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Accounting Policies of Momai Apparels Ltd. Company

Mar 31, 2015

A. Basis of preparation of Financial Statements.

These financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and other accounting principles generally accepted in India, to the extent applicable.

B. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent 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 recognised in the period in which the results are known/materialised.

C. Revenue Recognition

Revenue from sale of goods is recognised when all the significant risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract, the Company retains no effective control of the goods transferred to a degree usually associated with ownership and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods. Sales are recognized net of trade discounts, rebates and sales taxes. Interest on investments is recognised on a time proportion basis taking into account the amounts invested and the rate of interest. Dividend income on investments is recognised when the right to receive dividend is established.

D. Tangible Fixed Assets

Tangible fxed assets are stated at cost net of recoverable taxes, trade discounts and rebates, less accumulated depreciation and accumulated impairment losses, if any. The cost of Tangible fixed assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use. Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Tangible fixed assets not ready for the intended use on the date of Balance Sheet are disclosed as "Capital work-in-progress".

E. Depreciation, Amortsation And Depletion

Depreciation on Tangible Fixed Assets is provided on a pro-rata basis to the extent of depreciable amount on the Written Down Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 except in respect of Computers & Printer, where useful life is taken to be 6 years instead of 3 years prescribed in Schedule II. Assets costing Rs. 5000 or less are fully depreciated in the year of purchase.

F. Impairment Of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Statement 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.

G. Investments

Investments are classified into current and non-current investments. Current investments are stated at the lower of cost and fair value. Non-current investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, separately for each individual non-current investments. Investments that are readily realisable and are intended to be held for not more than one year from the date on which such investments are made, are classified as "Current investments". All other investments are classified as "Non-Current investments".

H. Inventories

Raw Materials & Finished Goods have been valued at Cost or Net realisable value, whichever is lower. Work in Progress is valued at estimated cost of production as identified by the Management. The Inventory is physically verified by the management at regular intervals. Cost of Inventory comprises of Cost of Purchase, Cost of Conversion and other Costs incurred to bring them to their respective present location and condition.

I. Trade Receivables & Other Loans & Advances

Trade receivables and Loans and advances are stated after making adequate provisions for doubtful balances.

J. Provisions and Contingent liabilities

Provisions are recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to its present value. These are reviewed at each year end date and adjusted to reflect the best current estimate.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

K. Employee Benefits

- Defined Contribution Plans

The Company makes specified monthly contributions towards Provident Fund, Superannuation Fund and Pension Scheme. The Company's contribution is recognised as an expense in the Profit and Loss Statement during the period in which the employee renders the related service.

- Defined Benefit Plans

The Company is not providing for any defined benefit plan to the employees for post retirement.

L. Taxation

Tax expense for the year comprises 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. Any additional liability arising during the course of assessment proceedings will be accounted for as "Tax of earlier years" on actual determination of liability by the Income Tax Dept.

Deferred tax is recognised for all the timing differences, subject to the considerate OR on of prudence in respect of deferred tax assets. 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 recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable Profits. The carrying amount of deferred tax assets is reviewed at each Balance Sheet date for any write down, as considered appropriate.

M. Foreign Currency Transaction

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Profit and Loss.

All other exchange differences are recognised as income or as expenses in the period in which they arise. Forward exchange contracts outstanding as at the year end on account of firm commitment transactions are marked to market and the losses, if any, are recognised in the Statement of Profit and Loss and gains are ignored in accordance with the announcement of the Institute of Chartered Accountants of India on 'Accounting for Derivatives' issued in March 2008.

N. Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of that assets. Other borrowing costs are recognized as an expense in the period in which they are incurred.

O. Earning per Share

Basic earnings per share is calculated by dividing the net Profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net Profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilute potential equity shares.


Mar 31, 2014

25.1. CORPORATE INFORMATION

Morrrat Apparels Limited (Earlier known as Mom a Apparels Private Limited) was incorporated on January 21. 2010 as a private limited company under the Companies Act and registered with the ROC The CIN of Momal Apparels Limited is U1S109MH201OPTC199178. The registered office of MAL is situated at Unit No. 305-B23309, 3rd Floor Plaza, Plot No. 570, TPS IV, Off Bhawant Shankar Road. Mahim Division. Dadar (West), Mumbai - 400 028, Maharashtra. India MAL is engaged in the business of manufacturing of non-branded intimate garments i.e. products far Ashapura intimates Fashion Ltd (AIFL).

