Premier Industries (India) Ltd. कंपली की लेखा नीति

Mar 31, 2013

Corporate Information

- The company is a public limited company, incoporated on 05/11/1973. The Registered Office and industrial Unit of the company is situated at Industrial Area No. 1 , Dewas (M.P.). The Corporate office is situated at 107,Chetak Centre, 12/2 R.N.T.Marg.lndore (M.P.). The company is having a Soya Solvent Plant, an edible oil Refinery and a dairy plant at Dewas near Indore. Due to unfavourable scenario in business, the company has incurred losses. The company is presently a sick company duly registered with B.I.F.R. As its net worth is negative. Basis of Preparation

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1 Accounting Policies

a Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assump- tions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Although these estimates are based on management''s best knowledge of current events and actions, uncertainty about these assumptions and esti- mates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period.

b Fixed Assets

Fixed assets are recorded at cost less despreciation except Plant & Machinery at revalued cost. Assets acquired on lease are not reflected in the accounts and the lease rent is charged to profit & loss account as accrued.

c Intangible Assets

All Intangible assets are measured at cost and amortized so as to reflect the pattern in which the assets economic benefits are consumed.

d Depreciation

Depreciation is provided on fixed assets at straight line method in accordance with provision of schedule XIV of the companies Act 1956 & amendment there to.

e Borrowing Cost

Borrowing cost that are attributable to the acquisition of qualifying assets are capitalised as part of the such cost till the said assets put to use. All other borrowing cost are charged to revenue.

f Impairment of Assets

An asset is treated as impaired, when carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the Profit & Loss account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

g Investments

Long Term Investment are stated at cost/or market price whichever is lower. Dividends are accounted for as and when received.

h Inventories

The Company values its Raw Material at cost on FIFO basis. Finished goods are valued at cost or net realisable value whichever is lower and other items at cost.

Revenue Recognition

(A) Premium on additional license are accounted for on accrual basis

(B) Revenue in respect of Insurance/Other claims.interest Commission etc. is recognised only when it is reasonably certain that ultimate collection will be made.

Foreign Currency Transaction

Foreign currency liabilities in respect of fixed assets restated at the rates ruling at the year end. Any material exchange

difference arising on such transaction are adjusted in the Cost of Assets. k Retirement and Employee Benefits

a. Defined Contribution Plan Company''s Contribution paid/payable during the year to Provident Fund ,ESIC and Labour welfare fund are charged to Profit and Loss Account There are no other obligation other than the contribution payable to the respective authorities

b. Defined Benefit Plan Company''s liabilities towards gratuity are determined on the basis of simple calculation as per the Gratuity Act and Labour Act only. Leave Encashment are determined on the basis of simple calculation.

Income Taxes

a. Tax liabilities of the Company is estimated considering the provisions of Income. Tax Act, 1961.

b. Deferred Tax is recognised subject to the tax consideration of prudence on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

Provisions & Contingent Liabilities

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

i Equity Shares

The Company has only one class of Equity shares having a par value of 10/-. Each holder of equity shares is entitled to one vote per share.The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 4

During the Year Ended 31st March 2013 the amount per a share dividend recognized as distributions to equity shareholders was Rs. NIL ( For 31 sr March 2012 was Rs nil)ln the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

d Terms and Conditions of Borrowings I) Loans from Related parties includes:- I) A sum of Rs.24700000/- received in past towards promoters contribution in terms of Revival package approved by AAIFR and is interest free.

ii) A sum of Rs. 120000000/- received from Girdharilal Sugar and Allied Industries Ltd. Who has made an application to the State Govt, in April,2011, for making strategic investment in our company under the provisions of new Industrial Policy of the State Govt, with an intention to pursue soya and Dairy business. The said company is awaiting approval from the state govt. Interest, therefore, has not been provided on such loan. iii) A sum of Rs. 40000000/- received from Vertex Investment P. Ltd. On which interest is payable @ 12%p.a. The Loan is repayble only after more than 12 months, in terms of mutual understanding between the parties. Interest for the year has not been provided. 2) Loan of Rs. 10000000/-was received in past from other party towards Revival Package approved by AAIFR and is Interest free.

3) i) Deferred Payment Liabilities represent net aggregate amount of Commercial Taxes (Sales tax,Vat,Entry tax etc.) liabilities Deferred by the company.being a Sick Industrial uhit.in terms of Rehabilitation Package approved by B.I.F.R., and as per Policy Package of the Stat Govt. ii) The commercial Tax Dept. of State Govt, has created a Lien on the Fixed Assets of the company situated at dewas (M.P.),to secure amount of Deferred commercial Tax payable by the company.

e Default in payment of Borrowings ( Deferred Payment Liabilities - Sales Tax Defferement) The Company claims that the deferred commercial tax liability of a particular year is payable by the company after 10 years in terms of Deferrment Rules ,1986 framed by the state govt. Accordingly, net aggregate Deferred commercial Tax liability of Rs. 108224097/- for the period from April 2003 onwards has been shown under Long term borrowings and balance amount of Rs. 39187114/- has been shown as current liability.being net aggregate amount of Deferred Tax Liability payable till March,2003. The Commercial Tax Department.however, is of the opinion that the entire amount of Deferred commercial Tax is already due and payable by the company and has raised demand on the company for the same which has been suitably defended by the company in the High court bench of Madhya Pradesh.

5 LONG TERM PROVISIONS

Provision for Employee Benefits

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Mar 31, 2012

A Use of Estimates

The preparation of the financial statements in confor- mity with GAAP requires management to make esti- mates and assumptions that affect the reported bal- ances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and ex- penses during the period. Although these estimates are based on management's best knowledge of cur- rent events and actions, uncertainty about these as- sumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period,

b Fixed Assets

Fixed assets are recorded at cost less depreciation except Plant & Machinery at revalued cost. Assets acquired on lease are not reflected in the accounts and the lease rent is charged to profit & loss account as accrued,

c Intangible Assets

All Intangible assets are measured at cost and amor- tized so as to reflect the pattern in which the assets economic benefits are consumed,

d Depreciation

Depreciation is provided on fixed assets at straight line method in accordance with provision of schedule XIV of the Companies Act 1956 & amendment there to. e Borrowing Cost

Borrowing cost that are attributable to the acquisition of qualifying assets are capitalised as part of the such cost till the said assets put to use. All other borrowing cost are charged to revenue.

f Impairment of Assets

An asset is treated as impaired, when carrying cost of assets exceeds its recoverable amount. An impair- ment loss is charged to the Profit & Loss account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount, g Investments Investment are stated at cost. Dividends are accounted for as and when received, h Inventories The Company values its Raw Materia! at cost on FIFO basis. Finished goods are valued at cost or net realisable value whichever is lower and other items at cost.

i Revenue Recognition

(a) Premium on additional licence are accounted for on accrual basis

(b) Revenue in respect of Insurance/Other claims,interest Commission etc. is recognised only when it is reasonably certain that ultimate collec- tion will be made.

j Foreign Currency Transaction

Foreign currency liabilities in respect of fixed assets restated at the rates ruling at the year end. Any material exchange difference arising on such trans- action are adjusted in the Cost of Assets, k Retirement and Employee Benefits

a. Defined Contribution Plan Company's Contri- bution paid/payable during the year to Provident Fund ,ESIC and Labour welfare fund are charged to Profit and Loss Account .There are no other obligation other than the contribution payable to the respective authorities

b. Defined Benefit Plan Company's liabilities towards gratuity are determined on the basis of simple calculation as per the Gratuity Act and Labour Act only. Leave Encashment are determined on the basis of simple calculation.

I Income Taxes

a. Tax liabilities of the Company is estimated con- sidering the provisions of Income Tax Act, 1961.

b. Deferred Tax is recognised subject to the tax consideration of prudence on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

m Provisions & Contingent Liabilities

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent liabilities are not recognised but are dis- closed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2010

1. GENERAL ACCOUNTING PRINCIPLES

These accounts are prepared on the historical cost basis and on going concern basis. The Company follows accrual method of Accounting.

