Accounting Policies of Khaitan (India) Ltd. Company

Mar 31, 2024

2. Significant Accounting Police

I) Property, Plant &nd Equipment

Property, plant an o equipment (PPE) are slated ni Pint oE acquisition or deemed cost on the d ate of Irons Itlon less accumulated dtoprociatior and bnpa Imient tosses, if any. Cost of an asset comprises of coal of acquisition or consttucCon and f ncfudes, where applicable, inwsrdfhHght, duties and taxes, InstaBallon expanses, prof esstona! fees, borrowing coats, inSial estimates of the cost of dismantling, cost of replacing beiTs of line property, plant and equipments and other costs dl raclfy attributable to the bringing Ihe asset In the location and con n.-r''m necessary for It to be capable of operating in the Intended manner and purposes. Capita; Spate pans vjhich are integral oart oflhe plant and equipment ate capitalized

When stgnrfioent parts erf plant and equipment are requited tm be replaced at intervals, the same are capitalized and old component is derecognized

When part? of an item ol property, plenlend equipment haw aifterenT useful lives, they are accoumetf far as separate items (major wmpanentSf of property, plant and equipment,

Assets to be disposed off are resorted at Ihe lower of the cany ing value or Ihe "sii value less cost to sell.

Bearer plants comprising of matured plants are stated ar cost Hnd disetosetf under Property, plant & Equipment. The company recognised the bearer plants at (ml rvalue and nave used euch fair value as wot.

Deprecation on FPE commences wtie.n the easels are ready for ineir intended use. Depreciation on fill Property Flam and Equipment is provided es per Schedule II of Companies Act, £013 under Streighi bine Melhod over estimated useful lives tereach category a| ess Big eg under:

o The residual value ofassela has been considered as ilve percent of the or Iglnal cost cttfie assets as per Schedule II ut the Ad. o Depreciation Is provided on pro-rata basts on adtUficns and deletions of Property, Planland Equ ipmenl during ihe y ear.

o In case of Impairment, II any, depreciation 1s provided qq 1ho revised canying amounl of the sssels over its remaining uselol life.

o Depreciation methods, useful lives and residual values are reviewed and adjusted as appropriate, at eac h reporting date.

II) Intangible Assets

Intangible assets are stated at cost comprising of purchase price inclusive of cubes end taxes, where applicable, less accumulated amount ol amortization and impairment losses. Such assets, am Emurtized over ihe useful Hie using straighl line method and assessed for Itinpai rment whenevertiiore i s an Indication of the same.

The Company currenfty havef nlanglbte asset by way of Perry Right.

III) Derecognition of fungible and Intangible As sets

An item of PPE is derecognized upon dispose or when no future economic benefrts are expected to arise from ts use :w disposal, Gain or loss arising on tiie disposal or retirement of an item cf PPE la determined as The difference between Ihe sale proceeds and fhe carrying amount of tltc assel and is recognized in die Statement of Profit and Loss-

Iv) in vestment preps rile?

investment Property is property icocnpi i sng iand or buiidi ng or d oth) held to earn i enta¹ nee me or tor cap tai apprecian an or aotn, twlrmt hr sals In i^l.i nary Gourse erf business, uift to the prodtJGtl in of supply nlgcun: pi sevcea r -rf ir administrative pd-poses

Any g;nn«iosson o.spc-sal of tow jtr>ent picpeny is deieim nocasthe0Terencebetween,netdisposal weceeasan-o me carry ng amount- if die property ard is recognized .n the st-atei’-’enlijl profit and ln&5

Tite dc-p reciable investment pi'' iparty i e buildings, .he depreciated i n a 5tn?.igb-.t i ie -nemi n at ft -¦ ate det^ rmir ed based ¦ ip the useful life as provided under ScliedL ie; I of the Act.

