Hindustan Breweries & Bottling Ltd. कंपली की लेखा नीति

Mar 31, 2011

Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 subject to what is stated herein below, as adopted consistently by the company.

Fixed Assets

Factory land, buildings, plant & machinery and electric fittings, which were revalued on 31.03.1999, are stated at the revalued figure. Other fixed assets are stated at cost of acquisition, inclusive of inward freight, duties, taxes and incidental expenses related to acquisition. In respect of major projects involving construction related pre-operational, start-up and trial run expenses form part of the value of the assets capitalized. As per practice, expenses incurred on modernisation/debottle necking/ relocation/relining of plant and equipments are capitalised.

Fixed assets acquired under hire purchase schemes are capitalised at their principal value and hire charges are expensed. Fixed assets taken on lease before 31.03.2001 are not treated as assets of the company and lease rentals are charged to revenue on accrual basis. However, lease transactions entered / to be entered into after 1.4.2001 shall be accounted for in accordance with Accounting Standard 19 on "Leases". Hire charges/lease rentals pertaining to the period up to the date of commissioning of the assets are capitalised.

An Asset is treated as Impaired when the carrying cost of assets exceeds its recoverable value and impairment is charged to the revenue.

Investments

Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of the management.

Current investments are carried at lower of cost and quoted/fair value.

Income from investments is credited to revenue in the year in which it accrues. Income is stated in full and tax thereon is being accounted for under income tax payments.

Inventories

Inventories are valued at lower of cost or net realisable value. Cost is determined using the first-in-first-out (FIFO) formula. Finished goods and stock in process include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

Revenue Recognition

Sales are recognised on dispatch of goods to customers. Sales are net of returns and include amount recovered towards excise duty but exclude rebates and discounts. Similarly income from conversion charges also includes excise duty recovered.

Claims and Benefits

Unless otherwise specified claims recoverable and export benefits are accounted on accrual basis to the extent considered receivable.

Depreciation

Depreciation on fixed assets (other than revalued assets) is calculated on straight-line method in accordance with Schedule XIV of the Companies Act, 1956. In respect of revalued fixed assets depreciation is calculated on Straight Line method on the gross value of assets as increased by the amount of revaluation. Leasehold land is being depreciated over the lease period. In respect of residential space, where no separate break-up of cost between land & building is available, depreciation has been provided on the total value of residential space.

Tax, Duties etc.

Provision is made for excise duty and export duty on finished goods lying in stock at factory/bonded warehouse at the close of the year.

Employees

Liabilities towards gratuity, leave encashment and ex-gratia are provided for in the year in which the same are actually paid, (see note 6)

Provident fund is accrued on monthly basis in accordance with the terms of contract with the employees and is deposited with the "Statutory Provident Fund".

Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of the assets. Other borrowing costs are recognised as an expense in the period in which they are incurred. Capitalisation of borrowing costs ceases when substantially all activities necessary to prepare the qualifying asset for its intended use or sale are complete.

Research & Development

While revenue expenditure on research & development is charged against the profit of the year in which it is incurred, capital expenditure is shown as an addition to fixed assets.

Deferred Revenue expenditure

Deferred revenue expenditure represents expenditure the benefit of which is expected to flow over a period of time, and is charged off on a pro-rata basis over a period of five years. Such expenditure includes (i) stores & spares, major repairs & maintenance incurred on plant & machinery, building & furniture, (ii) exit payments to employees, etc.

Share Issue expenditure

Share issue expenditure is charged off over a period of 10/5 years.

Taxation

Deferred taxation is provided using the liability method in respect of the tax effect arising from all material timing differences between the accounting and tax treatment of income and expenditure which are expected with reasonable probability to crystallize in the foreseeable future.

Deferred tax benefits are recognized in the financial statements only to the extent of any deferred tax liability or when such benefits are reasonably expected to be realized in the near future.

Tarning per snare

Basic earning per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

Diluted earning per share is calculated by dividing the net profit attributable to equity shareholders by the weighted average number of equity shares outstanding during the year (adjusted for the effects of dilative options).

Events occurring after balance sheet date

Events occurring after the balance sheet date have been considered in the preparation of financial statements. Contingent Liabilities

Un provided contingent liabilities are disclosed in the accounts by way of notes giving nature and quantum of such liabilities.

