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Accounting Policies of Gini Silk Mills Ltd. Company

Mar 31, 2015

1 ACCOUNTING CONVENTION

The financial statements are prepared under the historical cost convention, on an accrual basis of accounting. The statement complies with the Accounting Standard prescribed by the ICAI and also complies with the Section 133 of the Companies Act, 2013. The accounts are prepared as a going concern.

2 USE OF ESTIMATES

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and laibilites on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialised

3 CASH AND CASH EQUIVALENTS

Cash and cash equivalents for the purpose of cash flow statement comprise cash and bank and in hand and short -term investments with an original maturity of three months or less.

4 FIXED ASSETS Tangible Assets

Tangible Assets are stated at acquisition cost, net of accumulated depreciation & accumulated impairment losses. Subsequent expenditure related to an item of fixed assets are added to its book value only if they increase the future benefit from the existing asset beyond its previously assessed standard of performance.

Items of Fixed Assets that have been retired from active use and are held for disposal are stated at the lower of their net book value & net realisable value & are shown separately in the financial statement. Any expected loss is recognised immidiately in the statement of Profit & Loss.

Losses arising from the retirement of & gain or losses arising from disposal of fixed assets which are carried at cost are recognised in Statement of Profit & Loss.

Intangible Assets

Intangible Assets are stated at acquisition cost, net of accumulated depreciation & accumulated impairment losses, if any. Intangible Assets are amortised on a straight line basis over their estimated useful life.

Gain or Losses arising from the retirement or disposal proceeds recognised as Income or expense in Statement of Profit & Loss.

5 METHOD OF DEPRECIATION AND AMORTIZATION

Depreciation for the year in respect of assets relating to undertaking at Tarapur has been provided on straight line method. In respect of assets relating to undertakings at Kandivali depreciation has been provided on written down value method, over the estimated useful life of assets.

Effective 1st April 2014, the Company depreciates its Fixed Assets over the useful life in the manner prescribed in Schedule II of the Companies Act, 2013 as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of Companies act, 1956. Lease Hold land has been amortized over the period of the lease on straight line basis

Depreciation on the Fixed Assets added during the year has been provided on pro -rata basis with reference to the month of addition.

6 IMPAIRMENT OF ASSETS

An assets treated impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

7 LEASED ASSETS

Operating Lease: Rentals are expensed with reference to lease terms and other considerations.

8 FOREIGN CURRENCY TRANSACTIONS

Transactions denominated to foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

Monetary items denominated in foreign currencies at the year end are restated at year end rules. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is

recognised as exchange difference and the premium paid on forward contracts is recognised over the life of the contract. Non monetary foreign currency items are carried at cost

Any Income or Expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

9 INVESTMENTS

Current Investments are carried at lower of cost or quoted/fair value, computed category wise.

The long-term investments are stated at cost. Provision for permanent diminution in value is made only if such a decline is other than temporary in nature.

10 INVENTORIES

Inventories of Raw Materials, Stores and Spares, Finished goods and Work in progress are valued at lower of cost or net realizable value after providing for obsolescence, if any.

Cost comprises of all cost of purchases, cost of conversion and other cost incurred in bringing the inventory to their present location and conditions.

Cost is determined under Weighted Average method for Raw Material, stores & spares & Work in Progess and for fabrics on First-in-First-Out (FIFO) basis.

11 REVENUE RECOGNITION

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection.

Revenue from operations include sale of goods, process income and job work receipts which are exclusive of sales tax but net off after adjusting claims, incentives, rebates and discounts.

Dividend income is recognised when right to receive is established.

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

12 EMPLOYEES BENEFITS

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss account for the year in which the related service is rendered

Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss account.

The Company has taken Group/Master Insurance Policy with Life Insurance Corporation of India for the future payments of retiring employee's gratuities. The premium thereon has been so adjusted as to cover the liability under scheme in respect of eligible employees at the end of their future anticipated service with the company.

13 BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of the assets, up to the date the asset is ready for its intended use. All other borrowing costs are recognized as expense and charged to the Profit and Loss Account in the year in which they are incurred.

14 TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax for the year is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/virtual certainty of its realization.

15 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company recognizes provisions when there is present obligation as a result of past event and it is probable that there will be an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for Contingent Liabilities is made in the notes on accounts when there is a possible obligation or present obligations that may, but probably will not, require an outflow of resources. Contingent Assets are neither recognized nor disclosed in the financial statement.