investment p^rc denies are dMscegnlzsd e ther ''jnen d’ty have (wen disposed dTarwtwnitoeyaTi* p srmancntiy vyithdtawii fti m die use and nt ¦ fijeorc- oconomfc benefit t eipected from tfieird ;noasi Tne net di''feience between tor- re; diapostS r roceeda and the carrying mimirita''the asset toiMMgnazfld in Dnafit of ^osmotfiF. oe-iiod of de-recognition

v( impairment of Tangible and I ntangihie Ass els

Tangrtmand Intangible assets are reviews^at enrh i-.aian-ce shr-t dab- foi Impairment In caaaevents and cincun’siiinfes indicate any Impamtiflnt, recoverable amount o! espetf. is detonmined An ''mpaiitoent loss is recognised in the sWemstll of outfit and -css, whenever the carrying amoun! of essets eitnei belonging to Cash Generating Jn i (CflU) or otherwiia exceeds recrjverame bp^-cunt TlwiBcwdraWe amount is hie ughe;-rr assets fail vs’ueJeas cost of tfapoesfard its value in LBfc (nas»3!|1iiB value In ise, ttie estimated furu ensihfimvsfi-nr-.inei-se rf the apse-:? e-e (fiscountficftathft I presentvflfueatapipfflprlBttr&B

Impairment losses fecrig-ii7ed sen er m.’-v nr. longer e-j(k- 1.'' may neve came down E.ivad on such .Essessmant e'' eg.-h racort.-ng penod the impairment IMS [s svereeq and recognized in tne Statement of Profit en.n Lc-FS ns Jttl case? the carryi.no amount r.-f the essei s Increased to the -iwercf it= rerr.-vernt-ie an’rujnf end the carrying emoiinr :hgt ha- - been darenr red, rs: of dervpc''Rtior, had no mo&inrient tos 5 beer, ^c apn^ad f of the asset in pri or years

vl) BiologtcsL Assets oth er then Bearer PJsnt

R a cg-cs'' ssneis other nai hearer pirerh- rere measured a: Fair vsIlf ess aalimgted nosh; tc sell, flhenger ir fair value ere

recconiiedin the-Stare-neot of Profit an.o 1 oss

The fair vultw of tiiese asset? exciqdes the land upon wvncn me stops Hre pianiec of th? Hems of PPE -uti red in the upKeep of planted areas

r-irhk.IngicElHseatr other than dearer plants, where biafag cal tren^lpnnation ia=. tesenelepes nee the ihHiel CPStVrta ncurreo (tor era''iplf seec!ir-r;s planted mniRdictely cefce the nieiaicR shr-ei dete), sorb biological BSSetS ot.ner Than bearer plen''s a^rR meest.rec rtega'' e the total evpenser .ncurred n sych plentet-r. n pn (Dlhe he erceeiieetdet=

rill Finnnctef Asaeisend Lrabilfties

Financial assets end financial liepili''jes (fjianpial ir strpmon^fJi;i a^ra recsgni7ed vjhen ConnpHn; becomes a paly 10 the contractual pnovtsipne erf the inspempnis

Fmancia) assets- and linancisl HetiiHtiB& are ihiiially measured ai fair vatue. Tranasctinn costs that are draefy aUrfljufaWe m the acquisi-im or issue of than cia asaft= ^nd finarcfal^: abi t ea (other Ms n ’Inane al ssaetS andf narcia-. i.= c iifiea at fair value ihroogtl proPt o- ipsa! a?E E.I jfi( tp dr deducted fr-oi- inp fair veIof cine t''nan.E-a: ssse’j: or ’tna.ir''al aoi¹ l^:pa, as appropriate cr ^:n^:r''=al tedfiBriifion T''anaa-rt no cgpts e rectly ettibutobfe to :r e acomsition offmenc al aseetao.- financier ^:aoi''-itiss etia i velue (bnOtigh profitOr loss See rawgniied irtimediBtely in the fiEal-mer-1 cFF-of.i and Loss.

The financial assets and financial liatj-ililies are classified as cunent if they are emreded (? &e realised w settled within opereting cyc:e nfnscqmpBny r''lihE ¦ -.''ise Shaeftare CsasSifed asnen ovirgnt.

