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Accounting Policies of Fiberweb (India) Ltd. Company

Mar 31, 2016

NOTE ‘26’: CORPORATE INFORMATION

Fiberweb (India) Limited is a listed public limited Company, incorporated under The Companies Act, 2013. The Company is engaged in the business of “Manufacture of SPUNBOND NONWOVEN FABRICS from polypropylene.

NOTE ‘27’ : SIGNIFICANT ACCOUNTING POLICIES

I. Basis of preparation of financial statements

a. The financial statements have been prepared and presented under the historical cost convention using the accrual basis of accounting in accordance with the accounting principles generally accepted in India and are in accordance with the applicable Accounting Standards, Guidance Notes and the relevant provisions of the Companies Act, 2013.

b. Accounting polices not specifically referred to otherwise are consistent with generally accepted accounting principles.

II. Use of estimates

a. The preparation of financial statements in conformity with the generally accepted accounting principles in India requires the management to make estimates and assumptions, that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known / materialized.

III. Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will accrue to the Company and the revenue can be reliably measured and also when it is reasonably certain that the ultimate collection will be made and that there is buyers'' commitment to make the complete payment.

a. Revenue from sale

In case of Sales of Goods - When the property and all significant risk and rewards of ownership are transferred to the buyer or no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. It excludes amounts recovered towards Sales Tax and includes amount received towards processing activities done for other, if any.

b. Interest and dividend:

Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend income is recognized when right to receive dividend is established.

c. Others:

Other revenues / incomes and costs / expenditure are accounted on accrual, as they are earned or incurred.

IV. Tangible assets and depreciation / amortization

a. Tangible fixed assets are stated at cost of acquisition less accumulated depreciation / amortization and accumulated impairment losses, if any.

b. Fixed Assets are shown at Original cost of acquisition less accumulated depreciation.

Fixed Assets were revalued as on 31.03.2015. The surplus arising from the revaluation had been transferred to “Revaluation Reserve” and shown under the head “Reserves & Surplus”.

c. Depreciation is provided on the straight line method on the basis of useful life of the asset in the manner specified on schedule II to the Companies Act 2013. Depreciation on the additions to assets or on sale/Disposal of assets is calculated pro rata from the month of such addition, or up to the month of such sale/disposal, as the case may be.

V. Inventories

Raw materials and consumable Stores are valued at cost. Finished and Semi Finished goods are valued at lower of cost or market value.

VI. Investments

Investments are classified into Current and Non Current / Long Term Investments. Current investments are stated at lower of cost and fair value. Long term investments are stated at cost. A provision for diminution is made to recognize decline, other than temporary, in the value of long term investments.

VII. Operating Cycle

Receivables and Payables in relation to operations are considered as “Current Assets” and “Current Liabilities” as the case may be considering the nature of business of the Company.

All other Assets and Liabilities have been classified as provided in Revised Schedule VI, issued by the Institute of Chartered Accountants of India.

VIII. Employee benefits

A. Short term employee benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss for the year in which the related service is rendered;

B. Post Employment Benefits

Defined contribution plans: Company''s contribution to State governed Provident Fund Scheme is recognized during the year in which the related service is rendered;

C. The company has not ascertained liability towards payment of gratuity and hence no provision has been made in accounts. It is accounted for on the basis of payment.

D. Benefits payable to employees during their tenure of employment viz. Bonus, Leave Encashment etc are accounted on cash basis. Retirement benefits are accounted as and when the same become due for payment.

IX. Foreign currency transactions

A. All transactions in foreign currency are recorded in the reporting currency, based on closing rates of exchange prevalent on the dates of the relevant transactions.

B. Monetary assets and liabilities in foreign currency, outstanding as on the Balance Sheet date, are converted in reporting currency at the closing rates of exchange prevailing on the said date. Resultant gain or loss is recognized during the year in the statement of profit and loss.

