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Accounting Policies of Piccadily Agro Industries Ltd. Company
Mar 31, 2025
6. Significant Accounting Policies
a) Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated
impairment loss, if any. Cost of acquisition or construction is inclusive of freight, duties taxes, other directly
attributable incidental expenses and gains or losses on effective portion of cash flow hedges related to
purchase in foreign currency and interesl on loans attributable to the acquisition or construction of assets
up to the dale of commissioning of assets.
The Company is following straight line method of depreciation in respect of buildings, plant and equipment
and other assets.
Depreciation on ail tangible assets is provided on the basis of estimated useful life and residual value
determined by the management based on a technical evaluation considering nature of asset past
experience, estimated usage of the asset, vendor''s advice etc,, which coincides with the useful life as
prescribed under Schedule 11 of the Companies Act 2013 except for certain items of Plant and Equipment.
The Estimated residual value of assets other than Land is taken as 5% of its origins* cost.
Depreciation is calculated on a pro-rata basis from the date of additions. On assets sold, discarded etc.
during the year, depreciation is provided up to the date of sale/discard.
b) Capital work-in-progress:
Capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and
attributable borrowing cost, less impairment fosses if any,
c) Inventories:
Inventories are valued as follows: Raw materials, stores and spares, Material in transit and packing
materials Valued at lower of cost and net realisable value. However, material and other items held for use
in the production of inventories are not written down below cost if the finished products in which they will be
incorporated are expected to be sold at or above cost. Cost is determined on FIFO Basis. Finished goods
Valued at iowerof cost and net realizable value. Cost includes direct materials, labour and a proportion of
manufacturing overheads based on normal operating capacity. Work-in-process Valued at lower of cost
and net realizable value up to estimated stage of process Cost includes direct materials, labour and a
proportion of manufacturing overheads based on normal operating capacity, Net realizable value is the
estimated selling price in the ordinary course of business, less estimated costs of completion and the
estimated costs necessary to make the sale, By-products are valued at Met realizable value,
d) Revenue recognition:
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and
the revenue can bo reliably measured, regardless of when the payment is being made. Revenue from sale
of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to
the customer and is stated net of trade discounts, sales returns, Effective from April 1,2018, the Company
has applied Ind AS 115 which establishes a comprehensive framework for determining whether, how much
and when revenue is to be recognized. Revenue includes excise duty however, sales laxi value added tax
(VAT)/Goods and Services Tax (GST) is not received by the company on its own account. Rather, it is tax
collected on value added to the commodity by the seller on behalf of the government Accordingly, it is
excluded from revenue. Income against claims of the company, viz., export incentives, insurance claims,
etc., is recognized on accrual/right to receive basis.
e) Other revenue streams
Interest Income
For all debt instruments measured either at amortized cost or at fair value through other comprehensive
into me. interest income is recorded using the effective interest rate (ElRj. EIR is the rate that exactly
discounts the esiimated future cash payments or receipts over the expected life of the financial inslrumeni
or a shorter period, where appropriate, to the gross carrying amount of the fin and at asset or to the
amortized cost of a financial liability. When calculating the effective interest rate, fhe Company estimates
the expected cash flows by considering all [fie contractual terms of the financial instruments example,
prepayment, extension, call and similar options} but does not consider the expected credit losses. Interest
sncome !s included in finance income in the statement of profit and loss.
f) Employee benefits
(i) Defined contribution plans
Company''s contribution paid/payable during the year to provident fund and superannuation fund are
recognized in the statement of profit and loss.
(li) Defined benefit plans
Tne liability recognized in respect of gratuity is the present value of defined benefit obligation at the end oF
the reporting period less the fair value of plan assets, where applicable. The defined benefit obligation is
calculated annually by actuary using the Projected Unit Credit Method. Re''measurement comprising
actuarial gains and losses and return on plan assets (excluding net interest) are recognized in the other
comprehensive income for the period in which they occur and is riot reclassified! to profit or loss.
(lii) Bonus Plans
The company recognises a liability and an expense for bonus, The Company recognises a provision Where
contractually obliged or where there >s a past practice that has created a constructive obligation
(iv) Gratuity
The Company has defined benefit plans for post-employment benefits in the form of gratuity for its
employees in India, Liability for defined benefit plans is provided on the basis of actuarial valuations, as at
the Balance Sheet date, carried out by an independent actuary. The actuanal valuation method used by
independent actuary for measuring the liability is the projected unit credit method.
(v) Long Term Defined Contribution Plan
The Company has defined contribution plans for post-employment benefits n the form of provident fund,
employees'' state insurance and Labour Welfare Fund.
g) Fair Value Measurement:
The Company measures financial instruments, such as, investments 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, in the most advantageous market for the asset or liability accessible
to the Company,
All assets and liabilities for which fair value is measured or disclosed in the standalone 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 ^ whole
*L.evei 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
The management determines the policies and procedures for both recurring fair value measurement and
disclosure. 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.
h) Foreign currency transactions
The functional currency and the presentation currency of the Company is Indian rupee (?). Transactions in
foreign currencies are recorded on initial recognition at the exchange rate prevailing on the date of the
transaction.
Monetary items (i.c receivables, payable, loans etc,) denominated in foreign currency are reported using
the closing exchange rate on each reporting date,
The exchange difference arising on the settlement of monetary items or on reporting these items at rates
different from rates at which these were initially recorded/reported in previous financial statements are
recognized as inCome/expense in the period in which they tirise except for exchange difference on foreign
currency borrowings relating to asset under construction for future use, which are included in the cost of
(hose assets when they are regarded as an adjustment to interest cost on those foreign currency
borrowings.
i) Financial instruments ;
Initial Recognition:
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial
assets and Financial liabilities at Fair value through profit or loss) are added to or deducted from the fair
value of financial asset or financial liabilities, as appropriate, on initial recognition
All financial instruments are recognized initially at Fair value. Transaction costs that are attributable to the
acquisition of the financial asset (other than Financial assets recorded at fair value through profit or loss) are
included in !he fair value of the financial assets. Purchase or sales of financial assets thai require delivery
of assets within a time frame established by regulation or convention in the market place (regular way
trade) are recognized on trade date. While, loans and borrowings and payables are recognized net of
directly attributable transaction costs.
