Mar 31, 2014
A) