Mar 31, 2015
A. Corporate information:
Adilya Spinners Limited fLThe Company*) was incorporated on i4ih
February 1991 as a public limited company, its shares are Irsted on
Bombay Stock Exchange. The Company is engager in manufacturing and
selling of yam
b. Basis of Preparation
The financial statements have oeen prepared and presented in accordance
with Indian Generally Accepted Accounting Principles (GAAP) under the
histoncal cost convention or the accrual basis. GAAP comprises
accounting standards notified by the Central Government of Fndea under
Section 133 of the Companies Act, 2013, other pronouncements of
Institute of Chartered Accountants of India, the provisions of
Companies Act, 2D13. Accounting policies have been consistently aopEied
and managemeni evaluates alt recently issued or neviseo accounting
standards or an ongoing basis.
c. Use of Estimates
The preparation of financial statements to conformity with the Indian
GAAP requires estimates and assumptions to be made that affect the
reported amounts of assets and liabilities on the date of fhe financial
statements, the reporting amounts of revenue and expenses during the
reporting period and the disclosures relating to contingent iiab hties
as on itie dale of financial statements. Although these estimates are
based on the managements best Knowledge of current events and actions,
uncertainty about these assumptions and estimates could resutt in
outcomes different from the estimates Difference between actua' results
and estimates are recognized in the period in which the results are
known or nratenaltze
Estimates and underlying assumptions are reviewed on an ongoing basis
Any revision to accounting estimate* is recognized prospectively in the
current and future periods.
d. Fixed Assets:
Fixed Assets are carried at the cost of acquisition or construction
less accumulated depreciation. The cost of fixed assets includes non -
refundable taxes duties, freight and other incidental expenses related
to the acquisition and installation of the respective assets Borrowing
costs directly attributable to the acquisition or construction of those
fixed assets which necessarily take a substantial period of rime to get
ready for their intended use are capitalizes
Plani and Machinery was revalued as on 01.tM.20t4 The surplus arising
from the revaluation has been transferred to uRevaluation Reserve1 and
shown under the head "Reserves & Surplus1. The revaluation of fixed
assets has been mode by appraisal method by an external competent
valuer.
Depreciation on Tangible Fixed Assets
Depreciation on Fixed Assets have been charged based on the useftF
life, fn accordance wrtb Schedule If of the Companies Act. 2313
The Management estimates the usefor rives of the revalued Plant and
Machinery as 12 fears.
Depreciation on the revalued assets is adjusted against revaluation
reserve without debiting to Statement Profit S Loss.
Scrap @ 5% of original cost an all tangible assets except Revalued
Plan! and machinery tias been considered. Sera p @ 5% oF revoi ued amou
nt has bee n carsid seed on revalued Plant ana Machinery. Depreciation
es calculated on a pro- rata basis from the date or installation I
revaluation till the date the assets are sold or disposed. Individual
assets costing less than Rs.S.QQQ are depreciated in full in the year
oF acquisition. Freehold land is not depreciated
Impairment of Assets:
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired IF any su ch indication
exists. tti e Company estimates the recoverable amount of the asset, tf
such recoverab e amount oF the asset or the recoverabFe amounl of the
cash generating unit to which the asset belongs to is less than its
carrying amount, impairment provision is created to bring down the
carrying value to its recoverable amount. The reduction is treated as
an impairment loss and ss recognized in the Statement of Profit and
Loss. If at the Balance Sheet dare, there is an indication that if a
previously assessed impairment loss no longer exists, the recoverable
amount js reassessed and the impairment provision created earlier is
reversed to bring it at the recoverable antount subject to a maximum of
depreciated historical cost
e, Expenditure during construction period
Expenditure during construction period is grouped under "Capital Work
tn Progress"' and the same is allocated to the respective Fixed Assets
on the completion of its construction
f. Revenue Recognition:
Sales are recognized at the point of dispatch i.e., when significant
risk is transferred: to customers, except in the case of consignment
agents where the revenue is recognized only after the sale is effected
by fhe consignment agent Sale value includes Excise Duty and Vat
g Inventory Valuation:
Inventories including wwfc-in-progness are valued at lower of coal and
net realizable value. Cost of inventory comprises all cost cf purchase,
cost of conversion and other costs incurred in bringing the inventories
to their present location and condition
The cost of Raw Materials. Stores and Spares and Packing Materials is
oetemruned by using the Weighted1 Average Cost Method. The cost of
Work-imProgress and Finished Goods is determined by weighted average
Cost Method and includes appropriate share of production overheads
h. Investments:
Investments are either classified qs current or tong term. Current
investments are carried at the lower of cast and market value. Long
term investments are carded at coat less any permanent diminution in
value, determined separately fbreach individual investmenL The
reduction in the carrying amount is reversed when there is a rise in
the value of the investment or tf the reasons for the reduction no
longer exist
i Employee Benefits
Short term benefits
Short term employee benefits are charged off at the undisco united
amount in the year m which the related services are rendered.
