Click it and Unblock the Notifications
Accounting Policies of KM Sugar Mills Ltd. Company
Mar 31, 2025
2. Significant Accounting Policies
2.1 Statement of Compliance with Ind AS
The standalone financial statements have been prepared in
accordance with the Indian Accounting Standards (referred to as
"Ind AS") prescribed under section 133 of the Companies Act, 2013
("the Act") read with Rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 (as amended from time to time).
All the Ind AS issued and notified by the Ministry of Corporate
Affairs under the Companies (Indian Accounting Standards) Rules,
2015 (as amended) till the financial statements are approved for
issue by the Board of Directors has been considered in preparing
these financial statements.
2.2 Basis of Preparation of Financial Statements
These financial statements are prepared on the accrual basis of
accounting, under the historical cost convention except for the
following:
(i) Certain financial assets and financial liabilities measured at fair
value and
(ii) Defined benefits plan - plan assets measured at fair value.
There is no change in the system of accounting as being
consistently followed from earlier years unless otherwise stated.
All assets and liabilities have been classified as current or non¬
current as per Company''s normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013.
Operating cycle is the time between the acquisition of assets for
processing and their realization in cash or cash equivalents. The
Company has ascertained its operating cycle as 12 months for the
purpose of current and non-current classification of assets and
liabilities. Deferred tax assets and liabilities are considered as non¬
current.
2.3 Use of Estimates
The preparation of the Financial Statements in conformity with
measurement principle under Ind AS requires the management
to make estimates, judgment and assumptions that affect the
application of accounting policies and the reported amounts
of revenue, expenses, assets and liabilities including the
accompanying disclosures and the disclosure of contingent
assets and liabilities.
Estimates, judgments and assumptions are continuously
evaluated. They are based on historical experience and other
factors including expectations of future events that may have
a financial impact on the Company and are believed to be
reasonable under the circumstances.
The Company based its estimates, judgments and assumptions
on parameters available when the financial statements were
prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes
or circumstances arising that are beyond the control of the
Company. Such changes are reflected in the assumptions when
they occur.
The application of accounting policies that require critical
judgments and accounting estimates involving complex and
subjective judgments and the use of assumptions in these
financial statements have been disclosed herein below:
(i) Estimated useful life of Property, plant and equipment
Property, plant and equipment represent a significant
proportion of the asset base of the Company. The charge in
respect of periodic depreciation is derived after determining
an estimate of an asset''s expected useful life and the expected
residual value at the end of its life. The useful lives and residual
value of the asset are determined by the management when
the asset is acquired and reviewed periodically including
at each financial year end. The lives are based on technical
evaluation, historical experience with similar assets as well as
anticipation of future events, which may impact their lives,
such as change in technology.
(ii) Current taxes and deferred taxes
Significant judgment is required in determination of taxability
of certain income and deductibility of certain expenses
during the estimation of provision for income taxes.
Deferred tax assets are recognized for unused losses (carry
forward of prior years'' losses) and unused tax credit to
the extent that it is probable that taxable profit would be
available against which the losses could be utilised. Significant
management judgment is required to determine the amount
of deferred tax assets that can be recognized, based upon the
likely timing and the level of future taxable profits together
with future tax planning strategies.
(iii) Estimation of Defined benefit obligations
The cost of the defined benefit gratuity plan and the present
value of the gratuity obligation are determined using actuarial
valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments in
the future. These include the determination of the discount
rate, future salary increases and mortality rates. Due to the
complexities involved in the valuation and its long-term
nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed
at each financial year end.
The parameter most subject to change is the discount rate.
In determining the appropriate discount rate for plans, the
actuary considers the interest rates of government bonds.
The mortality rate is based on publicly available mortality
tables. Those mortality tables tend to change only at interval
in response to demographic changes. Future salary increases
and gratuity increases are based on expected future inflation
rates.
(iv) Estimated fair value of unlisted securities
The fair values of financial instruments that are not traded
in an active market and cannot be measured based on
quoted prices in active markets is determined using valuation
techniques including the discounted cash flow (DCF) model.
The company uses its judgment to select a variety of method
/ methods and make assumptions that are mainly based on
market conditions existing at the end of each financial year.
The inputs to these models are taken from observable
markets where possible, but where this is not feasible, a
degree of judgment is required in establishing fair values.
Judgment includes considerations of inputs such as liquidity
risk, credit risk and volatility. Changes in assumptions about
these factors could affect the reported fair value of financial
instruments.
2.4 Property, plant and equipment (PPE) and Capital work-in¬
progress (CWIP)
(a) All property, plant and equipment are measured at cost less
accumulated depreciation and impairment losses, if any. For this
purpose, cost includes deemed cost on the date of transition and
the purchase cost of assets, including non recoverable duties and
taxes, and any directly attributable cost of bringing an asset to the
location and condition of its intended use. Interest on borrowings
used to finance the construction of qualifying assets is capitalized
as part of cost of the asset until such time that the asset is ready
for its intended use.
(b) Costs incurred subsequent to initial capitalization are included in
the asset''s carrying amount only when it is probable that future
economic benefits associated therewith will flow to the Company
and it can be measured reliably.
The costs of regular servicing of property, plant and equipment
are recognized in the Statement of Profit & Loss as and when
incurred.
When parts of property, plant and equipment have different
useful lives, they are accounted for as separate components,
otherwise these are added to and depreciated over the useful life
of the main asset.
The cost and the accumulated depreciation are eliminated from
the financial statements upon sale or when no future economic
benefits are expected to arise from use of the asset and the
resultant gains or losses are recognized in the Statement of Profit
& Loss.
(c) Depreciation methods, estimated useful lives and residual value
Freehold land is not depreciated. Lease-hold land and lease hold
improvements are amortised over the lower of estimated useful
life and lease term.
Depreciation on other items of property, plant and equipment
commences when its assets are available for their intended use.
The Company has elected to continue with carrying value of
all Property, plant and equipment and Capital work-in-progress
(CWIP) under the previous GAAP as deemed cost as at the
transition date i.e. 1st April, 2016. In the financial year 2018-19 and
2019-20, the company has revalued the lease hold assets as well
as free hold assets considering entire class of land.
Depreciation on Property, plant and equipment (PPE) is
provided on written down value method as prescribed under
Part C of Schedule II to the Companies Act, 2013. The additional
depreciation, on increase in cost on account of revaluation, is
transferred to Retained Earnings from Revaluation Reserve and is
thus not charged to statement of Profit & Loss of the year.
Useful life of assets are considered on the base is of Schedule-
II of Companies Act, 2013. The management believes that these
estimated useful lives are realistic and reflect fair approximation of
the period over which the assets are likely to be used.
Each item of property, plant and equipment individually
costing Rs.5,000/- or less is depreciated over a period of one
year from the date the said asset is available for use. However,
in case of certain assets for staff individually costing more than
Rs.5,000/- are depreciated over the period of one year based on
management estimates.
The residual value of an item of property, plant and equipment
has been kept at < 5% of the cost of the respective assets.
The estimated useful lives, residual values and depreciation
method are reviewed at the end of each financial year and are
given effect to, wherever appropriate.
(d) Expenditure during construction period
Directly attributable expenditure (including finance cost
related to borrowed funds for construction or acquisition of
property, plant and equipment) incurred on projects under
implementation are treated as Pre-operative expenses pending
allocation to the assets and are shown under Capital work-in¬
progress. Capital work-in-progress is stated at the amount
incurred upto the Balance Sheet date on assets or property,
plant and equipment that are not yet ready for their intended
use.
2.5 Intangible assets
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortisation and accumulated
impairment losses. For this purpose, cost includes carrying value as
Deemed cost on the date of transition.
Internally generated intangible assets, excluding capitalized
development costs, are not capitalized and expenditure is
reflected in the statement of profit and loss in the year in which the
expenditure is incurred.
An intangible asset is derecognised on disposal, or when no future
economic benefits are expected from use or disposal. Gains or
losses arising from derecognition of an intangible asset, measured
as the difference between the net disposal proceeds and the
carrying amount of the asset, is recognised in the statement of
profit and loss.
Intangible assets: Computer software is amortized over a period of
three years and brand development is amortized over a period of
five years.
2.6 Revenue Recognition and Expenses
(i) Effective April 1 2018 the company adopted Ind AS 115,
revenue from contracts with customer using the cumulative
catch up transition method, applied to contracts that were
not completed as of April 1, 2018. In accordance with the
cumulative catch up transition method, the comparatives
have not been retrospectively adjusted. Revenue is recognized
upon transfer of control of promised products or services to
customers in an amount that reflects the consideration we
expect to receive in exchange for those products or services.
Arrangements with customers for services and goods are either
on a fixed-price, fixed-timeframe or on a time-and-material
basis.
Revenue on supply and service contracts are recognized as the
related performance obligation is completed.
Revenue from fixed-price, fixed-timeframe contracts, where
the performance obligations are satisfied over time and where
there is no uncertainty as to measurement or collectability
of consideration, is recognized as per the percentage-
of-completion method. When there is uncertainty as to
measurement or ultimate collectability, revenue recognition
is postponed until such uncertainty is resolved. Efforts or
costs expended have been used to measure progress towards
completion as there is a direct relationship between input and
productivity.
Revenues in excess of invoicing are classified as contract assets
(which we refer to as unbilled revenue) while invoicing in
excess of revenues are classified as contract liabilities (which
we refer to as unearned revenues).
(ii) Insurance claims have been accounted for on cash basis
looking in to the uncertainty and its collection as per past
practice.
(iii) Interest Income is accounted for on time proportionate basis.
For all debt instruments measured at amortized cost, interest
income is recognized using the Effective Interest Rate ("EIR").
Interest Income is included in "Other Income" in the Statement
of Profit and Loss.
(iv) Dividend Income is recognized when the Company''s right
to receive the dividend is established i.e. in case of interim
dividend, on the date of declaration by the Board of Directors;
whereas in case of final dividend, on the date of approval by
shareholders.
(v) All expenses are accounted for on accrual basis.
2.7 Inventory
Cost of inventory comprises of purchase price, cost of conversion
and other cost that have been incurred in bringing the inventories
to their respective present location and condition. Interest costs are
not included in value of inventory.
Inventories are valued as under:
⢠Raw Materials and Finished Goods (except molasses) are carried
at lower of cost and net realizable value. Stock of Molasses is
carried at net realizable value.
⢠Stores & Spares are carried at cost.
⢠Goods in Process / WIP are carried at lower of cost and net
realizable Value.
⢠Banked power with UPPCL is carried at lower of cost and net
realizable value.
2.8 Fair value measurement
The Company measures financial instruments at fair value at each
balance sheet date.
Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either:
⢠In the principal market for the asset or liability; or
⢠In the absence of a principal market, the most advantageous
market for the asset or liability.
The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their
economic best interest.
A fair value measurement of a non-financial asset takes into
account a market participant''s ability to generate economic
benefits by using the asset in its highest and best use or by selling
it to another market participant that would use the asset in its
highest and best use.
The Company uses valuation techniques that are appropriate in
the circumstances and for which sufficient data are available tc
measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or
disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest
level input that is significant to the fair value measurement as a
whole:
⢠Level 1- Quoted (unadjusted) market prices in active markets
for identical assets or liabilities.
⢠Level 2- Valuation techniques for which the lowest level input
that is significant to the fair value measurement is directly or
indirectly observable.
⢠Level 3- Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable.
For assets and liabilities that are recognised in the financial
statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy
by re-assessing categorisation (based on the lowest level input
that is significant to the fair value measurement as a whole) at the
end of each reporting period.
The management determines the policies and procedures
for both recurring fair value measurement, such as derivative
instruments and unquoted financial assets measured at fair value,
and for non-recurring measurement, such as assets held for
distribution in discontinued operations.
External valuers are involved for valuation of significant assets,
such as properties. Involvement of external valuers is decided
by the management after discussion with and approval by the
Company''s management. Selection criteria include market
knowledge, reputation, independence and whether professional
standards are maintained. The management decides, after
discussions with the Company''s external valuers, which valuation
techniques and inputs to use for each case.
At each reporting date, the management analyses the
movements in the values of assets and liabilities, which are
required to be remeasured or re-assessed as per the Company''s
accounting policies. For this analysis, the management verifies
the major inputs applied in the latest valuation by agreeing the
information in the valuation computation to contracts and other
relevant documents.
The management, in conjunction with the Company''s external
valuers, also compares the change in the fair value of each asset
and liability with relevant external sources to determine whether
the change is reasonable.
For the purpose of fair value disclosures, the Company has
determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the
level of the fair value hierarchy as explained above.
2.9 Financial instruments
Financial assets and financial liabilities are recognised in the
Balance sheet when the Company becomes a party to the
contractual provisions of the instrument. Financial assets and
financial liabilities are initially measured at fair value.
A. Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in
the case of financial assets not recorded at fair value through
profit or loss, transaction costs that are attributable to the
acquisition of the financial asset. The financial assets include
equity and debt securities, trade and other receivables,
loans and advances, cash and bank balances and derivative
financial instruments.
Subsequent measurement
For the purpose of subsequent measurement, financial assets
are classified in the following categories:
⢠At amortised cost,
⢠At fair value through other comprehensive income (FVTOCI),
and
⢠At fair value through profit or loss (FVTPL).
Debt instruments at amortised cost
A debt instrument'' is measured at the amortised cost if both
the following conditions are met:
⢠The asset is held within a business model whose objective is
to hold the asset for collecting contractual cash flows, and
⢠Contractual terms of the asset give rise on specified dates to
cash flows that are solely payments of principal and interest
on the principal amount outstanding.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the effective
interest rate (EIR) method. Amortised cost is calculated by
taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR.
Equity investments
All equity investments in the scope of Ind AS 109 are measured
at fair value except in case of investment in subsidiary carried
at deemed cost and associate carried at cost.
Deemed cost is the carrying amount under the previous
GAAP as at the transition date i.e. 1st April, 2016. Equity
instruments included within the FVTPL category, if any, are
measured at fair value with all changes recognized in profit
or loss. The Company may make an irrevocable election to
present in OCI subsequent changes in the fair value.
