Mar 31, 2018
A: 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. The Financial Statements of the Company have been prepared to comply with the Indian Accounting Standards (''Ind AS''), including the rules notified under the relevant provisions of the Companies Act, 2013.
Company''s Financial Statements are presented in Indian Rupees (Rs.) which is also its functional currency.
c. 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 recognised to the extent that it is probable that the economic benefits will accrue to the Company and the revenue can be reliably measured, 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. Property, Plant and Equipment and depreciation / amortisation
a. Property, Plant and Equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and any cost directly attributable to bringing the assets to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.
b. Other Indirect Expenses incurred relating to project, net of income earned during the project development stage prior to its intended use, are considered as pre - operative expenses and disclosed under Capital Work - in -Progress.
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 upto the month of such sale/disposal, as the case may be.
V. Lease
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss on a straight line basis over the period of the lease in a manner which is representative of the time pattern in which benefit derived from the use of the leased asset is diminished.
VI. Operating Cycle
Receivables and Payables in relation to operations are considered as âCurrent Assetsâ and âCurrent Liabilitiesâ as the case may be considering the nature of business of the Company.
All other Assets and Liabilities have been classified as provided in Schedule III to the Companies Act, 2013.
VII. Inventories
Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any, except in case of by-products which are valued at net realisable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads net of recoverable taxes incurred in bringing them to their respective present location and condition.
VIII. Investments
Investments are classified into Current and Non Current 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. The Company has accounted for its investments in Subsidiaries, associates and joint venture at cost less impairment loss (if any).
IX. 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: Companyâs 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.
X. 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 translated 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, except to the the extent foreign exchange rate differences which are directly attributable to the acquisition or construction of qualifying assets are capitalized as cost of assets.
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 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.1,59,16,610/- as against total turnover of Rs. 206,02,79,596/-, i.e. 0.77 % which is insignificant, from the materiality point of view.
XI. Segment reporting
The Company is engaged in the business of Polymer Processing and manufacturing of Spun bond non woven fabrics, which as per Ind AS 108 ''Segment Reporting'' is considered to be the only reportable business segment. The Company is also operating within the same geographical segment. Hence, disclosures under Ind AS - 108 are not applicable.
XII. 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 favorable change in the estimate of the recoverable amount.
XIII. Treatment of Contingent Liabilities & Contingent Assets
The Company creates a provision when there is present obligation as a result of a past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When the likelihood of outflow of resources is remote, no provision or disclosure is made. 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 03/02/2017 issued by the Commissioner of Central Excise, Daman, received by Company on 02/03/2017 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.
The Company has made a pre-deposit 7.5% of Rs. 1,37,77,776/- (duty) Rs. 10,33,333/- and 7.5% of Rs.15,00,000/- (penalty imposed on Mr. G. Ravindran) Rs. 1,12,500/- and filed the Appeal against the Order before Customs, Excise and Service tax Appellate Tribunal at Ahmadabad on 12/05/2016 and the matter is pending before Tribunal.
Mar 31, 2016
NOTE â26â: 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 âManufacture of SPUNBOND NONWOVEN FABRICS from polypropylene.
NOTE â27â : 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 âRevaluation Reserveâ and shown under the head âReserves & Surplusâ.
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 âCurrent Assetsâ and âCurrent Liabilitiesâ 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 à 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.