25.2. BASIS OF ACCOUNTS

These financial statement have been prepared and presented under the historical cost convention on accrual basis of accounting, unless otherwise stated and comply with generally accepted accounting principles, statutory requirements, the Accounting Standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) to the extern applicable and current practice prevailing. The Company follows Mercantile System of Accounting except Gratuity and other retirement benefits which are accounted on cash basis.The accounting policies adopted in the preparation of financial statements are consistent with those of previous years

25.3 PREVIOUS YEAR'S FIGURES

The company has reciassified/Restated to the extern required previous year's figures to conform to classification mentioned in revised schedule V! notified under the companies act 1950.

25.4 Use of Estimates

The preparation of ihe financial statements . is in conformity with generally accepted accounting principles which requires management to make estimates and assumptions "that affects the reported amounts of Assets and Liabilities, revenues and expenses and disclosure of Contingent Liabilities at the date of the financial statements. Actual result could differ from those estimates. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Any revision to the accounting estimates is recognized prospectively in the current and future period.

25.5 REVENUE RECOGNITION

a) Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured,

0) Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer.

C) The Company follows the Accrual System of accounting and recognizes income and expenditure on accrual basis

d) Till last year the revenue from operations was shown on gross basis i.e including taxes and duties, however the management has changed its policy from the current financial year to disclose the same using "Exclusive method", previous year figures have also been restated accordingly.

25.6. TAXATION

6.1. Current income tax on income for the current period is determined on the basis of taxable income and tax credit computed in accordance with the provisions of the Income Tax Act 1961, and based on expected outcome of assessment /appeals.

8.2. Deferred Tax is recognized subject to the consideration of prudance on the timing difference, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal of one or more subsequent periods.

25.7. IMPAIRMENT OF ASSETS

No material Impairment of Assets has been identified by the Company and as such no provision is required as per Accounting Standards (AS 28) issued by the institute of Chartered Accountants of India.

25.8. Fixed Assets I Capital work-in-progress/ Intangible assets

Fixed assets are stated at actual cost, which comprises of purchase consideration and other directly attributable costs for bringing the assesls to Its working condition for the intended use, Direct Costs are Capitalized until fixed assets are ready for use. Capital work-in-progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting dale. Capital Work in progress at the beginning of ihe year are capitalised during the year as they have been installed during the year and are ready for commercial production.

25.9. Depredation and Amortization

a) Depreciation has been provided on written down value as per rates of depreciation prescribed as per schedule XIV of the Company Act. 1956.

b) Depreciation on addition to fixed assets is provided pro-rata basis from the date on which such asset are acquired/installed

c) Depreciation on assets discarded during me -yea- 5 being provided at their respective rates up to the months in which Such assets are sold, discarded or demolished.

25.10. INVESTMENTS.

Investment, which are readily realizable and intencec to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as tong Term Investments

On Initial recognition, all investments are measure a: cost The cost compartes purchase price and directly attributable acquisition charges such as brokerage, fees & duties. If an investment is acquired or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued If an investment is secured in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired , whichever is more dearly evident.

Current Investments are carried in the financial statement at lower of cost & fair Value determined on an individual investment basis. Long Term Investments are carried at cost. However, Provisions for dimunition in value is made to recognise a decline other than temporary in the value of the investments

25.11. inventory

Raw Materials: At Cost or Net Realisable Value whichever is lower.

Finished Goods: At Cost or Net Realisaole Value whichever is lower

Work In Progress' At Estimated Cost of production by the Management

25.12. Foreign Currency Transaction

25.12.1 Initial Recognition

Foreign Currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

25.12.2 Conversion

Exchange difference arising on long term forcing currency monetary items related to acquisition of a fixed asset are capitalized and depreciated over the remaining useful life of the asset. For this purpose the company treats a foreign monetary Item as long term foreign currency monetary item, if it has a term of 12 months or more at the date of its origination.

25.12.3 Exchange Differences arising on other long term foreign currency monetary items are accumulated in the foreign currency monetary item translation difference account" and amortized over the remaining life of the concerned monetary item.

25.12.4 All other exchange differences are recognised as income or as expenses in the period in which they arise.

25.12.5 Unhedged:Foreign Currency Exposure

Particulars of Unhedged foreign exposure as at the reporting date.

25.13. Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of that assets. Other borrowing costs are recognized as an expense in the period in which they are incurred

The earnings per share is calculated by dividing net profit/(loss) for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year during the year the company has issued bonus shares to its existing shareholders as on record date, as per AS 20. such nos of shares have also been considered in the comparative figures for March 31st 2013 for the purpose determination of EPS as per AS 20.