The Company makes such election on an instrument-
by-instrument basis. The classification is made on initial
recognition and is irrevocable. If the Company decides to
classify an equity instrument at FVTOCI, then all fair value
changes on the instrument, excluding dividends, are
recognized in OCI.
There is no recycling of the amounts from OCI to profit or
loss, even on sale of investment. However, the Company may
transfer the cumulative gain or loss within equity.
Preference Share
The fair value of the investments made in a subsidiary
company is determined using cost model as prescribed
IND AS 27, Fair value of preference share in other company
has been determined on the basis of amortized cost. The
discount rate has been taken at is incremental borrowing rate
for the company after considering percentage of dividend.
Difference between the actual cost and amortized cost is
accounted for under "Finance cost" as Gain/ loss arising on
fair valuation of preference share and unwinding of interest is
accounted for under "Other income"
De-recognition
The Company derecognises a financial asset only when the
contractual rights to the cash flows from the asset expires or
it transfers the financial asset and substantially all the risks and
rewards of ownership of the asset.
B. Financial liabilities
Initial recognition and measurement
Financial liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the
acquisition or issue of financial liabilities (other than financial
liabilities at fair value through profit or loss) are added to or
deducted from the fair value of the financial liabilities, as
appropriate, on initial recognition.
Subsequent measurement
Financial liabilities are carried at amortized cost using the
effective interest method or at FVTPL.
After initial recognition, interest-bearing loans and borrowings
are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in profit or loss
when the liabilities are derecognised as well as through the
EIR amortisation process.
Amortised cost is calculated by considering any discount or
premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included as finance
costs in the statement of profit and loss.
For trade and other payables maturing within one year from
the balance sheet date, the carrying amounts approximate
fair value due to the short maturity of these instruments.
Derecognition of financial liabilities:
A financial liability (or a part of a financial liability) is
derecognized from the Company''s Balance Sheet when,
and only when the obligation specified in the contract is
discharged or cancelled or expires.
C. Offsetting of financial instruments
Financial assets and financial liabilities including derivative
instruments are offset and the net amount is reported in the
balance sheet if there is a currently enforceable legal right
to offset the recognised amounts and there is an intention
to settle on a net basis, to realise the assets and settle the
liabilities simultaneously.
2.10 Employees Benefits
(i) Short term employee benefits
Employee benefits payable wholly within twelve months
of receiving employee services are classified as short-term
employee benefits. These benefits include salaries and wages,
bonus and ex-gratia. The undiscounted amount of short term
employee benefits to be paid in exchange for employee
services are recognized as an expense as the related service is
rendered by employees.
(ii) Post employment benefits
Defined contribution plans:
A defined contribution plan is a post-employment benefit
plan under which an entity pays specified contributions
to a separate entity and has no obligation to pay any
further amounts. The company makes specified monthly
contributions towards provident fund. The Company''s
contribution is recognized as an expense in the statement of
profit and loss during the period in which employee renders
the related service.
Defined benefit plan:
The Company''s gratuity benefit scheme is a defined benefit
plan. The Company''s net obligation in respect of a defined
benefit plan is calculated by estimating the amount of future
benefit that employees have earned in return for their service
in the current and prior periods; that benefit is discounted
to determine its present value, and the fair value of any plan
assets is deducted.
The present value of the obligation under such defined
benefit plan is determined based on actuarial valuation using
the Projected Unit Credit Method, which recognizes each
period of service as giving rise to additional unit of employee
benefit entitlement and measures each unit separately to
build up the final obligation.
The obligation is measured at the present value of the
estimated future cash flows. The discount rates used for
determining the present value of the obligation under
defined benefit plan, are based on the market yields on
Government securities as at the balance sheet date.
When the calculation results in a benefit to the Company, the
recognized asset is limited to the net total of any unrecognized
actuarial losses and past service costs and the present value
of any future refunds from the plan or reductions in future
contributions to the plan.
Actuarial gains and losses are recognized in the other
comprehensive income
(iii) Long term employment benefits
The Company''s net obligation in respect of long-term
employment benefits is the amount of future benefit that
employees have earned in return for their service in the
current and prior periods. The obligation is calculated
using the projected unit credit method and is discounted
to its present value and the fair value of any related assets
is deducted. The discount rates used for determining the
present value of the obligation under defined benefit plan,
are based on the market yields on Government securities as
at the balance sheet date.
(iv) Compensated absences
The employees can carry-forward a portion of the unutilized
accrued compensated absences and utilize it in future service
periods or receive cash compensation on termination of
employment. Since the compensated absences do not fall
due wholly within twelve months after the end of the period
in which the employees render the related service and are
also not expected to be utilized wholly within twelve months
after the end of such period, the benefit is classified as a long¬
term employee benefit. The Company records an obligation
for such compensated absences in the period in which the
employee renders the services that increase this entitlement.
The obligation is measured on the basis of independent
actuarial valuation using the projected unit credit method.
Short term employee benefits are recognized as an expense
at the undiscounted amount in the Statement of Profit & Loss
for the year in which the related service is rendered.
2.11 Borrowing Costs
Borrowing costs that are directly attributable to the acquisition
or construction of a qualifying asset are capitalized as part of the
cost of such asset till such time that is required to complete and
prepare the asset to get ready for its intended use. A qualifying
asset is one that necessarily takes a substantial period of time
to get ready for its intended use. Borrowing costs consists of
interest and other costs that the Company incurs in connection
with the borrowing of funds.
All other borrowing cost is charged to the Statement of Profit &
Loss in the period in which they are incurred.
2.12 Dividend payable
Dividend on shares is recorded as a liability on the date of
approval by the shareholders and interim dividend are recorded
as a liability on the date of declaration by the Company''s Board
of Directors. A corresponding amount is recognized directly in
equity.
2.13 Government Grants
Government grants are recognised at fair value when there is
reasonable assurance that the grant would be received and the
Company would comply with all the conditions attached with
them.
Government grants related to property, plant and equipment
are treated as deferred income (included under non-current
liabilities with current portion considered under current
liabilities) and are recognized and credited in the Statement
of Profit and Loss on a systematic and rational basis over the
estimated useful life of the related asset and included under
"Other Income".
The benefit of government loan at a below-market rate
of interest or loan with interest subvention is treated as a
government grant. The Difference between the market rate
of interest and actual rate of interest is treated as government
grant.
2.14 Financial Derivatives and Commodity Hedging
Transactions
Financial Derivatives and commodity hedging contracts are
accounted for on the date of their settlement and realized
gain/loss in respect of settled contracts are recognized in
the Statement of Profit & Loss, along with the underlying
transactions.
2.15 Foreign Currency Transactions and Translations
Transactions denominated in foreign currencies are initially
recorded at the exchange rate prevailing on the date the
transaction first qualifies for recognition. Monetary items
denominated in foreign currency at the year end are translated
at year end rates.
Non-monetary items which are carried at historical cost
denominated in a foreign currency are reported using the
exchange rate at the date of initial transaction.
In respect of monetary items which are covered by forward
exchange contracts, the difference between the year end and
the rate on the date of contract is recognized as exchange
difference and the premium on such forward contracts is
recognized over the life of the forward contract.
The exchange differences arising on settlement/translation are
recognized in the Statement of Profit and Loss.
2.16 Taxes on Income
(a) Current Tax
Tax on income for the current period is determined on the
basis of taxable income computed in accordance with the
provisions of the Income Tax Act, 1961.
(b) Deferred Tax
Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities in
the financial statement and the corresponding tax bases
used in the computation of taxable profit.
Deferred tax assets are recognised for all deductible
temporary differences to the extent that it is probable
that taxable profit will be available against which the
deductible temporary difference can be utilised. Such
deferred tax assets and liabilities are not recognised if the
temporary difference arises from the initial recognition of
an asset or liability in a transaction (other than a business
combination) affects neither accounting profit nor taxable
profit (tax loss).
Deferred tax assets are recognised for the carry forward
of unused tax losses and unused tax credit to the extent
that it is probable that future taxable profit will be available
against which the unused tax losses and unused tax
credits can be utilised. Deferred tax liabilities and assets are
measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realised,
based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from
the manner in which the Company expects, at the end of
reporting period, to recover or settle the carrying amount
of its assets and liabilities.
The company has revalued its lease hold property but
deferred tax liabilities is not recognized on the ground that
the company does not have sale / transfer right with regard
to lease hold land.
Deferred tax liabilities are generally recognised on all
taxable temporary differences.
2.17 Impairment of Assets
Non financial Assets
Non financial assets are tested for impairment whenever events
or changes in circumstances indicate that the carrying amount
may not be recoverable.
An impairment loss is recognised for the amount by which the
assets'' carrying amount exceeds its recoverable amount, costs
of disposal and value in use.
For the purpose of assessing impairment, assets are grouped
at the lowest levels for which there are separately identifiable
cash flows which are largely independent of the cash inflows
from other assets or group of assets (cash generating units).
Non financial assets other than goodwill that suffered
impairment are reviewed for possible reversal of the impairment
at the end of the each reporting period.
Financial Assets
The Company recognizes loss allowances using the Expected
Credit Loss ("ECL") model for the financial assets which are
not fair valued through profit or loss. ECL impairment loss
allowance is measured at an amount equal to lifetime ECL.
ECL impairment loss allowance (or reversal) recognized during
the period is recognized as income or expense in the Statement
of Profit and Loss. ECL is presented as an allowance, i.e. as an
integral part of the measurement of those assets in the Balance
Sheet.
The allowances are reduced from the carrying amount. Until
the asset meets write-off criteria, the Company does not adjust
impairment allowance from the gross carrying amount.
Mar 31, 2024
1. Corporate Information
K M Sugar Mills Limited ("the Company") having Corporate Identity Number ("CIN") L15421 UP1971PLC003492 is a public limited company incorporated and domiciled in India and has its registered office situated at 11, Moti Bhawan, Collectorganj, Kanpur, Uttar Pradesh - 208001, India.
The Company''s shares are listed on the BSE Ltd. and National Stock Exchange of India Ltd.
The Company is engaged in sugar manufacturing. The principal activity of the Company is manufacturing and sale of sugar. Besides this, the allied business activities undertaken by the Company primarily consists of manufacturing and sale of Ethanol, Ethyl Alcohol.
Significant Accounting Policies2.1 Statement of Compliance with Ind AS
The standalone financial statements have been prepared in accordance with the Indian Accounting Standards (referred to as "Ind AS") prescribed under section 133 of the Companies Act, 2013 ("the Act") read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time).
All the Ind AS issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) till the financial statements are approved for issue by the Board of Directors has been considered in preparing these financial statements.
2.2 Basis of Preparation of Financial Statements
These financial statements are prepared on the accrual basis of accounting, under the historical cost convention except for the following:
(i) Certain financial assets and financial liabilities measured at fair value and
(ii) Defined benefits plan - plan assets measured at fair value.
There is no change in the system of accounting as being consistently followed from earlier years unless otherwise stated.
All assets and liabilities have been classified as current or noncurrent as per Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. The Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities. Deferred tax assets and liabilities are considered as non-current.
The preparation of the Financial Statements in conformity with measurement principle under Ind AS requires the management to make estimates, judgment and assumptions that affect the application of accounting policies and the reported amounts of revenue, expenses, assets and liabilities including the accompanying disclosures and the disclosure of contingent assets and liabilities.
Estimates, judgments and assumptions are continuously evaluated. They are based on historical experience and other factors including expectations of future events that may have a financial impact on the Company and are believed to be reasonable under the circumstances.
The Company based its estimates, judgments and assumptions on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
The application of accounting policies that require critical judgments and accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed herein below:
(i) Estimated useful life of Property, plant and equipment
Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual value of the asset are determined by the management when the asset is acquired and reviewed periodically including at each financial year end. The lives are based on technical evaluation, historical experience with similar assets as well as anticipation of future events, which may impact their lives, such as change in technology.
(ii) Current taxes and deferred taxes
Significant judgment is required in determination of taxability of certain income and deductibility of certain expenses during the estimation of provision for income taxes.
Deferred tax assets are recognized for unused losses (carry forward of prior years'' losses) and unused tax credit to the extent that it is probable that taxable profit would be available against which the losses could be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
(iii) Estimation of Defined benefit obligations
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each financial year end.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans, the actuary considers the interest rates of government bonds.
The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.
(iv) Estimated fair value of unlisted securities
The fair values of financial instruments that are not traded in an active market and cannot be measured based on quoted prices in active markets is determined using valuation techniques including the discounted cash flow (DCF) model. The company uses its judgment to select a variety of method / methods and make assumptions that are mainly based on market conditions existing at the end of each financial year.
The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgment includes considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
2.4 Property, plant and equipment (PPE) and Capital work-inprogress (CWIP)
(a) All property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. For this purpose, cost includes deemed cost on the date of transition and the purchase cost of assets, including non recoverable duties and taxes, and any directly attributable cost of bringing an asset to the location and condition of its intended use. Interest on borrowings used to finance the construction of qualifying assets is capitalized as part of cost of the asset until such time that the asset is ready for its intended use.
(b) Costs incurred subsequent to initial capitalization are included in the asset''s carrying amount only when it is probable that future economic benefits associated therewith will flow to the Company and it can be measured reliably.
The costs of regular servicing of property, plant and equipment are recognized in the Statement of Profit & Loss as and when incurred.
When parts of property, plant and equipment have different useful lives, they are accounted for as separate components, otherwise these are added to and depreciated over the useful life of the main asset.
The cost and the accumulated depreciation are eliminated from the financial statements upon sale or when no future economic benefits are expected to arise from use of the asset and the resultant gains or losses are recognized in the Statement of Profit & Loss.
(c) Depreciation methods, estimated useful lives and residual value Freehold land is not depreciated. Lease-hold land and lease hold improvements are amortised over the lower of estimated useful life and lease term.
Depreciation on other items of property, plant and equipment commences when its assets are available for their intended use.
The Company has elected to continue with carrying value of all Property, plant and equipment and Capital work-in-progress (CWIP) under the previous GAAP as deemed cost as at the transition date i.e. 1st April, 2016. In the financial year 2018-19 and 2019-20, the company has revalued the lease hold assets as well as free hold assets considering entire class of land.
Depreciation on Property, plant and equipment (PPE) is provided on written down value method as prescribed under Part C of Schedule II to the Companies Act, 2013. The additional depreciation, on increase in cost on account of revaluation, is transferred to Retained Earnings from Revaluation Reserve and is thus not charged to statement of Profit & Loss of the year.
Useful life of assets are considered on the base is of Schedule-II of Companies Act, 2013. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.
|
The estimated useful lives considered are as follows: |
|
|
Category |
31st March, 2024 |
|
Buildings |
03-60 years |
|
Roads |
03-10 years |
|
Plant & Machinery |
05-25 years |
|
Furniture & Fixtures |
10 years |
|
Vehicles |
05-10 years |
|
Office Equipments |
5 years |
|
Computers |
03-06 years |
|
Laboratory Equipments |
05-10 years |
|
Electrical Installations and Equipment |
10 years |
Each item of property, plant and equipment individually costing Rs.5,000/- or less is depreciated over a period of one year from the date the said asset is available for use. However, in case of certain assets for staff individually costing more than Rs.5,000/- are depreciated over the period of one year based on management estimates.
The residual value of an item of property, plant and equipment has been kept at < 5% of the cost of the respective assets.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each financial year and are given effect to, wherever appropriate.
(d) Expenditure during construction period
Directly attributable expenditure (including finance cost related to borrowed funds for construction or acquisition of property, plant and equipment) incurred on projects under implementation are treated as Pre-operative expenses pending allocation to the assets and are shown under Capital work-in-progress. Capital work-in-progress is stated at the amount incurred upto the Balance Sheet date on assets or property, plant and equipment that are not yet ready for their intended use.
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses. For this purpose, cost includes carrying value as Deemed cost on the date of transition.
Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred.
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, is recognised in the statement of profit and loss.
Intangible assets: Computer software is amortized over a period of three years and brand development is amortized over a period of five years.
2.6 Revenue Recognition and Expenses
(i) Effective April 1 2018 the company adopted Ind AS 115, revenue from contracts with customer using the cumulative catch up transition method, applied to contracts that were not completed as of April 1, 2018. In accordance with the cumulative catch up transition method, the comparatives have not been retrospectively adjusted. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services.
Arrangements with customers for services and goods are either on a fixed-price, fixed-timeframe or on a time-and-material basis.
Revenue on supply and service contracts are recognized as the related performance obligation is completed.
Revenue from fixed-price, fixed-timeframe contracts, where the performance obligations are satisfied over time and where there is no uncertainty as to measurement or collectability of consideration, is recognized as per the percentage-of-completion method. When there is uncertainty as to measurement or ultimate collectability, revenue recognition is postponed until such uncertainty is resolved. Efforts or costs expended have been used to measure progress towards completion as there is a direct relationship between input and productivity.
Revenues in excess of invoicing are classified as contract assets (which we refer to as unbilled revenue) while invoicing in excess of revenues are classified as contract liabilities (which we refer to as unearned revenues).
(ii) Insurance claims have been accounted for on cash basis looking in to the uncertainty and its collection as per past practice.
(iii) Interest Income is accounted for on time proportionate basis. For all debt instruments measured at amortized cost, interest income is recognized using the Effective Interest Rate ("EIR"). Interest Income is included in "Other Income" in the Statement of Profit and Loss.
(iv) Dividend Income is recognized when the Company''s right to receive the dividend is established i.e. in case of interim dividend, on the date of declaration by the Board of Directors; whereas in case of final dividend, on the date of approval by shareholders.
(v) All expenses are accounted for on accrual basis.
Cost of inventory comprises of purchase price, cost of conversion
and other cost that have been incurred in bringing the inventories
to their respective present location and condition. Interest costs
are not included in value of inventory.
Inventories are valued as under:
⢠Raw Materials and Finished Goods (except molasses) are carried at lower of cost and net realizable value. Stock of Molasses is carried at net realizable value.
⢠Stores & Spares are carried at cost.
⢠Goods in Process / WIP are carried at lower of cost and net realizable Value.
⢠Banked power with UPPCL is carried at lower of cost and net realizable value.
|
Manufacturing Units |
Basis |
|
Sugar - Raw Material |
First in First Out |
|
Trading Goods |
First in First Out |
|
Distillery- Raw Material |
First in First Out |
|
Stores & Spares Other components |
Weighted Average |
|
Co-generation - Raw Material |
First in First Out |
Cost for the purpose of valuations of raw material and components, stores & spares are considered on following basis:
The Company measures financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
⢠In the principal market for the asset or liability; or
⢠In the absence of a principal market, the most advantageous market for the asset or liability.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
⢠Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
⢠Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
⢠Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input
that is significant to the fair value measurement as a whole) at the end of each reporting period.
The management determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement, such as assets held for distribution in discontinued operations.
External valuers are involved for valuation of significant assets, such as properties. Involvement of external valuers is decided by the management after discussion with and approval by the Company''s management. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. The management decides, after discussions with the Company''s external valuers, which valuation techniques and inputs to use for each case.
At each reporting date, the management analyses the movements in the values of assets and liabilities, which are required to be remeasured or re-assessed as per the Company''s accounting policies. For this analysis, the management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.
The management, in conjunction with the Company''s external valuers, also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
Financial assets and financial liabilities are recognised in the Balance sheet when the Company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value.
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. The financial assets include equity and debt securities, trade and other receivables, loans and advances, cash and bank balances and derivative financial instruments.
For the purpose of subsequent measurement, financial assets are classified in the following categories:
⢠At amortised cost,
⢠At fair value through other comprehensive income (FVTOCI), and
⢠At fair value through profit or loss (FVTPL).
Debt instruments at amortised cost
A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:
⢠The asset is held within a business model whose objective is to hold the asset for collecting contractual cash flows, and
⢠Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.
All equity investments in the scope of Ind AS 109 are measured at fair value except in case of investment in subsidiary carried at deemed cost and associate carried at cost.
Deemed cost is the carrying amount under the previous GAAP as at the transition date i.e. 1st April, 2016. Equity instruments included within the FVTPL category, if any, are measured at fair value with all changes recognized in profit or loss. The Company may make an irrevocable election to present in OCI subsequent changes in the fair value.
The Company makes such election on an instrument-byinstrument basis. The classification is made on initial recognition and is irrevocable. If the Company decides to classify an equity instrument at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in OCI.
There is no recycling of the amounts from OCI to profit or loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.
The fair value of the investments made in a subsidiary company is determined using cost model as prescribed IND AS 27, Fair value of preference share in other company has been determined on the basis of amortized cost. The discount rate has been taken at is incremental borrowing rate for the company after considering percentage of dividend. Difference between the actual cost and amortized cost is accounted for under "Finance cost" as Gain/ loss arising on fair valuation of preference share and unwinding of interest is accounted for under "Other income"
The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset.
Initial recognition and measurement
Financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial liabilities (other than financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial liabilities, as appropriate, on initial recognition.
Financial liabilities are carried at amortized cost using the effective interest method or at FVTPL.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.
For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
Derecognition of financial liabilities:
A financial liability (or a part of a financial liability) is derecognized from the Company''s Balance Sheet when, and only when the obligation specified in the contract is discharged or cancelled or expires.
C. Offsetting of financial instruments
Financial assets and financial liabilities including derivative instruments are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
(i) Short term employee benefits
Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus and ex-gratia. The undiscounted amount of short term employee benefits to be paid in exchange for employee services are recognized as an expense as the related service is rendered by employees.
(ii) Post employment benefits Defined contribution plans:
A defined contribution plan is a post-employment benefit plan under which an entity pays specified contributions to a separate entity and has no obligation to pay any
further amounts. The company makes specified monthly contributions towards provident fund. The Company''s contribution is recognized as an expense in the statement of profit and loss during the period in which employee renders the related service.
The Company''s gratuity benefit scheme is a defined benefit plan. The Company''s net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.
The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the balance sheet date.
When the calculation results in a benefit to the Company, the recognized asset is limited to the net total of any unrecognized actuarial losses and past service costs and the present value of any future refunds from the plan or reductions in future contributions to the plan.
Actuarial gains and losses are recognized in the other comprehensive income
(iii) Long term employment benefits
The Company''s net obligation in respect of long-term employment benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is calculated using the projected unit credit method and is discounted to its present value and the fair value of any related assets is deducted. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the balance sheet date.
The employees can carry-forward a portion of the unutilized accrued compensated absences and utilize it in future service periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related service and are also not expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as a long-term employee benefit. The Company records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method.
Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit & Loss for the year in which the related service is rendered.
Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cost of such asset till such time that is required to complete and prepare the asset to get ready for its intended use. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. Borrowing costs consists of interest and other costs that the Company incurs in connection with the borrowing of funds.
All other borrowing cost is charged to the Statement of Profit & Loss in the period in which they are incurred.
Dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividend are recorded as a liability on the date of declaration by the Company''s Board of Directors. A corresponding amount is recognized directly in equity.
Government grants are recognised at fair value when there is reasonable assurance that the grant would be received and the Company would comply with all the conditions attached with them.
Government grants related to property, plant and equipment are treated as deferred income (included under non-current liabilities with current portion considered under current liabilities) and are recognized and credited in the Statement of Profit and Loss on a systematic and rational basis over the estimated useful life of the related asset and included under "Other Income".
The benefit of government loan at a below-market rate of interest or loan with interest subvention is treated as a government grant. The Difference between the market rate of interest and actual rate of interest is treated as government grant.
2.14 Financial Derivatives and Commodity Hedging Transactions
Financial Derivatives and commodity hedging contracts are accounted for on the date of their settlement and realized gain/loss in respect of settled contracts are recognized in the Statement of Profit & Loss, along with the underlying transactions.
2.15 Foreign Currency Transactions and Translations
Transactions denominated in foreign currencies are initially recorded at the exchange rate prevailing on the date the transaction first qualifies for recognition. Monetary items denominated in foreign currency at the year end are translated at year end rates.
Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of initial transaction.
In respect of monetary items which are covered by forward exchange contracts, the difference between the year end and the rate on the date of contract is recognized as exchange difference and the premium on such forward contracts is recognized over the life of the forward contract.
The exchange differences arising on settlement/translation are recognized in the Statement of Profit and Loss.
(a) Current Tax
Tax on income for the current period is determined on the basis of taxable income computed in accordance with the provisions of the Income Tax Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which give future economic benefit in the form of adjustment to future income tax liability is considered as an asset to the extent there is convincing evidence that the company will pay normal income tax.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statement and the corresponding tax bases used in the computation of taxable profit.
Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of an asset or liability in a transaction (other than a business combination) affects neither accounting profit nor taxable profit (tax loss).
Deferred tax assets are recognised for the carry forward of unused tax losses and unused tax credit to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilised. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of reporting period, to recover or settle the carrying amount of its assets and liabilities.
The company has revalued its lease hold property but deferred tax liabilities is not recognized on the ground that
the company does not have sale / transfer right with regard to lease hold land.
Deferred tax liabilities are generally recognised on all taxable temporary differences.
2.17 Impairment of Assets Non financial Assets
Non financial assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the assets'' carrying amount exceeds its recoverable amount, costs of disposal and value in use.
For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows which are largely independent of the cash inflows from other assets or group of assets (cash generating units).
Non financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at the end of the each reporting period.
The Company recognizes loss allowances using the Expected Credit Loss ("ECL") model for the financial assets which are not fair valued through profit or loss. ECL impairment loss allowance is measured at an amount equal to lifetime ECL.
ECL impairment loss allowance (or reversal) recognized during the period is recognized as income or expense in the Statement of Profit and Loss. ECL is presented as an allowance, i.e. as an integral part of the measurement of those assets in the Balance Sheet.
The allowances are reduced from the carrying amount. Until the asset meets write-off criteria, the Company does not adjust impairment allowance from the gross carrying amount.
2.18 Provisions, Contingent Liabilities and Contingent Assets
(a) Provision is recognized in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered probable.
(b) Provision is recognized in the accounts in respect of present probable obligations, the amount of which can be reliably estimated.
(c) Provisions are not recognized for future operating losses.
(d) Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company.
(e) A contingent asset is not recognized in the financial statements, however, is disclosed, where an inflow of economic benefits is probable.
(f) Provisions and contingent liabilities are reviewed at each balance sheet date.
Investment property is property (land or a buildingâor part of a buildingâor both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both, rather than for:
(a) use in the production or supply of goods or services or for administrative purposes; or
(b) sale in the ordinary course of business. Owner-occupied property is property held (by the owner or by the lessee under a finance lease) for use in the production or supply of goods or services or for administrative purposes. Investment properties are accounted for in the books at cost. However, fair value of such property is required to be disclosed only in accordance with Ind AS 40.
Operating segments are identified and reported taking into account the different risk and return, organisational structure and internal reporting system.
Basic earnings per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extra ordinary items, if any) by the weighted average number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extra ordinary items, if any) by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares.
2.22 Cash and Cash Equivalents
Cash and cash equivalents Cash and cash equivalents in the Balance sheet comprise cash on hand, cheques on hand, balance with banks on current accounts and short term, highly liquid investments with an original maturity of three months or less and which carry insignificant risk of changes in value.
For the purpose of the Cash Flow Statement, Cash and cash equivalents consist of Cash and cash equivalents, as defined above and net of outstanding book overdrafts as they are considered an integral part of the Company''s cash management.
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payment and item of income or expenses associated with investing or financing flows. The cash flows operating, investing and financing activities of the company are segregated.
Effective April 01, 2019, the Company has adopted lnd AS 116 "Leases", applied to all lease contracts existing on April 01,2019 using the modified retrospective method. Accordingly, the Company recognizes right-of-use asset at the date of initial application. The right-of-use asset is measure equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the balance sheet immediately before the date of initial application.
The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment. The Company uses significant judgment in assessing the lease term (including anticipated renewals) and the applicable discount rate.
The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the noncancellable period of a lease.
The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics
A lease that transfers substantially all the risks and rewards incidental to ownership to the lessee is classified as a finance lease. All other leases are classified as operating leases.
The Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.
The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated
depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment
or lease modifications or to reflect revised in-substance fixed lease payments. The company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in statement of profit and loss.
The Company has elected not to apply the requirements of Ind AS 116 to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.