Tneoass fixation o^J f i-ena nsnjmantswnethertocemeafiurefl sit/men ??r: Cost, elFairV&iueTiiraugh Profit ci''c ..r¦ (F''/T^L cr si F^ir Value Ti''ioL rh Oth^r Corrc''EPensi''.''F IrVCdCne iFVTDCi) d=cencs on the s-jjaedve arc ocfTtractgaJ ter nstc wn ch mev re ata. Glsssif-caiionscifinano a instfUmehlS a re darerrri naden r-1 a; ¦ecogrifon

a | Cash and cash equivalents

A-l h gh y liquid firancia¹ Irtstrutient;, ¦ i¦ loin a-a .read: y wnveftlbW inla determfnabla ar-iOLi irs [dcssh arc -.r oh are sl r.eti tir an rEi cr. F.roHnrt ^risk change in "il-ja ana arehaiv ng ::-r ^ na| rT.atLiritieso tn res m-::r ;ns nrieashorn lire datepj’chase, are oo-isidereo as cash equivalents Gash find cash es.i, -relents incudes L-airerc-ES -. tn cur- _; tyf^ch ere inreStrictsd tor WlqdreWarerausaye.

b) Financial Aiicti and financial Liabilities measured ul unoniud cost

Financial Assets Meld wtltiln a tHialnsss whu se objective la ¹o hold these assets in order to colleot oontraDtual cash flows and the Mirtraclual terms of the ¦financial asset give rise an specified dates 1

The above Flnanaal Asscts-and Financial Liabilities subsequent to tnila) lecogmtlon ats measured a;amortized cost using Effeclive Interest Rale )EI R) rmthcid.

The affective interest raja is The ratethat exactly di&Guunis estimated future cash payments or receipts (Including alt fees and points paid or received, transaction oasis and other premiums or discounts) through Ihe swpacsed lile of the Rnancial Asset or Financial Liability la the grass carrying amount of thefinanciai asset cr to the amortized cost of financial KnblUty, where appro oriate, a shorter period, Do the nel carrying amount on initial recognition

c) Financial Asset ait Fair Value through Other Comprehenalvs Income (FVTOCQ

Financial assets are measured at lair value through other comprehensive Income if tfiese financial asters are hHd within h business whose objective is achieved by both collecting contractual cash Hows and selling- financial assets and ihe MPbactuaJ terms ol tine linanctel asset give rise on specified daws to cash flows that are solely paiymenla of principal and interest on the -princisal amount ontslandi ng. Subsea ueni to initial recognition, they ere measured at fair value and changes therein are recognized directly In other comprehensive income

For itie purpose of para (b; and (c) above, principal is Ihe Isir value of the financial asset at Initial recognition Hnii interest consists of ecnsbdersilKir for the time value Df money and associated credit risk.

g! FInan e!al Assets on Usbllftlas ai Fair value through profit or lues

Financial Instruments which do nol meet the¹ criteria of amortized owl or fair value through other cottiprenenarve income are classified as Fair Value through Profit nr loss. These are recognized at fair value and changes inetein are recognized In the sraiemenl of profit and loss.

vlll) rm patriwenl of financial aaaels

A financial asset is assessed for rmpsirment at each reporting date. A financial asset is considered to be impaired ir objective evidence Indicates rhal one or mere evente have had a negative effect on the estimated luture cash flows of (hat asset

The company measures the loss allowance lor a financial assets at an amount equal 10 the Retime e#p«cted credit losses ff the credit ritik on that fi nsnciel instrument haa increased significantly since initial recognition ir the credit risk on a financial instrument has run Increased significantly since initial recognition, the company measures (he Ices allowance for that financial Instrumental an amount equal to 1 a-monih expected oredk Inases-

Hmvevier.fnf bade recervables or conbactassefs that result in rgigtiori to revenue from contracts with customers, Ihe company has not cpaedio meosures-the loss allowance as an amount equei lo lifetime expected credil losses,

EX) De -recognition of Financial Instrument

The Company da-rewgnizes a financial asset nr a gngup of financial essets when the contraicru0!l rights to Ihe cash flows from the asset expire, pi when it transfers the financial eseel and aubetentiaBy all the risks and rewards of ownership af the asset to another party,

Or de-neccgnitipn of a financial eseer (except for equity instruments designated ae FVTQCl), tire difference betwaen |he sssefe cenying amount and me sum of the cunsiderelicn received a nd receivable a re recognized in etatemenl ejF profit end loss.