16 SEGMENT REPORTING

Segments have been identified in line with the accounting standard on Segment reporting (AS-17) taking into account the organisation structure as well as the differential risk in returns of segments.

17 GOVERNMENT GRANTS

Grants received against specific fixed assets are adjusted to the cost of the assets & those in the nature of promoter's contribution are credited to Capital Reserve. Revenue Grants are recognised in the Profit & Loss account in accordance with related scheme and in the period in which these are accrued.


Mar 31, 2014

According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year.

1 ACCOUNTING CONVENTION

The fnancial statements are prepared under the historical cost convention, on an accrual basis of accounting. The statement complies with the Accounting Standard prescribed by the ICAI and also complies with the Section 211(3) ( C) of the Companies Act, 1956. The accounts are prepared as a going concern.

2 USE OF ESTIMATES

The preparation of fnancial statements requires estimates and assumptions to be made that affect the reported amount of assets and laibilites on the date of the fnancial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialised

3 CASH AND CASH EQUIVALENTS

Cash and cash equivalents for the purpose of cash fow statement comprise cash and bank and in hand and short -term investments with an original maturity of three months or less

4 FIXED ASSETS

Own Fixed Assets

Fixed Assets are stated at cost net of recoverable taxes. All costs including fnancing cost till commencement of commercial production, net charges on foreign exchange contracts and adjustments arises from exchange rate variations attributable to the fxed assets are capitalised.

5 LEASED ASSETS

Operating Lease: Rentals are expensed with reference to lease terms and other considerations.

6 INTANGIBLE ASSETS

Intangible Assets are stated at cost of acquisition net of recoverable taxes. All costs including fnancing cost till commencements of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalised

7 DEPRECIATION / AMORTIZATION

Depreciation for the year in respect of assets relating to undertaking at Tarapur has been provided on straight line method at the rates specifed as per Schedule XIV of the Companies Act, 1956.

In respect of assets relating to undertakings at Kandivali depreciation has been provided on written down value method at the rates specifed as per Schedule XIV of the Companies Act, 1956.

Lease hold land has been amortized over the period of the lease on straight line basis Depreciation on the Fixed Assets added during the year has been provided on pro -rata basis with reference to the month of addition.

8 IMPAIRMENT OF ASSETS

An assets treated impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Proft and Loss Account in the year in which an asset is identifed as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

9 FOREIGN CURRENCY TRANSACTIONS

Transactions denominated to foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

Monetary items denominated in foreign currencies at the year end are restated at year end rules. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange difference and the premium paid on forward contracts is recognised over the life of the contract.

Non monetary foreign currency items are carried at cost Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Proft and Loss account except in case of long term liabilites, where they relate to acquisition of fxed assets, in which case they are adjusted to the carrying cost of such assets.

10 INVESTMENTS

Current Investments are carried at lower of cost and quoted/fair value, computed category wise.

The long-term investments are stated at cost. Provision for permanent diminution in value is made only if such a decline is other than temporary in nature.

11 INVENTORIES

Inventories of Raw Materials, Stores and Spares, Finished goods and Work in progress are valued at lower of cost or net realizable value after providing for obsolescence, if any.

Cost comprises of all cost of purchases, cost of conversion and other cost incurred in bringing the inventory to their present location and conditions Cost is determined under Weighted Average method for Raw Material, stores & spares & Work in Progess and for fabrics on FIFO basis.

12 REVENUE RECOGNITION

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection.

Revenue from operations include sale of goods, process income and job work receipts which are exclusive of sales tax but net off after adjusting claims, incentives, rebates and discounts.

Dividend income is recognised when right to receive is established.

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

13 EMPLOYEES BENEFITS

Short-term employee benefts are recognized as an expense at the undiscounted amount in the proft and loss account for the year in which the related service is rendered Post employment and other long term employee benefts are recognized as an expense in the proft and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefts are charged to the proft and loss account.

The Company has taken Group/Master insurance Policy with Life Insurance Corporation of India for the future payments of retiring employee''s gratuities. The premium thereon has been so adjusted as to cover the liability under scheme in respect of eligible employees at the end of their future anticipated service with the company

14 BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of the assets, up to the date the asset is ready for its intended use. All other borrowing costs are recognized as expense and charged to the Proft and Loss Account in the year in which they are incurred

15 TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax for the year is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/virtual certainty of its realization.