Long term benefits
Payments to the defined contribution retirement benefit schemes are
changed as an expense as they fall due.
Gratuity
Gratuity liability is a defined benefit obligation and is based on Ehe
actuarial valuation All actuarial gains/i osses are immediately charged
to the Profit and Loss Account and are not deferred.
Provident fund
The company has a denned contribution plan for Provident Fund under
which the company contributes the fond to the Regional Provident Fund
Comntissioner
j, Income-Tax expense
Income tax expense comprises current tax and deferred tax charge or
credit.
Current tax
The current charge for income taxes is calculated tn accordance with
the relevant lax regulations applicable to the company.
Deferred lax
Deferred tax charge of credit reflects the tax effects due to timing
differences between accounting income and !axable income for the
period. The deferred tax charge or credit and the corresponding
deferred lax liabilities or assets are recogn-zed using the tax rates
that have been enacted or substantial ly enacted by the balance s heet
date Deferred fax assets are recognized only to the extent there is
reasonable certainty that assets can be realized in future; however,
where there is unabsorbed depreciation or carry forward of losses,
deferred tax assets are recognized only if there is a virtual certainty
of realization of such assets. Deferred tax assets are reviewed ai each
balance sheet date and written down or written up to reflect the amount
that is reasonably/virtually certain ;as the case may be) to be
realizee
k, Earnings per share
The basic earnings per share (JEPS') is computed by dividing the net
profit after tax for the year by weighted average number of equity
shares outstanding dunng the year For the purpose of caicuFating
diluted earnings per share, net profit after tax for the year and the
weighted average number of shares outstanding during the year are
adjusted for the effects of ail dilutive poterrtiaE equity shares
l, Provisions and contingent liabilities
The Company creates a provision where there is a present obfigation as
a result of a past event that probably requires an outflow of resources
and a reliable estimate can tie made of the amount of obligation. A
disclosure for a contingent Aability is made when there is a possible
obligation or a present obligation lhat may. but probably w;li not,
require an outflow of resources. Where there is possible obligation ora
present obligation i n respect of whi ch the likelihood of outflow
resources -s remote, oo provision or disclosure is made
m. Borrowing Costs:
Borrowing costs attributable to the qualifying fixed assets during
construction, re nova ton and modernization are capitalized. Such
borrowing costs are apportioned on the average balance of capital
work-in-progress far Hie year Other borrowing costs are recognizee as
an expense in the period in which they are incurred.
Boro wing cost consists of interest and other financial costs incurred
in connection with: borrowing of funds.
n. Cash flow statement
Casti flows are reported using the indirect method, whereby net profit/
(loss} before tax is adjusted for the effects of transactions of a
non-cash nature and any deferrals or ac cru ala of past or future cash
receipts or payments. The cash flows from regular re ven u e
generating, investing and financing activities of the company are
segregated
Mar 31, 2014
A. Corporate Information:
Aditya Spinners Limited ("The Company") is a public company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956 in India. Its shares are listed on Bombay Stock
Exchange. The Company is engaged in manufacturing and selling of yarn.
b. Basis of Preparation
i) Financial Statements are prepared in accordance with Generally
Accepted Accounting Principles in India (GAAP) under the historical
cost convention.
ii) The Company follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis.
c. Use of Estimates
The preparation of financial statements is in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities and disclosure of contingent liabilities at the
end of the reporting period. Although these estimates are based upon
management's best knowledge of current events and actions, actual
results could differ from these estimates.
d. Fixed Assets:
Tangible Fixed Assets:
Tangible Fixed Assets are stated at cost, net of accumulated
depreciation and accumulated impairment losses, if any. The cost
comprises purchase price, borrowing costs if capitalization criteria
are met and directly attributable cost of bringing the asset to its
working condition for the intended use.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets including day to day
repairs and maintenance expenditure and cost of replacing parts are
charged to the statement of Profit and Loss for the period during which
such expenses are incurred.
Depreciation on Tangible Fixed Assets:
Depreciation on Fixed Assets is provided in accordance with Schedule
XIV of the Companies Act, 1956, on Straight Line Method.