On tfe-r ecognifipn of assets measured si FVTOCJ the dime lelivp gain or lass C'' evinusly recognised in other com prehensiva ihoamB is reclassified from equity to profit ortpse as a redassilication ndjustment.

Fmandai Sabiritjes ere derecognized if pie Company^ obligations specified in 1he Contract expire or ant discharge dj csncefiletf. The difference between Ihe carrying amount of me financial liability derecognised end the consideration paid and payable is recognized in Sleterpent of Pto-fii and Lues.

Presentation Currency

" sese f nircie. statEf Ents ere p ^reseniec^: r¹ i-:ian F.jpee, Ine niters! cl nercy of nd'';. ivhjth is #6 fijndSjfiiiJ rnJFrBwy bf the comsany

Transactions an J^: E ata n-ce s

Transasr-r.ns in ^;c''e''gn c-uiTEncies a-e translalEd ints : ie fijnetjen^ cuner-sy at the e^cnange lares prevailing cn ;Pe dele ai the I ^rensaid: 3re ⁼t^rE sn LLrrer : y''“iSHeler* s'':ser: and - adi ties a ;re year-end are Ir^flsfatad ant e yBar- arc e-r: ^re gn exchange gaiilj aasto the e^ent egr-s sered as in adjustment r_C htsrss; Cost are corn Cared as pad cT bfl''fraAing Cost. The loss ?¦¦ gain thereon ard esc or na e^cherge a Fereices on feettlenajit oi 1ns foreign euitbnnyi Pansac’. ana cu - ri ¹ h 2 yee r ar a retag msec as nc-sre c-rExpe nsenlne j^_c^,: and -a as a-cceun¹

xii) Equity Share Capital

Ar equity nstrument is-a cgrPacithst evidences re.-: z uai interest n ire assets (il ; lEcanpa ny btlerdeoucrng alt-1 lb liabl! ! bs. Far yaiLiE of ttiB ecu !y sra-es is resercied as share capital -=n-d ire amount received In tan-:ess r.i pa; value is c-assrie: a:, iEC-u''L-ES Prern Jm.

Costs direttly adnbuiati a La Lhs issue si c''cirarysha^jBtd aie ''acsg lisec asadeduct-.cnfrc-n Equity, leLnl any Cut e''iec-l,

1

Inventories

Inventories are valued al rower a¹ the cost of estimeted net realizable value. Oast of inventories is escerta.ced do ''Average Cost Mediod" basis. Materials and sine^- suppose held tor use in the production cf inventories are not written down below cost if Ihe finished products in whicti they I''.''lll be incorporated are expected to be sold at or above cost

Cost in respect c| raw materials end stores and spares indue es eipansE s incidental to procurement orf Ihe same

CdsI in respect of finished goods and 1 hose undEr progress represents prime oast, and I nbtudes appropriate portion of overheads and excise duty.

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Mar 31, 2015

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 proportionately charged

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 Act.

e) Investments

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.

f) Inventories

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 realizable value.

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.

j) Taxation

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.

k) Impairment

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.

n) Provisions

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.

