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Accounting Policies of Bharat Textiles & Proofing Industries Ltd. Company

Mar 31, 2015

L. Corporate information

M/s Bharat Textiles and Proofing Industries Ltd is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in manufacturing and trading of processed canvas, Tarpaulin, HDPE and chemically processing canvas on Job work basis. The Company caters to both domestic and international market.

2 Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India and the provision of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and at historical cost. Accounting policies not specifically referred to otherwise are consistent with and are in consonance with generally accepted accounting principles.

2A, Use of estimates:

The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialised

B. Tangible fixed assets

Own fixed assets are stated at Cost less accumulated depreciation and impairment loss, if any. The Cost comprises original cost of acquisition inclusive of Inward freight, attributable borrowing cost, duties and expenditure incurred in acquisition, construction/installation.

C. Tangible assets and depreciation

Depreciation on tangible assets is provided on Straight line method at the rates and in the manner specified in Schedule II of the Companies Act 20l3.On addition / deductions made during the year the depreciation has been calculated on a pro-rata basis. '

D Foreign currency transaction

Trade transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. The difference in the rate between the transaction date and realization/ payment date is transferred to foreign exchange fluctuation a/c. The year end balance of Trade payable/receivable is converted into Indian Rupees at the closing rates. The resultant difference is accounted as profit/loss on foreign exchange fluctuation a/c.

E Borrowing cost

The Borrowing costs attributable to acquisition of fixed assets are capitalized.The other borrowing costs are recognized as an expense in the year in which they are incurred.

F Inventories

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, stores and spares, power and fuel material and other products are determined on FIFO method. The work in progress is determined at estimated cost and the finished goods are valued at lower of cost or estimated realizable value.

G. Revenue Recognition

Revenue is recognized only when it can be reliably measured and it's reasonable to expect ultimate collection. Revenue from operation includes Sale of goods and services. Sale of goods is recognized when significant risk and rewards of ownership of goods have been passed to the buyer. Sale of services is recognized on completion of services and transfer of significant risk and rewards to customer. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

H Retirement benefits

The Company offers its employee's defined contribution plans in the form of Provident fund and family pension fund. The provident fund, family pension fund covers substantially for all regular employees. Contribution to provident Fund and Pension Fund are charged to profit and loss account in the year of accrual.

Leave Salary is determined and provided in the accounts at the end of each year. However the Company does not have a system of carrying forward the benefits of leave credit of each employee.

The provision for Gratuity liability to employee is recognized at the present value of the amount payable determined using actuarial valuation technique.

I Deferred Taxation

In accordance with Accounting Standard (AS 22) "Accounting for Taxes on Income" issued by Institute of Chartered Accountants of India, Deferred Tax resulting from timing differences between book and tax profit is accounted for at the current rate of tax to the extent that the timing difference ire expected to crystallize. Deferred Tax Assets are recognized only when there is virtual certainty of sufficient future profits available to realize such assets.

L. Provisions. Contingent liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized 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' recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement.




Mar 31, 2014

Corporate information

M/s Bharat Textiles and Proofing Industries Ltd is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956.The Company is engaged in manufacturing and trading of processed canvas,Tarpaulin, HDPE and chemically processing canvas on Job work basis. The Company caters to both domestic and international market.

Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India and the provision of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and at historical cost. Accounting policies not specifically referred to otherwise are consistent with and are in consonance with generally accepted accounting principles.

A. Use of estimates: The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialised

B. Tangible fixed assets Own fixed assets are stated at Cost less accumulated depreciation and impairment loss, if any.The Cost comprises original cost of acquisition inclusive of Inward freight, attributable borrowing cost, duties and expenditure incurred in acquisition, construction/ installation.

C. Tangible assets and depreciation Depreciation on tangible assets is provided on Straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act 1956.On addition / deductions made during the year the depreciation has been calculated on a pro-rata basis.

D. Foreign currency transaction Trade transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.The difference in the rate between the transaction date and realization/ payment date is transferred to foreign exchange fluctuation a/c. The year end balance of Trade payable/receivable is converted into Indian Rupees at the closing rates. The resultant difference is accounted as profit/loss on foreign exchange fluctuation a/c.

E. Borrowing cost The Company has no Borrowing costs attributable to acquisition of fixed assets. The other borrowing costs are recognized as an expense in the year in which they are incurred

F. Inventories Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, stores and spares, power and fuel material and other products are determined on FIFO method.The work in progress is determined at estimated cost and the finished goods are valued at lower of cost or estimated realizable value.