25.15. Provisions, Contingent Liabilities and Contingent Assets;

Provisions involving subtanlial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and It is probable that there vail be an outflow of resources Contingent Liabilites are not recognized but are disclosed in the notes if any. Contingent Assets are neither recognized nor disclosed in the financial statements. The Provisions. Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

The Registeration for Providend Fund & ESIC was not received during the current Financial year hence no deduction/ provision for the same.has been made during the year.

25.16. in the opinion of the Board. Current Assets. Loans & Advances are approximately of the value stated in the Balance Sheet, if realised in the normal course Of business & Balances of Sundry Debtors. Loans & Advances and Sundry Creditors are subject to confirmation and reconciliation if any from the respective parties.

25.17. Previous year's figures have been regrouped, reclassified/ reinstated wherever necessary to correspond with the current year's class ification/disclosure.

25.18. Auditor's Remuneration

25.19. Based on the informsiion available with the company in respect of MSME (as defined in the MICRO smal & Medium Enterprise Development Act 2006) There are no delays in payment of dues to such enterprises during the years/ period.

25.20. Retirement Benefits

Liability for employees benefits, both short & long term, for present and past services which are due as per terms of emptoyement are recorded in accordance with accounting standard (AS) 15 "Employee Benefits" as notified under the companies (Accounting Standard) Rules. 2006 (as amended).

25.21. Gratuity & Retirement Benefits.

The management is of the opinion that since none Of the employees of the company , were in continqus service of more than 5 years S accordingly making provision of the gratuity does not arise. However if payment of gratuity arises due to happening of any incidents as provided under the applicable provisions of the law. the same will be accounted far on cash basis.

The Company has adopted Accounting Standard 22, on Accounting For Taxes on Income, the deterred tax Liability for the current year has been debited to Profit a Loss Account.

25.23. Related Party Disclosure

(a) Related parties with whom transactions have taken place during the year is as follows:

Name Relation

a) Ashapura Intimates Fashion Ltd Associate Concern,

b) Harshad H. ThaKkar Director.

c) Dinesh Sodha Director.

d) Hitesh Punjani Directcr.


Mar 31, 2013

A CORPORATE INFORMATION

MAPL was incorporated on January 21, 2010 as a private limited company under the Companies Act and registered with the ROC. The CIN of MAPL is U18109MH201GPTC199178. The registered office of MAPL is situated at Unit No. 305-309, 3rd Floor, Pacific Plaza, Plot No. 570, TPS IV, Off Bhawani ShanKar Road, Mahim Division. Dadar (West), Mumbai - 400 028. Maharashtra. India. MAPL is engaged in the business of manufacturing of non-branded intimate garments i.e. products for Ashapura Intimates Fashion Ltd (A1FL). MAPL has entered into an exclusive ' manufacturing agreement dated January 23,2013 with AIFL.

During the financial year, two proprietorship concerns "M/s Momai Apparols" (Prop: Shri Dinesh Sodha) 6. Jehaan Clothing' (Prop: Hitesh Purport) engaged in the S3me tine of bossiness have been taken over by M/s Momai Apparels Private Limited w,e.( from 1st November 2012 for a- consideration other than cash to Issue of equity share of M/s Momai Apparels Private Unfed at face value of Rs 10 each; The company (M/s MAPL) has taken over the said business of the firm as a going concern and the proprietor had agreed to transfer the bossiness do "SLUMP'

SALE" basis i.e along with the assets and liabilities as on October 31st 2012

B BASIS OF ACCOUNTS

These financial statement have been prepared and presented under the historical cost convesion on accrual basis of accounting, unless otherwise stated and comply with generally accepted accounting principles, statutory requirements, the accounting Standards (AS) Issued by the Institute of chartered accountants of India (ICAJ) to the extent applicable and current practice prevailing. The Company follows Mercantile System of accounting except grauity and other retirement benefits which are accounted on cash basis the accounting policies adopted in the preparation of financial statements are consistent with those of previous years.

C. USE OF ESTIMATES

The preparation financial slatements is in conformity with generally accepted accounting principles which requires management to make estimates and essumption that affects the reported amounts of Assets and Liabilities, revenues and expenses and disclosure of Contingent Liabilities at tire date of (tie financial statements. Actual result could differ from those estimates Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Any revision to the accounting estimates is recognized prospectively in the current and future period *

D REVENUE RECOGNITION

1. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

2. Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer

3. The Company follows the Accrual System of accounting and recognizes income and expenditure on accrual basis. -

E TAXATION

1. Current Income tax on income for the current period is determined on the basis of taxable income and tax credit computed in accordance with the provisions of the income Tax Act 1961, end based on expected outcome of assessment/appeals.

2. Deferred Tax is recognized,subject to the consideration of prudance on the timing difference, being (he difference between the taxable income and accounting income that originate in one period and are capable of reversal of one or more subsequent periods.