16 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company recognizes provisions when there is present obligation as a result of past event and it is probable that there will be an outfow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for Contingent liabilities is made in the notes on accounts when there is a possible obligation or present obligations that may, but probably will not, require an outfow of resources. Contingent assets are neither recognized nor disclosed in the fnancial statement.


Mar 31, 2013

1 ACCOUNTING CONVENTION

The financial statements are prepared under the historical cost convention, on an accrual basis of accounting. statement complies with the Accounting Standard prescribed by the ICAI and also complies with the Section 21 (C) of the Companies Act, 1956. The accounts are prepared as a going concern.

2 USE OF ESTIMATES

The preparation of financial statements requires estimates and assumptions to be made that affect the repor amount of assets and laibilites on the date of the financial statements and the reported amount of revenues i expenses during the reporting period. Difference between the actual results and estimates are recognised in the per in which the results are known/ materialised

3 CASH AND CASH EQUIVALENTS

Cash and cash equivalents for the purpose of cash flow statement comprise cash and bank and in hand and shi -term investments with an original maturity of three months oHess

4 FIXED ASSETS

Own Fixed Assets

Fixed Assets are stated at cost net of recoverable taxes. All costs including financing cost till commencement < commercial production, net charges on foreign exchange contracts and adjustments arises from exchange rat variations attributable to the fixed assets are capitalised.

5 LEASED ASSETS

Operating Lease: Rentals are expensed with reference to lease terms and other considerations.

6 INTANGIBLE ASSETS

Intangible Assets are stated at cost of acquisition net of recoverable taxes. All costs including financing cost till commencements of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalised

7 DEPRECIATION / AMORTIZATION

Depreciation for the year in respect of assets relating to undertaking at Tarapur has been provided on straight line method at the rates specified as per Schedule XIV of the Companies Act, 1956

In respect of assets relating to undertakings at Kandivali depreciation has been provided on written down value method at the rates specified as per Schedule XIV of the Companies Act, 1956.

Lease hold land has been amortized over the period of the lease on straight line basis

Depreciation on the Fixed Assets added during the year has been provided on pro -rata basis with reference to the month of addition.

8 IMPAIRMENT OF ASSETS

An asset treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

9 FOREIGN CURRENCY TRANSACTIONS

Transactions denominated to'' foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

Monetary items denominated in foreign currencies at the year end are restated at year end rules. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange difference and the premium paid on forward contracs is recognised over the life of the contract.

Non monetary foreign currancy items are carried at cost

Any income or expense on account of exchange difference either on settelment or on translation is recognised in the Profit and Loss account except in cae of long term liabilites, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

10 INVESTMENTS

Current Investments are carried at lower of cost and quoted/fair value, computed category wise.

The long-term investments are stated at cost. Provision for permanent diminution in value is made only if such a decline is other than temporary in nature.

11 INVENTORIES

Inventories of Raw Materials, Stores and Spares, Finished goods and Work in progress are valued at lower of cost or net realizable value after providing for obsolescence, if any.

Cost comprises of all cost of purchases, cost of conversion and other cost incurred in bringing the inventory to their present location and conditions

Cost is determined under Weighted Average method for Raw Material, stores & spares & Work in Progess and for fabrics on FIFO basis.

12 REVENUE RECOGNITION

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection.

Revenue from operations include sale of goods, process income and job work receipts which are exclusive of sales tax-but net off after adjusting claims, incentives, rebates and discounts.

Dividend income is recognised when right to receive is established.

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

13 EMPLOYEES BENEFITS

Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account for the year in which the related service is rendered

Post employment and other long term employee benefits are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the profit and loss account.

The Company has taken Group/Master insurance Policy with Life Insurance Corporation of India for the future payments of retiring employee''s gratuities. The premium thereon has been so adjusted as to cover the liability under scheme in respect of eligible employees at the end of their future anticipated service with the company

14 BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of the assets, up to the date the asset is ready for its intended use. All other borrowing costs are recognized as expense and charged to the Profit and Loss Account in the year in which they are incurred

15 TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax for the year is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/virtual certainty of its realization.

16 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company recognizes provisions when there is present obligation as a result of past event and it is probable that there will be an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for Contingent liabilities is made in the notes on accounts when there is a possible obligation or present obligations that may, but probably will not, require an outflow of resources. Contingent assets are neither recognized nor disclosed in the financial statement.

