Mar 31, 2015
(a) Basis of accounting and preparation of financial statements
The financial statements are prepared under the historical cost
convention on an accural basis of accounting in accordance with the
genrally accounting principles. Accounting Standards notified under
section 211 (3C) of the Companies Act, 1956 and the relevant provisions
thereof.
(b) Use of estimates
The preparation of the financial statements requires management to make
judgements, estimates anassumptions, that affect the application of
accounting policies and the reported amounts of assets and liabilities
and disclosures of contingent liabilities at the date of these
financial liabilities and the reported amounts of revenues and expenses
for the year under review. The Management believes that the estimates
used in preparation of the financial statements are prudent and
reasonable and in conformity with Indian GAAP. Actual results may
differ from these estimates and the differences between the actual
results and the estimates are recognised in the periods inwhich the
results are known or materialised. Estimates and underlying assumptions
are reviewed on an ongoing basis.
(c) Inventories
Inventories of raw material are valued at the lower of cost and the net
realisable value on on FIFO basis after providing for obsolescence and
other losses, where considered necessary. Cost includes all charges in
bringing the goods to the point of manufacturing facility, including
octroi and other levies. Inventories of finished goods are valued at
the lower of cost and net realisable value after proiding for
obsolesence. Cost includes all charges in bringing the goods to the
point of sale, including octroi and other levies. Net realisable value
is estimated selling price in the ordinary course of business less
estimated cost of completion and selling expenses.
(d) Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value
(e) Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
(f) Depreciation and amortization
Depreciation has been provided on written down method as per the rates
prescribed in Schedule XIV to the Companies Act, 1956. '
(g) Revenue recognition
Sale of goods
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
exclude sales tax and value added tax.
Income from Rented Properties
Income from Commercial properties rented are recognised on accural
basis and for invoices raised. Rental income is inclusive of related
deducted at source but exluding service tax.
(h) Other income
Interest income from Bank Fixed Deposit and other interest is accounted
on accmal basis, inclusive of related tax deducted at source.Dividend
income is accounted on receipt basis.
(i) Fixed assets
Fixed Assets are stated at cost of acquisition less accumlated
depreciation / amortisation. Cost includes purchase price, taxes and
duties and other direct costs incurred upto the date the asset is ready
for its intended use.
(j) Foreign currency transactions and translations
initial recognition
Transactions in foreign currencies entered into by the Company and its
integral foreign operations are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction.
Measurement of foreign currency monetary items at the Balance Sheet
date
Foreign currency monetary items (other than derivative contracts) of
the Company and its net investment in non-integral foreign operations
outstanding at the Balance Sheet date are restated at the year-end
rates. Exchange differences arising out of these translations are
recognised in the Statement of Profit and Loss.
(k) lnvestments
Long-term investments (including investment properties), are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. Cost of
investments include acquisition charges such as brokerage, fees and
duties.
(l) lmpairment
At each Balance Sheet date, the Company assesses whether there is any
indication that the fixed assets have suffered an impairment loss. If
any such indication exits, the receoverable amount of the asset is
estimated in order to determine the extent of the impairment, if any.
Where it is nor possible to estimate the recoverable amount of the
individual asset, the Company estimates the recoverable amount of the
cash-generating unit to which the asset belongs.
As per the assessment conducted by the company at March 31st., 2014,
there were no indication that the fixed assets have suffered an
impairment loss.
(m) Employee benefits
Employee benefits include provident fund, superannuation fund, gratuity
and leave enchasement.
Defined contribution plans
The Company's contribution to provident fund and superannuation fund
are considered as defined contribution plans and are charged as an
expense as they fall due based on the amount of contribution required
to be made.
Defined benefit plans
For defined benefit plans in the form of gratuity fund are accounted on
cash basis.
(n) Business Segments
The Company is engaged mainly in the business of manufacturing of
garments and renting of properties. These, in context of Accounting
Standard 17 on Segment Reporting, as specified in the Companies
(Accounting Standard) Rules, 2006, are considered to two primary
segments. Further, there is no reportable secondary segment i.e.
Geographical Segment.
(o) Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if any)
bythe weighted average number of equity shares outstanding during the
year. Diluted earnings per share is computed by dividing the profit /
(loss) after tax (including the post tax effect of extraordinary items,
if any) as adjusted for dividend, interest and other charges to expense
or income relating to the dilutive potential equity shares, by the
weighted average number of equity shares considered for deriving basic
earnings per share and the weighted average number of equity shares
which could have been issued on the conversion of all dilutive potential
equity shares.