For the purpose of subsequent measurement, financial instruments of the Company are classified in the
following categories, non derivative financial assets comprising amortized cost, debt instruments at fair
value Jhrough other comprehensive income (FVTQGI), equity instruments at FVTQCl or fair value through
profit and loss account (FVTPL) and non-derivative financial liabilities at amortized cost or FVTPL. The
classification of financial instruments depends on the objective of the business model for which it is held.
Management determines the classification of its financial instruments at initial recognition.
Subsequent measurement:
A. Non-derivalive financial instruments
(I) Finanda! assets tarried at amortized cost
A financial asset is subsequently measured at amortized cost if it is held in order to col''ect contractual cash
flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are
sotely payments of principal and interest on the principal amount outstanding,
{ii} Financial assets carried at fair value through other comprehensive income {FVTQCI}
A financial asset is subsequently measured at fair value through other comprehensive income (FVTOCI) if
if is held within 3 business model whose objective is achieved by both collecting contractual cash flows and
selling financial assets and the contractual terms of the financial asset give rise on speeded dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding,
(iii) Financial assets carried at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories are subsequently measured at fair
value through profit or loss,
fiv) Financial liabilities
Financial liabilities are subsequently measured at amortized cost using the effective interest method. 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.
De-recognition of financial instruments
The Company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind
AS 1Q9. A financial liability (or a pad of a financial liability) is derecognized from the Company''s Balance
Sheet when the obligation specified in the contract is discharged or cancelled or expires,
]) Impairment:
At each Balance Sheet date, the Company assesses whether there is any indication that an asset may be
impaired. If any such indication exists, management estimates the recoverable amount. Recoverable
amount is higher of an asset s net selling price and value in use. Value in use is the present value of
estimated future cash flows expected to arise from !he continuing use of an asset and from its disposal at
the end of its useful life. If the carrying amount of the asset exceeds its recoverable amount, an impairment
loss is recognized in the Profit and Loss Statement to the extent carrying amount exceeds recoverable
amount. Assessment is also done at each Balance sheet date as to whether there is any indication that an
impairment loss recognized for an asset in prior accounting periods may no longer exists or may have
decreased,
i) Financial assets
The Company recognizes loss allowances using the expected Credit loss far the financial assets which are
not measured at fair value through profit or loss, Loss allowance for trade receivables with no significant
financing component is measured at an amount equal to lifetime expected credit loss.
ii) Non-financial assets: Tangible and intangible assets
Property, plant and equipment and intangible assets are evaluated for recoverability whenever there is any
indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable
amount (i e. higher of the fair value less cost to sell and the value-in-use) is determined or an individual
asset basis unless the asset does not generate cash flows that are largely independent of those from other
assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which
the asset belongs.
If the recoverable amount of on assel (or CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is
recognised in the statement of profit or loss. The Company review/assess at each reporting date if there is
any indication that an asset may be impaired
k) Income taxes
The Income-tax liability is provided in accordance with the provisions of the income-tax Act, 1961. Deferred
income tax assets and liabilities are recognized for all temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the finance I statements. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
tax benefit will be realized.
Income tax and deferred tax are measured on the basis of the tax rates and tax laws enacted or
substantively enacted al the end ot the reporting period and are recognized in profit or loss, except when
they relate to items that are recognized in other comprehensive income gr directly in equity, in which case,
the income lax and deferred tax are also recognized in other comprehensive income or directly in equity,
respectively.
[i) Current Income Tax:
Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss
[either in other comprehensive Income or in equity). Current tax items are recognized in correlation to the
undertying transaction either in OCI or directly in equity. Management periodically evaluates positions taken
in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation
and establishes provisions where appropriate Advance taxes and provisions for current income taxes are
presented In the balance sheet after off-setting advance tax paid. Current tax assets and I labilities are
offset when there is a legally enforceable right to set off the recognized amount and there is an Intention to
settle the asset and liability on a net basis.
(il)Defeired Tax:
Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and
liabilities are recognized For deductible and taxable temporary differences arising between the lax base of
assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and affects neither
accounting nor taxable profit or loss at the time of the transaction. Deferred income tax assets are
recognized to the extent that it is probable that taxable profit will be available against which the rfedugtihlc
temporary differences and the cany forward of unused tax credits and unused tax losses can be utilized
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred mcome tax asset to be utilized- Deferred tax assets and liabifities are measured using
substantively enacted tax rates expected to apply to taxable income in the years in whFch the temporary
differences are expected to be received or seffled.
Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is.
convincing evidence that the Company will pay normal income tax during the Specified period. Such asset
is reviewed at each balance street dale and Ihe carrying amount of the MAT credit asset is writlen down to
the extent their is no longer convincing evidence to the effect that the Company will pay norma! income tax
during the specified period.
Deferred tax assets and liabilities are offset when there is a legally enforceable nght to set off assets
against liabilities representing the current tax and where ihe deferred tax assets and liabilities relate to
taxes on income levied by the same governing taxation laws.
Mar 31, 2024
1. Corporate Information
Piccadily Agro Industries Limited (âthe Companyâ) is a public limited company incorporated in India. The Company is incorporated with an aim to provide boost to state industry by establishing an eco-friendly sugar mill in the year 1996 and distillery in 2007 at Village Bhadson, Umri-Indri Road, Karnal (Haryana). The financial statements have been approved by Board of Directors in their board meeting dated April 22, 2024.
It manufactures White Crystal Sugar from Sugar cane cultivated in the surrounding rural areas and Rectified Spirit, Carbon dioxide Gas, Extra Neutral Alcohol (ENA) from Molasses/ Rice / Wheat, Malt, Pet.
These standalone financial statements have been prepared in accordance with the Indian Accounting Standards (referred to as âInd ASâ) as prescribed under section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules as amended from time to time.