Impairment of Assets:
All the fixed assets are assessed for any indication of impairment at
the end of each financial year. On such indication the impairment loss,
being the excess carrying value over the recoverable value of the
assets, is charged to the statement of Profit & Loss in the respective
financial years. The impairment loss recognized in the prior years is
reversed in cases where the recoverable value exceeds the carrying
value, upon the reassessment in the subsequent years.
e. Revenue Recognition:
Sales are recognized at the point of dispatch i.e., when significant
risk is transferred to customers, except in the case of consignment
agents where the revenue is recognized only after the sale is effected
by the consignment agent. Sale value includes Excise Duty and Vat.
f. Inventory Valuation:
i) Raw Materials, Stores & Spares and Packing Materials: At Weighted
Average Cost.
ii) Work in Process: At Weighted Average cost or Net Realizable Value,
whichever is lower.
iii) Finished Goods: At cost or Net Realizable Value, whichever is
lower.
Cost comprises of cost of purchase, cost of conversion & other costs
incurred in bringing the inventories to the present location &
condition.
g. Investments:
Investments are stated at cost of acquisition. Diminution in the value
of investments other than temporary meant to be held for a long period
of time is recognized.
h. Borrowing Costs:
Borrowing costs are recognized as an expense in the period in which
they are incurred. Borrowing costs incurred for acquiring and
construction of assets are capitalized as part of the cost of such
assets.
i. Taxation:
Deferred income taxes are recognized for the future tax consequences
attributable to timing differences between the carrying amounts of
existing assets and liabilities and their respective tax bases. The
effect on deferred tax assets and liabilities of a change in tax rates
as stated in the financial statements is recognized using the tax rates
and tax laws that have been enacted or substantively enacted by the
balance sheet date. Deferred tax assets are recognized and carried
forward only when there is virtual certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. Provision for Income Tax for the current year is not
made in view of the relief granted by BIFR during the revival period of
7 years starting from the financial year 2011-12.
j. Contigencies:
The Company recognizes provisions when there is present obligation as a
result of past event and it is probable that there will be an outflow
of resources and reliable estimate can be made of the amount of
obligation. A disclosure for contingent liabilities is made in the
notes to accounts when there is a possible obligation or a present
obligation that may, but probably will not, require an out flow of
resources. Contingent assets are neither recognized nor disclosed in
the financial statements.
k. Earnings per Share:
Earnings per share is calculated by dividing the net profit or loss for
the year attributable to equity share holders by the weighted average
no of Equity Shares outstanding during the year.
Mar 31, 2013
A. Corporate Information:
Aditya Spinners Limited (The Company") is a public company domiciled in
India and incorporated under the provisions of the Companies Act, 1956
in India. Its shares are listed on Bombay Stock Exchange. The Company
is engaged in manufacturing and selling of yarn.
b. Basis of Preparation
i). Financial Statements are prepared in accordance with Generally
Accepted Accounting Principles in India (GAAP) under the historical
cost convention.
ii). The Company follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis.
c. Use of Estimates
The preparation of financial statements is in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities and disclosure of contingent liabilities at the
end of the reporting period. Although these estimates are based upon
management''s best knowledge of current events and actions, actual
results could differ from these estimates.
d. Fixed Assets:
Tangible Fixed Assets:
Tangible Fixed Assets are stated at cost, net of accumulated
depreciation and accumulated impairment losses, if any. The cost
comprises purchase price, borrowing costs if capitalization criteria
are met and directly attributable cost of bringing the asset to its
working condition for the intended use.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets including day to day
repairs and maintenance expenditure and cost of replacing parts are
charged to the statement of Profit and Loss for the period during which
such expenses are incurred.
Depreciation on Tangible Fixed Assets:
Depreciation on Fixed Assets is provided in accordance with Schedule
XIV of the Companies Act, 1956, on Straight Line Method.
Impairment of Assets:
All the fixed assets are assessed for any indication of impairment at
the end of each financial year. On such indication the impairment loss,
being the excess carrying value over the recoverable value of the
assets, is charged to the statement of Profit & Loss in the respective
financial years. The impairment loss recognized in the prior years is
reversed in cases where the recoverable value exceeds the carrying
value, upon the reassessment in the subsequent years.
e. Revenue Recognition:
Sales are recognized at the point of dispatch i.e., when significant
risk is transferred to customers, except in the case of consignment
agents where the revenue is recognized only after the sale is effected
by the consignment agent. Sale value includes Excise Duty and Vat.
f. Inventory Valuation:
i) Raw Materials, Stores & Spares and Packing Materials: At Weighted
Average Cost.
ii) Work in Process: At weighted Average cost or Net Realizable Value,
which ever is lower.
iii) Finished Goods: At cost or Net Realizable Value, which ever is
lower.