G. Revenue Recognition Revenue is recognized only when it can be reliably measured and it''s reasonable to expect ultimate collection. Revenue from operation includes Sale of goods and services. Sale of goods is recognized when significant risk and rewards of ownership of goods have been passed to the buyer. Sale of services is recognized on completion of services and transfer of significant risk and rewards to customer. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

H. Retirement benefits The Company offers its employee''s defined contribution plans in the form of Provident fund and family pension fund.The provident fund, family pension fund covers substantially for all regular employees. Contribution to provident Fund and Pension Fund are charged to profit and loss account in the year of accrual. Leave Salary is determined and provided in the accounts at the end of each year. However the Company does not have a system of carrying forward the benefits of leave credit of each employee. The provision for Gratuity liability to employee is recognized at the present value of the amount payable determined using actuarial valuation technique.

I. Deferred Taxation In accordance with Accounting Standard (AS 22) "Accounting for Taxes on Income" issued by Institute of Chartered Accountants of India, Deferred Tax resulting from timing differences between book and tax profit is accounted for at the current rate of tax to the extent that the timing difference are expected to crystallize. Deferred Tax Assets are recognized only when there is virtual certainty of sufficient future profits available to realize such assets.

J. Provisions, Contingent liabilities and Contingent Assets Provisions involving substantial degree of estimation in measurement are recognized 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 recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement.


Mar 31, 2013

Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India and the provision of the Companies Act, 1 956. The financial statements have been prepared on an accrual basis and at historical cost. Accounting policies not specifically referred to otherwise are consistent with and are in consonance with generally accepted accounting principles.

A. Use of estimates:

The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialised

B. Tangible fixed assets

Own fixed assets are stated at Cost less accumulated depreciation and impairment loss, if any. The Cost comprises original cost of acquisition inclusive of Inward freight, attributable borrowing cost, duties and expenditure incurred in acquisition, construction/ installation.

C. Tangible assets and depreciation

Depreciation on tangible assets is provided on Straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act 1956.On addition / deductions made during the year the depreciation has been calculated on a pro-rata basis.

D Foreign currency transaction

Trade transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. The difference in the rate between the transaction date and realization/ payment date is transferred to foreign exchange fluctuation a/c. The yearend balance of Trade payable/receivable is converted into Indian Rupees at the closing rates. The resultant difference is accounted as profit/loss on foreign exchange fluctuation a/c.

E. Borrowing cost

The Company has no Borrowing costs attributable to acquisition of fixed assets. The other borrowing costs are recognized as an expense in the year in which they are incurred.

F Inventories

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, stores and spares, power and fuel material and other products are determined on FIFO method. The work in progress is determined at estimated cost and the finished goods are valued at lower of cost or estimated realizable value.

G. Revenue Recognition.

Revenue is recognized only when it can be reliably measured and it''s reasonable to expect ultimate collection. Revenue from operation includes Sale of goods and services. Sale of goods is recognized when significant risk and rewards of ownership of goods have been passed to the buyer. Sale of services is recognized on completion of services and transfer of significant risk and rewards to customer. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

H. Retirement benefits

The Company offers its employee''s defined contribution plans in the form of Provident fund and family pension fund. The provident fund, family pension fund covers substantially for all regular employees. Contribution to provident Fund and Pension Fund are charged to profit and loss account in the year of accrual.

Leave Salary is determined and provided in the accounts at the end of each year. However the Company does not have a system of carrying forward the benefits of leave credit of each employee.

The provision for Gratuity liability to employee is recognized at the present value of the amount payable determined using actuarial valuation technique.

I Deferred Taxation

In accordance with Accounting Standard (AS 22) "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, Deferred Tax resulting from timing differences between book and tax profit is accounted for at the current rate of tax to the extent that the timing difference are expected to crystallize. Deferred Tax Assets are recognized only when there is virtual certainty of sufficient future profits available to realize such assets.

J. Provisions, Contingent liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized 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 recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement.


Mar 31, 2012

A. Use of estimates:

The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses du ring the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known /materialized

B. Tangible fixed assets

Own fixed assets are stated at Cost less accumulate! depreciation and impairment loss, if any. The Col comprises original cost of acquisition inclusive of Inward freight, attributable borrowing cost, duties and expenditure incurred in acquisition, construction/installation.

C. Tangible assets and depreciation

Depreciation on tangible assets is provided on Straight line method at the rates and in the manner steadied in Schedule XIV of the Companies Act 1956.On addition / deductions made during the vear the depreciation has been calculated on a pro-rata basis.

