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Accounting Policies of Jagjanani Textiles Ltd. Company

Mar 31, 2014

(1) Basis of Accounting

Financial statements are prepared under the historical cost convention, in accordance with generally accepted Accounting Standards applicable in India and the provisions of Companies Act, 1956. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties relating to income.

(2) Revenue Recognition

Sales are recognized on completion of sale of goods and recorded gross of tax but net of trade discounts & rebates.

(3) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. The Company capitalizes all costs relating to the acquisitions and installations of fixed assets. Direct financing cost, if any, incurred during construction period in respect of major projects is also capitalized.

(4) Depreciation

Depreciation is provided on Straight Line Method on all Fixed Assets at the rates prescribed in Schedule XIV of the Companies Act,1956. In respect of assets acquired during the financial year, depreciation is provided on Pro-rata basis with reference to the period each assets was put to use during financial year. During the year Depreciation has been charged on the basis of single shift in view of the plant operations.

(5) Investments Investments are valued at cost.

(6) Inventories

a) All inventories are valued at cost or market value whichever is lower

b) For arriving cost of Finished Goods and stock in process all production expenses and depreciation except financing cost and marketing cost are considered.

c) In respect of raw materials, stores and spares cost is computed on weighted average basis.

d) Fixed overhead are allocated for inclusion in the cost of conversion on the basis of normal level of production capacity. Conversion cost is apportioned to the finished goods in process on the basis of estimated values and proportions arrived at by the cost sheet of the last month of financial period in which production had taken place.

(7) Foreign Currency Transactions

There were no foreign currency transactions during the year.

(8) Retirement Benefits

a) Liabilities in respect of gratuity and leave encashment are provided on the basis of actual calculation.

b) Contribution to Employees Provident Fund Scheme are paid to the Regional Commissioner of Provident Fund


Mar 31, 2013

(1) Basis of Accounting

Financial statements are prepared under the historical cost convention, in accordance with generally accepted Accounting Standards applicable in India and the provisions of Companies Act, 1956.

The Company follows the mercantile system of accounting and recognize income and expenditure on accrual basis except in case of significant uncertainties relating to income.

(2) Revenue Recognition

(i) Sales are recognized on completion of sale of goods and recorded gross of excise but net of trade discounts & rebates.

(ii) Export entitlement under the duty entitlement pass book (DEPB) Scheme are recognized in the Profit & Loss Account on the basis of dispatch.

(3) Fixed Assets

Fixed Assets are stated at cost les accumulated depreciation. The Company capitalizes all costs relating to the acquisitions and installations of fixed assets. Direct financing cost, if any, incurred during construction period in respect of major projects is also capitalize.

(4) Depreciation

Depreciation is provided on Straight Line Method on all Fixed Assets at the rates prescribed in Schedule XrV of the Companies Act, 1956. In respect of assets acquired during the financial year, depreciation is provided on Pro-rata basis with reference to the period each asset was put to use during financial year.

(5) Investments Investments are valued at cost.

(6) Inventories

(i) All inventories are valued at cost or market value whichever is lower.

(ii) For arriving cost of Finished Goods and stock in process all production expenses and depreciation except financing cost and marketing cost are considered.

(iii) In respect of raw materials, stores and spares cost is computed on weighted average basis.

(iv) Fixed overhead are allocated for inclusion in the cost of conversion on the basis of normal level of production capacity. Conversion cost is apportioned to the finished goods in process on the basis of estimated values and proportions arrived at by the cost sheet of the last month of financial period in which production had taken place.

(7) Foreign Currency Transactions

Foreign Currency Transactions are accounted at exchange rates prevailing on the date of transaction. Any exchange variation realized in subsequent Financial Year is shown separately on realization.

(8) Retirement Benefits

(i) Liabilities in respect of gratuity and leave encashment are provided on the basis of actual calculation.

(ii) Contribution to Employees Provident Fund Scheme are payable to the Regional Commissioner of Provident Fund.


Mar 31, 2012

(1) Basis of Accounting

Financial statements are prepared under the historical cost convention, in accordance with generally accepted Accounting Standards applicable in India and the provisions of Companies Act, 1956.