C. Non monetary assets and liabilities denominated in foreign currencies are carried at the exchange rate prevalent on the date of the transaction.

D. Import and export of goods in foreign currency are accounted at exchange rates prevailing on the date of payment, whichever made.

E. The audited statement of accounts of USA Branch have not been received till 04/08/2016 i.e. the date of signing the Audit Report of the company. All original documents are lying with US office. We have verified the same on the basis of Xerox/scanned copy. The Value of total transactions is Rs.1,61,64,765/- as against total turnover of Rs 65,00,68,221/- i.e. 2.49% which is from the materiality point of view is insignificant.

X. Segment reporting

The Company is engaged in the business of Polymer Processing and manufacturing of Spun bond non woven fabrics, which as per Accounting Standard - 17 ''Segment Reporting'' is considered to be the only reportable business segment. The Company is also operating within the same geographical segment. Hence, disclosures under AS-17 are not applicable.

XI. Impairment of assets

The carrying amount of assets is reviewed at each Balance Sheet date. If there is any indication of impairment based on internal/external factors, i.e. when the carrying amount of the assets exceeds the recoverable amount, an impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed or reduced if there has been a favorable change in the estimate of the recoverable amount.

XII. Treatment of Contingent Liabilities & Contingent Assets

Contingent gains are not recognized in the accounts. Central Excise Dept. has wrongly ordered Company to pay Anti Dumping duty which in the opinion of Board of Directors is not leviable on the Company as the Company is a 100% EOU situated at Daman. Company has filed an appeal in the Customs, Excise and Service Tax Appellate Tribunal, Ahmedabad, against the Order dated 03/02/2016 issued by the Commissioner of Central Excise, Daman, received by Company on 02/03/2016 demanding Anti Dumping Duty of Rs. 1,37,77,776/- on imported Polypropylene during the period August 2009 to 31.03.2015, together with interest at the appropriate rate and penalty of Rs.1,37,77,776/-imposed on the Company and penalty of Rs.15,00,000/- on Mr. G. R. Ravindran, Executive Director of the Company, in spite of giving BIFR order in rehabilitation scheme clearly directing the Central Excise & Custom Department to waive penalty and interest.


Mar 31, 2015

I. Basis of preparation of financial statements

The financial statements have been prepared and presented complying the section 134(5) of Companies Act, 2013 in accordance with the accounting principles generally accepted in India and in accordance with the applicable Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014. Guidance Notes and other relevant provisions of the Companies Act, 2013.

Accounting polices not specifically referred to otherwise are consistent with generally accepted accounting principles.

II. Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles in India requires the management to make estimates and assumptions, that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known / materialized.

III. Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will accrue to the Company and the revenue can be reliably measured and also when it is reasonably certain that the ultimate collection will be made and that there is buyers' commitment to make the complete payment.

A. Revenue from sale

In case of Sales of Goods - When the property and all significant risk and rewards of ownership are transferred to the buyer or no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. It excludes amounts recovered towards Sales Tax and includes amount received towards processing activities done for other, if any.

B. Interest and dividend:

Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend income is recognized when right to receive dividend is established.

C. Others:

Other revenues / incomes and costs / expenditure are accounted on accrual, as they are earned or incurred

IV. Tangible assets and depreciation / amortisation

A. Tangible fixed assets are stated at cost of acquisition less accumulated depreciation / amortisation and accumulated impairment losses, if any.

B. Fixed Assets are shown at Original cost of acquisition less accumulated depreciation. Fixed Assets were revalued as on 31.03.2015. The surplus arising from the revaluation has been transferred to "Revaluation Reserve" and shown under the head "Reserves & Surplus". As the Fixed Assets were revalued on the last day of the Balance sheet, no depreciation has been provided on Revalued Figures.

