principles in India, the
applicable mandatory Accounting Standards as prescribed under Section
133 of the Companies Act, 2013 read with rule 7 of the Companies
(Accounts) Rules, 2014.
The financial statements have been prepared and presented as per the
requirement of Schedule III as mentioned under Companies Act, 2013.
b) Use of Estimates
The preparation of financial statements require judgements, estimate/
estimates and assumptions to be made that affect the reported amount of
assets and liabilities including contingent liabilities on the date of
the financial statements and the reported amount of revenues and
expenses during the reporting period. Difference between actual results
and estimates are recognized in the period in which the results are
known / materialized.
c) Fixed Assets Tangible Fixed Assets
i. Fixed Assets, other than those which have been revalued, are stated
at their original cost which includes expenditure incurred in the
acquisition and construction/installation and other related expenses.
ii. Revalued assets are stated at the values determined on valuation
Intangible Fixed Assets
Intangible Assets are at cost on initial recognition, after which the
same are stated at cost less accumulated amortization and accumulated
impairment loss, if any .
d) Depreciation & Amortization
i) Depreciation on tangible fixed assets provided on straight line
method at the rates determined based on the useful lives of respective
assets as prescribed in the Schedule II of the Companies Act. 2013.
ii) Depreciation for assets purchased / sold during the year is
iii) On amount added on revolution, depreciation is provided on
straight line method at the rates determined based on the useful lives
of respective assets as prescribed in the Schedule II of the Companies
i. 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.
ii. On initial recognition, all investments are measured at cost. The
cost comprises purchase price and directly attributable acquisition
charges such as brokerage, fees and duties.
iii Long term investments are stated at cost. Provision for diminution
is made if the decline in value, in the opinion of the management, is
other than temporary.
Inventories are valued as follows :-
Stores, Spares & Others are valued at cost. Finished Goods are valued
at lower of cost or market value. Stock in process of sugar and
molasses are valued at lower of estimated cost or realizable value and
planted trees having maturity of 18 months are valued at estimated
g) Employee Benefits
i. Employee benefits of short term nature are recognized as expense as
and when it accrues. Employee benefit of long term nature are
recognized as expense based on actuarial valuation using projected unit
credit method. ii Post employment benefits in the nature of defined
contribution plans are recognized as expense as and when it accrues and
that in the nature of defined benefit plans are recognized as expenses
based on actuarial valuation using projected unit credit method.
Actuarial gains or losses are recognized immediately in the statement
of Profit and Loss Account.
h) Foreign Currency Transactions
i. Transactions in foreign currencies are recorded at the rate of
exchange prevailing on the date of transaction, year end balance of
foreign currency transactions is translated at the year end rates.
ii. All exchange differences are recognized as income or expenses in
the period in which they arise
i) Recognition of Revenue and Expenses
All revenue and expenses are accounted for on accrual basis except as
otherwise stated. Gross Sales are inclusive of excise duty and net of
returns, claims and discount etc. Dividend income is recognized when
right to receive is established.
Provision for current Income Tax is made in accordance with the Income
Tax Act, 1961. The deferred tax charge or credit is recognized using
substantively enacted tax rates subject to consideration of prudence in
timing differences between book and tax profits. 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 assets can be realized.
An asset is treated as impaired when the carrying cost of the assets
exceeds its recoverable value being higher of value in use and net
selling price. Value in use is computed at net present value of cash
flow expected over the balance useful lives of the assets. An
impairment loss is recognized as an expense in the statement of Profit
& Loss in the year in which an asset is identified as impaired. The
impairment loss recognized in earlier accounting period is reversed if
there has been an improvement in recoverable amount.
l) Borrowing Costs
General and specific borrowing costs attributable to the acquisition,
construction or installation of qualifying capital assets till the date
of commencement of commercial use of the assets are capitalized. Other
borrowing costs are recognized as an expense in the period in which
they are incurred
m) Provisions and Contingent Liabilities
A provision is recognized if, as a result of past event, the company
has a present legal obligation that is reasonably estimable, and it is
probable that an outflow of economic benefits required to settle the
obligation at the reporting date. Where no reliable estimate can be
made, a disclosure is made as Contingent Liabilities. A disclosure for
contingent liability is also 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 out flow of resources
is remote, no provision or disclosure is made.
Earning Per Share
Basic earnings per share is calculated by dividing the net profit or
Loss for the period attributable to equity shareholders.
l) Employees Benefit
Contribution of Employer''s Share to Employee''s Provident Fund are
worked on accrual basis and charged to Profit & Loss Account. The
Company also provides for gratuity and leave encashment based on
acturial valuation made by an independent actuary as per AS-15.
m) Land on Leases
The company has leased out its land at Ramnagar admeasuring 4.0580
Acres for 99 years for Rs .6553228/ and received lease rent in advance
full payment and adjusted Rs.21143 during the year.
Provisions are recognized in respect of obligations where, based on the
evidence available, their existence at the Balance Sheet date.
o) Excise Duty, under expenditure, represents payments made/to be made
during the year on goods cleared/to be cleared. Payment of services
where service tax is charged and credit for the same is taken as
accounted net of service tax.
p) The expenses incurred on sugarcane and on trees are accumulated
under the caption Standing Sugarcane and Planted Trees (excluding
planted trees having maturity of over 18 months) respectively and
charged to statement of Profit & Loss in the year of harvesting.
(a) There has been no change /movements in number of Shares outstanding
at the beginning and at the end of the Reporting period .
(b) The company has only one class of issued shares i.e. Equity Share
having par value of Rs. 10/- per share . Each holder of Equity Shares
is entitled to one vote per share and equal right for dividend . In the
event of liquidation, the equity shareholders are eligible to receive
the remaining assets of the company after payment of preferential
amounts , in proportion to their share holding.