Mar 31, 2015
1 Basis of Preparation of Financial Statements
The financial statements have been prepared to comply with Generally
Accepted Accounting Principles in India (Indian GAAP), including the
Accounting Standards notified under the relevant provision of the
Companies Act, 2013.The financial statements are prepared on accrual
basis under the historical cost convention. The accounting policies
have been consistently applied by the company and are consistent with
those used in the previous year.
2 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 actual and estimation are recognised in the period in which the
result are known/ materialise.
3 Fixed Assets
All fixed assets are valued at cost less depreciation. All costs
including borrowing costs relating to the acquisition and installation
of fixed assets are capitalised.
4 Depreciation
Depreciation on Fixed Assets is provided to the extent of depreciable
amount on the 'Straight Line Method'. Depreciation is provided based
on useful life of the assets as prescribed in Schedule II to the
Companies Act, 2013.
5 Impairment
At each balance sheet date, the Company reviews the carrying amounts of
its fixed assets to determine whether there is any indication that
those assets suffered an impairment loss. If any such indication exist
the recoverable amount of the asset is estimated to determine the
extent of impairment loss and necessary adjustments is made there
against Reversal of impairment loss is recognised as income in the
profit and loss account.
6 Investment
Current investment are carried at lower of cost and fair value; if any,
and Non Current Investments are stated at cost.; if any, Provision for
diminution in value on Non Current investments is made only if such a
decline is other than temporary.
7 Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as result of past
events and it is probable that there will be an outflow of resources,
Contingent Liabilities are not recognised but are disclosed in the
notes, Contingent Assets are neither recognised nor disclosed in the
financial statements.
8 Revenue Recognition
Sales: Sales of goods is recognised at the point of despatch of
finished goods to the customers and is reported excluding rebates,
discounts, sales tax value added tax. Differences arising due to
exchange fluctuation in case of Export Sales are included in sales.
9 Borrowing Cost
Borrowing costs are charged to Profit & Loss Account except borrowing
costs directly attributable to the acquisition of fixed assets which
are capitalised upto the date of the fixed assets is put to commercial
use.
10 Employees Benefits
a) Gratuity: Provision for gratuity liability has been made as per
actuarial valuation.
b) Leave Encashment: Provision for accumulated leave encashment
liability has been made as per actuarial valuation.
11 Foreign Exchange Transactions
Foreign Currency Transactions outstanding at the close of the year are
converted into Indian Rupee on the basis of exchange rate of the
currency as on the close of the year.
12 Taxation
a) Provision for current tax is made after taking into consideration
benefits admissible under The Income Tax Act,1961.
b) Deferred Tax resulting from "timing difference" between book and
taxable profit is accounted for using tax rates and laws that have been
enacted or substantively enacted as on the date of the balance sheet.
Def- ferried Tax Asset is recognised and carried forward only to the
extent that here is reasonable certainty that the assets will be
realised in the future.
13 Inventories
Inventories have been valued as under:- - Finished Goods including in
transit has been valued at cost or market value whichever is less.
- Loose yarn is valued at cost.
- Stock in Process is valued at Cost.
- Raw Materials are valued at cost.
- Stores & Spare Parts, Colour &Chemicals, Packing Materials and Oil
and Fuel are valued at cost.
- Stock of Cotton Waste/Scrap is valued at estimated realisable value.
14 Segment Reporting
The Company has one reportable primary segment of Textiles (Spinning).
Hence segment reporting is not applicable.
Mar 31, 2014
1 Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost
convention and in accordance with applicable Accounting Standards
issued by the Institute of Chartered Accountants of India and relevant
disclosure requirements of Companies Act, 1956/ 2013 as applicable as
adopted consistently by the company. The accounting policies have been
consistently applied by the company and are consistant with those used
in the previous year.
2 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. Diffrence
between actual and estimation are recognised in the period in which the
result are known/ materialise.
3 Fixed Assets
All fixed assets are valued at cost less depreciation. All costs
including borrowing costs relating to the acquisition and installation
of fixed assets are capitalised.
4 Depreciation
Depreciation is provided under the ''Straight Line Method'' as per the
rates specified in Schedule XIV to the Companies Act, 1956.
