Accounting Policies of Effingo Textile & Trading Ltd. Company

Mar 31, 2015

A. Business

M/s Effingo Textile & Trading Limited is public limited listed company. The company operates in the business of trading in various products & Registered as Non Banking Finance Company ( NBFC ) with RBI .

b. Basis of Accounting & Preparation of Financial Statements

Financial statements are prepared under historical cost convention on accrual basis in accordance with the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.

c. Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

d. Interest Income

Interest Income is credited to revenue in the year in which it accrue Income is stated in full with the tax there on being accounted for under advance tax.

e. Investments

Long term investments are stated at cost of acquisition, Provision for diminution in the value of long term investment is made only if, such a decline is other than temporary in the opinion of the management.

f. Taxation

The current Income Tax liability is calculated by the company in accordance with relevant tax provisions and tax advices taken wherever considered necessary.

g. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized only when there is reliable estimate of present obligation on a result of past events. Contingent liabilities are disclosed by way of notes on accounts. Contingent assets are neither accounted nor disclosed in the financial statement due to uncertainty of their realization.

h. Events occurring after the Balance Sheet date

Events occurring after the Balance Sheet date and till the date on which the financial statement are approved which are material in nature and indicates the need for adjustments in the financial statements are considered and accounted.

i. Deferred Taxation

Deferred Taxation is calculated using the liability method in respect of the taxation effect arising from all material timing differences between the accounting and tax treatment of income & expenditure which are expected with reasonable probability to crystallize in foreseeable future. Deferred tax is recognized in the financial statement only to the extent of any deferred tax liability or when such benefits are reasonably expected to be realizable in near future.

j. Earning Per share

Basic earning per share is calculated by dividing the net profit for the year attributable to equity shareholders (after deducting the redeemable preference share dividend) by the weighted average number of equity shares outstanding during the year.

Diluted earning per share is calculated by dividing the net profit attributable to equity shareholders (after deducting the redeemable preference share dividend) by the weighted average number of equity shares outstanding during the year (adjusted for the effects of dilutive options).

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Mar 31, 2014

A. Business

M/s Effingo Textile & Trading Limited is public limited listed company. The Company operates in the business of trading in various products.

b. Basis of Accounting & Preparation of Financial Statements

Preparation and presentation of financial statements of the company is disclosed as per the revised Schedule VI notified under the Companies Act, 1956 However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company. Accounting policies not stated explicitly otherwise are consistent with Generally Accepted Accounting Principles (GAAP).

The Company generally follows mercantile system of accounting and recognize significant items of income and expenditure on accrual basis as a going concern.

c. Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

d. Dividend/Interest Income

Dividend/Interest Income is credited to revenue in the year in which it accrue Income is stated in full with the tax there on being accounted for under advance tax.

e. Investments

Long term investments are stated at cost of acquisition, Provision for diminution in the value of long term investment is made only if, such a decline is other than temporary in the opinion of the management.

f. Taxation

The current Income Tax liability is calculated by the company in accordance with relevant tax provisions and tax advices taken wherever considered necessary.

g. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized only when there is reliable estimate of present obligation on a result of past events. Contingent liabilities are disclosed by way of notes on accounts. Contingent assets are neither accounted nor disclosed in the financial statement due to uncertainty of their realization.

h. Events occurring after the Balance Sheet date

Events occurring after the Balance Sheet date and till the date on which the financial statement are approved which are material in nature and indicates the need for adjustments in the financial statements are considered and accounted.

i. Deferred Taxation

Deferred Taxation is calculated using the liability method in respect of the taxation effect arising from all material timing differences between the accounting and tax treatment of income & expenditure which are expected with reasonable probability to crystallize in foreseeable future. Deferred tax is recognized in the financial statement only to the extent of any deferred tax liability or when such benefits are reasonably expected to be realizable in near future.

j. Earning Per share

Basic earning per share is calculated by dividing the net profit for the year attributable to equity shareholders (after deducting the redeemable preference share dividend) by the weighted average number of equity shares outstanding during the year.

