Mar 31, 2015
(A) Accounting Conventions:
The company's financial statements have been prepared in accordance
with the historical cost convention on accrual basis of accounting, as
applicable to going concern in accordance with generally accepted
accounting principle in India (Indian GAAP), mandatory accounting
standards prescribed in the companies (Accounting Standards) Rules 2006
issued by Central Government in consultation with the provisions of
companies act, 2013 to the extent applicable. The financial statements
are presented in Indian rupees.
All assets and liabilities have been classification as current or non
current as per company's normal operating cycle and other criteria set
out in the Schedule-III of Companeis Act, 2013. Based on the nature of
business, the company has ascertained its operating cycle as 12 months
for the purpose of current or non current classification of Assets and
liabilities.
(B) Use of Estimates
The preparation of financial statements requires the management to make
estimates and assumptions that affect the reported balances of assets
and liabilities and disclosures relating to the contingent liabilities
as at the date of the financial statements and reported amounts of
income and expenses during the year. Difference between the actual
results and estimates are recognised in the year in which the results
are known/materialised. Example of such estimates include provision for
doubtful debts, employee benefits, provision for income tax, the useful
lives of depreciable fixed assets and provision for impairment.
(C) Revenue Recognition
1. Sales are recognized at the time of delivery of goods from the
factory,net of trade discount & sales tax.
2. Interest income is recognised on time proportion basis taking into
account the amount outstanding and the rate applicable.
(D) Fixed Assets:
Fixed assets are stated at cost of acquisition and inclusive of inward
freight, duties & taxes & incidential expenses related to acquisition
net of capital subsidy relating to specific fixed assets.
(E) Inventory Valuation
Inventories are valued at cost or net realizable price whichever is
lower except scrap at net realisable value. The cost formula used for
valuation of inventories are:-
1. Cost of stores & spares is calculated at weighted average of cost
plus direct expenses.
2. Wastes are valued at net realisable value.
(F) Depreciation
i) Depreciation for the year has been provided on Straight Line Method
on the basis of useful lives specified in the Schedule-II of Companies
Act, 2013 as against the amount of depreciation calculated on the basis
of rates of depreciation in respect of various assets contained in
schedule XIV of the Companies Act, 1956.
ii) Assets costing Rs. 5000/- or less acquired during the year are
depreciated at 100%.
(G) Accounting for Taxes on Income
Tax expense comprises of current tax and deferred tax. Current tax is
measured at the amount expected to be paid to the tax authorities,
using the applicable tax rates. Deferred income tax reflect the current
period timing differences between taxable income and accounting income
for the period and reversal of timing differences of earlier
years/period. Deferred tax assets are recognised only to the extent
that there is a reasonable certainty that sufficient future income will
be available except that deferred tax assets, in case there are
unabsorbed depreciation or losses, are recognised if there is virtual
certainty that sufficient future taxable income will be available to
realise the same.
The Company has not accounted for Deferred Tax in accordance with the
Accounting Standard issued by the Institute of Chartered Accountants of
India. The deferred tax asset on account of opening unabsorbed loss and
unabsorbed depreciation has not been recognised as the Company is of
the opinion that there is no virtual certainty of realisation of the
same
(H) Employee Benefits
(i) Short - term employee benefits are recognised as an expense at the
undiscounted amount in the profit and loss statement of the year in
which the related service is rendered.
(ii) Contribution to Provident Fund is made in accordance with the
provisions of the Employees Provident Fund and Miscellaneous Provision
Act, 1952 and is charged to the Profit and Loss statement.
(I) Provisions, Contingent Liabilities and Contingent Assets
The company does not have any contingent liabilities and contingent
assets. So the company does not provide any provision for the same.
(J) Investments
Long term investments are carried "at cost" Less Provision, if any, for
diminution in value, which is other than temporary.