At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease. The Company recognises lease payments received under operating leases as income on a straight- line basis over the lease term. In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant periodic rate of return on the lessor''s net investment in the lease. When the Company is an intermediate lessor it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.
Mar 31, 2023
Significant Accounting Policies
2.1 Statement of Compliance with Ind AS
The standalone financial statements have been prepared in accordance with the Indian Accounting Standards (referred to as "Ind AS") prescribed under section 133 of the Companies Act, 2013 ("the Act") read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time).
All the Ind AS issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) till the financial statements are approved for issue by the Board of Directors has been considered in preparing these financial statements.
2.2 Basis of Preparation of Financial Statements
These financial statements are prepared on the accrual basis of accounting, under the historical cost convention except for the following:
(i) Certain financial assets and financial liabilities measured at fair value and
(ii) Defined benefits plan - plan assets measured at fair value.
There is no change in the system of accounting as being consistently followed from earlier years unless otherwise stated.
All assets and liabilities have been classified as current or noncurrent as per Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. The Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities. Deferred tax assets and liabilities are considered as noncurrent.
2.3 Use of Estimates
The preparation of the Financial Statements in conformity with measurement principle under Ind AS requires the management to make estimates, judgment and assumptions that affect the application of accounting policies and the reported amounts of revenue, expenses, assets and liabilities including the
accompanying disclosures and the disclosure of contingent assets and liabilities.
Estimates, judgments and assumptions are continuously evaluated. They are based on historical experience and other factors including expectations of future events that may have a financial impact on the Company and are believed to be reasonable under the circumstances.
The Company based its estimates, judgments and assumptions on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
The application of accounting policies that require critical judgments and accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed herein below:
(i) Estimated useful life of Property, plant and equipment
Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual value of the asset are determined by the management when the asset is acquired and reviewed periodically including at each financial year end. The lives are based on technical evaluation, historical experience with similar assets as well as anticipation of future events, which may impact their lives, such as change in technology.
(ii) Current taxes and deferred taxes
Significant judgment is required in determination of taxability of certain income and deductibility of certain expenses during the estimation of provision for income taxes.
Deferred tax assets are recognized for unused losses (carry forward of prior years'' losses) and unused tax credit to the extent that it is probable that taxable profit would be available against which the losses could be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
(iii) Estimation of Defined benefit obligations
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each financial year end.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans, the actuary considers the interest rates of government bonds.
The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.
(iv) Estimated fair value of unlisted securities
The fair values of financial instruments that are not traded in an active market and cannot be measured based on quoted prices in active markets is determined using valuation techniques including the discounted cash flow (DCF) model. The company uses its judgment to select a variety of method / methods and make assumptions that are mainly based on market conditions existing at the end of each financial year.
The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgment includes considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
2.4 Property, plant and equipment (PPE) and Capital work-inprogress (CWIP)
(a) All property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. For this purpose, cost includes deemed cost on the date of transition and the purchase cost of assets, including non recoverable duties and taxes, and any directly attributable cost of bringing an asset to the location and condition of its intended use. Interest on borrowings used to finance the construction of qualifying assets is capitalized as part of cost of the asset until such time that the asset is ready for its intended use.
(b) Costs incurred subsequent to initial capitalization are included in the asset''s carrying amount only when it is probable that future economic benefits associated therewith will flow to the Company and it can be measured reliably.
The costs of regular servicing of property, plant and equipment are recognized in the Statement of Profit & Loss as and when incurred.
When parts of property, plant and equipment have different useful lives, they are accounted for as separate components, otherwise these are added to and depreciated over the useful life of the main asset.
The cost and the accumulated depreciation are eliminated from the financial statements upon sale or when no future economic benefits are expected to arise from use of the asset and the resultant gains or losses are recognized in the Statement of Profit & Loss.
(c) Depreciation methods, estimated useful lives and residual value
Freehold land is not depreciated. Lease-hold land and lease hold improvements are amortised over the lower of estimated useful life and lease term.
Depreciation on other items of property, plant and equipment commences when its assets are available for their intended use.
The Company has elected to continue with carrying value of all Property, plant and equipment and Capital work-in-progress (CWIP) under the previous GAAP as deemed cost as at the transition date i.e. 1 st April, 2016. In the financial year 2018-19 and 2019-20, the company has revalued the lease hold assets as well as free hold assets considering entire class of land.
Depreciation on Property, plant and equipment (PPE) is provided on written down value method as prescribed under Part C of Schedule II to the Companies Act, 2013. The additional depreciation, on increase in cost on account of revaluation, is transferred to Retained Earnings from Revaluation Reserve and is thus not charged to statement of Profit & Loss of the year.
Useful life of assets are considered on the base is of Schedule-II of Companies Act, 2013. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.
Each item of property, plant and equipment individually costing Rs.5,000/- or less is depreciated over a period of one year from the date the said asset is available for use. However, in case of certain assets for staff individually costing more than Rs.5,000/- are depreciated over the period of one year based on management estimates.
The residual value of an item of property, plant and equipment has been kept at < 5% of the cost of the respective assets.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each financial year and are given effect to, wherever appropriate.
(d) Expenditure during construction period
Directly attributable expenditure (including finance cost related to borrowed funds for construction or acquisition of property, plant and equipment) incurred on projects under implementation are treated as Pre-operative expenses pending allocation to the assets and are shown under Capital work-in-progress. Capital work-inprogress is stated at the amount incurred upto the Balance Sheet date on assets or property, plant and equipment that are not yet ready for their intended use.
2.5 Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses. For this purpose, cost includes carrying value as Deemed cost on the date of transition.
Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred.
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, is recognised in the statement of profit and loss.
Intangible assets: Computer software is amortized over a period of three years and brand development is amortized over a period of five years.
2.6 Revenue Recognition and Expenses
(i) Effective April 1 2018 the company adopted Ind AS 115, revenue from contracts with customer using the cumulative catch up transition method, applied to contracts that were not completed as of April 1,2018. In accordance with the cumulative catch up transition method, the comparatives have not been retrospectively adjusted. Revenue is recognized upon transfer of control of promised products or services to customers in an
amount that reflects the consideration we expect to receive in exchange for those products or services.
Arrangements with customers for services and goods are either on a fixed-price, fixed-timeframe or on a time-and-material basis.
Revenue on supply and service contracts are recognized as the related performance obligation is completed.
Revenue from fixed-price, fixed-timeframe contracts, where the performance obligations are satisfied over time and where there is no uncertainty as to measurement or collectability of consideration, is recognized as per the percentage-of-completion method. When there is uncertainty as to measurement or ultimate collectability, revenue recognition is postponed until such uncertainty is resolved. Efforts or costs expended have been used to measure progress towards completion as there is a direct relationship between input and productivity.
Revenues in excess of invoicing are classified as contract assets (which we refer to as unbilled revenue) while invoicing in excess of revenues are classified as contract liabilities (which we refer to as unearned revenues).
(ii) Insurance claims have been accounted for on cash basis looking in to the uncertainty and its collection as per past practice.
(iii) Interest Income is accounted for on time proportionate basis. For all debt instruments measured at amortized cost, interest income is recognized using the Effective Interest Rate ("EIR"). Interest Income is included in "Other Income" in the Statement of Profit and Loss.
(iv) Dividend Income is recognized when the Company''s right to receive the dividend is established i.e. in case of interim dividend, on the date of declaration by the Board of Directors; whereas in case of final dividend, on the date of approval by shareholders.
(v) All expenses are accounted for on accrual basis.
2.7 Inventory
Cost of inventory comprises of purchase price, cost of conversion and other cost that have been incurred in bringing the inventories to their respective present location and condition. Interest costs are not included in value of inventory.
Inventories are valued as under:
⢠Raw Materials and Finished Goods (except molasses) are carried at lower of cost and net realizable value. Stock of Molasses is carried at net realizable value.
⢠Stores & Spares are carried at cost.
⢠Goods in Process / WIP are carried at lower of cost and net realizable Value.
⢠Banked power with UPPCL is carried at lower of cost and net realizable value.
2.8 Fair value measurement
The Company measures financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
⢠In the principal market for the asset or liability; or
⢠In the absence of a principal market, the most advantageous market for the asset or liability.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
⢠Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
⢠Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
⢠Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The management determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement, such as assets held for distribution in discontinued operations.
External valuers are involved for valuation of significant assets, such as properties. Involvement of external valuers is decided by the management after discussion with and approval by the Company''s management. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. The management decides, after discussions with the Company''s external valuers, which valuation techniques and inputs to use for each case.
At each reporting date, the management analyses the movements in the values of assets and liabilities, which are required to be remeasured or re-assessed as per the Company''s accounting policies. For this analysis, the management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.
The management, in conjunction with the Company''s external valuers, also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
.9 Financial instruments
Financial assets and financial liabilities are recognised in the Balance sheet when the Company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value.
A. Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. The financial assets include equity and debt securities, trade and other receivables, loans and advances, cash and bank balances and derivative financial instruments.
Subsequent measurement
For the purpose of subsequent measurement, financial assets are classified in the following categories:
⢠At amortised cost,
⢠At fair value through other comprehensive income (FVTOCI), and
⢠At fair value through profit or loss (FVTPL).
Debt instruments at amortised cost
A debt instrument'' is measured at the amortised cost if both the following conditions are met:
⢠The asset is held within a business model whose objective is to hold the asset for collecting contractual cash flows, and
⢠Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.
Equity investments
All equity investments in the scope of Ind AS 109 are measured at fair value except in case of investment in subsidiary carried at deemed cost and associate carried at cost.
Deemed cost is the carrying amount under the previous GAAP as at the transition date i.e. 1st April, 2016. Equity instruments included within the FVTPL category, if any, are measured at fair value with all changes recognized in profit or loss. The Company may make an irrevocable election to present in OCI subsequent changes in the fair value.
The Company makes such election on an instrument-byinstrument basis. The classification is made on initial recognition and is irrevocable. If the Company decides to classify an equity instrument at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in OCI.
There is no recycling of the amounts from OCI to profit or loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.
Preference Share
The fair value of the investments made in a subsidiary company is determined using cost model as prescribed IND AS 27, Fair value of preference share in other company has been determined on the basis of amortized cost. The discount rate has been taken at is incremental borrowing rate for the company after considering percentage of dividend. Difference between the actual cost and amortized cost is accounted for under "Finance cost" as Gain/ loss arising on fair valuation of preference share and unwinding of interest is accounted for under "Other income"
De-recognition
The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset.
B. Financial liabilities
Initial recognition and measurement
Financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial liabilities (other than financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial liabilities, as appropriate, on initial recognition.
Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method or at FVTPL.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.
For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
Derecognition of financial liabilities:
A financial liability (or a part of a financial liability) is derecognized from the Company''s Balance Sheet when, and only when the obligation specified in the contract is discharged or cancelled or expires.
C. Offsetting of financial instruments
Financial assets and financial liabilities including derivative instruments are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
2.10 Employees Benefits
(i) Short term employee benefits
Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus and ex-gratia. The undiscounted amount of short term employee benefits to be paid in exchange for employee services are recognized as an expense as the related service is rendered by employees.
(ii) Post employment benefits Defined contribution plans:
A defined contribution plan is a post-employment benefit plan under which an entity pays specified contributions to a separate entity and has no obligation to pay any further amounts. The company makes specified monthly contributions towards provident fund. The Company''s contribution is recognized as an expense in the statement of profit and loss during the period in which employee renders the related service.
Defined benefit plan:
The Company''s gratuity benefit scheme is a defined benefit plan. The Company''s net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.
The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the balance sheet date.
When the calculation results in a benefit to the Company, the recognized asset is limited to the net total of any unrecognized actuarial losses and past service costs and the present value of any future refunds from the plan or reductions in future contributions to the plan.
Actuarial gains and losses are recognized in the other comprehensive income
(iii) Long term employment benefits
The Company''s net obligation in respect of long-term employment benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is calculated using the projected unit credit method and is discounted to its present value and the fair value of any related assets is deducted. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the balance sheet date.
(iv) Compensated absences
The employees can carry-forward a portion of the unutilized accrued compensated absences and utilize it in future service periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related service and are also
not expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as a long-term employee benefit. The Company records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method.
Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit & Loss for the year in which the related service is rendered.
2.11 Borrowing Costs
Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cost of such asset till such time that is required to complete and prepare the asset to get ready for its intended use. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. Borrowing costs consists of interest and other costs that the Company incurs in connection with the borrowing of funds.
All other borrowing cost is charged to the Statement of Profit & Loss in the period in which they are incurred.
2.12 Dividend payable
Dividend on shares are recorded as a liability on the date of approval by the shareholders and interim dividend are recorded as a liability on the date of declaration by the Company''s Board of Directors. A corresponding amount is recognized directly in equity.
2.13 Government Grants
Government grants are recognised at fair value when there is reasonable assurance that the grant would be received and the Company would comply with all the conditions attached with them.
Government grants related to property, plant and equipment are treated as deferred income (included under non-current liabilities with current portion considered under current liabilities) and are recognized and credited in the Statement of Profit and Loss on a systematic and rational basis over the estimated useful life of the related asset and included under "Other Income".
The benefit of government loan at a below-market rate of interest or loan with interest subvention is treated as a government grant. The Difference between the market rate of interest and actual rate of interest is treated as government grant.
2.14 Financial Derivatives and Commodity Hedging Transactions
Financial Derivatives and commodity hedging contracts are accounted for on the date of their settlement and realized gain/loss in respect of settled contracts are recognized in the Statement of Profit & Loss, along with the underlying transactions.
2.15 Foreign Currency Transactions and Translations
Transactions denominated in foreign currencies are initially recorded at the exchange rate prevailing on the date the transaction first qualifies for recognition. Monetary items denominated in foreign currency at the year end are translated at year end rates.
Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of initial transaction.
In respect of monetary items which are covered by forward exchange contracts, the difference between the year end and the rate on the date of contract is recognized as exchange difference and the premium on such forward contracts is recognized over the life of the forward contract.
The exchange differences arising on settlement/translation are recognized in the Statement of Profit and Loss.