The Company follows the mercantile system of accounting and recognize income and expenditure on accrual basis except in case of significant uncertainties relating to income.

(2) Revenue Recognisation

(i) Sales are recognized on completion of sale of goods and recorded gross of excise but net of trade discounts & rebates.

(ii) Export entitlement under the duty entitlement pass book(DEPB) Scheme are recognized in the Profit & Loss Account on the basis of dispatch.

(3) Fixed Assets

Fixed Assets are stated at cost les accumulated depreciation. The Company capitalizes all costs relating to the acquisitions and installations of fixed assets. Direct financing cost, if any, incurred during construction period in respect ofmajor projects is also capitalize.

(4) Depreciation

Depreciation Is provided on Straight Line Method on all Fixed Assets at the rates prescribed in Schedule XIV of the Companies Act,1956. In respect of assets acquired during the financial year, depreciation is provided on Pro-rata basis with reference to the period each assets was put to use during financial year.

(5) Investments

Investments are valued at cost.

(6) Inventories

(I) All inventories are valued at cost or market value whichever is lower

(II) For arriving cost of Finished Goods and stock in process all production expenses and depreciation except financing cost and marketing cost are considered.

(III) In respect of raw materials, stores and spares cost is computed on weighted average basis.

(IV) Fixed overhead are allocated for inclusion in the cost of conversion on the basis of normal level of production capacity. Conversion cost is apportioned to the finished goods in process on the basis of estimated values and proportions arrived at by the cost sheet of the last month of financial period in which production had taken place.

(7) Foreign Currency Transactions

Foreign Currency Transactions are accounted at exchange rates prevailing on the date of transaction. Any exchange variation realized in subsequent Financial Year is shown separately on realization.

(8) Retirement Benefits

(i) Liabilities in respect of gratuity and leave encashment are provided on the basis of actual calculation.

(ii) Contribution to Employees Provident Fund Scheme are payable to the Regional Commissioner of Provident Fund.


Mar 31, 2010

(1) Basis of Accounting

Financial statements are prepared under the historical cost convention, in accordance with generally accepted Accounting Standards applicable in India and the provisions of Companies Act, 1956 The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties relating to income.

(2) Revenue Recognition

(i) Sales are recognized on completion of sale of goods and are recorded gross of excise but net of trade discounts & rebates.

(ii) Export entitlements under the duty entitlement pass book (DEPB) Scheme are recognized in the Profit & Loss Account on the basis of despatch.

(3) Fixed Assets

Fixed Assets are recorded at cost. The Company capitalizes all costs relating to acquisitions and installations of fixed assets. Direct financing cost, if any, incurred during construction period in respect of major projects is also capitalized.

(4) Depreciation

Depreciation is provided on straight line method on all Fixed Assets at the rates prescribed in Schedule XIV of the Companies Act, 1956. In respect of assets acquired during the financial year, depreciation is provided on Pro-rata basis with reference to the period each assets was put to use during the financial year.

(5) Investments

Investments are valued at cost.

(6) Inventories

(i) All inventories are valued at cost or market value whichever is lower.

(ii) For arriving cost of Finished Goods and stock in process all production expenses and depreciation except financing and marketing cost are considered. (iii) In respect of raw materials, stores and spares cost is computed on weighted average basis. (iv) Fixed over -heads are allocated for inclusion in the cost of conversion on the basis of normal levels of production capacity. Conversion cost is apportioned to finished goods in process on the basis of estimated values and proportions arrived at by the cost sheet of the last month of financial period in which production had taken place.

(7) Foreign Currency Transactions

Foreign currency transactions are accounted at exchange rates prevailing on the date of the transaction. Any exchange variation realized in subsequent Financial Year is shown separately on realization.

(8) Retirement Benefits

(i) Liabilities in respect of gratuity and leave encashment are provided on the basis of actual calculations.

(ii) Contributions to Employees Provident Fund Scheme are paid to Regional Commissioner of Provident Fund.

 
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