F IMPAIRMENT OF ASSETS

No material Impairment of Assets has been identified by the Company and as such no provision is required as per Accounting Standards (AS 28) issued by the Institute of Chartered Accountants of India.

G Fixed Assets/Capital work-in-progress/Intangible assets'

fixed assets are stated at actual cost, which comprises of purchase consideration and other directly attributable costs for bridging the assests to its working condition for the intended use. Direct Costs are Capitalized until fixed assets are ready for use. Capital work-in-progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date. Capital Work in progress at the beginning of the year are capitalised during the year as they have been installed during the year and are ready for commercial production.

H Depreciation and Amortization

a) Depreciation has been provided on written down value as per rates of depredation prescribed as pier schedule XIV of the Company Act, 1956.

b) Depredation on addition to fixed assets is provided on pro-rata basis from the date on which such asset are aoquired/instalted.

c) Depreciation on assets discared during the year is being providerd at their respective rates up to the months In which such assets are sold, discarded or demolished.

I. Inventory

Raw Materials: At Cost or Net Realisable Value whichever is lower. -

Finished Goods: At Cost or Net Realisable Value whichever is lower.

Work in Progress At Estimated Cost of production by the Management.

J. Foreign Currency Transaction

Transactions of export sates as also transactions of imports are accounted at rates of exchange prewderf on the date of transaction. Gains and - losses arising out of subsequent fluctuation are accounted on the basis of actual realisation and payments exchange difference arising there from is transferred to Profit & Loss account, except in relation to Fixed Assets where the difference is adjusted in the carrying cost of the assets.

K. Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of that assets. Other borrowing costs are recognized as an expense In the period in which they are incurred"

L. provisions, Contingent Liabilities and Contingent Assets:

Provisions involving subtantial degree of estimation in measurement are recognized when there is a present obligation as a resuit of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes If any Contingent Assets are neither recognized nor disdosed in the financial statements. The Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

The company had applied for factory license during the year and received the same in the mooth of March 2013. and accordingly appficalion for registeration with Providend Fund & 'ES1C" Shall be made during the next financial year.

M. In the opinion of the Board, Current Assets, Loans & Advances are approximately of the value stated in the Balance Sheet, if realised in the normal course of business & Balances of Sundry Debtors. Loans & Advances and Sundry Creditors are subject to confirmation and reconciliation if any from the respective parties.

N. Previous year figures have been regrouped/ reclassified for better presentation of financial statements.

O. As explained to us, the company is in process of identifying entripises which are MICRO,SMALL & MEDIUM enterprise.

P. Deferred Tax Liability (Net)

The Company has adopted Accounting Standard 22, on Accounting For Taxes on Income, the deferred tax Liabiliiy (or the current year has been debited to Profit & Loss Account.

Q. Related Party Disclosure -

(a) Related, parties with whom transactions have taken place during the year Is as follows:

Name Relation

a) Ashapura intimates Fashion Ltd Associate Concern.

b) Momai Apparels Associate Concent.

c) Harshad H. Thakkar Director,

d) Dinesh Sodha Director.

e) Hitesh Punjani Shareholder having significante control.


Mar 31, 2012

A) CORPORATE INFORMATION

Momai Apparels Pvt Ltd is Private Limited Company incorporated under the Provisions of Companies Act, 1956. The Company is engaged in the Trading of All kinds of Garments.

B) BASIS OF ACCOUNTS

The Financial statements are prepared under the historical cost convention, on the accrual basis of accounting in accordance with applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India and relevant presentational requirements of the Companies Act, 1956.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous

C) PREVIOUS YEAR'S FIGURES

During the year ended 31 March 2012 the Revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company. The Company has reclassified previous year figures to conform to this year's classification.

D) REVENUE RECOGNITION

Revenue is recognized when the significant risks and rewards of ownership of goods have been passed to the buyer. Sales are recognized on in warding of goods at customer's end, where applicable as per terms of sale (for domestic) and on the date of bill of lading (for exports), income arising on disposal of scrap/waste is recognized on receipt basis.

E) TAXATION

Income tax expense comprises current tax and defferred tax charge credit. Current tax is provided on the taxable income by applying tax rates and tax laws. The defferred tax for timing difference between the book and tax profit for the year is accounted using tax rates arid tax laws that have been enacted the Balance Sheet date. Defferred tax asset arising from the timing are recognised to the extent that there is reasonable certainty that sufficient future taxable income will be available.

(F) IMPAIRMENT OF ASSETS

No material Impairment of Assets has been identified by the Company and as such no provision is required as per Accounting Standards (AS 28) issued by the Institute of Chartered Accountants of India.

 
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