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Mar 31, 2014

A) Basis of preparation of Financial Statements

The Financial Statements are prepared in accordance with generally accepted Accounting Standards in India and the provisions of the Companies Act, 1956.

b) Basis of Accounting

The accrual basis of accounting is followed unless otherwise stated.

c) Tangible Fixed Assets

Fixed Assets (excluding Revalued Assets) are stated at cost including cost of installation and other incidental expenses. Assets of Rs. 5,000/- and below have been fully depreciated during the year of purchase.

d) Depreciation & Amortisation

Depreciation on Fixed Assets, acquired after 31.08.1970, has been calculated on Straight Line Method under Section 205(2)(b) of the Companies Act, 1956 while other assets have been depreciated on Written Down Value Method under Section 205(2)(a) of the said Act.

e) Investments

Investments are stated at cost. Provision for diminution in value of investment is not made if they are long term in nature. Investments, which are readily releasable and intended to be held for not more than one year from the date of investment made, are classified as Current Investments. All investments other than long term investments are classified as Current Investments. Current Investments are valued at lower of Cost or Fair Value.

f) Inventories

Inventories are valued on FIFO basis as under:- i) Stores, Spares & Others : At cost exclusive of CENVAT receivable ii) Finished Goods : At lower of cost or market value iii)Stock-in-Process:

-Sugar and Molasses: At lower of estimated cost or realisable value -Planted Trees, having maturity of above 18 months, are taken at estimated realisable value.

g) Cash and Bank Balance

Cash and Bank Balance comprises of cash on hand, balances with banks in current accounts and demand deposits with banks.

h) Foreign ExchangeTransaction

Transactions in foreign currencies are recognised at the prevailing exchange rates on the transaction dates. Realised gains and losses on settlement of foreign currency transactions are recognized in the Profit & Loss Account. Foreign currency monetary items at the year-end are reported at the year-end exchange rate, and the resultant exchange difference is recognised in the Profit & Loss Account.

In respect of transactions covered by Forward Exchange Contracts, the difference between the contract rate and spot rate on the date of transaction is amortised over the life of contract.

i) Contingent Assets & Liabilities

Contingent Liabilities are shown by way of Notes to the Accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable.

Contingent Assets are neither recognised nor disclosed in the financial statements.

j) Impairment of Assets

Impairment of losses, if any is recognised in accordance with the accounting standard issued in this regard by the Institute of Chartered Accountants of India.

k) Segmental Reporting

The company''s operating business are organised and managed as per location of the client. Common cost is allocated to the cost based on the Revenue Mix. Unallocated cost is disclosed separately. The company prepares its segment information in conformity with the accounting policy adapted for preparing and presenting the financial statement of the Company as a whole.

l) Earning Per Share

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders. m) Revenue Recognition Sales are shown inclusive of excise duty and net of returns. Dividend Income is recognised when right to receive is established.

n) Employees Benefits

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.

o) Leases

Lease rentals on operating leases are charged on a monthly basis to Accounts.

Assets taken on Finance Lease have been capitalised during the year of Agreement and charged off in accordance with the applicable rate of depreciation.

p) Borrowing cost

Borrowing costs in relation to a qualifying asset and capitalised as part of the cost of a qualifying asset when it is probable that they will result in future economic benefits to the enterprise and the costs can be measured reliably. Other borrowing costs are recognised as an expense in the period in which they are incurred.

q) Taxation

Provision for tax is made on the taxable income for the year in accordance with the applicable provisions of the Income Tax Act, 1961. Deferred tax is recognised subject to consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

r) Provisions

Provisions are recognised in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date.

s) 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.

t) 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.

Details of Security

1. Working Capital Term loan from IDBI was secured by Hypothecation of Stock, Book Debts, Standing Corps, all Moveable Properties and Mortgage of 2067.21 acres of Company''s Agriculture Land and second charge on Fixed Assets of Sugar Division and guarantee of its one director, overdrafts against pledge of Fixed Deposit Receipts.

2. Loan from Sugar Development Fund is secured by charge on specified assets and guaranteed by a director of the Company.

Terms of Repayment of Secured Term Loans

1. Loan from Sugar development fund for Rs. 287.55 lacs sanctioned on 31-03-1992 to be disbursed in 3 installments upto 31-03-1995. However, only one instalment of Rs. 132.19 lacs was disbursed. Initially rate of interest was 9% p.a. and penal interest was 2.5% above normal rate of interest. The interest rate was later revised to 4.5%. There was a moratorium of 3 years and Repayment of Principal was to be made in 4 equal annual instalments after expiry of moratorium period and interest on loan was payable annually. At present amount due on principal account is Rs.8563117 (Previous Year Rs.8563117) and Rs.23407350.70 (Previous Year Rs.21759260) towards interest. The Company has sent a proposal to Sugar Development Fund for concession/waiver of interest which is pending. Inerest on loan of Rs.1648081 for the year (Previous Year Rs.1554793) has been provided as per agreement.