(K) Segment Reporting
The Company is a single segment company engaged in manufacturing of
fabric. Accordingly the disclosure requirement as prescribed in the
Accounting Standard (AS) -17 on Segment Reporting issued by the
institution of Charted Accountants of India is not applicable.
(L) Earning Per Share
Basic earning per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Earning
considered in ascertaining the Company's earnings per share is the net
profit for the period after deducting preferences dividends and any
attributable tax thereto for the period.
(M) Leases
The company does not have any lease or rental income during the year
Mar 31, 2013
I. Accounting convention :
The financial statements have been prepared under Historical Cost
Convention on the basis of going concern and in accordance with the
accounting standards referred to inSection211 (3C) of the Companies
Act, 1956, wherever applicable.
II. Fixed Assets & Depreciation
a) Fixed Assets are stated at original cost net of tax/duty credits
availed, if any, less accumulated depreciation, accumulated
amortization and cumulative impairment. Costs include pre-operative
expenses and all expenses related to acquisition and installation of
the assets concerned.
b) Depreciation on Plant and Machinery, Motor Cars, Trucks and Vans has
been provided on Straight-line method at the rates specified in the
Schedule XIV of the Companies Act ,1956. Depreciation on tolls and dies
are provided on the basis of useful life as determined by the Company.
Depreciation in respect of other assets has been calculated on written
down value method as perthe rates specified in Schedule XIV of the
Companies Act, 1956.
c) As at each balance sheet date, the carrying amount of assets is
tested for mpairment so as to determine;
I. The provision for impairment loss, if any, required or;
ii. The reversal, if any , required for impairment loss recognized in
previous periods, impairment loss is recognized when the carrying
amount of an asset exceeds its recoverable amount.
Ill Valuation of Inventories
a) Inventories are valued at lower cost and estimated net realizable
value. Cost is arrived at on weighted average basis.
b) The basis of determining cost for various categories of inventories
are as follows:
I. Raw Materials, Packing Materials and Stores and spares : Weighted
Average basis.
II. Finished Goods and Work-in-Progress : Cost of Direct, Material,
Labour and other Manufacturing overheads.
IV Revenue Recognition
a) The company generally follows the mercantile system of accounting
and recognizes income and expenditure on an accrual basis except those
with significant uncertainties.
b) Sale of goods is recognized when the risk and rewards of ownership
are passed on to the customers, which is generally on dispatch of
goods.
c) Claims made by the company and those made on the company are
recognized in the Profit and Loss Account as and when the claims are
accepted.
V. Research and Development
Revenue expenditure on Research and Development is charged under
respective heads of account. Capital expenditure on research and
development is included as part of fixed assets and depreciated on the
same basis as other fixed assets.
VI. Employee Benefits
a) Short term employee benefits are recognized as an expense at the
undiscounted amount in the Profit and Loss Account of the year in which
the related service is rendered.
b) Post employment and other long term benefits which are defined
benefit plans are recognized as an expense in the Profit and Loss
Account for the year in which the employee has rendered service. The
expense is recognized based on the present value of the obligation
determined in accordance with Revised Accounting Standard 15 on
Employee Benefits. Actuarial gains & Losses are charged to the Profit
and Loss Account.
c) Payment to defined contribution schemes are charged as expense as
and when incurred.
d) Termination benefits are recognizee! expense as and when incurred.
VII. Borrowing Costs
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalized as part of such assets. All other
borrowing costs are charged to revenue. A qualifying asset is an asset
that necessarily requires substantial period of time to get ready for
its intended use or sale.
VIII.Taxes on Income
Current tax on income for the period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961 and based on the expected
outcome of assessment / appeals. Deferred tax is recognized on timing
differences between the accounting income and the taxable income for
the year and quantified using the tax rates and laws enacted or
substantively enacted as on the Balance Sheet date.
IX Cash flow Statement
Cash flow statement has been prepared in accordance with the indirect
method prescribed in Accounting Standard 3 issued by the Institute of
Charted Accountants of India.