2.16 Taxes on Income
(a) Current Tax
Tax on income for the current period is determined on the basis of taxable income computed in accordance with the provisions of the Income Tax Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which give future economic benefit in the form of adjustment to future income tax liability is considered as an asset to the extent there is convincing evidence that the company will pay normal income tax.
(b) Deferred Tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statement and the corresponding tax bases used in the computation of taxable profit.
Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of an asset or liability in a transaction (other than a business combination) affects neither accounting profit nor taxable profit (tax loss).
Deferred tax assets are recognised for the carry forward of unused tax losses and unused tax credit to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilised. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects,
at the end of reporting period, to recover or settle the carrying amount of its assets and liabilities.
The company has revalued its lease hold property but deferred tax liabilities is not recognized on the ground that the company does not have sale / transfer right with regard to lease hold land.
Deferred tax liabilities are generally recognised on all taxable temporary differences.
2.17 Impairment of Assets
Non financial Assets
Non financial assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the assets'' carrying amount exceeds its recoverable amount, costs of disposal and value in use.
For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows which are largely independent of the cash inflows from other assets or group of assets (cash generating units).
Non financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at the end of the each reporting period.
Financial Assets
The Company recognizes loss allowances using the Expected Credit Loss ("ECL") model for the financial assets which are not fair valued through profit or loss. ECL impairment loss allowance is measured at an amount equal to lifetime ECL.
ECL impairment loss allowance (or reversal) recognized during the period is recognized as income or expense in the Statement of Profit and Loss. ECL is presented as an allowance, i.e. as an integral part of the measurement of those assets in the Balance Sheet.
The allowances are reduced from the carrying amount. Until the asset meets write-off criteria, the Company does not adjust impairment allowance from the gross carrying amount.
Mar 31, 2018
Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable of Directors has been considered in preparing these financial statements.
2.2 Basis of Preparation of Financial Statements
These financial statements are prepared on the accrual basis of accounting, under the historical cost convention except for the following:
i) Certain financial assets and financial liabilities measured at fair value and
ii) Defined benefits plan - plan assets measured at fair value.
There is no change in the system of accounting as being consistently followed from earlier years unless otherwise stated.
All assets and liabilities have been classified as current or non-current as per company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of operations and time between procurement of raw material and realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.
2.3 Use of Estimates
The preparation of the Financial Statements in conformity with GAPP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenditure during the period. Management believes that the estimates made in the preparation of the financial statements are prudent and reliable. Actual results might differ from the estimates. Difference between the actual results and estimates are recognized in the period in which results are known/material.
i) Estimated useful life of Property, plant and equipment
PPE represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual value of the asset are determined by the management when the asset is acquired and reviewed periodically including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their lives, such as change in technology.
ii) Recognition of deferred tax assets for carried forward tax losses and unused tax credit
Deferred tax assets are recognized for unused losses (carry forward of prior years'' losses) and unused tax credit to the extent that it is probable that taxable profit would be
NOTES FORMING PART OF FINANCIALSTATEMENTS
1. Corporate Information
K.M Sugar Mills Limited is a public limited company incorporated and domiciled in India. The registered office of the Company is situated at 11, Moti Bhawan, Collector Ganj, Kanpur, Uttar Pradesh - 208001.
The Company''s shares are listed on the BSE Ltd and National Stock Exchange of India Ltd.
The Company is engaged in sugar manufacturing. The principal activity of the Company is manufacturing of sugar and the company is also engaged in power generation using baggase and in manufacturing of ethanol, SDS and using molasses.
2. Significant Accounting Policies
2.1 Statement of Compliance with Ind AS In accordance with the notification dated 16th February,
2015, issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (referred to as "Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) with effect from 1st April, 2016 with restatement of previous year figures presented in this financial statements. Accordingly, the financial statements have been prepared in accordance with Ind AS prescribed under Section 133 of the Companies Act, 2013 ("Act") read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Indian Accounting Standards) (Amendment) Rules, 2016.
The Company has adopted all the applicable Ind AS and the adoption was carried out in accordance with Ind AS- 101 - First time adoption of Indian Accounting Standards. The transition was carried out from Generally Accepted Accounting Principles in India, which comprised of applicable Accounting Standards specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014, other pronouncements of the Institute of Chartered Accountants of India (ICAI), relevant applicable provisions of the Companies Act, 1956, and the Companies Act, 2013 to the extent applicable and the applicable guidelines issued by the Securities and Exchange Board of India (SEBI) ("Previous GAAP).
These financial statements for the year ended 31st March, 2018 are the first financial statements of the Company prepared in accordance with Ind AS. The date of transition to Ind AS is 1st April, 2016.
All the Ind AS issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) till the financial statements are approved for issue by the Board
The Property, plant and equipment (PPE) and Capital work-in-progress (CWIP) are stated at cost net of cenvat credit and/or at revalued price less accumulated depreciation and Accumulated Impairment.
Interest on borrowings used to finance the construction of qualifying assets are capitalized as part of the cost of the asset until such time that the asset is ready for its intended use.
Depreciation on Property, plant and equipment (PPE) is provided on written down value method as prescribed under Part C of Schedule II to the Companies Act, 2013. The additional depreciation, on increase in cost on account of revaluation, is transferred to Retained Earnings from Revaluation Reserve and is thus not charged to statement of Profit & Loss of the year.
Useful life of assets are considered on the base is of Schedule-II of Companies Act, 2013
Subsequent costs are included in the asset''s carrying amount only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.
All other repair and maintenance costs are recognized in the Statement of Profit and Loss as incurred.
Each item of PPE individually costing Rs.5,000 or less is depreciated fully in the year of their put to use. Depreciation/amortization on assets added, sold or discarded during the year is provided on pro-rata basis.
2.5 Intangible assets (Computer Software)
Transition to Ind AS:
The Company has elected to continue with carrying value of computer software under the previous GAAP, as deemed cost as at the transition date i.e. 1st April, 2016. Under the previous GAAP, computer software was stated at their original cost (net of accumulated amortization and accumulated impairment, if any).
Intangible assets expected to provide future enduring economic benefits are recorded at the consideration paid for acquisition of such assets and are carried at cost of acquisition less accumulated amortization and impairment, if any.
Intangible assets: Computer software is amortized over a period of four years.
2.6 Revenue Recognition and Expenses
(i) Revenue is recognized to the extent it is probable that economic benefits would flow to the Company and the revenue can be reliably measured, regardless of when the revenue proceeds is received from customers.
(ii) Revenue is measured at the fair value of the consideration received/receivable taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the Government.
(iii) Revenue from the sale of products is recognized when available against which the losses could be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
iii) Estimation of Defined benefit obligations
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each financial year end. The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans, the actuary considers the interest rates of government bonds. The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.
iv) Estimated fair value of unlisted securities
The fair values of financial instruments that are not traded in an active market and cannot be measured based on quoted prices in active markets is determined using valuation techniques including the discounted cash flow (DCF) model. The company uses its judgment to select a variety of method / methods and make assumptions that are mainly based on market conditions existing at the end of each financial year. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgment includes considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
2.4 Property, plant and equipment (PPE) and Capital work-in-progress (CWIP)
Transition to Ind AS
The Company has elected to continue with carrying value of all Property, plant and equipment and Capital work-in-progress (CWIP) under the previous GAAP as deemed cost as at the transition date i.e. 1st April, 2016.
Under the previous GAAP, Property, plant and equipment were stated at their original cost (net of accumulated depreciation and impairment) adjusted by revaluation of certain assets.
- In the principal market for the asset or liability; or
- In the absence of a principal market, in the most advantageous market for the asset or liability.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The management determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement, such as assets held for distribution in discontinued operations.
External valuers are involved for valuation of significant assets, such as properties. Involvement of external valuers is decided by the management after discussion with and approval by the Company''s management. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. The management decides, after discussions with the Company''s external valuers, which valuation techniques and inputs to use for each case.
At each reporting date, the management analyses the the property in goods is transferred to the buyer for a consideration. Revenue from service transaction is recognized as the service is performed.
(iv) Insurance claims have been accounted for on cash basis as per past practice.
(v) Revenue from certified emission reductions (CERs) and renewable emission certificate (REC) is recognized on cash basis in the absence of reasonable assurance that future economic benefits will flow from the same to the company.
(vi) All other Incomes are accounted for on accrual basis.
2.7 Expenses
(i) All expenses are accounted for on accrual basis.
2.8 Inventory
a) Cost of inventory comprises of purchase price, cost of conversion and other cost that have been incurred in bringing the inventories to their respective present location and condition. Interest costs are not included in value of inventory.
Inventories are valued as under:
a) Raw Materials and Finished Goods (except molasses) are carried at lower of cost and net realizable value.
b) Stock of Molasses is carried at net realizable value.
c) Stores & Spares are carried at cost.
d) Goods in Process / WIP are carried at lower of cost and net realizable Value.
e) Banked power with UPPCL is carried at lower of cost and net realizable value.
Cost for the purpose of valuations of raw material and components, stores & spares are considered on following basis:
Manufacturing Units Basis
Sugar
- Raw Material First in First Out
- Stores & Spares and Weighted Average other components
- Trading Goods First in First Out Distillery
- Raw Material First in First Out
- Stores & Spares Weighted Average Other components
Co-generation
- Raw Material First in First Out
2.9 Fair value measurement
The Company measures financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability I takes place either: on acquisition and fees or costs that are an integral part of the EIR.
Equity investments
All equity investments in the scope of Ind AS 109 are measured at fair value except in case of investment in subsidiary carried at deemed cost and associate carried at cost.
Deemed cost is the carrying amount under the previous GAAP as at the transition date i.e. 1st April, 2016. Equity instruments included within the FVTPL category, if any, are measured at fair value with all changes recognized in profit or loss. The Company may make an irrevocable election to present in OCI subsequent changes in the fair value.
The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable. If the Company decides to classify an equity instrument at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in OCI.
There is no recycling of the amounts from OCI to profit or loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity. De-recognition
The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset.
2.11 Employees Benefits
(i) Short term employee benefits
Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus and ex-gratia. The undiscounted amount of short term employee benefits to be paid in exchange for employee services are recognized as an expense as the related service is rendered by employees.
(ii) Post-employment benefits Defined contribution plans:
A defined contribution plan is a post-employment benefit plan under which an entity pays specified contributions to a separate entity and has no obligation to pay any further amounts. The company makes specified monthly contributions towards provident fund. The Company''s contribution is recognized as an expense in the statement of profit and loss during the period in which employee renders the related service.
Defined benefit plan:
The Company''s gratuity benefit scheme is a defined benefit plan. The Company''s net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is movements in the values of assets and liabilities, which are required to be premeasured or re-assessed as per the Company''s accounting policies. For this analysis, the management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.
The management, in conjunction with the Company''s external valuers, also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
2.10 Financial instruments
Financial assets and financial liabilities are recognized in the Balance sheet when the Company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value.
Financial assets
Initial recognition and measurement
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. The financial assets include equity and debt securities, trade and other receivables, loans and advances, cash and bank balances and derivative financial instruments.
Subsequent measurement
For the purpose of subsequent measurement, financial assets are classified in the following categories:
1) At amortized cost,
2) At fair value through other comprehensive income (FVTOCI), and
3) At fair value through profit or loss (FVTPL).
Debt instruments at amortized cost
A ''debt instrument'' is measured at the amortized cost if both the following conditions are met:
1) The asset is held within a business model whose objective is to hold the asset for collecting contractual cash flows, and
2) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium
Borrowing costs attributable to the qualifying assets are capitalized up to the period such assets are ready for the intended use and commenced commercial production. All other borrowing cost is charged to the Statement of Profit & Loss in the period in which they are incurred. 2.13Government Grants
Government grants are recognized at fair value when there is reasonable assurance that the grant would be received and the Company would comply with all the conditions attached with them.
Government grants related to PPE are treated as deferred income (included under non-current liabilities with current portion considered under current liabilities) and are recognized and credited in the Statement of Profit and Loss on a systematic and rational basis over the estimated useful life of the related asset and included under "Other Income". The benefit of government loan at a below-market rate of interest is treated as a government grant. The Difference between the market rate of interest and actual rate of interest is treated as government grant.
First time Adopter shall classify all government loan received as financial liability or Equity as per Ind AS- 32. First time adopter shall apply the requirement in Ind AS -20 and Ind AS -109 to government loan existing at the date of transition to Ind AS and shall not recognized the corresponding benefit of government loan at below market rate of interest as government grant.
Government Grants in the nature of Government promoters'' contribution, i e. which have reference to the total investment in an undertaking or by way of contribution towards total capital outlay, are credited to retained earnings as related to the previous years.
2.14Financial Derivatives and Commodity Hedging Transactions
Financial Derivatives and commodity hedging contracts are accounted for on the date of their settlement and realized gain/loss in respect of settled contracts are recognized in the Statement of Profit & Loss, along with the underlying transactions.
2.15Foreign Currency Transactions and Translations
a) Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Monetary items denominated in foreign currency at the yearend are translated at year end rates.
b) Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
c) In respect of monetary items which are covered by forward exchange contracts, the difference between the year end and the rate on the date of contract is recognized as exchange difference and the premium on discounted to determine its present value, and the fair value of any plan assets is deducted.
The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the balance sheet date.
When the calculation results in a benefit to the Company, the recognized asset is limited to the net total of any unrecognized actuarial losses and past service costs and the present value of any future refunds from the plan or reductions in future contributions to the plan.
Actuarial gains and losses are recognized in the other comprehensive income
(iii) Long term employment benefits
The Company''s net obligation in respect of long-term employment benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is calculated using the projected unit credit method and is discounted to its present value and the fair value of any related assets is deducted. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the balance sheet date.
(iv)Compensated absences
The employees can carry-forward a portion of the unutilized accrued compensated absences and utilize it in future service periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related service and are also not expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as a long-term employee benefit. The Company records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method.
Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit & Loss for the year in which the related service is rendered.
2.12Borrowing Costs
recoverable amount, costs of disposal and value in use.
(iii) For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows which are largely independent of the cash inflows from other assets or group of assets (cash generating units).
(iv) Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at the end of the each reporting period.
2.18 Leases
Assets acquired as leases where a significant portion of the risks and rewards of the ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to the Statement of Profit & Loss on accrual basis.