D. Foreign currency transaction

Trade transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. The difference in the rate between the transaction date and realization/ payment date is transferred to foreign exchange fluctuation a/c. The year end balance of Trade payable/receivable are converted into Indian Rupees at the closing rates. The resultant difference is accounted as profit/loss on foreign exchange fluctuation a/c.

E. Borrowing cost

The Company has no Borrowing costs attributable to acquisition of fixed assets. The other borrowing costs are recognized as an expense in the year in which they are incurred

F. Inventories

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, stores and spares, power and fuel material and other products are determined on FIFO method. The work in progress is determined at estimated cost and the finished goods are valued at lower of cost or estimated realizable value.

G. Revenue Recognition

Revenue is recognized only when it can be reliably measured and its reasonable to expect ultimate collection. Revenue from operation includes Sale of goods and services. Sale of goods is recognized when significant risk and rewards of ownership of goods have been passed to the buyer. Sale of services is recognized on completion of services a nd transfer of significant risk are rewards to customer. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

H. Retirement benefits

The Company offers its employees defined contribution plans in the form of Provident fund and family pension fund. The provident fund, family pension fund covers substantially for all regular employees. Contribution to provident Fund and Pension Fund are charged to profit and loss account in the year of accrual.

Leave Salary is determined and provided in the accounts at the end of each year. However the Company does not have a system of carrying forward the benefits of leave credit of each employee.

The provision for Gratuity liability to employee is recognized at the present value of the amount payable determined using actuarial valuation technique.

I. Deferred Taxation

In accordance with Accounting Standard (AS 22) "Acounting for Taxes on Income" issued by Instit ute of Chartered Accountants of India, Deferred Tax resulting from timing differences beto/een book and tax profit is accounted for at the arrent rate of tax to the extent that the timing difference are expected to crystallize. Deferred Tax Assets are recognized only when there is virtual certainty of sufficient future profits available to realize such assets.

J. Provisions. Contingent liabilities and Contingent Assets

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


Mar 31, 2011

(a) GENERAL

(i) Accounting policies not specifically referred to otherwise are consistent with earlier years and are in consonance with generally accepted accounting principles. The accounts have been prepared on the basis of historical cost.

(ii) Expense and Income to the extent considered payable and receivable respectively are accounted for on accrual basis.

(b) REVENUE RECOGNITION

(i) Sale of goods is recognised on delivery to customers. Sales turnover are stated at net of trade discounts and rebates granted during the ordinary course of the business.

(ii) In appropriate circumstances revenue is recognised when no significant uncertainty as to determination or realisation exists.

(c) FIXED ASSETS

(i) Fixed assets are stated at their original cost of acquisition inclusive of Inward freight, duties and expenditure incurred in acquisition, construction/installation.

(ii) Assets below Rs.5000/- are written off in the year of Purchase.

(d) DEPRECIATION

(i) Depreciation on assets is provided on Straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act 1956.

(ii) On addition / deductions made during the year the depreciation has been calculated on a pro-rata basis.

(e) INVENTORIES METHOD OF VALUATION

(1) Raw materials - at cost

(2) Work in progress - at estimated cost.

(3) Finished goods - at lower of cost or Estimated realisable value.

(4) Stores & Spares - at cost.

(f) FOREIGN CURRENCY TRANSACTION

All payments and receipts made in foreign currency are converted into rupees at the rate prevailing on the date of transaction. The difference in the rate between the transaction date and realisation date is transferred to foreign exchange fluctuation a/c.The year end balance of Sundry debtors/creditors are converted into Indian Rupees at the closing rates. The resultant difference is accounted as foreign exchange fluctuation a/c.

(g) BORROWING COST :The Company has no Borrowing costs attributable to acquisition of assets. The other borrowing costs are recognized as an expense in the year in which they are incurred.

(h) DEFERRED TAXATION

In accordance with Accounting Standard (AS 22) "Accounting for Taxes on Income" issued by Institute of Chartered Accountants of India, Deferred Tax resulting from timing differences between book and tax profit is accounted for at the current rate of tax to the extent that the timing difference are expected to crystalise. Deferred Tax Assets are recognized only when there is virtual certainty of sufficient future profits available to realize such assets.

(i) RETIREMENT BENEFITS

The Company contribution to provident Fund and Pension Fund are charged to profit and loss account in the year of accrual. The liability in respect of leave encashment is recognized on accrual basis.

(j) CONTINGENT LIABILITIES

Contingent liabilities are determined on the basis of available information and are disclosed by way of notes to the accounts.

 
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