C. Depreciation is provided on the straight line method on the basis of useful life of the asset in the manner specified in Schedule II to the Companies Act, 2013. Depreciation on additions to assets or on sale/disposal of assets is calculated pro-rata from the month of such addition, or upto the month of such sale/disposal, as the case may be.

i In respect of assets acquired on 01.01.1994 and thereafter at revised rates specified in the said Schedule vide Notification No 756 E dated 16.12.93 and as clarified in Circular No. 14 dated 20.12.1993 issued by the Department of the Company Affairs.

ii In respect of assets on hand as on 31.12.93 at the rates in force prior to the above mentioned notification.

V. Inventories

Raw materials and consumable Stores are valued at cost. Finished and Semi Finished goods are valued at lower of cost or market value.

VI. Investments

Investments are classified into Current and Non Current / Long Term Investments. Current investments are stated at lower of cost and fair value. Long term investments are stated at cost. A provision for diminution is made to recognize decline, other than temporary, in the value of long term investments.

VII. Operating Cycle

Receivables and Payables in relation to operations are considered as "Current Assets" and "Current Liabilities" as the case may be considering the nature of business of the Company.

All other Assets and Liabilities have been classified as provided in Revised Schedule VI, issued by the Institute of Chartered Accountants of India.

VIII. Employee benefits

A. Short term employee benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss for the year in which the related service is rendered;

B. Post Employment Benefits

Defined contribution plans: Company's contribution to State governed Provident Fund Scheme is recognized during the year in which the related service is rendered;

C. The company has not ascertained liability towards payment of gratuity and hence no provision has been made in accounts. It is accounted for on the basis of payment.

D. Benefits payable to employees during their tenure of employment viz. Bonus, Leave Encashment etc are accounted on cash basis. Retirement benefits are accounted as and when the same become due for payment.

IX. Foreign currency transactions

A. All transactions in foreign currency are recorded in the reporting currency, based on closing rates of exchange prevalent on the dates of the relevant transactions.

B. Monetary assets and liabilities in foreign currency, outstanding as on the Balance Sheet date , are converted in reporting currency at the closing rates of exchange prevailing on the said date. Resultant gain or loss is recognized during the year in the statement of profit and loss.

C. Non monetary assets and liabilities denominated in foreign currencies are carried at the exchange rate prevalent on the date of the transaction.

D. Import and Export of goods in foreign currency are accounted at exchange rates prevailing on the date of payment, whenever made.

E. Term loans in foreign currency for financing capital expenditure were accounted at rupee equivalent values on the date of loans disbursement. Till 31.12.2001 year-end outstanding loans were reconverted at the rate prevailing on Balance Sheet Date.

F The audited Statement of Accounts of USA Branch have not been received till 30.05.2015 i.e. the date of signing the Audit Report of the Company. All original Documents are lying with US Office. We have verified the same on the basis of Xerox / Scanned Copy. The value of Total Transactions is Rs. 15,120,042/- as against Total turnover of Rs. 741,234,178/- i.e. 2.04% which is from the materiality point of view is insignificant.

X. Segment reporting

The Company is engaged in the business of Polymer Processing and manufacturing of Spun bond non woven fabrics, which as per Accounting Standard - 17 'Segment Reporting' is considered to be the only reportable business segment. The Company is also operating within the same geographical segment. Hence, disclosures under AS-17 are not applicable.

XI. Impairment of assets

The carrying amount of assets is reviewed at each Balance Sheet date. If there is any indication of impairment based on internal/external factors, i.e. when the carrying amount of the assets exceeds the recoverable amount, an impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed or reduced if there has been a favourable change in the estimate of the recoverable amount.

XII. Miscellaneous Expenditure

The balance amount of Expenses on Exhibition Index II Trade fair have been amortised in the current financial year.

XIII. Treatment of Contingent Liabilities & Contingent Assets

The amount of contingent losses are charged to the Profit & Loss Account on a reasonable estimated basis that probable future event confirm that an asset has been impaired or a liability has been incurred as at the Balance Sheet Date and contingent gains are not recognized in the accounts.


