A. STATEMENT OF COMPLIANCE WITH IND AS
The standalone financial statements of the Company have been prepared in accordance with Indian Accounting standards (Ind AS) as
prescribed under Section 133 of the Companies Act .2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and
relevant amendment rules issued thereafter.
B. BASIS OF PRESENTATION:
The accompanying financial statements have been presented for the year ended 31st March. 2019 along with comparative information for the
year ended 31st March. 2018. These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) on
going concern basis under the historical cost convention on the accrual basis of accounting and the relevant provisions prescnbed in the
Companies Act 2013. besides the pronouncements/guidelines of the Institute of Chartered Accountants of India and of the Secunties and
Exchange Board of India. The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies(lndian Accounting
Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. The accounting policies have been
consistently applied by the Company except where a newly issued accounting standard is initially adopted or a revision to an existing
accounting standard requires a change in the accounting policy therto in use.
C. FUNCTIONAL AND PRESENTATION CURRENCY
The financial statements are presented in Indian Rupees (INR). which is also the Company's functional currency.
D. USE OF ESTIMATES:
In preparing the Company's financial statements in conformity with Ind AS, the Company's management is required to make estimates,
judgements and assumptions that affect the application of accounting policies, the reported amounts of assets and liabilities and the disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the
reporting period, the actual results could differ from those estimates.
Difference between actual results and estimates are recognised in the period in which the results are known or materialise and if material, their
effects are disclosed in the notes to the financial statements.
E. PROPERTY. PLANT AND EQUIPMENT:
Property, plant and equipment (Tangible and Intangible) are stated at cost less accumulated depreciation. Cost comprises the purchase
pnce and any cost attributable to bnngmg the asset to the location and condition necessary for its intended use. Expenditure incurred during
construction period has been added to the cost of the assets. These expenses have been allocated to the sugar and distillery units on a
reasonable basis.
F. DEPRECIATION:
Depreciation is provided in the manner prescribed in Schedule II of the Companies Act. 2013. The Carrying Value of Fixed assets are
depreciated over the revised remaining useful lives.
G. INVESTMENTS:
Non-Current Investments are valued at Fair Value through other Comprehensive Income.
H. INVENTORIES:
Inventories are valued as follows:
Raw materials, stores and spares, Material in transit and packing materials
Valued at lower of cost and net realisable value. However, materials and other items held for use in the production of inventories are not written
down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on
FIFO Basis.
Finished goods
Valued at lower of cost and net realizable value. Cost includes direct materials, labour and a proportion of manufacturing overheads based on
normal operating capacity. ** mi
Work-in-process
Valued at lower of cost up to estimated stage of process and net realisable value. Cost includes direct matenals. labour and a prooortion of
manufacturing overheads based on normal operating capacity. v M 0 oi
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the es!,mai„H
costs necessary to make the sale.
By-products
By-products are valued at Net realisable value.
I. REVENUE RECOGNITION:
Revenue is recognised to the extent it is probable that the economic benefits will (low to the Company and the revenue can be rel.ahlv
measured, regardless of when the payment is being made, Revenue from sale of goods is recognised when the significant nsks and reward* „r
ownership of the goods are transferred to the customer and Is stated net of trade discounts, sales returns.
Based on Ind AS 18, the company has assumed that recovery of excise duty (lows to the company on its own account This is for the reason
that it is a liability of the manufacturer which forms part of the cost of production, irrespective ol whether the goods are sold or not Since the
recovery of excise duty flows to the group on its own account, revenue includes excise duty.
However, sales tax/ value added tax (VAT)/Goods and Services Tax(GST) is not received by the company on its own account Rather it is lax
collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue, '
J. EMPLOYEE BENEFITS:
Short-term employee benefits are recognised as an expense at the undiscounted amount In the statement of profit and loss of the year in
which the related service is rendered.
The eligible employees of the Company are entitled to receive benefits under the Provident Fund and employee stale insurance corporation, a
denned contnbution plan In which both the employees and the Company make monthly contributions at a specified percentage of the covered
employees' salary The Company recognises such contributions as expense of the year in which the liability is Incurred.
The Company has an obligation towards Gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump
sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15
days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company makes
provision for gratuity on the basis of valuation by a Qualified actuarian.
K. INCOME TAX:
Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act 1961
Deferred income tax reflects the impact of current period timing differences between taxable income and accounting income for the period and
reversal of timing differences of earlier periods. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively
enacted at the balance sheet date. Deferred tax assets are recognised only to the extent that there is virtual certainty that sufficient future
taxable income will be available against which such deferred tax assets can be realised. MAT credit is recognised as an asset only when and to
the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the
Minimum Alternate tax (MAT) credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in
guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Statement of Pront
and Loss and shown as MAT Credit Entitlement The Company reviews the same at each Balance Sheet date
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