Diluted earning per share is calculated by dividing the net profit attributable to equity shareholders (after deducting the redeemable preference share dividend) by the weighted average number of equity shares outstanding during the year (adjusted for the effects of dilutive options).

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Mar 31, 2013

A. Business

M/s Effingo Textile & Trading Limited is public limited listed company. The Company operates in the business of Trading in various products

b. Basis of Accounting & Preparation of Financial Statements

Preparation and presentation of financial statements of the company is disclosed as per the revised Schedule VI notified under the Companies Act, 1956 However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company. Accounting policies not stated explicitly otherwise are consistent with Generally Accepted Accounting Principles (GAAP).

The Company generally follows mercantile system of accounting and recognize significant items of income and expenditure on accrual basis as a going concern.

c. Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

d. Dividend/Interest Income

Dividend/Interest Income is credited to revenue in the year in which it accrue Income is stated in full with the tax there on being accounted for under advance tax.

e. Investments

Long term investments are stated at cost of acquisition, Provision for diminution in the value of long term investment is made only if, such a decline is other than temporary in the opinion of the management.

f. Taxation

The current Income Tax liability is calculated by the company in accordance with relevant tax provisions and tax advices taken wherever considered necessary.

g. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized only when there is reliable estimate of present obligation on a result of past events. Contingent liabilities are disclosed by way of notes on accounts. Contingent assets are neither accounted nor disclosed in the financial statement due to uncertainty of their realization.

h. Events occurring after the Balance Sheet date

Events occurring after the Balance Sheet date and till the date on which the financial statement are approved which are material in nature and indicates the need for adjustments in the financial statements are considered and accounted.

i. Deferred Taxation

Deferred Taxation is calculated using the liability method in respect of the taxation effect arising from all material timing differences between the accounting and tax treatment of income & expenditure which are expected with reasonable probability to crystallize in foreseeable future. Deferred tax is recognized in the financial statement only to the extent of any deferred tax liability or when such benefits are reasonably expected to be realizable in near future.

j. Earning Per share

Basic earning per share is calculated by dividing the net profit for the year attributable to equity shareholders (after deducting the redeemable preference share dividend) by the weighted average number of equity shares outstanding during the year.

Diluted earning per share is calculated by dividing the net profit attributable to equity shareholders (after deducting the redeemable preference share dividend) by the weighted average number of equity shares outstanding during the year (adjusted for the effects of dilutive options).

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Mar 31, 2012

I. Basis of Accounting

The accounts are prepared under historical cost convention on accrual basis.

ii. Dividend/Interest Income

Dividend/Interest Income is credited to revenue in the year in which it accrue Income is stated in full with the tax there on being accounted for under advance tax.

iii. Investments

Long term investments are stated at cost of acquisition, Provision for diminution in the value of long term investment is made only if, such a decline is other than temporary in the opinion of the management.

iv. Taxation

The current Income Tax liability is calculated by the company in accordance with relevant tax provisions and tax advices taken wherever considered necessary.

v. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized only when there is reliable estimate of present obligation on a result of past events. Contingent liabilities are disclosed by way of notes on accounts. Contingent assets are neither accounted nor disclosed in the financial statement due to uncertainty of their realization.

vi. Events occurring after the Balance Sheet date

Events occurring after the Balance Sheet date and till the date on which the financial statement are approved which are material in nature and indicates the need for adjustments in the financial statements are considered and accounted.

vii. Deferred Taxation

Deferred Taxation is calculated using the liability method in respect of the taxation effect arising from all material timing differences between the accounting and tax treatment of income & expenditure which are expected with reasonable probability to crystallize in foreseeable future. Deferred tax is recognized in the financial statement only to the extent of any deferred tax liability or when such benefits are reasonably expected to be realizable in near future.

viii. Earning Per share

Basic earning per share is calculated by dividing the net profit for the year attributable to equity shareholders (after deducting the redeemable preference share dividend) by the weighted average number of equity shares outstanding during the year.