Mar 31, 2014

I. Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention using the accrual basis of accounting in accordance with the accounting principles generally accepted in India and are in accordance with the applicable Accounting Standards, Guidance Notes and the relevant provisions of the Companies Act, 1956.

Accounting polices not specifically referred to otherwise are consistent with generally accepted accounting principles.

II. Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles in India requires the management to make estimates and assumptions, that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known / materialized.

III. Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will accrue to the Company and the revenue can be reliably measured and also when it is reasonably certain that the ultimate collection will be made and that there is buyers'' commitment to make the complete payment.

A. Revenue from sale

In case of Sales of Goods - When the property and all significant risk and rewards of ownership are transferred to the buyer or no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. It excludes amounts recovered towards Sales Tax and includes amount received towards processing activities done for other, if any.

B. Interest and dividend:

Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend income is recognized when right to receive dividend is established.

C. Others:

Other revenues / incomes and costs / expenditure are accounted on accrual, as they are earned or incurred.

IV. Tangible assets and depreciation / amortisation

A. Tangible fixed assets are stated at cost of acquisition less accumulated depreciation / amortisation and accumulated impairment losses, if any.

B. Fixed Assets are shown at Original cost of acquisition less accumulated depreciation.

Fixed Assets were revalued as on 31.03.2012. The surplus arising from the revaluation has been transferred to "Revaluation Reserve" and shown under the head "Reserves & Surplus". As the Fixed Assets were revalued on the last day of the Balance sheet, no depreciation has been provided on Revalued Figures.

C. Depreciation is provided on straight line basis applying the rates specified in Schedule XIV of the Companies Act 1956 under straight line method. Depreciation on additions to assets or on sale/disposal of assets is calculated pro-rata from the date of such addition, or upto the date of such sale/disposal, as the case may be. Individual assets costing less than rupees five thousand are depreciated fully in the year of acquisition.

i No Depreciation has been provided on Office Building as same has not been in use for the business of the company during the Current year.

ii In respect of assets acquired on 01.01.1994 and thereafter at revised rates specified in the said Schedule vide Notification No 756 E dated 16.12.93 and as clarified in Circular No. 14 dated 20.12.1993 issued by the Department of the Company Affairs.

iii In respect of assets on hand as on 31.12.93 at the rates in force prior to the abovementioned notification.

V. Inventories

Raw materials and consumable Stores are valued at cost. Finished and Semi Finished goods are valued at lower of cost or market value.

VI. Investments

Investments are classified into Current and Non Current / Long Term Investments. Current investments are stated at lower of cost and fair value. Long term investments are stated at cost. A provision for diminution is made to recognize decline, other than temporary, in the value of long term investments.

VII. Operating Cycle

Receivables and Payables in relation to operations are considered as "Current Assets" and "Current Liabilities" as the case may be considering the nature of business of the Company.

All other Assets and Liabilities have been classified as provided in Revised Schedule VI, issued by the Institute of Chartered Accountants of India.

VIII. Employee benefits

A. Short term employee benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss for the year in which the related service is rendered;

B. Post Employment Benefits

Defined contribution plans: Company''s contribution to State governed Provident Fund Scheme is recognized during the year in which the related service is rendered;

C. The company has not ascertained liability towards payment of gratuity and hence no provision has been made in accounts. It is accounted for on the basis of payment.

D. Benefits payable to employees during their tenure of employment viz. Bonus, Leave Encashment etc are accounted on cash basis. Retirement benefits are accounted as and when the same become due for payment.

IX. Foreign currency transactions

A. All transactions in foreign currency are recorded in the reporting currency, based on closing rates of exchange prevalent on the dates of the relevant transactions.

B. Monetary assets and liabilities in foreign currency, outstanding as on the Balance Sheet date , are converted in reporting currency at the closing rates of exchange prevailing on the said date. Resultant gain or loss is recognized during the year in the statement of profit and loss.