These standalone financial statements have been prepared on historical cost basis, except for certain financial instruments and defined benefit plans which are measured at fair value or amortized cost at the end of each reporting period. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. 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. All assets and liabilities have been classified as current and non-current as per the Companyâs normal operating cycle. Based on the nature of services rendered to customers and time elapsed between deployment of resources and the realization in cash and cash equivalents of the consideration for such services rendered, the Company has considered an operating cycle of 12 months. The statement of cash flows have been prepared under indirect method. These standalone financial statements have been prepared in Indian Rupee (â) which is the functional currency of the Company. Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction. Foreign currency denominated monetary assets and liabilities are retranslated at the exchange rate prevailing on the balance sheet date and exchange gains and losses arising on settlement and restatement are recognized in the statement of profit and loss.
The Board of Directors have considered the financial position of the Company as at 31st March, 2024 and projected cash flows and financial performance of the Company for at least twelve months from the date of approval of these financial statements as well as planned cost and cash improvement actions, and believe that the plan for sustained profitability remains on course.
The board of directors have taken actions to ensure that appropriate long-term cash resources are in place at the date of signing the accounts to fund the Companyâs operations.
5. Significant Accounting Policies
a) Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment loss, if any. Cost of acquisition or construction is inclusive of freight, duties, taxes, other directly attributable incidental expenses and gains or losseson effective portion of cash flow hedges related to purchase in foreign currency and interest on loans attributable to the acquisition or construction of assets up to the date of commissioning of assets.
The Company is following straight line method of depreciation in respect of buildings, plant and equipment and other assets.
Depreciation on all tangible assets is provided on the basis of estimated useful life and residual value determined by the management based on a technical evaluation considering nature of asset, past experience, estimated usage of the asset, vendorâs advice etc., which coincides with the useful life as prescribed under Schedule II of the Companies Act 2013 except for certain items of Plant and Equipment.
|
i) |
Estimated Useful Lives: |
|
|
Asset |
Useful life |
|
|
FACTORY BUILDING |
30 Years |
|
|
ADMINISTRATIVE BUILDING |
30 years |
|
|
PLANT & MACHINERY |
15 years |
|
|
FURNITURE & FIXTURE |
10 Years |
|
|
COMPUTERS |
3 Years |
|
|
OFFICE EQUIPMENTS |
5 Years |
|
|
VEHICLES |
10 Years |
(ii) Estimated residual value:
The Estimated residual value of assets other than Land is taken as 5% of its original cost.
Depreciation is calculated on a pro-rata basis from the date of additions. On assets sold, discarded etc. during the year, depreciation is provided up to the date of sale/discard.
b) Inventories
Inventories are valued as follows: Raw materials, stores and spares, Material in transit and packing materials Valued at lower of cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on FIFO Basis. Finished goods Valued at lower of cost and net realizable value. Cost includes direct materials, labour and a proportion of manufacturing overheads based on normal operating capacity. Work-inprocess Valued at lower of cost and net realizable value up to estimated stage of process. Cost includes direct materials, labour and a proportion of manufacturing overheads based on normal operating capacity. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.By-products are valued at Net realizable value.
c) Revenue recognition
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the customer and is stated net of trade discounts, sales returns. Effective from April 1, 2018, the Company has applied Ind AS 115 which establishes a comprehensive framework for determining whether, how much and when revenue is to be recognized. The Company has adopted Ind AS 115 retrospectively from the date of initial application (i.e. April 1,2018). The impact of the adoption of the standard on the financial statements of the Company is insignificant. Revenue includes excise duty however, sales tax/ value added tax (VAT)/Goods and Services Tax (GST) is not received by the company on its own account. Rather, it is tax collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue. Income against claims of the company, viz., export incentives, insurance claims, etc., is recognized on accrual/right to receive basis.
d) Other revenue streams Interest Income
For all debt instruments measured either at amortized cost or at fair value through other comprehensive income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortized cost of a financial liability. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument(for example, prepayment, extension, call and similar options) but does not consider the expected credit losses. Interest income is included in finance income in the statement of profit and loss.
e) . Employee benefits
(i) Defined contribution plans
Companyâs contribution paid/payable during the year to provident fund and superannuation fund are recognized in the statement of profit and loss.
(ii) Defined benefit plans
The liability recognized in respect of gratuity is the present value of defined benefit obligation at the end of the reporting period less the fair value of plan assets, where applicable. The defined benefit obligation is calculated annually by actuary using the Projected Unit Credit Method. Remeasurement comprising actuarial gains and losses and return on plan assets (excluding net interest) are recognized in the other comprehensive income for the period in which they occur and is not reclassified to profit or loss.
(iii) Bonus Plans
The company recognises a liability and an expense for bonus. The Company recognises a provision where contractually obliged or where there is a past practice that has created a constructive obligation.
(iv) Gratuity:
The Company has defined benefit plans for post-employment benefits in the form of gratuity for its employees in India. Liability for defined benefit plans is provided on the basis of actuarial valuations, as at the Balance Sheet date, carried out by an independent actuary. The actuarial valuation method used by independent actuary for measuring the liability is the projected unit credit method.
(v) Long Term Defined Contribution Plan
The Company has defined contribution plans for post-employment benefits in the form of provident fund, employeesâ state insurance and Labour Welfare Fund.
f) Foreign currency transactions
The functional currency and the presentation currency of the Company is Indian rupee (INR). Transactions in foreign currencies are recorded on initial recognition at the exchange rate prevailing on the date of the transaction.
Monetary items (i.e. receivables, payable, loans etc) denominated in foreign currency are reported using the closing exchange rate on each reporting date.
The exchange difference arising on the settlement of monetary items or on reporting these items at rates different from rates at which these were initially recorded/reported in previous financial statements are recognized as income/expense in the period in which they arise except for exchange difference on foreign currency borrowings relating to asset under construction for future use, which are included in the cost of those assets when they are regarded as an adjustment to interest cost on those foreign currency borrowings.
g) Financial instruments- Initial Recognition:
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of financial asset or financial liabilities, as appropriate, on initial recognition.
