1.            Disclosure of Accounting Policies (AS-1):

(a)   Basis of Preparation of Financial Statements:

The financial statements have been brpared under the historical cost convention in accordance with the generally accepted accounting principles and the provision of The Companies Act, 2013. The Company follows the mercantile system of accounting and recognizes Income and Expenditure on accrual basis. Accounting policies not referred to otherwise are consistent with the generally accepted accounting principles.

(b)   Use of Estimates:

The brparation of financial statements in country with accepted principle requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period I which the results are known/materialized.

(c)    Valuation of Inventories (AS-2):

Inventories are valued in accordance with the requirements of accounting standard (AS-2) on Valuation of Inventories.

i.        Raw-materials, Stores, Spare parts & Chemicals are valued at cost.

ii.       Finished goods are valued at cost / Net Realizable Value whichever less is. According to the information provided by management Average sale rate is `. 3235.00 and cost of production is `.2715.46 Hence lower of the both is taken for valuation of finished good i.e frees Sugar.

iii.    Stock in process is valued at cost or net realizable value whichever is lower.

iv.    Waste is valued at net realizable value.

v.      By product is valued at net realizable value.

vi.    Cost of inventories is ascertained on FIFO basis.

1.            Employees Benefits (AS-15):

i.        Provident fund:

The eligible employees of the Company are entitled to receive benefits under the provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of employees salary). The Contributions as specified under the law are paid to respective Regional Provident Fund Commissioner. The Company is liable for annual contributions and recognizes such contributions as an expense in the year incurred.

ii.      Gratuity:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. Gratuity payment is accounted for on accrual basis as per actuarial valuation in accordance with AS-15. However such Gratuity amount is not deposited in any Gratuity Fund Account.

1.         Segment Reporting (AS-17):

The Segment reporting is based on the following Accounting policies adopted by the company which is in line with the regular accounting policy.

a.       Inter Segment revenue has been accounted on the basis of estimated price on the basis of ruling market prices.

b.      Revenue and expenses directly relatable to the segment has been ascertained on the basis of their relationship to the activities of the segment.

c.       Expenses not relatable to segment and not allocable have been included under unallocated corporate expenses.

As per AS-17 of ICAI, the company has identified products wise and unit wise segments i.e. Sugar, Co-generation, Distillery,Venigar & IML at factory site, of Products & Unit based on return and risk and the required disclosure is enclosed in the format. The segment reporting Information has been enclosed.