C. Non monetary assets and liabilities denominated in foreign currencies are carried at the exchange rate prevalent on the date of the transaction.

D. Import and Export of goods in foreign currency are accounted at exchange rates prevailing on the date of payment, whenever made.

E. Term loans in foreign currency for financing capital expenditure were accounted at rupee equivalent values on the date of loans disbursement. Till 31.12.2001 year-end outstanding loans were reconverted at the rate prevailing on Balance Sheet Date.

X. Segment reporting

The Company is engaged in the business of Polymer Processing and manufacturing of Spun bond non woven fabrics, which as per Accounting Standard - 17 ''Segment Reporting'' is considered to be the only reportable business segment. The Company is also operating within the same geographical segment. Hence, disclosures under AS-17 are not applicable.

XI. Impairment of assets

The carrying amount of assets is reviewed at each Balance Sheet date. If there is any indication of impairment based on internal/external factors, i.e. when the carrying amount of the assets exceeds the recoverable amount, an impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed or reduced if there has been a favourable change in the estimate of the recoverable amount.

XII. Miscellaneous Expenditure

The balance amount of Expenses on Exhibition Index II Trade fair have been amortised in the current financial year.

XIII. Treatment of Contingent Liabilities & Contingent Assets

The amount of contingent losses are charged to the Profit & Loss Account on a reasonable estimated basis that probable future event confirm that an asset has been impaired or a liability has been incurred as at the Balance Sheet Date and contingent gains are not recognized in the accounts.


Mar 31, 2013

1. GENERAL:

(a) The Accounts are prepared under the historical cost convention, in accordance with the generally ac- cepted accounting principles and the provision of the Companies Act, 1956 as adopted consistently by the company.

(b) Accounting policies not specifcally referred to otherwise are consistent with generally accepted accounting principles.

2. FIXED ASSETS:

Fixed Assets are shown at Original cost of acquisition less accumulated depreciation.

Fixed Assets are revalued as on 31.03.2012. The surplus arising from the revaluation has been transferred to "Revaluation Reserve" and shown under the head "Reserves & Surplus". As the Fixed Assets were revalued on the last day of the Balance sheet, no depreciation has been provided on Revalued Figures.

3. DEPRECIATION:

Depreciation is provided on straight line basis applying the rates specifed in Schedule XIV of the Companies Act 1956 under straight line method:

(i) In respect of assets acquired on 01.01.1994 and thereafter at revised rates specifed in the said Schedule vide Notifcation No 756 E dated 16.12.93 and as clarifed in Circular No. 14 dated 20.12.1993 issued by the Department of the Company Affairs.

(ii) In respect of assets on hand as on 31.12.93 at the rates in force prior to the abovementioned notifcation.

4. INVENTORIES:

Raw materials and consumable Stores are valued at cost. Finished and Semi Finished goods are valued at lower of cost or market value.

5. REVENUE RECOGNITION:

In case of Sales of Goods – When the property and all signifcant risk and rewards of ownership are transferred to the buyer or no signifcant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. It excludes amounts recovered towards Sales Tax and includes amount received towards processing activities done for other, if any.

6. TREATMENT OF EXPENDITURE DURING CONSTRUCTION PERIOD:

All normal pre-production revenue expenditure including interest on borrowed funds till the commencement of commercial production are capitalized.

7. TREATMENT OF EMPLOYEES BENEFITS:

Benefts payable to employees during their tenure of employment viz. Bonus, Leave Encashment etc are accounted on cash basis. Retirement benefts are accounted as and when the same become due for payment.

8. CURRENCY TRANSACTION:

(i) Import and Export of goods in foreign currency are accounted at exchange rates prevailing on the date of payment, whenever made.

(ii) Term loans in foreign currency for fnancing capital expenditure were accounted at rupee equivalent values on the date of loans disbursement. Till 31.12.2001 year-end outstanding loans were reconverted at the rate prevailing on Balance Sheet Date.