All financial instruments are recognized initially at fair value. Transaction costs that are attributable to the acquisition of the financial asset (other than financial assets recorded at fair value through profit or loss) are included in the fair value of the financial assets. Purchase or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trade) are recognized on trade date. While, loans and borrowings and payables are recognized net of directly attributable transaction costs.
For the purpose of subsequent measurement, financial instruments of the Company are classified in the following categories: non derivative financial assets comprising amortized cost, debt instruments at fair value through other comprehensive income (FVTOCI), equity instruments at FVTOCI or fair value through profit and loss account (FVTPL) and non-derivative financial liabilities at amortized cost or FVTPL. The classification of financial instruments depends on the objective of the business model for which it is held. Management determines the classification of its financial instruments at initial recognition.
Subsequent measurement:
A. Non-derivative financial instruments
(i) Financial assets carried at amortized cost
A financial asset is subsequently measured at amortized cost if it is held in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A financial asset is measured at amortized cost if both of the following conditions are met:
(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and
(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding. They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current assets.
(ii) Financial assets carried at fair value through other comprehensive income (FVTOCI)
A financial asset is subsequently measured at fair value through other comprehensive income (FVTOCI) if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
(iii) Financial assets carried at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories are subsequently measured at fair value through profit or loss.
(iv) Financial liabilities
Financial liabilities are subsequently measured at amortized cost using the effective interest method. 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.
De-recognition of financial instruments
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Companyâs Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.
h) Impairment
i) Financial assets
The Company recognizes loss allowances using the expected credit loss for the financial assets which are not measured at fair value through profit or loss. Loss allowance for trade receivables
with no significant financing component is measured at an amount equal to lifetime expected credit loss.
At each Balance Sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, management estimates the recoverable amount. Recoverable amount is higher of an assetâs net selling price and value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit and Loss Statement to the extent carrying amount exceeds recoverable amount. Assessment is also done at each Balance sheet date as to whether there is any indication that an impairment loss recognized for an asset in prior accounting periods may no longer exists or may have decreased.
ii) Non-financial assets: Tangible and intangible assets
Property, plant and equipment and intangible assets are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized in the statement of profit or loss. The Company review/assess at each reporting date if there is any indication that an asset may be impaired
i) Income taxes
The Income-tax liability is provided in accordance with the provisions of the Income-tax Act, 1961. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Income tax and deferred tax are measured on the basis of the tax rates and tax laws enacted or substantively enacted at the end of the reporting period and are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the income tax and deferred tax are also recognized in other comprehensive income or directly in equity, respectively.
j) Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
As per Ind AS 116 each lease component within the contract is accounted as a lease separately from non-lease components of the contract and the consideration in the contract is allocated 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. A right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date is recognized. 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 re-measurement 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 recognized in the statement of profit and loss.
The lease liability is measured 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 incremental borrowing rate is used.
Thelease 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 amount of the re-measurement of lease liability due to modification is recognized 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.
Company as a lessee:
The Company has elected not to apply the requirements of Ind AS 116 Leases on 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.
k) Borrowing Costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in which they are incurred.
l) Government Grants
Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions. Government grants relating to income are deferred and recognized in the profit or loss over the period necessary to match them with the costs that they are intended to compensate and presented within other income. Government grants relating to the purchase of property, plant and equipment are included in noncurrent liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the related assets and presented within other income.
m) Provisions
A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from
past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognized nor disclosed in the standalone financial statements.
A contingent liability recognized in a business combination is initially measured at its fair value. Subsequently, it is measured at the higher of the amount that would be recognized in accordance with the requirements for provisions above or the amount initially recognized less, when appropriate, cumulative amortization recognized in accordance with the requirements for revenue recognition.
The preparation of these financial statements in conformity with the recognition and measurement principles of Ind AS requires the management of the Company to make estimates and assumptions that affect the reported balances of asset and liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expense for the period presented.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which estimates are revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
The following are the key assumptions concerning the future, and other sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in future are:
i) Useful lives and residual value of property, plant and equipment: Useful life and residual value are determined by the management based on a technical evaluation considering nature of asset, past experience, estimated usage of the asset, vendorâs advice etc and same is reviewed at each financial year end.
ii) Deferred tax assets: The Company reviews the carrying amount of deferred tax assets at the end of each reporting period and reduces to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred income tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction. Deferred income tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing the current tax and where the deferred tax assets and liabilities relate to taxes on income levied by the same governing taxation laws.
Basic earnings per share (EPS) are calculated by dividing the net profit / (loss) after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
Diluted earnings per share is computed by adjusting the number of shares used for basic EPS with the weighted average number of shares that could have been issued on the conversion of all dilutive potential equity shares.
Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a later date. The diluted potential equity shares have been adjusted for the proceeds receivable had the shares been actually issued at fair value i.e. average market value of outstanding shares.
The number of shares and potentially dilutive shares are adjusted for share splits and bonus shares, as appropriate. In calculating diluted earnings per share, the effects of anti-dilutive potential equity shares are ignored. Potential equity shares are anti-dilutive when their conversion to equity shares would increase earnings per share or decrease loss per share.
The Companyâs contracts with customers could include promises to transfer multiple products and services to a customer. The Company assesses the products / services promised in a contract and identify distinct performance obligations in the contract. Identification of distinct performance obligation involves judgement to determine the deliverables and the ability of the customer to benefit independently from such deliverables.
⢠Judgement is also required to determine the transaction price for the contract and to ascribe the transaction price to each distinct performance obligation. The transaction price could be either a fixed amount of customer consideration or variable consideration with elements such as volume discounts, service level credits, performance bonuses, price concessions and incentives. The transaction price is also adjusted for the effects of the time value of money if the contract includes a significant financing component. Any consideration payable to the customer is adjusted to the transaction price, unless it is a payment for a distinct product or service from the customer. The estimated amount of variable consideration is adjusted in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur and is reassessed at the end of each reporting period. The Company allocates the elements of variable considerations to all the performance obligations of the contract unless there is observable evidence that they pertain to one or more distinct performance obligations.