(p) Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961. Current tax is net of credit for entitlement for Minimum
Alternate Tax (MAT). Deferred tax is recognised on timing differences,
being the differences between the taxable income and the accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods. Deferred tax is measured using the tax
rates and the tax laws enacted or substantially enacted as at the
reporting date. Deferred tax liabilities are recognised for all timing
differences. Deferred tax assets in respect of unabsorbed depreciation
and carry ' forward of losses are recognised only if there is virtual
certainty that there will be sufficient future taxable income available
to realise such assets. Deferred tax assets are recognised for timing
differences of other items only to the extent that reasonable certainty
exists that sufficient future taxable income will be available against
which these can be realised. Deferred tax assets and liabilities are
offset if such items relate to taxes on income levied by the same
governing tax laws and the Company has a legally enforceable right for
such set off. Deferred tax assets are reviewed at each Balance Sheet
date for their realisability.
(q) Provisions and contingencies
The Company records a liability for any claims where a potential loss
is probable and capable of being estimated and discloses such matters
in its financial statements, if material. For losses that are possible
(but not probable), the Company provides disclosure in the financial
statements dut does not record a liability in its accounts unless the
loss becomes probable.
Mar 31, 2014
(a) Basis of accounting and preparation of financial statements
The financial statements are prepared under the historical cost
convention on an accural basis of accounting in accordance with the
generally accounting principles. Accounting Standards notified under
section 211 (3C) of the Companies Act, 1956 and the relevant provisions
thereof.
(b) Use of estimates
The preparation of the financial statements requires management to make
judgements, estimates an assumptions, that affect the application of
accounting policies and the reported amounts of assets and liabilities
and disclosures of contingent liabilities at the date of these
financial liabilities and the reported amounts of revenues and expenses
for the year under review. The Management believes that the estimates
used in preparation of the financial statements are prudent and
reasonable and in conformity with Indian GAAP. Actual results may
differ from these estimates and the differences between the actual
results and the estimates are recognised in the periods in which the
results are known or materialised. Estimates and underlying assumptions
are reviewed on an ongoing basis.
(c) Inventories
Inventories of raw material are valued at the lower of cost and the net
realisable value on on FIFO basis after providing for obsolescence and
other losses, where considered necessary. Cost includes all charges in
bringing the goods to the point of manufacturing facility, including
octroi and other levies. Inventories of finished goods are valued at
the lower of cost and net realisable value after providing for
obsolescence. Cost includes all charges in bringing the goods to the
point of sale, including octroi and other levies. Net realisable value
is estimated selling price in the ordinary course of business less
estimated cost of completion and selling expenses.
(d) Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value
(e) Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
(f) Depreciation and amortization
Depreciation has been provided on written down method as per the rates
prescribed in Schedule XIV to the Companies Act, 1956.
(g) Revenue recognition
Sale of goods
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
exclude sales tax and value added tax. Income from Rented Properties
Income from Commercial properties rented are recognised on accural
basis and for invoices raised. Rental income is inclusive of related
deducted at source but excluding service tax.
(h) Other income
Interest income from Bank Fixed Deposit and other interest is accounted
on accrual basis, inclusive of related tax deducted at source. Dividend
income is accounted on receipt basis.
(i) Fixed assets
Fixed Assets are stated at cost of acquisition less accumulated
depreciation / amortisation. Cost includes purchase price, taxes and
duties and other direct costs incurred upto the date the asset is ready
for its intended use.
(j) Foreign currency transactions and translations
Initial recognition
Transactions in foreign currencies entered into by the Company and its
integral foreign operations are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction.
Measurement of foreign currency monetary items at the Balance Sheet
date
Foreign currency monetary items (other than derivative contracts) of
the Company and its net investment in non-integral foreign operations
outstanding at the Balance Sheet date are restated at the year-end
rates. Exchange differences arising out of these translations are
recognised in the Statement of Profit and Loss.
(k) lnvestments
Long-term investments (including investment properties), are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. Cost of
investments include acquisition charges such as brokerage, fees and
duties.
(l) Impairment
At each Balance Sheet date, the Company assesses whether there is any
indication that the fixed assets have suffered an impairment loss. If
any such indication exits, the recoverable amount of the asset is
estimated in order to determine the extent of the impairment, if any.