XI Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made.
XII Accounting Standards
Accounting Standards prescribed under Section 211 (3c) of the Companies
Act, 1956, have been followed wherever applicable.
Mar 31, 2012
I. Accounting convention :
The financial statements have been prepared under Historical Cost
Convention on the basis of going concern and in accordance with the
accounting standards referred to inSection211 (3C) of the Companies
Act, 1956, wherever applicable.
II. Fixed Assets & Depreciation
a) Fixed Assets are stated at original cost net of tax/duty credits
availed, if any, less accumulated depreciation, accumulated
amortization and cumulative impairment. Costs include pre-operative
expenses and all expenses related to acquisition and installation of
the assets concerned.
b) Depreciation on Plant and Machinery, Motor Cars, Trucks and Veins
has been provided on Straight-line method at the rates specified in the
Schedule XIV of the Companies Act ,1956. Depreciation on tolls and dies
are provided on the basis of useful life as determined by the Company.
Depreciation in respect of other assets has been calculated on written
down value method as per the rates specified in Schedule XIV of the
Companies Act, 1956.
c) As at each balance sheet date, the carrying amount of assets is
tested for impairment so as to determine;
I. The provision for impairment loss, if any, required or;
ii. The reversal, if any, required for impairment loss recognized in
previous periods, impairment loss is recognized when the carrying
amount of an asset exceeds its recoverable amount.
III Valuation of Inventories
a) Inventories are valued at lower cost and estimated net realizable
value. Cost is arrived at on weighted average basis.
b) The basis of determining cost for various categories of inventories
are as follows:
I. Raw Materials, Packing Materials and Stores and spares: Weighted
Average basis.
II. Finished Goods and Work-in-Progress; Cost of Direct, Material,
Labour and other Manufacturing overheads.
IV Revenue Recognition
a) The company generally follows the mercantile system of accounting
and recognizes income and expenditure on an accrual basis except those
with significant uncertainties.
b) Sale of goods is recognized when the risk and rewards of ownership
are passed on to the customers, which is generally on dispatch of
goods.
Claims made by the company and those made on the company are recognized
in the Profit and Loss Account as and when the claims are accepted.
V. Research and Development
Revenue expenditure on Research and Development is charged under
respective heads of account. Capital expenditure on research and
development is included as part of fixed assets and depreciated on the
same basis as other fixed assets.
VI. Employee Benefits
a) Short term employee benefits are recognized as an expense at the
undiscounted amount in the Profit and Loss Account of the year in which
the related service is rendered.
b) Post employment and other long term benefits which are defined
benefit plans are recognized as an expense in the Profit and Loss
Account for the year in which the employee has rendered service. The
expense is recognized based on the present value of the obligation
determined in accordance with Revised Accounting Standard 15 on
Employee Benefits. Actuarial gains & Losses are charged to the Profit
and Loss Account.
c) Payment to defined contribution schemes are charged as expense as
and when incurred.
d) Termination benefits are recognized expense as and when incurred.
VII. Borrowing Costs
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalized as part of such assets. All other
borrowing costs are charged to revenue. A qualifying asset is an asset
that necessarily requires substantial period of time to get ready for
its intended use or sale.
VIII. Taxes on Income
Current tax on income for the period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961 and based on the expected
outcome of assessment / appeals. Deferred tax is recognized on timing
differences between the accounting income and the taxable income for
the year and quantified using the tax rates and laws enacted or
substantively enacted as on the Balance Sheet date.
IX Cash flow Statement
Cash flow statement has been prepared in accordance with the indirect
method prescribed in Accounting Standard 3 issued by the Institute of
Charted Accountants of India.
X Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made.
XI Accounting Standards
Accounting Standards prescribed under Section 211 (3c) of the Companies
Act, 1956, have been followed wherever applicable.