⢠The Company exercises judgement in determining whether the performance obligation is satisfied at a point in time or over a period of time. The Company considers indicators such as how customer consumes benefits as services are rendered or who controls the asset as it is being created or existence of enforceable right to payment for performance to date and alternate use of such product or service, transfer of significant risks and rewards to the customer, acceptance of delivery by the customer, etc.
⢠Revenue for fixed-price contract is recognized using percentage-of completion method. The Company uses judgement to estimate the future cost-to-completion of the contracts which is used to determine the degree of completion of the performance obligation.
Mar 31, 2023
Significant Accounting Policies
a) Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated
impairment loss, if any. Cost of acquisition or construction is inclusive of freight, duties, taxes, other
directly attributable incidental expenses and gains or losses on effective portion of cash flow hedges
related to purchase in foreign currency and interest on loans attributable to the acquisition or
construction of assets up to the date of commissioning of assets.
The Company is following straight line method of depreciation in respect of buildings, plant and
equipment and other assets.
Depreciation on all tangible assets is provided on the basis of estimated useful life and residual value
determined by the management based on a technical evaluation considering nature of asset, past
experience, estimated usage of the asset, vendor''s advice etc., which coincides with the useful life as
prescribed under Schedule II of the Companies Act 2013 except for certain items of Plant and
Equipment.
b) Inventories
Inventories are valued as follows: Raw materials, stores and spares, Material in transit and packing
materials Valued at lower of cost and net realizable value. However, materials and other items held for use in
the production of inventories are not written down below cost if the finished products in which they will be
incorporated are expected to be sold at or above cost. Cost is determined on FIFO Basis. Finished goods
Valued at lower of cost and net realizable value. Cost includes direct materials, labour and a proportion of
manufacturing overheads based on normal operating capacity. Work-in-process Valued at lower of cost and
net realizable value up to estimated stage of process. Cost includes direct materials, labour and a proportion
of manufacturing overheads based on normal operating capacity. Net realizable value is the estimated
selling price in the ordinary course of business, less estimated costs of completion and the estimated costs
necessary to make the sale. By-products are valued at Net realizable value.
c) Revenue recognition
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and
the revenue can be reliably measured, regardless of when the payment is being made. Revenue from sale
of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to
the customer and is stated net of trade discounts, sales returns. Effective from April 1,2018, the Company
has applied Ind AS 115 which establishes a comprehensive framework for determining whether, how much
and when revenue is to be recognized. The Company has adopted Ind AS 115 retrospectively from the date
of initial application (i.e. April 1,2018). The impact of the adoption of the standard on the financial statements
of the Company is insignificant. Revenue includes excise duty however, sales tax/ value added tax
(VAT)/Goods and Services Tax(GST) is not received by the company on its own account. Rather, it is tax
collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is
excluded from revenue. Income against claims of the company, viz., export incentives, insurance claims,
etc., is recognized on accrual/right to receive basis.
d) Other revenue streams
Interest Income
For all debt instruments measured either at amortized cost or at fair value through other comprehensive
income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly
discounts the estimated future cash payments or receipts over the expected life of the financial instrument or
a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortized
cost of a financial liability. When calculating the effective interest rate, the Company estimates the expected
cash flows by considering all the contractual terms of the financial instrument(for example, prepayment,
extension, call and similar options) but does not consider the expected credit losses. Interest income is
included in finance income in the statement of profit and loss.
e) . Employee benefits
(i) Defined contribution plans
Company''s contribution paid/payable during the year to provident fund and superannuation fund are
recognized in the statement of profit and loss.
(ii) Defined benefit plans
The liability recognized in respect of gratuity is the present value of defined benefit obligation at the end of
the reporting period less the fair value of plan assets, where applicable. The defined benefit obligation is
calculated annually by actuary using the Projected Unit Credit Method. Re-measurement comprising
actuarial gains and losses and return on plan assets (excluding net interest) are recognized in the other
comprehensive income for the period in which they occur and is not reclassified to profit or loss.
(iii) Bonus Plans
The company recognises a liability and an expense for bonus. The Company recognises a provision where
contractually obliged or where there is a past practice that has created a constructive obligation.
(iv) Gratuity:
The Company has defined benefit plans for post employment benefits in the form of gratuity for its
employees in India. Liability for defined benefit plans is provided on the basis of actuarial valuations, as at
the Balance Sheet date, carried out by an independent actuary. The actuarial valuation method used by
independent actuary for measuring the liability is the projected unit credit method.
(v) Long Term Defined Contribution Plan
The Company has defined contribution plans for post employment benefits in the form of provident fund,
employeesâ state insurance and Labour Welfare Fund.
f) Foreign currency transactions
The functional currency and the presentation currency of the Company is Indian rupee (INR). Transactions
in foreign currencies are recorded on initial recognition at the exchange rate prevailing on the date of the
transaction.
Monetary items (i.e. receivables, payable, loans etc) denominated in foreign currency are reported using the
closing exchange rate on each reporting date.
The exchange difference arising on the settlement of monetary items or on reporting these items at rates
different from rates at which these were initially recorded/reported in previous financial statements are
recognized as income/expense in the period in which they arise except for exchange difference on foreign
currency borrowings relating to asset under construction for future use, which are included in the cost of
those assets when they are regarded as an adjustment to interest cost on those foreign currency
borrowings.
g) Financial instruments- Initial Recognition:
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets
and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of
financial asset or financial liabilities, as appropriate, on initial recognition.
All financial instruments are recognized initially at fair value. Transaction costs that are attributable to the
acquisition of the financial asset (other than financial assets recorded at fair value through profit or loss) are
included in the fair value of the financial assets. Purchase or sales of financial assets that require delivery of
assets within a time frame established by regulation or convention in the market place (regular way trade)
are recognized on trade date. While, loans and borrowings and payables are recognized net of directly
attributable transaction costs.