5 Impairment
At each balance sheet date, the Company reviews the carrying amounts of
its fixed assets to determine whether there is any indication that
those assets suffered an impairment loss. If any such indication exist
the recoverable amount of the asset is estimated to determine the
extent of impairment loss and necessary adjustments is made there
against Reversal of impairment loss is recognised as income in the
profit and loss account.
6 Investment
Long Term Investments are carried at cost less provision; if any, for
dimunation in market value which in the opinion of the Board of
Directors is not temporary.
7 Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as result of past
events and it is probable that there will be an outflow of resources,
Contingent Liabilities are not recognised but are disclosed in the
notes, Contingent Assets are neither recognised nor disclosed in the
financial statements.
8 Revenue Recognition
Sales: Sales of goods is recognised at the point of dispatch of
finished goods to the customers and is reported excluding
rebates,discounts, sales tax. Differences arising due to exchange
fluctuation in case of Export Sales are included in sales.
9. Borrowing Cost
Borrowing costs are charged to Profit & Loss Account except borrowing
costs directly attributable to the acquisition of fixed assets which
are capitalised upto the date of the fixed assets is put to commercial
use.
10. Employees Benefits
a) Gratuity: Provision forgratuity liability has been made as
peractuarial valuation.
b) Leave Encashment: Provision for accumulated leave encashment
liability has been made as per actuarial valuation.
11 Foreign Exchange Transactions
Foreign Currency Transactions outstanding at the close of the year are
converted into Indian Rupee on the basis of exchange rate of the
currency as on the close of the year.
12 Taxation
a) Provision for current tax is made after taking into consideration
benefits admissible under The Income Tax Act, 1961.
b) Deferred Tax resulting from "timing difference" between book and
taxable profit is accounted for using tax rates and laws that have been
enacted or substantively enacted as on the date of the balance sheet.
Defferred Tax Asset is recognised and carried forward only to the
extent that there is reasonable certainty that the assets will be
realised in the future.
13. Inventories
Inventories have been valued as under:- Finished Goods including in
transit has been valued at cost or market value whichever is less.
* Loose yarn is valued at cost.
* Stockin Process is valued at Cost.
* Raw Materials are valued at cost.
* Stores & Spare Parts, Colour &Chemicals, Packing Materials and Oil
and Fuel are valued at cost.
* Stock of Cotton Waste/Scrap is valued at estimated realisable value.
14. Segment Reporting
The Company has one reportable primary segment of Textiles (Spinning).
Hence segment reporting is not applicable.
Mar 31, 2012
1 Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost
convention and in accordance with applicable Accounting Standards
issued by the Institute of Chartered Accountants of India and relevant
disclosure requirements of Companies Act, 1956 as adopted consistently
by the company. The accounting policies have been consistently applied
by the company and are consistant with those used in the previous year.
2 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. Diffrence
between actual and estimation are recognised in the period in which the
result are known/ materialise.
3 Fixed Assets
All fixed assets are valued at cost less depreciation. All costs
including borrowing costs relating to the acquisition and installation
of fixed assets are capitalised.
4 DepriCiation
Depreciation is provided under the 'Straight Line Method' as per the
rates specified in Schedule XIV to the Companies Act, 1956.
5 Impairment
At each balance sheet date, the Company reviews the carrying amounts of
its fixed assets to determine whether there is any indication that
those assets suffered an impairment loss. If any such indication exist
the recoverable amount of the asset is estimated to determine the
extent of impairment loss and necessary adjustments is made there
against Reversal of impairment loss is recognised as income in the
profit and loss account.
6 Investment
Long Term Investments are carried at cost less provision; if any, for
dimunation in market value which in the opinion of the Board of
Directors is not temporary.
7 Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as result of past
events and it is probable that there will be an outflow of resources,
Contingent Liabilities are not recognised but are disclosed in the
notes, Contingent Assets are neither recognised nor disclosed in the
financial statements.
8 Revenue Recognition
Sales: Sales of goods is recognised at the point of despatch of
finished goods to the customers and is reported excluding
rebates,discounts, sales tax. Differences arising due to exchange
fluctuation in case of Export Sales are included in sales. .
9 Borrowing Cost
Borrowing costs are charged to Profit & Loss Account except borrowing
costs directly attributable to the acquisition of fixed assets which
are capitalised upto the date of the fixed assets is put to commercial
use. .