Diluted earning per share is calculated by dividing the net profit attributable to equity shareholders (after deducting the redeemable preference share dividend) by the weighted average number of equity shares outstanding during the year (adjusted for the effects of dilutive options).

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Mar 31, 2011

I. Basis of Accounting

The accounts are prepared under historical cost convention on accrual basis.

ii. Dividend/Interest Income

Dividend/Interest Income is credited to revenue in the year in which it accrue Income is stated in full with the tax there on being accounted for under advance tax.

iii. Investments

Long term investments are stated at cost of acquisition, Provision for diminution in the value of long term investment is made only if, such a decline is other than temporary in the opinion of the management.

iv. Taxation

The current Income Tax liability is calculated by the company in accordance with relevant tax provisions and tax advices taken wherever considered necessary.

v. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized only when there is reliable estimate of present obligation on a result of past events. Contingent liabilities are disclosed by way of notes on accounts. Contingent assets are neither accounted nor disclosed in the financial statement due to uncertainty of their realization.

vi. Events occurring after the Balance Sheet date

Events occurring after the balance sheet date and till the date on which the financial statement are approved which are material in nature and indicates the need for adjustments in the financial statements are considered and accounted.

vii)Deferred Taxation

Deferred Taxation is calculated using the liability method in respect of the taxation effect arising from all material timing differences between the accounting and tax treatment of income & expenditure which are expected with reasonable proximity to crystallize in foreseeable future Deferred tax is recon zed in the financial statement only to the extent of any deferred tax liability or when or when benefits are reasonably expected to be realizable in near future.

viii) Earnings per share

Basic earning per share is calculated by dividing the net profit for the year attributable to equity shareholders after deducting the redeemable preference share dividend by the weighted average number of equity shares outstanding during the year.

Dieted earning per share is calculated by dividing the net profit attributable to equity shareholders (after deducting the redeemable preference share dividend) by the weighed average number of equity shares outstanding during the year (adducted for the effecters of dilutive options).

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Mar 31, 2010

I. Basis of Accounting

The accounts are prepared under historical cost convention on accrual basis.

ii. Dividend/Interest Income

Dividend/Interest Income is credited to revenue in the year in which it accrue Income is stated in full with the tax there on being accounted for under advance tax.

iii. Investments

Long term investments are stated at cost of acquisition, Provision for diminution in the value of long term investment is made only if, such a decline is other than temporary in the opinion of the management.

iv. Taxation

The current Income Tax liability is calculated by the company in accordance with relevant tax provisions and tax advices taken wherever considered necessary.

v. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized only when there is reliable estimate of present obligation on a result of past events. Contingent liabilities are disclosed by way of notes on accounts. Contingent assets are neither accounted nor disclosed in the financial statement due to uncertainty of their realization.

vi. Events occurring after the Balance Sheet date

Events occurring after the Balance Sheet date and till the date on which the financial statement are approved which are material in nature and indicates the need for adjustments in the financial statements are considered and accounted.

Amount due to Micro Small & Medium Enterprises Suppliers (MSMES) is Nil (Previous year Nil). No amount was due to any Small Sector Unit.

vii. Deferred Taxation

Deferred Taxation is calculated using the liability method in respect of the taxation effect arising from all material timing differences between the accounting and tax treatment of income & expenditure which are expected with reasonable probability to crystallize in foreseeable future. Deferred tax is recognized in the financial statement only to the extent of any deferred tax liability or when such benefits are reasonably expected to be realizable in near future.

viii. Earning Per share

Basic earning per share is calculated by dividing the net profit for the year attributable to equity shareholders (after deducting the redeemable preference share dividend) by the weighted average number of equity shares outstanding during the year.

Diluted earning per share is calculated by dividing the net profit attributable to equity shareholders (after deducting the redeemable preference share dividend) by the weighted average number of equity shares outstanding during the year (adjusted for the effects of dilutive options).