For the purpose of subsequent measurement, financial instruments of the Company are classified in the
following categories: non derivative financial assets comprising amortized cost, debt instruments at fair
value through other comprehensive income (FVTOCI), equity instruments at FVTOCI or fair value through
profit and loss account (FVTPL) and non-derivative financial liabilities at amortized cost or FVTPL. The
classification of financial instruments depends on the objective of the business model for which it is held.
Management determines the classification of its financial instruments at initial recognition.
Subsequent measurement:
A. Non-derivative financial instruments
(i) Financial assets carried at amortized cost
A financial asset is subsequently measured at amortized cost if it is held in order to collect contractual
cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding. A financial asset is measured
at amortized cost if both of the following conditions are met:
(a) the financial asset is held within a business model whose objective is to hold financial assets in order to
collect contractual cash flows and
(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding. They are presented as
current assets, except for those maturing later than 12 months after the reporting date which are presented
as non-current assets.
(ii) Financial assets carried at fair value through other comprehensive income (FVTOCI)
A financial asset is subsequently measured at fair value through other comprehensive income (FVTOCI) if it
is held within a business model whose objective is achieved by both collecting contractual cash flows and
selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.
(iii) Financial assets carried at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories are subsequently measured at fair
value through profit or loss.
(iv) Financial liabilities
Financial liabilities are subsequently measured at amortized cost using the effective interest method. 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.
De-recognition of financial instruments
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial
asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A
financial liability (or a part of a financial liability) is derecognized from the Company''s Balance Sheet when
the obligation specified in the contract is discharged or cancelled or expires.
h) Impairment
i) Financial assets
The Company recognizes loss allowances using the expected credit loss for the financial assets which are
not measured at fair value through profit or loss. Loss allowance for trade receivables with no significant
financing component is measured at an amount equal to lifetime expected credit loss.
At each Balance Sheet date, the Company assesses whether there is any indication that an asset may be
impaired. If any such indication exists, management estimates the recoverable amount. Recoverable
amount is higher of an assetâs net selling price and value in use. Value in use is the present value of
estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the
end of its useful life. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss
is recognized in the Profit and Loss Statement to the extent carrying amount exceeds recoverable amount.
Assessment is also done at each Balance sheet date as to whether there is any indication that an
impairment loss recognized for an asset in prior accounting periods may no longer exists or may have
decreased.
ii) Non-financial assets: Tangible and intangible assets
Property, plant and equipment and intangible assets are evaluated for recoverability whenever there is any
indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable
amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual
asset basis unless the asset does not generate cash flows that are largely independent of those from other
assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which
the asset belongs.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying
amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized in the
statement of profit or loss. The Company review/assess at each reporting date if there is any indication that
an asset may be impaired
i) Income taxes
The Income-tax liability is provided in accordance with the provisions of the Income-tax Act, 1961.
Deferred income tax assets and liabilities are recognized for all temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets
are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the
related tax benefit will be realized.
Income tax and deferred tax are measured on the basis of the tax rates and tax laws enacted or
substantively enacted at the end of the reporting period and are recognized in profit or loss, except when
they relate to items that are recognized in other comprehensive income or directly in equity, in which case,
the income tax and deferred tax are also recognized in other comprehensive income or directly in equity,
respectively.
j) Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration.
As per Ind AS 116 each lease component within the contract is accounted as a lease separately from non¬
lease components of the contract and the consideration in the contract is allocated 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. A right-of-use asset representing its right to use the underlying asset for the
lease term at the lease commencement date is recognized. 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 re-measurement 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 recognized in the
statement of profit and loss.
The lease liability is measured 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 incremental
borrowing rate is used.
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 amount of the re-measurement of lease liability due to modification is recognized 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.
Company as a lessee:
The Company has elected not to apply the requirements of Ind AS 116 Leases on 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.
k) Borrowing Costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset are capitalized during the period of time that is required to complete and
prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a
substantial period of time to get ready for their intended use or sale. Investment income earned on the
temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted
from the borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in
which they are incurred.
l) Government Grants
Grants from the government are recognized at their fair value where there is a reasonable assurance
that the grant will be received and the Company will comply with all attached conditions. Government grants
relating to income are deferred and recognized in the profit or loss over the period necessary to match them
with the costs that they are intended to compensate and presented within other income. Government grants
relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred
income and are credited to profit or loss on a straight-line basis over the expected lives of the related assets
and presented within other income.
Mar 31, 2016
1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared in accordance with generally accepted accounting principles in India. The Company has prepared these financial statements to comply in all material respects with the Accounting Standards, notified under section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.
2 USE OF ESTIMATES
The preparation of financial statements in conformity with Accounting Principles generally accepted in India, requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.
3 Fixed Assets & Depreciation :
Due to application of schedule II to the Companies Act, 2013 with effect from April 1, 2014, the management has re-estimated useful life and residual values of all its fixed assets and determined separate useful life for each major asset, if they have useful life i.e. materially different from that of remaining asset. The management believes that the depreciation rates currently used fairly reflect its estimate of the useful life and residual value of fixed asset. If asset has zero remaining useful life on the date of Schedule II becoming effective, i.e. April 01, 2014, its carrying amount, after retaining any residual value, is charged to the opening balance of retained earnings. The carrying amount of other assets i.e., whose remaining useful life is not nil on April 01, 2014, is depreciated over their remaining useful life.
4 Inventories:
Raw Material At Cost on FIFO Basis
Work in Process At estimated cost including expenses attributable to production on
percentage completion basis/Net Realizable value, whichever is low.
Finished Goods At weighted average cost/ net realizable value whichever is low,
including Excise duty and all expenses attributable to production
By Products At net Realizable value inclusive of Excise Duty.
Stores and spares At Cost.
5 FOREIGN CURRENCY TRANSACTIONS
a. Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.
b. Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognized as exchange difference.
c. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.
6 INVESTMENTS
Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Long-term investments are stated at cost.
7 RECOGNITION OF INCOME AND EXPENDITURE
Sale are recognized when goods are supplied and are recorded net of rebates and sale tax but inclusive of excise duty. Expenses are accounted for on accrual basis.