The Company has defaulted in repayment of loan and interest in respect of the following :

1. Term Loan from IDBI was to be paid in monthly instalment of Rs.10 lacs. Although the full amount has been paid but the same has not been paid on due dates either in F.Y 2013-14; 2012-13 and 2011-12 and hence over and above the interest, compound interest and penalty on principal amount has been imposed.

2. The loan from Sugar Development Fund of Rs. 132.19 lacs was repayable in 4 annual instalments by 1999. There is a continuous default now. Principal amount of Rs. 46,56,883 has been paid and balance amount due is Rs. 8563117 as on 31-03-2014 (F. Y. 2013-14) and interest due is Rs.23,407,350.70 as on 31.03.2014.

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Mar 31, 2013

A) Basis of preparation of Financial Statements

The financial statements have been prepared in accordance with generally accepted Accounting Standards in India and the provisions of the Companies Act, 1956.

b) Basis of Accounting

The Company follows accrual basis of accounting unless otherwise stated.

c) Tangible Fixed Assets

Fixed Assets (excluding Revalued Assets) are stated at cost including cost of installation and other incidental expenses. Assets of Rs.5000/- and below have been fully depreciated during the year of purchase.

d) Depreciation & Amortisation

Depreciation on Fixed Assets acquired after 31.08.1970 has been calculated on straight line method under Sec. 205(2)(b) of the Companies Act, 1956 while other assets have been depreciated on Written Down Value Method under section 205(2)(a) of the said Act.

e) Investments

Investments are stated at cost. Provision for diminution in value of investment is not made if they are long term in nature.

Investments, which are readily releasable and intended to be held for not more than one year from the date of investment made are classified as Current Investments. All investments other than long term investments are classified as non-current investments. Current Investments are valued at lower of Cost or Fair Value.

f) Inventories

Inventories are valued on FIFO basis as under:-

i) Stores, Spares & Others : At cost exclusive of CENVAT receivable

ii) Finished Goods : At lower of cost or market value

iii) Stock-in-Process:

-Sugar and Molasses: At lower of estimated cost or realisable value

-Planted Trees, having maturity of above 18 months, are taken at estimated realisable value.

g) Cash and Cash equivalents

Cash comprises of cash on hand, balances with banks in current accounts and demand deposits with banks.

h) Foreign ExchangeTransaction

Transactions in foreign currencies are recognized at the prevailing exchange rates on the transaction dates. Realised gains and losses on settlement of foreign currency transactions are recognised in the Profit & Loss Account. Foreign currency monetary items at the year-end are reported at the year-end exchange rate, and the resultant exchange difference is recognised in the Profit & Loss Account.

In respect of transactions covered by Forward Exchange Contracts, the difference between the contract rate and spot rate on the date of transaction is amortised over the life of contract.

i) Contingent Assets & Liabilities

Contingent Liabilities are shown by way of Notes to the Accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable. Contingent Assets are neither recognised nor disclosed in the financial statements.

j) Impairment of Assets

Impairment of losses, if any is recognised in accordance with the accounting standard issued in this regard by the Institute of Chartered Accountants of India.

k) Segmental Reporting

The company''s operating business are organised and managed as per location of the client. Common cost is allocated to the cost based on the Revenue Mix. Unallocated cost is disclosed separately. The company prepares its segment information in conformity with the accounting policy adapted for preparing and presenting the financial statement of the Company as a whole.

I) Earning Per Share

Basic earning per share is calculated by dividing the net profit or Loss for the period attributable to equity shareholders.

m) Revenue Recognition

Sales are shown inclusive of excise duty and net of returns. Dividend income is recognised when right to receive is established.

n) Employees Benefits

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 actuarial valuation made by an independent actuary as per AS-15.