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Mar 31, 2010

Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 subject to what is stated herein below, as adopted consistently by the company.

Fixed Assets

Factory land, buildings, plant & machinery and electric fittings, which were revalued on 31.03.1999, are stated at the revalued figure. Other fixed assets are stated at cost of acquisition, inclusive of inward freight, duties, taxes and incidental expenses related to acquisition. In respect of major projects involving construction related pre-operational, start-up and trial run expenses form part of the value of the assets capitalized. As per practice, expenses incurred on modernisation/debottle necking/ relocation/relining of plant and equipments are capitalised. Fixed assets acquired under hire purchase schemes are capitalised at their principal value and hire charges are expensed. Fixed assets taken on lease before 31.03.2001 are not treated as assets of the company and lease rentals are charged to revenue on accrual basis. However, lease transactions entered / to be entered into after 1.4.2001 shall be accounted for in accordance with Accounting Standard 19 on "Leases". Hire charges/lease rentals pertaining to the period up to the date of commissioning of the assets are capitalised.

An Asset is treated as Impaired when the carrying cost of assets exceeds its recoverable value and impairment is charged to the revenue.

Investments

Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of the management.

Current investments are carried at lower of cost and quoted/fair value.

Income from investments is credited to revenue in the year in which it accrues. Income is stated in full and tax thereon is being accounted for under income tax payments.

Inventories

Inventories are valued at lower of cost or net realisable value. Cost is determined using the first-in-first-out (FIFO) formula. Finished goods and stock in process include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

Revenue Recognition

Sales are recognised on dispatch of goods to customers. Sales are net of returns and include amount recovered towards excise duty but exclude rebates and discounts. Similarly income from conversion charges also includes excise duty recovered.

Claims and Benefits

Unless otherwise specified claims recoverable and export benefits are accounted on accrual basis to the extent considered receivable.

Depreciation

Depreciation on fixed assets (other than revalued assets) is calculated on straight-line method in accordance with Schedule XIV of the Companies Act, 1956. In respect of revalued fixed assets depreciation is calculated on Straight Line method on the gross value of assets as increased by the amount of revaluation. Leasehold land is being depreciated over the lease period. In respect of residential space, where no separate break-up of cost between land & building is available, depreciation has been provided on the total value of residential space.

Tax, Duties etc.

Provision is made for excise duty and export duty on finished goods lying in stock at factory/bonded warehouse at the close of the year.

Employees ''

Liabilities towards gratuity, leave encashment and ex-gratia are provided for in the year in which the same are actually paid, (see note 6)

Provident fund is accrued on monthly basis in accordance with the terms of contract with the employees and is deposited with the "Statutory Provident Fund".

Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of the assets. Other borrowing costs are recognised as an expense in the period in which they are incurred. Capitalisation of borrowing costs ceases when substantially all activities necessary to prepare the qualifying asset for its intended use or sale are complete.

Research & Development

While revenue expenditure on research & development is charged against the profit of the year in which it is incurred, capital expenditure is shown as an addition to fixed assets.

Deferred Revenue expenditure

Deferred revenue expenditure represents expenditure the benefit of which is expected to flow over a period of 1 time, and is charged off on a pro-rata basis over a period of five years. Such expenditure includes (i) stores & spares, major repairs & maintenance incurred on plant & machinery, building & furniture, (ii) exit payments to employees, etc.

Share Issue expenditure

Share issue expenditure is charged off over a period of 10/5 years.

Taxation

Deferred taxation is provided using the liability method in respect of the tax effect arising from all material timing differences between the accounting and tax treatment of income and expenditure which are expected with reasonable probability to crystallize in the foreseeable future.

Deferred tax benefits are recognized in the financial statements only to the extent of any deferred tax liability or when such benefits are reasonably expected to be realized in the near future.

Earning per share

Basic earning per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

Diluted earning per share is calculated by dividing the net profit attributable to equity shareholders by the weighted average number of equity shares outstanding during the year (adjusted for the effects of dilative options).

Events occurring after balance sheet date

Events occurring after the balance sheet date have been considered in the preparation of financial statements.

Contingent Liabilities

Un provided contingent liabilities are disclosed in the accounts by way of notes giving nature and quantum of such liabilities.