2.19 Provisions, Contingent Liabilities and Contingent Assets
(i) Provision is recognized in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered probable.
(ii) Provision is recognized in the accounts in respect of present probable obligations, the amount of which can be reliably estimated.
(iii) Provisions are not recognized for future operating losses.
(iv) Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.
(v) A contingent asset is not recognized in the financial statements.
(vi) Provisions and contingent liabilities are reviewed at each balance sheet date.
2.20 Investment Property
Investment property is property (land or a buildingâor part of a buildingâor both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both, rather than for: (a) use in the production or supply of goods or services or for administrative purposes; or (b) sale in the ordinary course of business. Owner-occupied property is property held (by the owner or by the lessee under a finance lease) for use in the production or supply of goods or services or for administrative purposes. Investment properties are accounted for in the books at cost. However, fair value of such property is required to be disclosed only in accordance with Ind AS 40.
2.21Segment Reporting Primary Segment
Based on the guiding principles given in the Ind AS-108 "Segment Reporting" issued by ICAI, the Company''s such forward contracts is recognized over the life of the forward contract.
d) The exchange differences arising on settlement / translation are recognized in the Statement of Profit and Loss.
2.16 Taxes on Income
(a) Current Tax
Tax on income for the current period is determined on the basis of taxable income computed in accordance with the provisions of the Income Tax Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which give future economic benefit in the form of adjustment to future income tax liability is considered as an asset to the extent there is convincing evidence that the company will pay normal income tax.
(b) Deferred Tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statement and the corresponding tax bases used in the computation of taxable profit.
Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition of an asset or liability in a transaction (other than a business combination) affects neither accounting profit nor taxable profit (tax loss).
Deferred tax assets are recognized for the carry forward of unused tax losses and unused tax credit to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax liabilities are generally recognized on all taxable temporary differences.
2.17Impairment of Non-financial Assets
(i) Non-financial assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
(ii) An impairment loss is recognized for the amount by which the assets'' carrying amount exceeds its share and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares.
2.23 Cash and Cash Equivalents
Cash and cash equivalents Cash and cash equivalents in the Balance sheet comprise cash on hand, cheques on hand, balance with banks on current accounts and short term, highly liquid investments with an original maturity of three months or less and which carry insignificant risk of changes in value.
For the purpose of the Cash Flow Statement, Cash and cash equivalents consist of Cash and cash equivalents, as defined above and net of outstanding book overdrafts as they are considered an integral part of the Company''s cash management
2.24 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payment and item of income or expenses associated with investing or financing flows. The cash flows operating, investing and financing activities of the company are segregated.
segments are Sugar, Power Generation and Distillery. Revenue and expenses have been accounted for on the basis of their relationship to the operating activities of the respective segment.
Segment Identification
Business segments have been identified on the basis of the nature of products/ services, the risk return profile of individual business, the organizational structure and the internal reporting system of the company.
The operating segments are reported after taken into consideration of Aggregation criteria and Quantitative threshold as mentioned in Para 12 and 13 of Ind AS 108. Excise duty in respect of finished goods held in stock has been accounted for at the end of the year and is included in the value of closing stock.
2.22 Earning Per Share
Basic earnings per share is computed by dividing the profit/ (loss) after tax (including the post-tax effect of extra ordinary items, if any) by the weighted average number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing the profit/ (loss) after tax (including the post-tax effect of extra ordinary items, if any) by the weighted average number of equity shares considered for deriving basic earnings per
i i ) Rights, preferences and restrictions attached to the equity shares
The Company has only one class of Issued, subscribed and paid up equity shares having a par value of INR 2/- each per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Summary of short term borrowings
Secured borrowings
Nature of Securities
1. Working capital loans from State Bank of India is secured by way of hypothecation and first pari passu charge on stocks of sugar, molasses, consumable stores / spares, industrial alcohal, book debts and other current assets of the company, second pari passu charge with other working capital lenders on entire fixed assets and all other movable and immovable assets of the company (existing & future), personal guarantee of three Directors, pledge of shares and corporate guarantee of KM Plantation Pvt. Ltd.
2. Working capital loan from Punjab National Bank is secured by pledge of stock of Crystal sugar, second pari passu charge with other working capital capital lenders on entire fixed assets and all other movable and immovable assets of the company (existing & future), personal guarantee of two Directors, pledge of shares and corporate guarantee of KM Plantation Pvt. Ltd.
3. Working capital loans from The Federal Bank Ltd. is secured by way of hypothecation and first pari passu charge on stocks of sugar, molasses, consumable stores / spares, industrial alcohal, book debts and other current assets of the company, second pari passu charge with other working capital lenders on entire fixed assets and all other movable and immovable assets of the company (existing & future), personal guarantee of two Directors, pledge of shares and corporate guarantee of KM Plantation Pvt. Ltd.
Mar 31, 2015
1.1 Basis of Preparation of Financial Statements
These financial statements are prepared on the accrual basis of
accounting, under the historical cost convention except for revaluation
of certain Fixed Assets, in accordance with the Companies Act, 1956 and
the applicable Accounting Standards issued by the Institute of
Chartered Accountants of India. There is no change in the system of
accounting as being consistently followed from earlier years unless
otherwise stated.
All assets and liabilities have been classified as current or non-
current as per company's normal operating cycle and other criteria set
out in the Schedule VI to the Companies Act, 1956. Based on the nature
of operations and time between procurement of raw material and
realization in cash and cash equivalents, the Company has ascertained
its operating cycle as 12 months for the purpose of current and
non-current classification of assets and liabilities.
1.2 Use of Estimates
The preparation of the Financial Statements in conformity with GAPP
requires management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenditure during the period.
Management believes that the estimates made in the preparation of the
financial statements are prudent and reliable. Actual results might
differ from the estimates. Difference between the actual results and
estimates are recognized in the period in which results are
known/materialized.
1.3 Significant Accounting Policies
a) Fixed Assets
i) Tangible Fixed Assets are stated at cost net of cenvat credit and/or
at revalued price less accumulated depreciation. All costs including
financing costs relating to borrowing till commencement of commercial
production attributable to the fixed assets are capitalized.
ii) Depreciation on fixed assets is provided on written down value
method at the rates and the manner prescribed in Schedule XIV of the
Companies Act, 1956. The additional depreciation, on increase in cost
on account of revaluation, is transferred to statement of Profit & Loss
from Revaluation Reserve and is thus not charged to statement of Profit
& Loss of the year.
iii) Tangible Fixed Assets costing up to Rs.5,000/- are being
depreciated fully in the year of their put to use.
iv) Depreciation/amortization on assets added, sold or discarded during
the year is provided on pro-rata basis.
v) Intangible assets expected to provide future enduring economic
benefits are recorded at the consideration paid for acquisition of such
assets and are carried at cost of acquisition less accumulated
amortization and impairment, if any.
Intangible assets: Computer software is amortized over a period of four
years.
b) Revenue Recognition and Expenses
i. Revenue from the sale of products is recognized when the property in
goods is transferred to the buyer for a consideration. Revenue from
service transaction is recognized as the service is performed.
ii. Insurance claims have been accounted for on cash basis as per past
practice.
iii. Revenue from certified emission reductions (CERs) and renewable
emission certificate (REC) is recognized on cash basis in the absence
of reasonable assurance that future economic benefits will flow from
the same to the company.
iv. All the expenses are accounted for on accrual basis.
c) Inventories are valued as under:
i. Raw Materials and Finished Goods (except molasses) are carried at
lower of cost or net realizable value.
ii. Stock of Molasses are carried at net realizable value.
iii. Stores & Spares are carried at cost.
iv. Goods in Process / WIP is carried at lower of cost or net
realizable Value.
v. Banked power with UPPCL is carried at lower of cost or net
realizable value.
Cost of inventory comprises of purchase price, cost of conversion and
other cost that have been incurred in bringing the inventories to their
respective present location and condition. Interest cost are not
included in value of inventory.
Cost for the purpose of valuations of raw material and components,
stores & spares are considered on following basis:
Manufacturing Units Basis
Sugar
- Raw Material First in First Out
- Stores & Spares and other components Weighted monthly average
- Trading Goods First in First Out
Distillery
- Raw Material First in First Out
- Stores & Spares Other components Weighted monthly average
Co-generation
- Raw Material First in First Out
d) Investments
Long term Investments are carried at cost. However, provision for
diminution is made to recognize decline, other than temporary, in the
value of investment, if any. Current Investment is carried at cost or
market value, whichever is lower.
e) Employees Benefits
(i) Short term employee benefits
Employee benefits payable wholly within twelve months of receiving
employee services are classified as short-term employee benefits.
These benefits include salaries and wages, bonus and ex-gratia. The
undiscounted amount of short term employee benefits to be paid in
exchange for employee services are recognized as an expense as the
related service is rendered by employees.
(ii) Post employment benefits
Defined contribution plans :
A defined contribution plan is a post-employment benefit plan under
which an entity pays specified contributions to a separate entity and
has no obligation to pay any further amounts. The company makes
specified monthly contributions towards provident fund. The Company's
contribution is recognized as an expense in the statement of profit and
loss during the period in which employee renders the related service.
Defined benefit plan :
The Company's gratuity benefit scheme is a defined benefit plan. The
Company's net obligation in respect of a defined benefit plan is
calculated by estimating the amount of future benefit that employees
have earned in return for their service in the current and prior
periods; that benefit is discounted to determine its present value, and
the fair value of any plan assets is deducted.
The present value of the obligation under such defined benefit plan is
determined based on actuarial valuation using the Projected Unit Credit
Method, which recognizes each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.
The obligation is measured at the present value of the estimated future
cash flows. The discount rates used for determining the present value
of the obligation under defined benefit plan, are based on the market
yields on Government securities as at the balance sheet date.
When the calculation results in a benefit to the Company, the
recognized asset is limited to the net total of any unrecognized
actuarial losses and past service costs and the present value of any
future refunds from the plan or reductions in future contributions to
the plan.
Actuarial gains and losses are recognized immediately in the statement
of profit and loss.
(iii) Long term employment benefits
The Company's net obligation in respect of long-term employment
benefits is the amount of future benefit that employees have earned in
return for their service in the current and prior periods. The
obligation is calculated using the projected unit credit method and is
discounted to its present value and the fair value of any related
assets is deducted. The discount rates used for determining the present
value of the obligation under defined benefit plan, are based on the
market yields on Government securities as at the balance sheet date.
(iv) Compensated absences
The employees can carry-forward a portion of the unutilized accrued
compensated absences and utilize it in future service periods or
receive cash compensation on termination of employment. Since the
compensated absences do not fall due wholly within twelve months after
the end of the period in which the employees render the related service
and are also not expected to be utilized wholly within twelve months
after the end of such period, the benefit is classified as a long-term
employee benefit. The Company records an obligation for such
compensated absences in the period in which the employee renders the
services that increase this entitlement. The obligation is measured on
the basis of independent actuarial valuation using the projected unit
credit method.
Short term employee benefits are recognized as an expense at the
undiscounted amount in the Statement of Profit & Loss for the year in
which the related service is rendered.
f) Borrowing Costs
Borrowing costs attributable to the qualifying assets are capitalized
up to the period such assets are ready for the intended use and
commenced commercial production. All other borrowing cost is charged to
the Statement of Profit & Loss in the period in which they are
incurred.
g) Government Grants
Government Grants in the nature of Government promoters' contribution,
i e. which have reference to the total investment in an undertaking or
by way of contribution towards total capital outlay, are credited to
capital reserve.
h) Financial Derivatives and Commodity Hedging Transactions
Financial Derivatives and commodity hedging contracts are accounted for
on the date of their settlement and realized gain/loss in respect of
settled contracts are recognized in the Statement of Profit & Loss,
along with the underlying transactions.
i) Foreign Currency Transactions
a) Transactions denominated in foreign currencies are recorded at the
exchange rates prevailing on the date of transaction. Monetary items
denominated in foreign currency at the year end are translated at year
end rates.
b) Non-monetary items which are carried at historical cost denominated
in a foreign currency are reported using the exchange rate at the date
of the transaction.
c) In respect of monetary items which are covered by forward exchange
contracts, the difference between the year end and the rate on the date
of contract is recognized as exchange difference and the premium on
such forward contracts is recognized over the life of the forward
contract.
d) The exchange differences arising on settlement / translation are
recognized in the Statement of Profit and Loss.
j) Taxes on Income
i. Tax on income for the current period is determined on the basis of
taxable income computed in accordance with the provisions of the Income
Tax Act, 1961.
ii. Deferred Tax is recognized on timing differences between accounting
income and taxable income for the period, and quantified using the tax
rates and laws enacted or substantively enacted as on the Balance Sheet
date.
iii. Deferred Tax Assets are recognized only to the extent there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Deferred Tax Assets in respect to brought forward losses/unabsorbed
depreciation is recognized only to the extent that there is a virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized.
k) Impairment of Assets
Impairment of individual assets/cash generating unit (a group of assets
that generates identified independent cash flows) are identified using
external and internal sources of information and impairment loss if
any, is determined and recognized in accordance with the Accounting
Standard 28 issued in this regard by the Institute of Chartered
Accountants of India.
l) Leases
Assets acquired as leases where a significant portion of the risks and
rewards of the ownership are retained by the lessor are classified as
operating leases. Lease rentals are charged to the Statement of Profit
& Loss on accrual basis.
m) Provisions, Contingent Liabilities and Contingent Assets
i. Provision is recognized in respect of obligations where, based on
the evidence available, their existence at the Balance Sheet date is
considered probable.
ii. Provision is recognized in the accounts in respect of present
probable obligations, the amount of which can be reliably estimated.
iii. Contingent Liabilities are disclosed in respect of possible
obligations that arise from past events but their existence is
confirmed by the occurrence or non occurrence of one or more uncertain
future events not wholly within the control of the Company.
iv. A contingent asset is not recognized in the financial statements.
v. Provisions and contingent liabilities are reviewed at each balance
sheet date.
n) Segment Reporting
Primary Segment
Based on the guiding principles given in the Accounting Standard- 17
"Segment Reporting" issued by ICAI, the Company's segments are Sugar,
Power Generation and Distillery.
Revenue and expenses have been accounted for on the basis of their
relationship to the operating activities of the respective segment.