2. FIXED ASEETS

Fixed assets are recorded at cost less depreciation except Plant & Machinery at revalued cost. Assets acquired on lease are not reflected in the accounts and the lease rent is charged to profit & loss account as accrued.

3. INVENTORIES

The Company values its Raw Material at cost on FIFO basis. Finished goods are valued at cost or net realisable value whichever is lower and other items at cost.

4. DEPRECIATION

Depreciation is provided on fixed assets at straight line method in accordance with provision of schedule XIV of the companies Act 1956 & amendment there to.

5. PRELIMINARY & OTHER EXPENSES

Preliminary & public Issue Expenses have been amortized 1/10th of the total expenses on prorata basis.

6. DEFERRED REVENUE EXPENSES

Deferred Revenue Expenses have been amortized 1/5th of total expenses on prorata basis.

7. INVESTMENTS

Investment are stated at cost. Dividends are accounted for as and when received (See Note No 8)

8. FOREIGN CURRENCY TRANSACTIONS

Foreign currency liabilities in respect of fixed assets restated at the rates ruling at the year end. Any material exchange difference arising on such transaction are adjusted in the Cost of Assets.

9. REVENUE RECOGNITION

(a) Premium on additional licence are accounted for on accrual basis

(b) Revenue in respect of Insurance/Other claims,interest Commission etc. is recognised only when it is reasonably certain that ultimate collection will be made.

10. RETIREMENT BENEFITS

a)Defined Contribution Plan Companys Contribution paid/payable during the year to Provident Fund ,ESIC and Labour welfare fund are charged to Profit and Loss Account .There are no other obligation other than the contribution payable to the respective authorities

b) Defined Benefit Plan Companys liabilities towards gratuity are determined on the basis of simple calculation as per the Gratuity Act and Labour Act only. Leave Encashment are determined on the basis of simple calculation.

11. BORROWING COST

Borrowing cost that are attributable to the acquisition of qualifying assets are capitalised as part of the such cost till the said assets put to use. All other borrowing cost are charged to revenue.

12. PROVISION.CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

13. SALES

Sales are recorded after adjusting returns, rebates, claims and transit losses.

14. TAXATION

(a) Tax liabilities of the Company is estimated considering the provisions of Income Tax Act, 1961.

(b) Deferred Tax is recognised subject to the tax consideration of prudence on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period

15. IMPAIRMENT OF ASSETS

An asset is treated as impaired, when carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the Profit & Loss account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

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Mar 31, 2009

1. GENERAL ACCOUNTING PRINCIPLE

These accounts are prepared on the historical cost basis and ongoing concern basis. The Company follows accrual method of Accounting.

2. FIXED ASEETS

Fixed assets are recorded at cost less depreciation except Plant & Machinery at revalued cost. Assets acquired on lease are not reflected in the accounts and the lease rent is charged to profit & loss account as accrued.

3. INVENTORIES

The Company values its Raw Material at cost on FIFO basis and finished goods at cost or net realisable value whichever is lower and and other itmes at cost.

4. DEPRECIATION

Depreciation is provided on fixed assets at straight line method in accordance with provision of schedule XIV of the companies Act 1956 & amendment thereto.

5. PRELIMINARY & OTHER EXPENSES

Preliminary & public Issue Expenses have been amortized 1/10th of the total expenses on prorata basis.

6. DEFERRED REVENUE EXPENSES

Deferred Revenue Expenses have been amortized 1/5f of total expenses on prorata basis.

7. INVESTMENTS

Investment are stated at cost. Dividends are accounted for as and when received (See Note No 8)

8. FOREIGN CURRENCY TRANSACTIONS

Foreign currency liabilities in respect of fixed assets restated at the rates ruling at the year end. Any material exchange difference arising on such transaction are adjusted in the Cost of Assets.