8 CURRENT & DEFERRED TAX
Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that them is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.
Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.
9 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provision is recognized in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.
Contingent assets are neither recognized nor disclosed in the financial statements.
10 Accounting policies not specifically referred to are in consistent with generally accepted accounting principles.
Mar 31, 2015
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared In accordance with
generally accepted accounting principles in India. The Company has
prepared these financial statements to comply in all material respects
with the Account- ing Standards, notified under section 133 of the
Companies Act. 2013 read together with paragraph 7 of the Companies
(Accounts) Rules 2014. The financial statements have been prepared on
an accrual basis and under the historical cost convention The
accounting policies adopted in the preparation of financial statements
are consistent with those of previous year,
2 USE OF ESTIMATES
The preparation of financial statements in conformity with Accounting
Principles generally accepted In India, requires judgements, estimates
and assumptions to be made that affect the reported amount of assets
and li- abilities, disclosure of contingent liabilities on the date of
the financial statements and the reported amount of revenues and
expenses during the reporting period. Difference between the actual
results and estimates are recognised in the period in which the results
are known/materialised.
3 Fixed Assets & Depreciation
Due to application of schedule II to the Companies Act, 2013 with
effect from April 1,2014, the management has re-estimated useful life
and residual values of all Its fixed assets and determined separate
useful life for each major asset, if they have useful life i.e.
materially different from that of remaining asset. The management
believes that the depreciation rates currently used fairly reflect its
estimate of the useful life and residual value of fixed asset. If asset
has zero remaining useful life on the date of Schedule II becoming
effective, i.e. April 01, 2014, its carrying amount, atter retaining
any residual value, is charged to the opening balance of retained
earnings. The carrying amount of other assets I.e.. whose remaining
useful life is not nil on April 01, 2014, is depreciated over their
remaining useful life Uplo March 2014. the assets are depreciated on
Straight Line Method as per Schedule XIV of the Companies Act, 1956
4 Inventories:
Raw Matena! At cost on FIFO basis
Work in Process At estimated cost including expenses attrib-
utable to production on percentage completion
basis/ Net Realizable value, whichever Is low.
Finished Goods At weighted average cost/net realizable value
which ever is low, including Excise duty and
all expenses attributable to production.
By Products At Net realisable value inclusive ol Excise Duty.
Stores and spares At Cost
5 FOREIGN CURRENCY TRANSACTIONS
a Transactions denominated in foreign currencies are recorded at the
exchange rale prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
b. Monetary items denominated In foreign currencies at Ihe year end
are restated at year end rates. In case of Hems which are covered by
forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference.
c. Any income or expense on account of exchange difference either on
settlement or on translation is recognised In the Statement of Profit
and Loss.
6 INVESTMENTS
Current investments are carried at lower of cost and quoted/fair value,
computed category-wise.
Long-term investments are stated at cost.
7 RECOGNITION OF INCOME AND EXPENDITURE
Sale are recognised whe goods are supplied and are recorded net of
rebates and sale tax bul inclusive of excise duty Expenses are
accounted for an accrual basis.
8 CURRENT & DEFERRED TAX
Tax expense comprises of current tax and deferred tax. Current lax is
measured at the amount expected to be paid to the tax authorities,
using the applicable tax rates. Deferred income tax reflect the current
period timing differences between taxable income and accounting income
for the period and reversal of liming differences of earlier
years/period. Deferred tax assets are recognised only to the extent
that there is a reasonable certainty that sufficient future income will
be available except that deferred tax assets, in case there are
unabsorbed deprecia- tion or losses, are recognised if there is virtual
certainty that sufficient future taxable income will be available to
realise the same.
Deferred tax assets and liabilities are measured using the tax rales
and tax law that have been enacted or sub- stantively enacted by the
Balance Sheet date.
9 PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provision is recognised in the accounts when there is a present
obfigation as a result of past event(s) and it is probable lhat an
outflow of resources will be required to settle the obligation and a
reliable estimate can be made. Provisions are not discounted to their
present value and are determined based on the best estimate required to
settle the obligation at the reporting date. These estimates are
reviewed at each reporting date and adjusted to reflect the current
best estimates.
Contingent liabilities are disclosed unless the possibility of outflow
of resources is remote.
Contingent assets are neither recognised nor disclosed in the financial
statements.
10 CORPORATE SOCIAL RESPONSIBILITY (CSR)
In accordance with the clarification issued by the Institute of
Chartered Accountants of India, vide FAQ's on the provisions of CSR
applicability under the Companies Act, 2013, the Company has adopted
the policy to charge CSR expenditure incurred as an appropriation of
prdlfit with effect from April 0t. 2014.
11 Accounting policies not specificajly referred to are in consistent
with generally accepted accounting principles.
Mar 31, 2014
1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS The Company prepares its
accounts on accrual basis, except otherwise stated, in accordance with
the normally accepted Accounting Principles and Accounting Standards &
Relevant Provisions of The Companies Act, 1956. The financial
statements are prepared on accrual basis under the historical cost
convention and on the basis of going concern.
2 USE OF ESTIMATES
The preparation of financial statements in conformity with Accounting
Principles generally accepted in India, requires judgements, estimates
and assumptions to be made to that affect the reported amount of assets
and liablities, disclosure of contingent liabili- ties on the date of
the financial statements and the reported amount of revenues and
expenses during the reporting periood. Difference between the actual
results and estimates are recognised in the period in which the results
are known/ materialised.
3 Fixed Assets & Depreciation : Fixed Assets are stated at their
original cost of acquisition including all related expenses on
acquisition and installation. Depreciation on fixed assets (includes
composite depreciation charged on factory building and other building)
has been provided on straight line method on pro-rata basis as per
rates briefed in schedule - XIV of the Companies Act, 1956. Fixed
Assets individ- ually costing less than Rs. 5,000/- are depreciated at
the rate of 100% in the year of purchase.