Mar 31, 2010
A. The Company has been adopting accrual basis of accounting for all
its regular sources of income and expenditure including sale of its
manufactured goods and purchases of raw materials, stores, packing and
other materials.
b. Fixed assets have been represented and disclosed in the Balance
Sheet at their historical cost. Cost includes Excise Duty paid on
machinery purchased on which no claim for MODVAT was made. Provision
for depreciation has been made adopting straight line method at the
rates prescribed in the Schedule XIV to the Companies Act, 1956.
c. Inventories:
Stock of finished goods and stock of waste are valued at cost or at net
realisable value, which ever is less.Stock of raw materials, stores,
packing materials and work in progress are valued at cost.
d. Retirement Benefits:
There was no liability to the company as at the close of the year
towards retirement benefits to the employees.
B. BALANCE SHEET:
e. Working Capital Loan from Catholic Syrian Bank is secured by
equitable mortgage of the companys land and building by deposit of
title deeds and also by hypothecation of the plant and machinery,
stores and spares acquired under the project for manufacture of fabric.
This loan is secured by the personal guarantee of the chairman,
managing director and ex director of the company.
f. Auditors Remuneration consists of Audit fee Rs.44,120/- towards
Tax Audit and Taxation Services (including Service Tax).
g. Tax deducted at source from Interest, Commission and Job Work
Charges amounted to Rs. 109802/- (Previous Year Rs.121926/-)
Mar 31, 2003
A. ACCOUNTING POLICIES
a) The Company has been adopting accrual basis of accounting for all
its regular sources of income and expenditure including sale of its
manufactured goods and purchases of raw materials, stores, packing and
other materials.
b) Fixed Assets have been represented and disclosed in the Balance
Sheet at their historical cost, Cost includes Central Excise Duty paid
on machinery purchased on which no claim for MODVAT was made. Provision
for depreciation has been made adopting straight line method at the
rates prescribed in the Schedule XIV to The Companies Act, 1956.
c) Inventories:
i) Stock of finished goods and stock of waste are valued at cost or at
net realisable value, whichever is less. ii) Stock of raw materials,
stores and packing materials and work in progress are valued at cost.
d) Retirement benefits:
There was no liability to the Company as at the close of the year
towards retirement benefits to the employees.
e) Preliminary and Share Issue Expenses are being amortised and 1/10th
of the same is written off every year.
B. BALANCE SHEET :
f) Term Loan from Catholic Syrian Bank is secured by equitable mortgage
of the Companys land and building by deposit of title deeds and also
by hypothecation of the plant and machinery, stores and spares acquired
under the project for manufacture of fabric. This loan is secured by
the personal guarantee of the Chairman, Managing Director and a
Director of the Company.
g) Auditors remuneration consisted of Audit fee Rs. 15,000/- towards
Tax Audit and Taxation Services (including Service Tax) Rs. 11,600/-
h) Tax deducted at source out of interest, commission and job work
charges amounted to Rs. 2,24,696/- (Previous year Rs. 36,410/-)
Mar 31, 2002
A) The Company has been adopting accrual basis of accounting for all
its regular sources of income and expenditure including sale of its
manufactured goods and purchases of raw materials, stores, packing and
other materials.
b) Fixed Assets have been represented and disclosed in the Balance
Sheet at their historical cost, Cost includes Central Excise Duty paid
on machinery purchased on which no claim for MODVAT was made. Provision
for depreciation has been made adopting straight line method at the
rates prescribed in the Schedule XIV to The Companies Act, 1956. For
items costing Rs. 5000 or below, 100% depreciation has been charged and
on prorate basis for additions made during the year.
c) Inventories:
i) Stock of finished goods and stock of waste are valued at cost or at
net realisable value, whichever is less. ii) Stock of raw materials,
stores and packing materials and work in progress are valued at cost.
d) Retirement benefits:
There was no liability to the Company as at the close of the year
towards retirement benefits to the employees.
e) Preliminary and Share Issue Expenses are being amortised and 1/10th
of the same is written off every year.
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