17 SEGMENT REPORTING

The Company''s operation fall under single segment namely "Textile" therefore, separate business segment is not disclosed


Mar 31, 2012

I. ACCOUNTING CONVENTION

The financial statements are prepared under the historical cost convention, on an accrual basis of accounting. The statement complies with the Accounting Standard prescribed by the ICAI and also complies with the Section 211 (3) ( C) of the Companies Act, 1956. The accounts are prepared as a going concern.

ii. USE OF ESTIMATES .

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized

iii. CASH AND CASH EQUIVALENTS

Cash and cash equivalents for the purpose of cash flow statement comprise cash and bank and in hand and short -term investments with an original maturity of three months or less

iv. FIXED ASSETS Fixed assets are stated at cost of acquisition or construction inclusive of incidental expenses related thereto and is net of credit under the excise CENVAT Scheme where applicable.

v. DEPRECIATION/AMORTIZATION

Depreciation for the year in respect of assets relating to undertaking at Tarpaper has been provided on straight line method at the rates specified as per Schedule XIV of the Companies Act, 1956

In respect of assets relating to undertakings at Kandivali depreciation has been provided on written down value method at the rates specified as per Schedule XIV of the Companies Act, 1956.

Lease hold land has been amortized over the period of the lease on straight line basis

Depreciation on the Fixed Assets added during the year has been provided on pro -rata basis with reference to the month of addition.

vi. INVESTMENTS

The long-term investments are stated at cost. Provision for permanent diminution in value is made only if such a decline is other than temporary in nature.

vii. INVENTORIES

Inventories of Raw Materials, Stores and Spares, Finished goods and Work in progress are valued at lower of cost or net realizable value .

Cost comprises of all cost of purchases, cost of conversion and other cost incurred in bringing the inventory to their present location and conditions

Cost is determined under Weighted Average method for stores & spares and for fabrics oh FIFO basis.

viii. REVENUE RECOGNITION

Revenue is recognized only when it can be reliably measure and it is reasonable to expect ultimate collection.

Purchases/Sales/Process & Job work receipts are exclusive of Sales Tax but net off after adjusting claims, incentives, rebates, discounts etc

Dividend income on investments is accounted for when the right to receive the payment is established.

ix. EMPLOYEES BENEFITS

Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account for the year in which the related service is rendered

Post employment and other long term employee benefits are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the profit and loss account.

The Company has taken Group/Master insurance Policy with Life Insurance Corporation of India for the future payments of retiring employee's gratuities. The premium thereon has been so adjusted as to cover the liability under scheme in respect of eligible employees at the end of their future anticipated service with the company

x. BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of the assets, up to the date the asset is ready for its intended use. All other borrowing costs are recognized as expense and charged to the Profit and Loss Account in the year in which they are incurred .

xi. TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax for the year is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/virtual certainty of its realization.

xii. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company recognizes provisions when there is present obligation as a result of past event and it is probable that there will be an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for Contingent liabilities is made in the notes on accounts when there is a possible obligation or present obligations that may, but probably will not, require an outflow of resources. Contingent assets are neither recognized nor disclosed in the financial statement.

xiii. SEGMENT REPORTING

The Company's operation fall under single segment namely "Textile" therefore, separate business segment is not disclosed.


Mar 31, 2011

A) ACCOUNTING CONVENTION

The financial statements are prepared under the historical cost convention, on an accrual basis of accounting. The statement complies with the Accounting Standard prescribed by the ICAI and also complies with the Section 211 (3) (C) of the Companies Act, 1956. The accounts are prepared as a going concern.

B) FIXED ASSETS

Fixed assets are stated at cost of acquisition or construction inclusive of incidental expenses related thereto and is net of credit under the excise CENVAT Scheme where applicable.

C) DEPRECIATION / AMORTIZATION

i) Depreciation for the year in respect of assets relating to undertaking at Tarapur has been provided on straight line method at the rates specified as per Schedule XIV of the Companies Act, 1956.

ii) In respect of assets relating to undertakings at Kandivali depreciation has been provided on written down value method at the rates specified as per Schedule XIV of the Companies Act, 1956.

iii) Lease hold land has been amortized over the period of the lease on straight line basis.

iv) Depreciation on the Fixed Assets added duringthe year has been provided on pro -rata basis with reference to the month of addition.

D) INVESTMENTS

The long-term investments are stated at cost. Provision for permanent diminution in value is made only if such a decline is other than temporary in nature.

