Home  »  Company  »  Alstone Textiles  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Alstone Textiles (India) Ltd. Company

Mar 31, 2015

(a) Basis for preparation of Accounts:

The Financial Statements of the Company are prepared and presented under the historical cost convention, on the accrual basis of accounting in accordance with Generally Accepted Accounting Principles ("GAAP") in India, mandatory accounting standards, as specified in the Companies (Accounting Standards) Rules, 2014 and the provisions of the Companies Act, 2013, to the extent applicable, and as adopted consistently by the Company.

The Company is a Small and Medium Sized Company ("SMC") as defined in the General Instructions in respect of Accounting Standards notified under the Companies Act, 2013. Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company.

All assets and liabilities have been classified as current or non-current as per the criteria set out in the Revised Schedule VI to the Companies Act, 2013. Based on the nature business the Company has ascertained its operating cycle as 12 months for the purpose of current - noncurrent classification of assets and liabilities.

(b) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reposting year end. Although these estimates are based upon management's best knowledge of current events and actions, actual result could differ from these estimates. Any revisions to the accounting estimates are recognized prospectively in the current and future years.

(c) Investment

Long-term investments are stated at cost. Provision of 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. As in case of our company such decline is presumed to be temporary hence no provision has been created.

(d) Accounting of Inventories:

(i) Finished goods, goods for trade and stores, spares, etc. are valued at cost or net realizable value, whichever is lower. Materials and supplies held for use in production of finished goods 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.

(ii) Goods in transit are valued at cost to date.

(iii) 'Cost' comprises all costs of purchase. The cost formulae used is either 'first in first out', or 'specific identification', or the 'average cost', as applicable.

(e) Revenue Recognition

(i) Revenue/Income and Cost/Expenditure are generally accounted for on accrual as they are earned or incurred, except in case of significant uncertainties. However, where the ultimate collection of the same lacks reasonable certainty revenue recognition is postponed to extent of uncertainty.

(ii) Sale of goods is recognized on transfer of significant risks and rewards of ownership which is generally on the dispatch of goods and are recognized net of discounts, rebates.

(iii) Dividend income on investments is accounted for as and when the right to receive the same is established.

(f) Employee Benefits

Company do not follow the provision of the accounting Standard-15 "Employee benefits" as the company do not have employee more than 10 personnel's. So it is the policy of the company that any kind of provision mentioned in the AS -15 will not be entertained. And the company does not make provision for gratuity also.

In case the company's employee limits goes beyond the prescribed limits then AS-15 for Employee benefits will be taken into consideration.

(g) Provisions, contingents Liabilities and contingent Assets:

(i) A Provision is recognized when the company has present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(ii) Contingent Liabilities are disclosed separately by way of note to financial statements after careful evaluation by the managements of the facts and legal aspects of the matter involved in case of:

(a) a present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.

(b) A possible obligation, unless the probability of outflow of resources is remote.

(iii) Contingent Assets are neither recognized, nor disclosed in the financial statements.

(h) Taxation

Provisions for current tax is made in accordance with and at the rates specified under the Income Tax Act, 1961, in accordance with Accounting Standard 22- 'Accounting for taxes on Income', issued by the Institute of Chartered Accountant of India.

(i) Earning per share

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted averages number of equity shares outstanding during the year.

For the purpose of calculating diluted earning per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all diluted potential equity shares.

(j) Cash and Cash Equivalents

Cash and cash equivalents in the cash flow statements comprise cash at bank and in hand and highly liquid investments that are readily convertible into known amount of cash.

Mar 31, 2013


(a) The Financial Statements are drawn up in accordance with Historical Cost Convention and on the Going Concern Concept. Income and Expenses are accounted for on Accrual Basis except where otherwise indicated.

(b) Accounting Policies not specifically referred to otherwise are consistent with generally accepted Accounting Principles followed by the company.


Income from Investments in Interest Bearing Securities, Loans and Advances Is Accounted for on Accrual Basis. Dividend Income from Investments in Shares Is Recognized accruing as Income of that year in which Dividend is received by the Company.


(a) During the year the company has treated all fresh purchase of shares as Investment.

(b) Investments (Long Term are valued at Acquisition Cost (including brokerage &Transfer expenses; No provision is made for diminution in the value of Long Term Investments, As in the opinion of the management the diminution is temporary and Not permanent.


Tax Liability of the company is estimated considering the Provisions of the Income Tax Act 1961, Deferred Tax is recognized subject to the 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 periods.

E) In the opinion of the management, The value on realization of Current Assets, Loans and Advances in the ordinary course of business will not be less than the Amount at which these are stated in the Balance Sheet.

F) Adequate Disclosure has been made in terms of Related Party Disclosure as required in terms of Related Party Disclosure (As identified by the Management) In terms of Accounting Standard -18 Related Party Disclosure issued by the Institute Of Chartered Accountants of India.

G) In the opinion of the management the company has only single Business Segment of Investment & Finance Activities; therefore no Segment Reporting has been Presented In Terms Of Accounting Standard-17 of "Segment Reporting" Issued by the Institute of Chartered Accountant of India.

H) Payment to Auditor 2012 - 2013 2011 - 2012

Audit Fee 4,494/- 4,408/-

l) Expenditure & Earning in Foreign Currency - Nil

J) Payment to Director Remuneration - Nil

Oct 26, 2:50 pm
Oct 26, 2:59 pm
Subscribe now to get personal finance updates in your inbox!