4. Inventories
Raw Material : At cost on FIFO basis
Work in Process : At estimated cost including expenses attributable to
production on percentage
completion basis/ Net Realizable value, whichever is low. Finished
Goods : At weighted average cost/net realizable value which ever is
low, including
Excise duty and all expenses attributable to production. By Products :
At Net realisable value inclusive of Excise Duty.
Stores and spares : At cost
5 FOREIGN CURRENCY TRANSACTIONS
a. Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
b. Monetary items denominated in foreign currencies at the year end
are restated at year end rates. In case of items which are cov- ered by
forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference.
c. Any income or expense on account of exchange difference either on
settlement or on translation is recognised in the Statement of Profit
and Loss.
6 INVESTMENTS
Current investments are carried at lower of cost and quoted/fair value,
computed category-wise. Long-term investments are stated at cost.
7 RECOGNITION OF INCOME AND EXPENDITURE
Sale are recognised when goods are supplied and are recorded net of
rebates and sale tax but inclusive of excise duty. Expenses are
accounted for on accrual basis.
8 CURRENT & DEFERRED TAX
Tax expense comprises of current tax and deferred tax. Current tax is
measured at the amount expected to be paid to the tax authorities,
using the applicable tax rates. Deferred income tax reflect the current
period timing differences between taxable income and accounting income
for the period and reversal of timing differences of earlier
years/period. Deferred tax assets are recognised only to the extent
that there is a reasonable certainty that sufficient future income will
be available except that deferred tax assets, in case there are
unabsorbed depreciation or losses, are recognised if there is virtual
certainty that sufficient future tax- able income will be available to
realise the same.
Deferred tax assets and liabilities are measured using the tax rates
and tax law that have been enacted or substantively enacted by the
Balance Sheet date.
9 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provision is recognised in the accounts when there is a present
obligation as a result of past event(s) and it is probable that an
outflow of resources will be required to settle the obligation and a
reliable estimate can be made. Provisions are not discounted to their
present value and are determined based on the best estimate required to
settle the obligation at the reporting date. These estimates are
reviewed at each reporting date and adjusted to reflect the current
best estimates. Contingent liabilities are disclosed unless the
possibility of outflow of resources is remote. Contingent assets are
neither recognised nor disclosed in the financial statements.
10 Accounting policies not specifically referred to are in consistent
with generally accepted accounting principles.
2. RIGHT OF SHAREHOLDERS
A) Each Shareholder is entitled to one vote per share.
B) Each Shareholder has the right in profit/surplus in proportion to
amount paid up with respect to share holding.
C) In the event of winding up, the equity shareholders will be entitled
to receive the remaining balance of assets, if any, in propor- tionate
to their individual shareholding in the paid up equity capital of the
company.
D) There is no change in the Number of Share outstanding at the
beginning and at the end of the Financial year.
Mar 31, 2012
1. The Company prepares its accounts on accrual basis, except
otherwise stated, in accordance with the normally accepted à Accounting
Principles and Accounting Standards & Relevant Provisions of The
Companies Act, 1956.
2. Fixed Assets & Depreciation
a) Fixed Assets are stated at their original cost of acquisition
including all related expenses on acquisition and installation.
Depreciation on fixed assets (includes composite depreciation charged
on factory building and other building) has been provided on straight
line method on pro-rata basis as per rates briefed in schedule - XIV of
the Companies Act, 1956. Fixed Assets individ- ually costing less than
Rs. 5,000/- are depreciated at the rate of 100% in the year of
purchase.
3. Inventories:
a) Raw Material : At cost on FIFO basis.
b) Work in Process: At estimated cost including expenses attributable
to production on percentage completion basis/ Net Realizable value,
whichever is low.
c) Finished Goods:- At weighted average cost/net realizable value which
ever is low, including Excise duty and all expenses attribut- able to
production.
d) By Products: At Net realisable value inclusive of Excise Duty.
e) Stores and spares: At cost
4. Sales are inclusive of Excise Duty.
5. Borrowing cost directly attributable to acquisition / construction
of qualifying assets have been capitalized as part of cost of that
asset.
6. Long term investments are carried at cost.
7. Contingent liabilities are not provided for and are disclosed by
way of notes.
8. Accounting policies not specifically referred to are consistent
with generally accepted accounting principles.
Mar 31, 2010
1. The Company prepares its accounts on accrual basis, except
otherwise stated, in accordance with the normally accepted accounting
principles andAccounting Standards & Relevant Provisions of The
Companies Act, 1956.
2. Fixed Assets & Depreciation
a) Fixed Assets are stated at their original cost of acquisition
including all related expenses on acquisition and installation.
Depreciation on fixed assets (includes composite depreciation charged
on factory building and other building) has been pro- vided on straight
line method on pro-rata basis as per rates briefed in schedule - XIV of
the Companies Act, 1956. Fixed Assets individually costing less than
Rs. 5,000/- are depreciated at the rate of 100% in the year of
purchase.
3. Inventories:
a) Raw Material : At cost on FIFO basis.
b) Work in Process : At estimated cost including expenses attributable
to production on percentage completion basis/ Net Realisable value,
whichever is low.
c) Finished Goods:- At weighted average cost/net realisable value which
ever is low, including Excise duty and all expenses attributable to
production.
d) By Products: At Net realisable value inclusive of Excise Duty.
e) Stores and spares: At cost
4. Sales are inclusive of Excise Duty.
5. Gratuity Liability has been provided on the basis of acturial
valuation.
6. Borrowing cost directly attributable to acquisition / construction
of qualifying assets have been capitalized as part of cost of that
asset.
7. Long term investments are carried at cost.
8. Contingent liabilities are not provided for and are disclosed by
way of notes.
9. Accounting policies not specifically referred to are consistent
with generally accepted accounting principles.
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Piccadily Agro Industries Ltd. Company Details
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Piccadily Agro Industries Ltd. Key Financial Ratios
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Piccadily Agro Industries Ltd. Financial Data
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Piccadily Agro Industries Ltd. Reports
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Piccadily Agro Industries Ltd. Corporate Announcements
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