Where it is nor possible to estimate the recoverable amount of the
individual asset, the Company estimates the recoverable amount of the
cash-generating unit to which the asset belongs.
As per the assessment conducted by the company at March 31st., 2014,
there were no indication that the fixed assets have suffered an
impairment loss.
(m) Employee benefits
Employee benefits include provident fund, superannuation fund, gratuity
and leave enchasement. Defined contribution plans
The Company''s contribution to provident fund and superannuation fund
are considered as defined contribution plans and are charged as an
expense as they fall due based on the amount of contribution required
to be made. Defined benefit plans
For defined benefit plans in the form of gratuity fund are accounted on
cash basis.
(n) Business Segments
The Company is engaged mainly in the business of manufacturing of
garments and renting of properties. These, in context of Accounting
Standard 17 on Segment Reporting, as specified in the Companies
(Accounting Standard) Rules, 2006, are considered to two primary
segments. Further, there is no reportable secondary segment i.e.
Geographical Segment.
(o) Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares.
(p) Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961. Current tax is net of credit for entitlement for Minimum
Alternate Tax (MAT). Deferred tax is recognised on timing differences,
being the differences between the taxable income and the accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods. Deferred tax is measured using the tax
rates and the tax laws enacted or substantially enacted as at the
reporting date. Deferred tax liabilities are recognised for all timing
differences. Deferred tax assets in respect of unabsorbed depreciation
and carry forward of losses are recognised only if there is virtual
certainty that there will be sufficient future taxable income available
to realise such assets. Deferred tax assets are recognised for timing
differences of other items only to the extent that reasonable certainty
exists that sufficient future taxable income will be available against
which these can be realised. Deferred tax assets and liabilities are
offset if such items relate to taxes on income levied by the same
governing tax laws and the Company has a legally enforceable right for
such set off. Deferred tax assets are reviewed at each Balance Sheet
date for their realisability.
(q) Provisions and contingencies
The Company records a liability for any claims where a potential loss
is probable and capable of being estimated and discloses such matters
in its financial statements, if material. For losses that are possible
(but not probable), the Company provides disclosure in the financial
statements but does not record a liability in its accounts unless the
loss becomes probable.
Mar 31, 2010
A) Accounting Concepts:
The financial statements are prepared under the historical cost
convention on an accrual basis and in accordance with the mandatory
Accounting Standards prescribed by the Institute of Chartered
Accountants of India and in accordance with relevant presentational
requirements of the Companies Act, 1956
b) Fixed Assets:
Fixed Assets are stated at historical cost. Cost is inclusive of
freight, installation, duties and other incidental expenses.
c) Investments:
Investments are classified as long term. They are valued at cost.
Diminution in market value is not considered as permanent.
d) Inventories:
Raw Materials are valued at the lower of cost and net realisable value
except waste/scrap which is valued at net realisable value.
Finished goods include cost of conversion and other manufacturing
costs.
e) Revenue:
i) Export Sales represent invoiced value of goods sold.
ii) Incomes from shares and Mutual funds are recognised on receipt
basis.
iii) Income from Bank FDRs is accounted on accrual basis, inclusive of
related tax deducted at source.
iv) Profit on sale of Properties & Investments is net of Profit / Loss
on sale of individual shares and fixed assets and mutual funds and also
includes gains / (loss) on shares.
v) Incomes from Commercial Premises and flats rented are recognised on
accrual basis, except on one commercial property where the matter is
sub-judice. vi) Other Interest Incomes are accounted on accrual basis,
inclusive of related tax deducted at Source.
vii) Refund/ Dues from Government Authorities are accounted on
receipt of order.
f) Depreciation:
Depreciation is charged on assets on written down value method applying
the rates of Schedule XIV of the Companies Act, 1956.
g) Retirement Benefits:
The Company makes regular contribution of provident fund and these
contributions are charged to Profit and Loss Account.
Gratuity is recognised on cash basis and charged to Profit & Loss
Account.
h) Foreign Currency Translations:
Transactions in foreign currencies are recorded at exchange rates
existing at the time of transactions and exchange differences arising
from the foreign currency transaction are dealt with in Profit and Loss
Account separately.
Current Assets at the year-end are being converted at closing rates and
exchange differences are dealt with in the Profit and Loss Account.
i) Taxes on Income:
Provisions for Current Tax are made on the basis of estimated taxable
income for the current accounting period and in accordance with the
provisions as per the Income Tax Act, 1961.