Cost comprises of cost of purchase, cost of conversion & other costs
incurred in bringing the inventories to the present location &
condition.
g. Investments:
Investments are stated at cost of acquisition. Diminution in the value
of investments other than temporary meant to be held for a long period
of time is recognized.
h. Borrowing Costs:
Borrowing costs are recognized as an expense in the period in which
they are incurred. Borrowing costs incurred for acquiring and
construction of assets are capitalized as part of the cost of such
assets.
i. Taxation:
Provision for Income Tax is made for both current and deferred taxes.
Provision for Current Income Tax is made at Current Tax rates based on
assessable income. Deferred income taxes are recognized for the future
tax consequences attributable to timing differences between the
carrying amounts of existing assets and liabilities and their
respective tax bases. The effect on deferred tax assets and liabilities
of a change in tax rates as stated in the financial statements is
recognized using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date. Deferred tax assets
are recognized and carried forward only when there is virtual certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realized.
j. Contingencies:
The Company recognizes provisions when there is present obligation as a
result of past event and it is probable that there will be an outflow
of resources and reliable estimate can be made of the amount of
obligation. A disclosure for contingent liabilities is made in the
notes to accounts when there is a possible obligation or a present
obligation that may, but probably will not, require an out flow of
resources. Contingent assets are neither recognized nor disclosed in
the financial statements.
k. Earnings per Share:
Earnings per share is calculated by dividing the net profit or loss for
the year attributable to equity share holders by the weighted average
no of Equity Shares outstanding during the year.
Mar 31, 2012
A. Corporate Information:
Aditya Spinners Limited ("The Company") is a public company domiciled
in India and incorporated under the provisions of the Companies Act'
1956 in India. Its shares are listed on Bombay Stock Exchange. The
Company is engaged in manufacturing and selling of yam.
b. Basis of Preparation
i). Financial Statements are prepared in accordance with Generally
Accepted Accounting Principles in India (GAAP) under the historical
cost convention.
ii). The Company follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis.
c. Use of Estimates
The preparation of financial statements is in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of revenues' expenses'
assets and liabilities and disclosure of contingent liabilities at the
end of the reporting period. Although these estimates are based upon
management's best knowledge of current events and actions' actual
results could differ from these estimates.
d. Fixed Assets:
Tangible Fixed Assets:
Tangible Fixed Assets are stated at cost' net of accumulated
depreciation and accumulated impairment losses' if any. The cost
comprises purchase price' borrowing costs if capitalization criteria
are met and directly attributable cost of bringing the asset to its
working condition for the intended use.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets including day to day
repairs and maintenance expenditure and cost of replacing parts are
charged to the statement of Profit and Loss for the period during which
such expenses are incurred.
Depreciation on Tangible Fixed Assets:
Depreciation on Fixed Assets is provided in accordance with Schedule
XIV of the Companies Act' 1956' on Straight Line Method.
Impairment of Assets:
All the fixed assets are assessed for any indication of impairment at
the end of each financial year. On such indication the impairment loss'
being the excess carrying value over the recoverable value of the
assets' is charged to the statement of Profit & Loss in the respective
financial years. The impairment loss recognized in the prior years is
reversed in cases where the recoverable value exceeds the carrying
value' upon the reassessment in the subsequent years.
e. Revenue Recognition:
Sales are recognized at the point of dispatch i.e.' when significant
risk is transferred to customers' except in the case of consignment
agents where the revenue is recognized only after the sale is effected
by the consignment agent. Sale value ___includes Excise Dutv and Vat.
f. Inventory Valuation:
i) Raw Materials' Stores & Spares and Packing Materials: At Weighted
Average Cost.
ii) Work in Process: At weighted Average cost or Net Realizable Value'
which ever is lower.
iii) Finished Goods: At cost or Net Realizable Value' which ever is
lower. Cost comprises of cost of purchase' cost of conversion & other
costs incurred in bringing the inventories to the present location &
condition.
g. Investments:
Investments are stated at cost of acquisition. Diminution in the value
of investments other than temporary meant to be held for a long period
of time is recognized.
h. Borrowing Costs:
Borrowing costs are recognized as an expense in the period in which
they are incurred. Borrowing costs incurred for acquiring and
construction of assets are capitalized as part of the cost of such
assets.
i. Taxation:
Provision for Income Tax is made for both current and deferred taxes.