E) INVENTORIES

I) Inventories of Raw Materials, Stores and Spares, Finished goods and Work in progress are valued at lower of cost or net realizable value.

ii) Cost comprises of all cost of purchases, cost of conversion and other cost incurred in bringing the inventory to their present location and conditions.

iii) Cost is determined under Weighted Average method for stores & spares and for fabrics on FIFO basis.

F) REVENUE RECOGNITION

i) Revenue is recognized only when it can be reliably measure and it is reasonable to expect ultimate collection.

ii) Purchases/Sales/Process & Job work receipts are exclusive of Sales Tax but net off after adjusting claims, incentives, rebates, discounts etc.,

iii) Dividend income on investments is accounted for when the right to receive the payment is established.

G) RETIREMENT BENEFITS

i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account for the year in which the related service is rendered.

ii) Post employment and other long term employee benefits are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the profit and loss account.

H) BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of the assets, up to the date the asset is ready for its intended use. All other borrowing costs are recognized as expense and charged to the Profit and Loss Account in the year in which they are incurred.

I) TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax for the year is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/virtual certainty of its realization.

J) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company recognizes provisions when there is present obligation as a result of past event and it is probable that there will be an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for Contingent liabilities is made in the notes on accounts when there is a possible obligation or present obligations that may, but probably will not, require an outflow of resources. Contingent assets are neither recognized nor disclosed in the financial statement.

K) SEGMENT REPORTING

The Company's operation fall under single segment namely "Textile" therefore, separate business segment is not disclosed.


Mar 31, 2010

A) ACCOUNTING CONVENTION

i) The financial statements are prepared under the historical cost convention, on an accrual basis of accounting. The statement complies with the Accounting Standard prescribed by the ICAI and also complies with the Section 211 (3) (C) of the Companies Act, 1956. The accounts are prepared as a going concern.

B) FIXED ASSETS

Fixed assets are stated at cost of acquisition or construction inclusive of incidental expenses related thereto and is net of credit under the excise CENVAT Scheme where applicable.

C) DEPRECIATION/AMORTIZATION

i) Depreciation for the year in respect of assets relating to undertaking at Tarapur has been provided on straight line method at the rates specified as per Schedule XIV of the Companies Act, 1956.

ii) In respect of assets relating to undertakings at Kandivali depreciation has been provided on written down value method at the rates specified as per Schedule XIV of the Companies Act, 1956.

iii) Lease hold land has been amortized over the period of the lease on straight line basis.

iv) Depreciation on the Fixed Assets added during the year has been provided on pro -rata basis with reference to the month of addition.

D) INVESTMENTS

The long-term investments are stated at cost. Provision for permanent diminution in value is made only if such decline is other than temporary in nature.

E) INVENTORIES

I) Inventories of Raw Materials, Stores and Spares, Finished goods and Work in progress are valued at lower of cost or net srealizable value.

ii) Cost comprises of all cost of purchases, cost of conversion and other cost incurred in bringing the inventory to their present location and conditions.

iii) Cost is determined under sWeighted Average method for stores & spares and for fabrics on FIFO sbasis.

F) REVENUE RECOGNITION

i) Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.The Companys share in the profit / loss of the partnership firm is accounted as per the unaudited accounts of the Partnership.

ii) Purchases/Sales/Process & Job work receipts are exclusive of Sales Tax but net off after adjusting claims, incentives, rebates, discounts etc.,

iii) Dividend income on investments is accounted for when the right to receive the payment is established.

G) RETIREMENT BENEFITS

i) Short-term employee bene fits are recognized as an expense at the undiscounted amount in the profit and loss account for the year in which the related service is rendered.

ii) Post employment and other long term employee benefits are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the profit and loss account.

H) BORROWING COST

Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of the assets, up to the date the asset is ready for its intended use.AII other borrowing costs are recognized as expense and charged to the Profit and Loss Account in the year in which they are incurred.

I) TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the year Deferred Tax for the year is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable/virtual certainty of its realization.

J) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company recognizes provisions when there is present obligation as a result of past event and it is probable that there will be an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for Contingent liabilities is made in the notes on accounts when there is a possible obligation or present obligations that may, but probably will not, require an out flow of resources. Contingent assets are neither recognized nor disclosed in the financial statement.

K) SEGMENT REPORTING

The Companys operation fall under single segment namely "Textile" therefore, separate business segment is not disclosed.

 
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