Segment Identification
Business segments have been identified on the basis of the nature of
products/ services, the risk return profile of individual business, the
organizational structure and the internal reporting system of the
company.
o) Excise duty in respect of finished goods held in stock has been
accounted for at the end of the year and is included in the value of
closing stock.
p) Earning Per Share
Basic earnings per share is computed by dividing the profit/(loss)
after tax (including the post tax effect of extra ordinary items, if
any) by the weighted average number of equity shares outstanding during
the year.
Diluted earnings per share is computed by dividing the profit/(loss)
after tax (including the post tax effect of extra ordinary items, if
any) by the weighted average number of equity shares considered for
deriving basic earnings per share and also the weighted average number
of equity shares which could be issued on the conversion of all
dilutive potential equity shares.
q) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payment and item of income or expenses associated with
investing or financing flows. The cash flows operating, investing and
financing activities of the company are segregated.
Sep 30, 2013
1.1 Basis of Preparation of Financial Statements
These financial statements are prepared on the accrual basis of
accounting, under the historical cost convention except for revaluation
of certain Fixed Assets, in accordance with the Companies Act, 1956 and
the applicable Accounting Standards issued by the Institute of
Chartered Accountants of India. There is no change in the system of
accounting as being consistently followed from earlier years unless
otherwise stated.
All assets and liabilities have been classified as current or non-
current as per company''s normal operating cycle and other criteria set
out in the Schedule VI to the Companies Act, 1956. Based on the nature
of operations and time between procurement of raw material and
realization in cash and cash equivalents, the Company has ascertained
its operating cycle as 12 months for the purpose of current and
non-current classification of assets and liabilities.
1.2 Use of Estimates
The preparation of the Financial Statements in conformity with GAPP
requires management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenditure during the period. Actual
results might differ from the estimates. Difference between the actual
results and estimates are recognized in the period in which results are
known/materialized.
1.3 Significant Accounting Policies
I a) Fixed Assets
i) Tangible Fixed Assets are stated at cost net of cenvat credit and/or
at revalued price less accumulated depreciation. All costs including
financing costs relating to borrowing till commencement of commercial
production attributable to the fixed assets are capitalized.
ii) Depreciation on fixed assets is provided on written down value
method at the rates and the manner prescribed in Schedule XIV of the
Companies Act, 1956. The additional depreciation, on increase in cost
on account of revaluation, is transferred to statement of Profit & Loss
from Revaluation Reserve and is thus not charged to statement of Profit
& Loss of the year.
iii) Tangible Fixed Assets costing up to Rs.5,0007- are being
depreciated fully in the year of their put to use.
iv) Depreciation/amortization on assets added, sold or discarded during
the year is provided on pro-rata basis.
v) Intangible assets expected to provide future enduring economic
benefits are recorded at the consideration paid for acquisition of such
assets and are carried at cost of acquisition less accumulated
amortization and impairment, if any.
Intangible assets: Computer software is amortized over a period of
fouryears.
b) Revenue Recognition and Expenses
i. Revenue from the sale of products is recognized when the property in
goods is transferred to the buyer for a consideration. Revenue from
service transaction is recognized as the service is performed.
ii. Insurance claims have been accounted for on cash basis as per past
practice.
iii. All the expenses are accounted for on accrual basis.
c) Inventories are valued as under:
i. Raw Materials and Finished Goods (except molasses) are carried at
lower of cost or net realizable value.
ii. Stock of Molasses are carried at net realizable value.
iii. Stores & Spares are carried at cost.
iv. Goods in Process / WtP is carried at lower of cost or net
realizable Value.
v. Banked power with UPPCL is carried at lower of cost or net
realizable value.
Cost of inventory comprises of purchase price, cost of conversion and
other cost that have been incurred in bringing the inventories to their
respective present location and condition. Interest cost are not
included in value of inventory.
Cost for the purpose of valuations of raw material and components,
stores & spares are considered on following basis:
Manufacturing Units Basis
Sugar
Raw Material First in First Out
Stores & Spares and other components Weighted monthly average
Trading Goods First in First Out
Distillery
Raw Material First in First Out
Stores & Spares Other components Weighted monthly average
Co-generation
Raw Material First in First Out
d) Investments
Long term Investments are carried at cost. However, provision for
diminution is made to recognize decline, other than temporary, in the
value of investment, if any. Current Investment is carried at cost or
market value, whichever is lower.
e) Employees Benefits
Long term employee benefits in respect of Gravity and Leave Encashment
benefits payable to the employees is recognized on the basis of
actuarial valuation done by the competent authority as at 30th
September of every accounting year as an expense in the Statement of
Profit & Loss for the year in which the employees have rendered the
services.
Short term employee benefits are recognized as an expense at the
undiscounted amount in the Statement of Profit & Loss for the year in
which the related service is rendered.
f) Borrowing Costs
Borrowing costs attributable to the qualifying assets are capitalized
up to the period such assets are ready for the intended use and
commenced commercial production. All other borrowing cost is charged to
the Statement of Profit & Loss in the period in which they are
incurred.
g) Government Grants
Government Grants in the nature of Government promoters''contribution, i
e. which have reference to the total investment in an undertaking or by
way of contribution towards total capital outlay, are credited to
capital reserve.
h) Financial Derivatives and Commodity Hedging Transactions
Financial Derivatives and commodity hedging contracts are accounted for
on the date of their settlement and realized gain/loss in respect of
settled contracts are recognized in the Statement of Profit & Loss,
along with the underlying transactions.
i) Foreign Currency Transactions
a) Transactions denominated in foreign currencies are recorded at the
exchange rates prevailing on the date of transaction. Monetary items
denominated in foreign currency at the year end are translated at year
end rates.
b) Non-monetary items which are carried at historical cost denominated
in a foreign currency are reported using the exchange rate at the date
of the transaction.
c) In respect of monetary items which are covered by forward exchange
contracts, the difference between the year end and the rate on the date
of contract is recognized as exchange difference and the premium on
such forward contracts is recognized over the life of the forward
contract.
d) The exchange differences arising on settlement / translation are
recognized in the Statement of Profit and Loss.
j) Taxes on Income
i. Tax on income for the current period is determined on the basis of
taxable income computed in accordance with the provisions of the Income
Tax Act, 1961.
ii. Deferred Tax is recognized on timing differences between accounting
income and taxable income for the period, and quantified using the tax
rates and laws enacted or substantively enacted as on the Balance Sheet
date.
iii. Deferred Tax Assets are recognized only to the extent there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Deferred Tax Assets in respect to brought forward losses/unabsorbed
depreciation is recognized only to the extent that there is a virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized.
k) Impairment of Assets
Impairment of individual assets/cash generating unit (a group of assets
that generates identified independent cash flows) are identified using
external and internal sources of information and impairment loss if
any, is determined and recognized in accordance with the Accounting
Standard 28 issued in this regard by the Institute of Chartered
Accountants of India.
I) Leases
Assets acquired as leases where a significant portion of the risks and
rewards of the ownership are retained by the lessor are classified as
operating leases. Lease rentals are charged to the Statement of Profit
& Loss on accrual basis.
m) Provisions, Contingent Liabilities and Contingent Assets
i. Provision is recognized in respect of obligations where, based on
the evidence available, their existence at the Balance Sheet date is
considered probable.
ii. Provision is recognized in the accounts in respect of present
probable obligations, the amount of which can be reliably estimated.
iii. Contingent Liabilities are disclosed in respect of possible
obligations that arise from past events but their existence is
confirmed by the occurrence or non occurrence of one or more uncertain
future events not wholly within the control of the Company.
iv. A contingent asset is not recognized in the financial statements.
v. Provisions and contingent liabilities are reviewed at each balance
sheet date.
n) Segment Reporting
Primary Segment
Based on the guiding principles given in the Accounting Standard-17
"Segment Reporting" issued by ICAI, the Company''s segments are Sugar,
Power Generation and Distillery.
Revenue and expenses have been accounted for on the basis of their
relationship to the operating activities of the respective segment.
Segment Identification
Business segments have been identified on the basis of the nature of
products/ services, the risk return profile of individual business, the
organizational structure and the internal reporting system of the
company.
o) Excise duty in respect of finished goods held in stock has been
accounted for at the end of the year and is included in the value of
closing stock.
p) Earning Per Share
Basic earnings per share is computed by dividing the profit/(loss)
after tax (including the post tax effect of extra ordinary items, if
any) by the weighted average number of equity shares outstanding during
the year.
Diluted earnings per share is computed by dividing the profit/(loss)
after tax (including the post tax effect of extra ordinary items, if
any) by the weighted average number of equity shares considered for
deriving basic earnings per share and also the weighted average number
of equity shares which could be issued on the conversion of all
dilutive potential equity shares.
q) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payment and item of income or expenses associated with
investing or financing flows. The cash flows operating, investing and
financing activities of the company are segregated.
2.29 Other Disclosures:
1. Contingent liabilities and commitments (to the extent not provided
for and as certified by the management) (a) Contingent liabilities
(i) Claims against the Company not acknowledged as debts in respect of
pending cases of employees under labour laws - Rs. 128.72 lacs
(Previous Year- Rs. 113.56 lacs).
(ii) Claims against the company not acknowledged as debts in respect of
criminal and Civil Cases Rs.31.17 lacs (Previous Year -Rs.43.43 lacs).
(iii) Bank guarantees given to the Central Government, Excise
Department and Indian Oil Corporation Ltd., aggregating to Rs.132.96
lacs (Previous Year Rs.25.26 lacs).
(iv) Company has given guarantee to the banks, which provided vehicle
loans to the employees of the company, outstanding loan as on
30.09.2013 Rs.0.42 lacs (PreviousYear Rs. 0.41 lacs).
(v) Disputed sales tax, income tax and excise duty cases under appeal -
Rs.8935.20 lacs (Previous Year Rs.6484.84 lacs)
The amount shown above represent the best possible estimates arrived at
on the basis of available information. The uncertainties and timing of
the cash flows are dependent on the outcome of different legal
processes which have been invoked by the company or the claimants as
the case may be and therefore cannot be ascertained accurately. The
company does not expect any reimbursements in respect of above
contingent liabilities.
In the opinion of the management, no provision is considered necessary
for the disputes mentioned above on the grounds that there are fair
chances of successful outcome of appeals filed by the company.
(b) Commitments:
(i) Estimated amount of contracts remaining to be executed on capital
account and not provided for-Rs.211.33 lacs (Previous Year- Rs. Nil).
(ii) Advances paid against above- Rs.96.38 lacs (Previous Year-Rs.
Nil).
2. Employee Benefits:
As per Accounting Standard -15 ''Employees Benefits'' the disclosure of
Employee Benefits as defined in the Accounting Standard are as follow:
a. Defined contribution plans :
Employee benefits in the form of Provident Fund are considered as
defined contribution plan. The contribution to defined contribution
plan, recognized the following amounts in the Statement of Profit &
Loss :
b. Defined benefits plans
Long term employee benefits in the form of gratuity and leave
encashment are considered as defined benefit plan. The present value of
obligation is determined based on actuarial valuation using projected
unit credit method as at the balance sheet date. The amount of defined
benefits recognized in the balance sheet represent the present value of
obligation as adjusted for unrecognized past service cost as reduced by
the fair value of plan assets.
Sep 30, 2012
A) Fixed Assets
i) Tangible Fixed Assets are stated at cost net of cenvat credit and/or
at revalued price less accumulated depreciation. All costs including
financing costs relating to borrowing till commencement of commercial
production attributable to the fixed assets are capitalized.
ii) Depreciation on fixed assets is provided on written down value
method at the rates and the manner prescribed in Schedule XIV of the
Companies Act, 1956. The additional depreciation, on increase in cost
on account of revaluation, is transferred to the Profit & Loss account
from Revaluation Reserve and is thus not charged to statement of Profit
& Loss of the year.
iii) Tangible Fixed Assets costing upto Rs.5,000/- are being
depreciated fully in the year of their put to use.
iv) Intangible Fixed Assets: - Computer software is amortized over a
period of four years.
b) Revenue Recognition and Expenses
Revenue from the sale of products is recognized when the property in
goods is transferred to the buyer for a consideration. Revenue from
service transaction is recognized as the service is performed.
Insurance claims have been accounted for on cash basis as per past
practice.
All the expenses are accounted for on accrual basis.
c) Inventories are valued as under:
a. Raw Materials and Finished Goods (except molasses) are carried at
lower of cost or net realisable value.
b. Stock of Molasses are carried at net realizable value.
c. Stores & Spares are carried at cost.
d. Goods in Process / WIP is carried at lower of cost or net
realizable Value.
e. Banked power with UPPCL is carried at lower of cost or net
realizable value.
Cost for the purpose of valuations of raw material and components,
stores & spares are considered on following basis
Raw Materials, stores & spares and other components Manufacturing Units
Basis
Sugar
- Raw Material First in First Out
- Stores & Spares and Weighted monthly average other components
- Trading Goods First in First Out
Distillery
- RawMaterial First in First Out
- Stores & Spares Weighted monthly average Other components
- Co-generation First in First Out Raw Material
d) Investments
Long term Investments are carried at cost. However, provision for
diminution is made to recognize decline, other than temporary, in the
value of investment, if any. Current Investment is carried at cost or
market value, whichever is lower.
e) Employees Benefits
Long term employee benefits in respect of Gratuity and Leave Encashment
benefits payable to the employees is recognized on the basis of
actuarial valuation done by the competent authority as at 30Th
September of every accounting year as an expense in the Statement of
Profit & Loss for the year in which the employees have rendered the
services.