9. MISCELLANEOUS EXPENDITURE:

The balance amount of Expenses on Exhibition Index 2011 Trade fair have been amortised in the current fnancial year.

10. TREATMENT OF CONTINGENT LIABILITIES/GAINS

The amount of contingent losses are charged to the Proft & Loss Account on a reasonable estimated basis that probable future event confrm that an asset has been impaired or a liability has been incurred as at the Balance Sheet Date and contingent gains are not recognized in the accounts.


Mar 31, 2012

1. GENERAL :

(a) The Accounts are prepared under the historical cost convention, in accordance with the generally accepted accounting principles and the provision of the Companies Act, 1956 as adopted consistently by the company.

(b) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

2. FIXED ASSETS :

Fixed Assets are shown at Original cost of acquisition less accumulated depreciation.

Fixed Assets are revalued as on 31.03.2012. The surplus arising from the revaluation has been transferred to "Revaluation Reserve" and shown under the head "Reserves & Surplus". As the Fixed Assets were revalued on the last day of the Balance sheet, no depreciation has been provided on Revalued Figures.

3. DEPRECIATION :

Depreciation is provided on straight line basis applying the rates specified in Schedule XIV of the Companies Act 1956 under straight line method:

(i) In respect of assets acquired on 01.01.1994 and thereafter at revised rates specified in the said Schedule vide Notification No 756 E dated 16.12.93 and as clarified in Circular No. 14 dated 20.12.1993 issued by the Department of the Company Affairs.

(ii) In respect of assets on hand as on 31.12.93 at the rates in force prior to the abovementioned notification.

4. INVENTORIES :

Raw materials and consumable Stores are valued at cost. Finished and Semi Finished goods are valued at lower of cost or market value.

5. REVENUE RECOGNITION :

In case of Sales of Goods - When the property and all significant risk and rewards of ownership are transferred to the buyer or no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. It excludes amounts recovered towards Sales Tax and includes amount received towards process- ing activities done for other, if any.

6. TREATMENT OF EXPENDITURE DURING CONSTRUCTION PERIOD:

All normal pre-production revenue expenditure including interest on borrowed funds till the commencement of commercial production are capitalized.

7. TREATMENT OF EMPLOYEES BENEFITS :

Benefits payable to employees during their tenure of employment viz. Bonus, Leave Encashment etc are ac- counted on cash basis. Retirement benefits are accounted as and when the same become due for payment.

8. CURRENCY TRANSACTION :

(i) Import and Export of goods in foreign currency are accounted at exchange rates prevailing on the date of payment, whenever made.

(ii) Term loans in foreign currency for financing capital expenditure were accounted at rupee equivalent values on the date of loans disbursement. Till 31.12.2001 year-end outstanding loans were reconverted at the rate prevailing on Balance Sheet Date.

9. MISCELLANEOUS EXPENDITURE:

The balance amount of Expenses on Exhibition Index-II would have been amortised in the two financial years

10. TREATMENT OF CONTINGENT LIABILITIES/GAINS

The amount of contingent losses are charged to the Profit & Loss Account on a reasonable estimated basis that probable future event confirm that an asset has been impaired or a liability has been incurred as at the Balance Sheet Date and contingent gains are not recognized in the accounts.


Mar 31, 2011

1. General :

(a) The Accounts are prepared under the historical cost Convention, in accordance with the generally accepted accounting Principles and the provision of the Companies Act, 1956 as Adopted consistently by the Company.

(b) Accounting policies not specifically referred to otherwise Are consistent with generally accepted accounting principles.

2. Fixed assets :

Fixed assets are stated as revalued figures, Assets were revalued As on 31.03.2009.

3. Depreciation :

Depreciation is provided on straight line basis applying the Rates specified in Schedule XIV of the Companies Act, 1956.

4. Inventories :

Raw materials and consumable stores are valued at cost. Finished And semi-finished goods are valued at lower of cost or market Value.