Provision for Current Income Tax is made at Current Tax rates based on
assessable income. Deferred income taxes are recognized for the future
tax consequences attributable to timing differences between the
carrying amounts of existing assets and liabilities and their
respective tax bases. The effect on deferred tax assets and liabilities
of a change in tax rates as stated in the financial statements is
recognized using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date. Deferred tax assets
are recognized and carried forward only when there is virtual certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realized.
j. Contingencies:
The Company recognizes provisions when there is present obligation as a
result of past event and it is probable that there will be an outflow
of resources and reliable estimate can be made of the amount of
obligation. A disclosure for contingent liabilities is made in the
notes to accounts when there is a possible obligation or a present
obligation that may' but probably will not' require an out flow of
resources. Contingent assets are neither recognized nor disclosed in
the financial statements.
k. Earnings per Share:
Earnings per share is calculated by dividing the net profit or loss for
the year attributable to equity share holders by the weighted average
no of Equity Shares outstanding during the year.
Mar 31, 2011
I) ACCOUNTING CONVENTION:
The company follows the mercantile system of accounting. Accounting
policies not referred to specifically otherwise, are consistent with
generally accepted accounting principles.
Although, the accumulated losses of the company together with the loss
for the year ended March 31, 2011 exceeded its Capital & Reserves,
since the company, with its future plans, is hopeful of turning around,
the accounts have been prepared on a going concern concept.
ii) FIXED ASSETS .
Fixed assets are stated at cost, less accumulated depreciation.
iii) DEPRECIATION:
Depreciation on Fixed Assets has been provided on straight line method
at the rates and the manner prescribed in schedule XIV of the companies
Act, 1956.
v) RETIREMENT BENEFITS:
The contribution to the provident fund is charged against revenue, in
respect of gratuity, the provision is made for all eligible employees
and this has not been funded. Liability for leave encashment benefit is
accounted for based on the assumption that such benefit is payable to
all employees at the end of the year.
vi) MISCELLANEOUS EXPENDITURE:
The preliminary and public issue expenses are amortized over a period
of ten years.
vii) EXPENDITURE DURING CONSTRUCTION PERIOD:
Expenditure during construction period is capitalised during the year.
viii) FOREIGN EXCHANGE TRANSACTION : NIL
ix) REVENUE RECOGNITION:
Revenue from sale of goods is recognised on dispatch and is inclusive
of Sales Tax and Net of Sales Returns, where applicable.
x) RELATED PARTY DISCLOSURE:
Related Party: Sri Chakra Cement Ltd
Related Party Transactions: Loans & Advances amounting to Rs. 25.04
Lakhs Outstanding balance with related party as on March 31, 2011:
Rs.12.24 Lakhs
xi) Impairment of Assets:
To provide for impairment loss, if any, to the extent, the carrying
amount of assets exceed their recoverable amount. Recoverable amount is
higher of an asset's net selling price and its 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.
Impairment losses recognised in prior years are reversed when there is
an indication that the impairment losses recognised no longer exist or
have decreased. Such reversals are recognised as an increase in
carrying amounts of assets to the extent that it does not exceed the
carrying amounts that would have been determined (net of amortisation
or depreciation) had no impairment loss been recognised in previous
Mar 31, 2010
I) ACCOUNTING CONVENTION:
The company follows the mercantile system of accounting. Accounting
policies not referred to specifically otherwise, are consistent with
generally accepted accounting principles.
Although, the accumulated losses of the company together with the loss
for the year ended March 31,2010 exceeded its Capital &, Reserves,
since the company, with its future plans, is hopeful of turning around,
the accounts have been prepared on a going concern concept.
ii) FIXED ASSETS:
Fixed assets are stated at cost, less accumulated depreciation.
iii) DEPRECIATION:
Depreciation on Fixed Assets has been provided on straight line method
at the rates and the manner prescribed in schedule XIV of the companies
Act, 1956-
iv) INVENTORIES:
Basis of valuation
Finished Goods : At lower of cost or realizable value
Work in progress : At Cost
Raw Material : At Cost
Stores &. Spares : At Cost
v) RETIREMENT BENEFITS:
The contribution to the provident fund is charged against revenue, in
respect of gratuity, the provision is made for all eligible employees
and this has not been funded- Liability for leave encashment benefit is
accounted for based on the assumption that such benefit is payable to
all employees at the end of the year.
vi) MISCELLANEOUS EXPENDITURE;
The preliminary and public issue expenses are amortized over a period
of ten years.
vii) EXPENDITURE DURING CONSTRUCTION PERIOD:
Expenditure during construction period is capitalised during the year.
viii) FOREIGN EXCHANGE TRANSACTION : NIL
ix) REVENUE RECOGNITION:
Revenue from sale of goods is recognised on dispatch and is inclusive
of Sates Tax and Net of Sales Returns, where applicable.