Shortterm employee benefits are recognized as an expense at the
undiscounted amount in the Statement of Profit & Loss for the year in
which the related service is rendered.
f) Borrowing Costs
Borrowing costs attributable to the qualifying assets are capitalized
up to the period such assets are ready for the intended use and
commenced commercial production. All other borrowing cost is charged to
the Statement of Profit & Loss.
g) Government Grants
Government Grants in the nature of Government promoters'' contribution,
i e which have reference to the total investment in an undertaking or
by way of contribution towards total capital outlay, are credited to
capital reserve.
h) Financial Derivatives and Commodity Hedging Transactions
Financial Derivatives and commodity hedging contracts are accounted for
on the date of their settlement and realized gain/loss in respect of
settled contracts are recognized in the profit & loss account, along
with the underlying transactions.
i) Foreign Currency Transactions
Transactions denominated in foreign currencies are recorded at the
exchange rates prevailing on the date of transaction. Monetary items
denominated in foreign currency at the year end are translated at year
end rates. In respect of monetary items which are covered by forward
exchange contracts, the difference between the year end and the rate on
the date of contract is recognised as exchange difference and the
premium on such forward contracts is recognised over the life of the
forward contract. The exchange differences arising on
settlement/translation are recognized in the Statement of Profit and
Loss.
j) Taxes on Income
a. Tax on income for the current period is determined on the basis of
taxable income computed in accordance with the provisions of the Income
Tax Act, 1961.
b. Deferred Tax is recognized on timing differences between accounting
income and taxable income for the period, and quantified using the tax
rates and laws enacted or substantively enacted as on the Balance Sheet
date.
c. Deferred Tax Assets are recognized only to the extent there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Deferred Tax Assets in respect to brought forward losses / unabsorbed
depreciation is recognized only to the extent that there is a virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized.
k) Impairment of Assets
Impairment of individual assets/cash generating unit ( a group of
assets that generates identified independent cash flows) are identified
using external and internal sources of information and impairment loss
if any, is determined and recognized in accordance with the Accounting
Standard 28 issued in this regard by the Institute of Chartered
Accountants of India.
I) Public Issue Expenditure
The company amortizes miscellaneous expenditure representing public
issue expenses over a period of 5 years.
m) Leases
Assets acquired as leases where a significant portion of the risks and
rewards of the ownership are retained by the lessor are classified as
operating leases. Lease rentals are charged to the Statement of Profit
& Loss on accrual basis.
n) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized in the accounts in respect of present
probable obligations, the amount of which can be reliably estimated.
Contingent Liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non occurrence of one or more uncertain future events not
wholly within the control of the Company
A contingent asset is neither recognized nor disclosed in the financial
statements.
o) Segment Reporting
Primary Segment
Based on the guiding principles given in the Accounting Standard-17
"Segment Reporting" issued by ICAI, the Company''s segments are
Sugar, Power Generation and Distillery.
Revenue and expenses have been accounted for on the basis of their
relationship to the operating activities of the respective segment.
Segment Identification
Business segments have been identified on the basis of the nature of
products/ services, the risk return profile of individual business, the
organizational structure and the internal reporting system of the
company.
p) Excise duty in respect of finished goods held in stock has been
accounted for at the end of the year and is included in the value of
closing stock.
Sep 30, 2010
A) Basis of Preparation of Financial Statements
These financial statements have been prepared on the accrual basis of
accounting, under the historical cost convention except for revaluation
of certain Fixed Assets, in accordance with the Companies Act, 1956 and
the applicable Accounting Standards issued by the Institute of
Chartered Accountants of India. There is no change in the system of
accounting as being consistently followed from earlier years unless
otherwise stated.
b) Fixed Assets
i) Fixed Assets are stated at cost net of cenvat credit and/or at
revalued price less accumulated depreciation. All costs including
financing costs relating to borrowing till commencement of commercial
production attributable to the fixed assets are capitalized.
ii) Depreciation on fixed assets is provided on written down value
method at the rates and the manner prescribed in Schedule XIV of the
Companies Act, 1956. The additional depreciation, on increase in cost
on account of revaluation, is transferred to the Profit & Loss account
from Revaluation Reserve and is thus not charged to Profit & Loss
account of the year.
iii) Fixed Assets costing upto Rs.5,000/- are being depreciated fully
in the year of their put to use.
iv) Intangible Assets: - Computer software is amortized over a period
of four years.
c) Revenue Recognition
Revenue from the sale of products is recognized when the property in
goods is transferred to the buyer for a consideration. Revenue from
service transaction is recognized as the service is performed.
d) Inventories are valued as under:
- Raw Materials and Finished Goods (except molasses) are carried at
lower of cost or net realisable value.
- Stock of Molasses are carried at net realizable value.
- Stocks Spares are carried at cost.
- Goods in Process / WIP is carried at lower of cost or net
realizable value.
- Banked power with UPPCL is carried at lower of cost or net realizable
value.
Cost for the purpose of valuations of raw material and components,
stores & spares are considered on following basis:-
Raw Materials, stores & spares and other components
Manufacturing Units Basis
Sugar - Raw Material First in First Out
- Stores & Spares and Weighted monthly
other components average
Distillery Raw Material First in First Out
-Stores & Spares Other Weighted monthly
components average
Co-generation- Raw Material First in First Out
e) Investments
Long term Investments are carried at cost. However, provision for
diminution is made to recognize decline, other than temporary, in the
value of investment, if any. Current Investment is carried at cost or
market value, whichever is lower.
f) Employees Benefits
Provision is made in the accounts towards Companys liability in
respect of Gratuity and Leave Encashment benefits payable to the
employees on the basis of actuarial valuation done by the competent
authority as required by the Accounting Standard-15 on Employees
Benefits issued by the Institute of Chartered Accountants of India.
g) Borrowing Costs
Borrowing costs attributable to the qualifying assets are capitalized
up to the period such assets are ready for the intended use and
commenced commercial production. All other borrowing cost is charged to
the Profit & Loss account.
h) Government Grants
Government Grants in the nature of Government
promoters contribution, i e. which have reference to .the total
investment in an undertaking or by way of contribution towards total
capital outlay, are credited to capital reserve.
i) Financial Derivatives and Commodity Hedging Transactions
Financial Derivatives and commodity hedging contracts are accounted for
on the date of their settlement and realized gain/loss in respect of
settled contracts are recognized in the profit & loss account, along
with the underlying transactions.
j) Taxes on Income
- Tax on income for the current period is determined on the basis of
taxable income computed in accordance with the provisions of the Income
Tax Act, 1961.
- Deferred Tax is recognized on timing differences between accounting
income and taxable income for the period, and quantified using the tax
rates and laws enacted or substantively enacted as on the Balance Sheet
date.
- Deferred Tax Assets are recognized only to the extent there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Deferred Tax Assets in respect to brought forward losses/unabsorbed
depreciation is recognized only to the extent that there is a virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized.
k) Impairment of Assets
Impairment of individual assets/cash generating unit (a group of assets
that generates identified independent cash flows) are identified using
external and internal sources of information and impairment loss if
any, is determined and recognized in accordance with the Accounting
Standard 28 issued in this regard by the Institute of Chartered
Accountants of India.
I) Public Issue Expenditure
The company amortizes miscellaneous expenditure representing public
issue expenses over a period of 5 years.
m) Leases
Assets acquired as leases where a significant portion of the
risks and rewards of the ownership are retained by the lessor are
classified as operating leases. Lease rentals are charged to the Profit
& Loss Account on accrual basis.
n) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized in the accounts in respect of present
probable obligations, the amount of which can be reliably estimated.
Contingent Liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non occurrence of one or more uncertain future events not
wholly within the control of the Company.
A contingent asset is neither recognized nor disclosed in the financial
statements.
o) Segment Reporting
Primary Segment
Based on the guiding principles given in the Accounting Standard-17
"Segment Reporting" issued by ICAI, the Companys segments are Sugar,
Power Generation and Distillery.
Revenue and expenses have been accounted for on the basis of their
relationship to the operating activities of the respective segment.
Segment Identification
Business segments have been identified on the basis of the nature of
products/ services, the risk return profile of individual business, the
organizational structure and the internal reporting system of the
company.
p) Excise duty in respect of finished goods held in stock has been
accounted for at the end of the year and is included in the value of
closing stock.
q) Insurance claims have been accounted for on cash basis as per past
practice.
Sep 30, 2009
A) Basis of Preparation of Financial Statements
These financial statements have been prepared on the accrual basis of
accounting, under the historical cost convention except for revaluation
of certain Fixed Assets, in accordance with the Companies Act, 1956 and
the applicable Accounting Standards issued by the Institute of
Chartered Accountants of India. There is no change in the system of
accounting as being consistently followed from earlier years unless
otherwise stated.
b) Fixed Assets
i) Fixed Assets are stated at cost net of cenvat credit and/or at
revalued price less accumulated depreciation. All costs including
financing costs relating to borrowing till commencement of commercial
production attributable to the fixed assets are capitalized.
ii) Depreciation on fixed assets is provided on written down value
method at the rates and the manner prescribed in Schedule XIV of the
Companies Act, 1956, The additional depreciation, on increase in cost
on account of revaluation, is transferred to the Profit & Loss account
from Revaluation Reserve and is thus not charged to Profit & Loss
account of the year.
iii) Fixed Assets costing upto Rs.5,000/- are being depreciated fully
in the year of their put to use.
iv) Intangible Assets: Computer software is amortized over a period of
four years.
e) Revenue Recognition
Revenue from the sale of products is recognized when the property in
goods is transferred to the buyer for a consideration. Revenue from
service transaction is recognized as the service is performed.
d) Inventories are valued as under:
à Raw Materials and Finished Goods (except molasses) are carried at
lower of cost or net realisable value.
à Stock of Molasses are carried at net realizable value, Stock & Spares
are carried at cost. Goods in Process / WIP is carried at lower of
cost or net realizable value.
Banked power with UPPCL is carried at lower of cost or net realizable
value.
Cost for the purpose of valuations of raw material and components,
stores & spares are considered on following basis:-
Raw Material, stores & spares and other components
Manufacturing Units Basis
Sugar - Raw Material First in First Out
- Stores & Spares and Weighted monthly
Distillery -Raw Material First in First Out
- Stores & Spares and Weighted monthly
Co-generation- Raw Material First in First Out
e) Investments
Long term Investments are carried at cost. However, provision for
diminution is made to recognize decline, other than temporary, in the
value of investment, if any. Current Investment is carried at cost or
market value, whichever is lower,
f) Employees Benefits
Provision is made in the accounts towards Companys liability in
respect of Gratuity and Leave Encashment benefits payable to the
employees on the basis of actuarial valuation done by the competent
authority as required by the Accounting Standard -15 on Employees
Benefits issued by the Institute of Chartered Accountants of India.
g) Borrowing Costs
Borrowing costs attributable to the qualifying assets are capitalized
up to the period such assets are ready for the intended use and
commenced commercial production. All other borrowing cost is charged to
the Profit & Loss account.
h) Government Grants
Government Grants in the nature of Government promoters contribution,
i e, which have reference to the total investment in an undertaking or
by way of contribution towards total capital outlay, are credited to
capital reserve.
i) Financial Derivatives and Commodity Hedging Transactions
Financial Derivatives and commodity hedging contracts are accounted for
on the date of their settlement and realized gain/loss in respect of
settled contracts are recognized in the profit & loss account, along
with the underlying transactions,
j) Taxes on Income
Tax on income for the current period is determined on the basis of
taxable income computed in accordance with the provisions of the Income
Tax Act, 1961.
Deferred Tax is recognized on timing differences between accounting
income and taxable income for the period, and quantified using the tax
rates and laws enacted or substantively enacted as on the Balance Sheet
date.
Deferred Tax Assets are recognized only to the extent there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Deferred Tax Assets in respect to brought forward losses/unabsorbed
depreciation is recognized only to the extent that there is a virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized.
k) Impairment of Assets
Impairment of individual assets/cash generating unit (a group of assets
that generates identified independent cash flows) are identified using
external and internal sources of information and impairment loss if
any, is determined and recognized in accordance with the Accounting
Standard 28 issued in this regard by the Institute of Chartered
Accountants of India.
l) Public Issue Expenditure
The company amortizes miscellaneous expenditure representing public
issue expenses over a period of 5 years.
m) Leases
Assets acquired as leases where a significant portion of the risks and
rewards of the ownership are retained by the lessor are classified as
operating leases. Lease rentals are charged to the Profits Loss Account
on accrual basis.
n) Provisions and Contingent Liabilities
Contingent Liabilities are not recognized in the accounts but are
disclosed after a critical. evaluation of the facts and legal issues
involved in that regard.
o) Excise duty in respect of finished goods held in stock has been
accounted for at the end of the year and is included in the value of
closing stock.
p) The interests on fixed deposit with bank and insurance claims have
been accounted for on cash basis as per past practice.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on KM Sugar Mills Ltd.
-
KM Sugar Mills Ltd. Tools
- Bulk Deals
- Block Deals
-
KM Sugar Mills Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- BSE Price History
- NSE Price History
-
KM Sugar Mills Ltd. Key Financial Ratios
- Ratios
-
KM Sugar Mills Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
KM Sugar Mills Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
KM Sugar Mills Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
KM Sugar Mills Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
-
Stocks To Buy Today, Dec 19: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Stocks To Buy Today, Dec 18: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday -
Stocks To Buy Today, Dec 17: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
Stocks To Buy Today, Dec 16: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
India Stock Market Weekly Review: Nifty and Sensex Fall as Caution Spreads -
Stocks To Buy Today, Dec 15: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday
-
Stocks To Buy Today, Dec 12: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Market Outlook 2026: Kotak Securities Sees Nifty 50 at 30,000; THESE 4 Sectors Lead Rally, Gold To Stay Strong -
Stocks To Buy Today, Dec 10: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
D-Street Bleeds For 2nd Day! Sensex Slumps 678 Pts; Nifty Cracks 25,800; Why Stock Market Is Falling Today? -
Stocks To Buy Today, Dec 9: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
Stocks To Buy Today, Dec 8: Top 4 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday -
Stock Market Alert! Major Pre-Open Session Change From Dec 8: Full Timings, Rules & All You Need To Know -
Bank Nifty Surges: RBI’s 25 bps Rate Cut Triggers Strong Upside in Major Banking Stocks -
Closing Bell: Sensex Ends 158 pts Higher, Nifty Climbs Above 26,000; Hero MotoCorp, HAL Up 2% Each -
Stocks To Buy Today, Dec 4: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday
-
Block for 8 hours
-
Block for 12 hours
-
Block for 24 hours
-
Don't block
Sign in with Google- Male
- Female
- Others
- Under 18
- 18 to 25
- 26 to 35
- 36 to 45
- 45 to 55
- 55+