The liability for Gratuity and leave encashment has been provided with Annual Contribution to the Life Insurance Corporation of India under its Group Gratuity-cum-Life tosuiawce S>cVevte( Group Leave Encashment Scheme.

o) Leases

Lease rentals on operating leases are charged on a monthly basis to Accounts. Assets taken on Finance Lease have been capitalised during the year of Agreement and charged off in accordance with the applicable rate of depreciation.

p) Borrowing cost

Borrowing cost in relation to a qualifying asset and capitalised as part of the cost of a qualifying asset when it is probable that they will result in future economic benefits to the enterprise and the costs can be measured reliably. Other borrowing costs are recognised as an expense in the period in which they are incurred.

q) Taxation

Provision for tax is made on the taxable income for the year in accordance with the applicable provisions of the Income Tax Act, 1961. Deferred tax is recognised subject to consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period are capable of reversal in one or more subsequent periods.

r) Provisions

Provisions are recognised in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date.

s) 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.

t) 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.

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Mar 31, 2010

1. a) The Financial Statements are prepared in accordance with generally accepted accounting principles and as per the requirements of the Companies Act, 1856.

b) The accrual basis of accounting is followed unless otherwise stated.

c) Fixed Assets (excluding Revalued Assets) are stated at cost including cost of installation and other incidental expenses. Assets of Rs. 5,000/- and below have been fully depreciated during the year of purchase.

d) Depreciation on Fixed Assets, acquired after 31.08.1970, has been calculated on Straight Line Method under Section 205(2)(b) of the Companies Act, 1956 while other assets have been depreciated on Written Down Value Method under Section 205(2)(a) of the said Act.

e) Investments are stated at cost. Temporary diminution in the value of investments have not been provided for as they are long term in nature.

f) Inventories are valued on FIFO basis as under:-

i) Stores, Spares & Others : At cost exclusive of CENVAT receivable

ii) Finished Goods : At lower of cost or market value

iii) Stock-in-Process :

-Sugar and Molasses : at lower of estimated cost or realisable value -Planted Trees, having maturity of above 18 months, are taken at estimated realisable value

g) The liability for Gratuity and leave encashment is not provided for and actual liability is accounted for in the year of retirement of employees, except for the employees of the Marketing Division for which annual contribution is made to the Life Insurance Corporation of India under its Group Gratuity-cum-Life Assurance Scheme/Group Leave Encashment Scheme.

h) Sales are shown inclusive of excise duty and net of returns.

i) Foreign Exchange Transactions :

i) Transactions in foreign currencies are recognised at the prevailing exchange rates on the transaction dates. Realised gains and losses on settlement of foreign currency transactions are recognised in the Profit & Loss Account. Foreign currency monetary items at the year-end are reported at the year-end exchange rate, and the resultant exchange difference is recognised in the Profit & Loss Account.

ii) In respect of transactions covered by Forward Exchange Contracts, the difference between the contract rate and spot rate on the date of transaction is amortised over the life of contract. j) 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 Profit & Loss Account in the year of

harvesting.

k) Excise Duty under expenditure, represents payments made/to be made during the year on goods cleared/to be cleared.

I) Borrowing Cost: Borrowing costs in relation to a qualifying asset and capitalised as part of the cost of a qualifying asset when it is probable that they will result in future economic benefits to the enterprise and the costs can be measured reliably. Other borrowing costs are recognised as an expense in the period in which they are incurred.

m) Impairment of losses, if any, are recognised in accordance with the accounting standard issued in this regard by the Institute of Chartered Accountants of India.

n) Taxation : Provision for tax is made on the taxable income for the year in accordance with the applicable provisions of the Income Tax Act, 1961. Deferred tax is recognised subject to consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

o) Provisions are recognised in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date.

Contingent Liabilities are shown by way of Notes to the Accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable.

Contingent assets are neither recognised nor disclosed in the financial statements.

p) Payment for services where service tax is charged and credit for the same is taken as accounted net of service tax.