5. Revenue recognition :

In case of Sales of Goods – When the property and all significant Risk and rewards of ownership are transferred to the buyer or no Significant uncertainty exists regarding the amount of Consideration that is derived from the sale of goods. It Excludes amounts recovered towards Sales Tax and includes amount Received towards processing activities done for other, if any.

6. Treatment OF expenditure during construction period :

All normal pre-production revenue expenditure including interest On borrowed funds up to fabric till the commencement of Commercial production are capitalized.

7. Treatment OF employees benefits :

Benefits payable to employees during their tenure of employment Viz. Bonus, Leave Encashment etc. Are accounted on cash basis. Retirement benefits are accounted as and when the same become due For payment.

8. Currency transaction :

(i) Import and Export of goods in foreign currency are accounted At exchange rates prevailing on the date of payment, whenever Made.

(ii) Term loans in foreign currency for financing capital Expenditure were accounted at rupee equivalent values on the Date of loans disbursement. Till 31.12.2001 year-end outstanding Loans were reconverted at the rate prevailing on Balance Sheet Date.

9. Miscellaneous expenditure :

The balance amount of Expenses on Index 2002 Trade Fair, Expenses on Index 2005 Trade Fair, Expenses on Index 2008 Trade Fair and Index II have been amortised in the current financial Year.

10. Treatment OF contingent liabilities / gains :

The amount of contingent losses are charged to the Profit & Loss Account on a reasonable estimated basis it is probable that Future event confirm that an asset has been impaired or a Liability has been incurred as at the Balance Sheet date and Contingent gains are not recognized in the accounts.


Mar 31, 2010

1. GENERAL :

(a) The Accounts are prepared under the historical cost convention, in accordance with the generally accepted accounting principles and the provision of the Companies Act, 1956 as adopted consistently by the Company.

(b) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

2. FIXED ASSETS :

Fixed assets are stated as revalued figures, Assets were revalued as on 31.03.2009.

3. DEPRECIATION :

Depreciation is provided on straight line basis applying the rates specified in Schedule XIV of the Companies Act, 1956.

4. INVENTORIES :

Raw materials and consumable stores are valued at cost. Finished and semi-finished goods are valued at lower of cost or market value.

5. REVENUE RECOGNITION :

In case of Sales of Goods - When the property and all significant risk and rewards of ownership are transferred to the buyer or no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. It excludes amounts recovered towards Sales Tax and includes amount received towards processing activities done for other, if any.

6. TREATMENT OF EXPENDITURE DURING CONSTRUCTION PERIOD :

All normal pre-production revenue expenditure including interest on borrowed funds up to fabric till the commencement of commercial production are capitalized.

7. TREATMENT OF EMPLOYEES BENEFITS :

Benefits payable to employees during their tenure of employment viz. Bonus, Leave Encashment etc. are accounted on cash basis.

Retirement benefits are accounted as and when the same become due for payment.

8. CURRENCY TRANSACTION :

(i) Import and Export of goods in foreign currency are accounted at exchange rates prevailing on the date of payment, whenever made.

(ii) Term loans in foreign currency for financing capital expenditure were accounted at rupee equivalent values on the date of loans disbursement. Till 31.12.2001 year-end outstanding loans were reconverted at the rate prevailing on Balance Sheet date.

9. MISCELLANEOUS EXPENDITURE :

Expenses on Index 2002 Trade Fair, Expenses on Index 2005 Trade Fair are amortized equally over three and five years and Expenses on Index 2008 Trade Fair are amortized equally over eight years.

10. TREATMENT OF CONTINGENT LIABILITIES / GAINS :

The amount of contingent losses are charged to the Profit & Loss Account on a reasonable estimated basis it is probable that future event confirm that an asset has been impaired or a liability has been incurred as at the Balance Sheet date and contingent gains are not recognized in the accounts.

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