9. REVENUE RECOGNITION

a) Premium on additional licence are accounted for on accrual basis

b) Revenue in respect of Insurance/Other claims,interest Commission etc. is recognised only when it is reasonably certain that ultimate collection will be made.

10. RETIREMENT BENEFITS

a) Defined Contribution Plan : Companys Contribution paid/payable during the year to Provident Fund ,ESIC and Labour welfare fund are charged to Profit and Loss Account .There are no other obligation other than the contribution payable to the respective authorities

b) Defined Benefit Plan : Companys liabilities towards gratuity are determined on the basis of simple calculation as per the Gratuity Act and Labour Act only. Leave Encashment are determined on the basis of simple calculation.

11. BORROWING COST

Sorrowing cost that are attributable to the acquisition of qualifying assets are capitalised as part of the such cost till the said assets put to use. All other borrowing cost are charged to revenue.

12. PROVISION,CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

13. SALES

Sales are recorded after adjusting returns, rebates, claims and transit losses.

14. TAXATION

a) Tax liabilities of the Company is estimated considering the provisions of Income Tax Act,1961.

b) Deferred Tax is recoginised subject to the tax consideration of prudence on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period

15. IMPAIRMENTS OF ASSETS.

An asset is treated as impaired, when carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the Profit & Loss account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed it there has been a change in the estimate of the recoverable amount.

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Mar 31, 2008

1. GENERAL ACCOUNTING PRINCIPLE

These accounts are prcapred on the historical cost basis and on going concern basis. The Company follows accrual method of Accounting.

2. FIXED ASEETS

Fixed assets are recorded at cost less depreciation except Plant & Machinery at revalued cost. Assets acquired on lease are not redacted in the accounts and the lease rent is charged to profit & loss account as accrued.

3. INVENTORIES

The Company values its Raw Material at cost on FIFO basis and finished goods at cost or net realisable value whichever is lower and and other itmes at cost.

4. DEPRECIATION

Depreciation is provided on fixed assets at straight lino method in accordance with provision of schedule XIV of the companies Act 1956 & amendment there to. 5. PRELIMINARY & OTHER EXPENSES Preliminary & public Issue Expenses have been amortized 1/10 of the total expenses on prorata basis.

6. DEFERRED REVENUE EXPENSES

Deferred Revenue Expenses have been amortized 1/5th of total expenses on prorata basis.

7. INVESTMENTS

Investment are stated at cost. Dividends are accounted for as and when received (See Note No 8)

8. FOREIGN CURRENCY TRANSACTIONS

Foreign currency liabilities in respect of fixed assets restated at the rates ruling at the year end. Any material exchange difference arising on such transaction are adjusted in the Cost of Assets.

9. REVENUE RECOGNITION

a) Premium on additional licence are accounted for on accrual basis

b) Revenue in respect of Insurance/Other claims. interest Commission etc. is recognised only when it is reasonably certain that ultimate collection will be made.

10. RETIREMENT BENEFITS

a) Defined Contribution Plan : Companys Contribution paid/payable during the year to Provident Fund ,ESTC and Labour welfare fund are charged to Profit and Loss Account .There are no other obligation other than the contribution payable to, there respective authorities

b) Defined Benefit Plan : Companys liabilities towards gratuity are determined on the basis of simple calculation as per Gratuity Act and Labour Act only. Leave Encashment are determined on the basis of simple calculation.

11. BORROWING COST

Borrowing cost that are attributable to the acquisition of qualifying assets are capitalised as part of the such cost til the ,sald assets put to use. All other borrowing cost are charged to revenue..

12. PROVISION. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent liabilities are not recognised but are, disclosed in the notes Contingent assets are neither recognised nor disclosed in the financial statements

13. SALES Sales are recorded after adjusting returns, rebates, claims and transit losses.

14. TAXATION

a) Tax liabilities of the Company is estimated considering the provisions of Income Tax Act, 1961.

b) Deferred Tax is recoginised subject to the tax consideration of prudence on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period

15. IMPAIRMENTS OF ASSETS

An asset is treated as impaired, when carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the Profit & Loss account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.