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Mar 31, 2009

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 subject to what is stated herein below, as adopted consistently by the company.

Fixed Assets

Factory land, buildings, plant & machinery and electric fittings, which were revalited on 31.03.1999, are stated at the revalued figure. Other fixed assets are stated at cost of acquisition, inclusive of inward freight, duties, taxes and incidental expenses related to acquisition. In respect of major projects involving construction related pre-operational, start-up and trial run expenses form part of the value of the assets capitalized. As per practice, expenses incurred on modernization / rebottled necking/ relocation/relining of plant and equipments are capitalized. Fixed assets acquired under hire purchase schemes are capitalized at their principal value and hire charges are expensed. Fixed assets taken on lease before 31.03.2001 are not treated as assets of the company and lease rentals are charged to revenue on accrual basis. However, lease transactions entered / to be entered into after 1.4.2001 shall be accounted for in accordance with Accounting Standard 19 on "Leases". Hire charges/lease rentals pertaining to the period up to the date of commissioning of the assets are capitalized.

An Asset is treated as Impaired when the carrying cost of assets exceeds its recoverable value and impairment is charged to the revenue.

Investments

Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of the management.

Current investments are carried at lower of cost and quoted/fair value.

Income from investments is credited to revenue in the year in which it accrues. Income is stated in full and tax thereon is being accounted for under income tax payments.

Inventories

Inventories are valued at lower of cost or net realizable value. Cost is determ thed using the first-in-first-out (FIFO) formula. Finished goods and stock in process include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

Revenue Recognition

Sales are recognised on despatch of goods to customers. Sales are net of returns and include amount recovered towards excise duty but exclude rebates and discounts. Similarly income from conversion charges also includes excise duty recovered.

Claims and Benefits

Unless otherwise specified claims recoverable and export benefits are accounted on accrual basis to the extent considered receivable.

Depreciation

Depreciation on fixed assets (other than revalued assets) is calculated on straight-line method in accordance with Schedule XIV of the Companies Act, 1956. In respect of revalued fixed assets depreciation is calculated on Straight Line method on the gross value of assets as increased by the amount of revaluation. Leasehold land is being depreciated over the lease period. In respect of residential space, where no separate break-up of cost between land & building is available, depreciation has been provided on the total value of residential space.

Tax, Duties etc.

Provision is made for excise duty and export duty on finished goods lying in stock at factory/bonded warehouse at the close of the year.

Employees

Liabilities towards gratuity, leave encashment and ex-gratia are provided for in the year in which the same are actually paid, (see note 6)

Provident fund is accrued on monthly basis in accordance with the terms of contract with the employees and is deposited with the "Statutory Provident Fund".

Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of the assets. Other borrowing costs are recognised as an expense in the period in which they are incurred. Capitalisation of borrowing costs ceases when substantially all activities necessary to prepare the qualifying asset for its intended use or sale are complete.

Research & Development

While revenue expenditure on research & development is charged against the profit of the year in which it is incurred, capital expenditure is shown as an addition to fixed assets.

Deferred Revenue expenditure

Deferred revenue expenditure represents expenditure the benefit of which is expected to flow over a period of , time, and is charged off on a pro-rata basis over a period of five years. Such expenditure includes (i) stores & spares, major repairs & maintenance incurred on plant & machinery, building & furniture, (ii) exit payments to employees, etc.

Share Issue expenditure

Share issue expenditure is charged off over a period of 10/5 years.

Taxation

Deferred taxation is provided using the liability method in respect of the tax effect arising from all material timing differences between the accounting and tax treatment of income and expenditure which are expected with reasonable probability to crystallize in the foreseeable future.

Deferred tax benefits are recognized in the financial statements only to the extent of any deferred tax liability or when such benefits are reasonably expected to be realized in the near future.

Earning per share

Basic earning per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

Diluted earning per share is calculated by dividing the net profit attributable to equity shareholders by the weighted average number of equity shares outstanding during the year (adjusted for the effects of dilative options).

Events occurring after balance sheet date

Events occurring after the balance sheet date have been considered in the preparation of financial statements.

Contingent Liabilities

Un provided contingent liabilities are disclosed in the accounts by way of notes giving nature and quantum of such liabilities.