10 Employees Benefits
a) Gratuity: Provision for gratuity liability has been made as per
actuarial valuation.
b) Leave Encashment: Provision for accumulated leave encashment
liability has been made as per actuarial valuation.
SIGNIFICANT ACCOUNTING POLICIES 11 Foreign Exchange Transactions
Foreign Currency Transactions outstanding at the close of the year are
converted into Indian Rupee on the basis of exchange rate of the
currency as on the close of the year.
12 Taxation
a) Provision for current tax is made after taking into consideration
benefits admissible under The In- come Tax Act,1961.
b) Deferred Tax resulting from "timing difference" between book and
taxable profit is accounted for using tax rates and laws that have been
enacted as on the date of the balance sheet. Deferred Tax Asset is
recognised and carried forward only to the extent that there is
reasonable certainty that the assets will be realised in the future.
13 Inventories ,
Inventories have been valued as under:-
-Finished Goods including in transit has been valued at cost or market
value whichever is less. -Loose yarn is valued at cost.
-Stock in Process is valued at Cost.
-Raw Materials are valued at cost.
-Stores & Spare Parts, Colour &Chemicals, Packing Materials and Oil and
Fuel are valued at cost. -Stock of Cotton Waste/Scrap is valued at
estimated realisable value.
14 Segment Reporting
The Company has one reportable primary segment of Textiles (Spinning).
Hence segment reporting is not applicable.
Mar 31, 2010
The financial statements have been prepared under the historical cost
conversion and in accordance with applicable Accounting Standards
issued by the Institute of Chartered Accountants of India and relevant
disclosure requirements of Companies Act, 1956 as adopted consistently
by the Company. The accounting policies have been consistently applied
by the Company and are consistant with those used in the previous year.
a. All revenues, costs, assets and liabilities are accounted for on
accrual basis.
b. FIXED ASSETS : All fixed assets are valued at cost less
depreciation. All costs relating to the acquisition and installation of
fixed assets are capitalised.
c. DEPRECIATION : Depreciation is provided under the Straight Line
Method1 as per the rates specified in Schedule XIV to the Companies
Act, 1956.
d. IMPAIRMENT - At each balance sheet date, the Company reviews the
carrying amounts of its fixed assets to determine whether there is any
indication that these assets suffered an impairment loss. If any such
indication exist the recoverable amount of the asset is estimated to
determine the extent of impairment loss and necessary adjustment is
made there against. Reversal of impairment loss is recognised as income
in the profit and loss account.
e. Investment: Long Term Investments are carried at cost less
provision, if any for permanent dimunation in value.
f. INVENTORIES : Inventories have been valued as under:-
- Finished Goods including in transit has been valued at cost or market
value whichever is less.
- Loose yarn is valued at cost proportionate to the respective stage of
production.
- Stock in Process is valued at Raw Material Cost.
- Raw Materials are valued at cost.
- Stores & Spare Parts, Colour &Chemicals, Packing Materials and Oil
and Fuel are valued at cost.
- Stock of Cotton Waste/Scrap is valued at estimated realisable value.
g. SALES : Sales of goods is recognised at the point of despatch of
finished goods to the customers and is reported excluding
rebates,discounts, sales tax. Differences arising due to exchange
fluctuation in case of Export Sales are included in sales.
h. GRATUITY : Provision for gratuity liability has been made as per
actuarial valuation.
i. LEAVE ENCASHMENT : Provision for accumulated leave encashment
liability has been made as per actuarial valuation.
j. Borrowing costs are charged to Profit & Loss Account except
borrowing costs directly attributable to the acquisition of fixed
assets which are capitalised upto the date of the fixed assets is put
to commercial use.
k. FOREIGN CURRENCY TRANSACTIONS : Foreign Currency Transactions
outstanding at the close of the year are converted into Indian Rupee on
the basis of exchange rate of the currency as on the close of the year.
l. Taxes on income : Provision for current tax is made after taking
into consideration benefits admissible under The Income Tax Act,1961.
Deferred Tax resulting from "timing difference" between book and
taxable profit is accounted for using taxrates and laws that have been
enacted as on the date of the balance sheet. Defferred Tax Asset is
recognised and carried forward only to the the extent that there is
reasonable certainty that the assets will be realised in the future.
m. Segment Reporting: The Company has one reportable primary segment of
Textiles (Spinning). Hence segment reporting is not applicable.