1. Basis for preparation of financial statements:
The financial statements are prepared under historical cost convention
in accordance with the Companies Act, 1956 and the Companies
(Accounting Standards) Rules, 2006 (Indian GAAP) as adopted
consistently by the company. All income and expenditure having material
bearing on the financial statements are recognized on accrual basis.
2. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amounts assets and
liabilities on the date of financial statement, the reported amount of
revenues and expenses during the reporting period and disclosures
relating to contingent liabilities as on the date of financial
statements. Difference between the actual results and the estimates are
recognized in the period in which the results are ascertained.
3. Fixed Assets & depreciation
All fixed assets have been stated at their historical cost less
accumulated depreciation/impairment loss. All costs relating to
acquisition including freight and installation charges are capitalized.
Depreciation is provided on a pro rata to the period of use, on
straight line method at the rates and in the manner prescribed in
Schedule XIV to the Companies Act, 1956. Depreciation on all assets
costing less than Rs. 5000 are provided at 100%.
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Statement
of Profit and Loss in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
4. Valuation of Inventories
Inventories are valued at lower of cost and realizable value; cost
being ascertained on the following basis:
- Stores, spares, consumables, raw materials and components: First in
first out method.
- Finished goods: Cost of input plus appropriate overhead.
- Work in progress: Cost of input plus overheads up to the stage of
Damaged, un-saleable and non-moving items of stocks have been suitably
5. Revenue Recognition
Revenue from sale of products is recognized on despatch of goods in
accordance with the terms and conditions of sale. Revenue from
bottling is recognized in accordance with the specific terms of the
contract on performance.
6. Foreign Currency Transactions
Monetary assets and liabilities denominated in foreign currency are
restated at the exchange rates prevailing as at the Balance sheet date
and gain or loss arising from such restatements is adjusted in the
profit and loss account.
7. Borrowing Cost
Borrowing costs other than that attributable to the qualifying asset
are expensed as and when incurred.
8. Provision for Current and Deferred Tax
Tax expenses comprising of current tax, deferred tax. Provision for
current taxation is made on the basis of assessable profits computed in
accordance with the provisions of the Income tax act, 1961.
Deferred tax is recognized, subject to the consideration of prudence,
on timing differences, being the differences between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax assets are
recognized on unabsorbed depreciation and carry forward of losses based
on virtual certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
9. Employee Benefits
a) Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits and
recognized in the period in which the employee renders the related
b) Defined Contribution Plans
The Company has defined contribution plans for employees comprising of
Provident Fund. The contributions paid/payable to these plans during
the year are charged to profit and loss account for the year.
c) Defined Benefit Plans-Gratuity
The net present value of the obligation for gratuity as determined on
independent actuarial valuation, conducted annually using the projected
unit credit method, as adjusted for unrecognized past services cost, if
any, is recognized in the accounts. Actuarial gain and losses are
recognized in full in the Profit & Loss Account for the period in which
d) Long Term Employee Benefits
The Company has a scheme for compensated absences for employees, the
liability of which is determined on the basis of an independent
actuarial valuation carried out at the end of the year, using the
projected unit credit method. Actuarial gains and losses are recognized
in full in the Profit and Loss Account for the period in which they
10. Provisions, Contingent Liabilities and Contingent Assets
Provisions requiring substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
Notes on Accounts. Contingent Assets are neither recognized nor
disclosed in the Financial Statements.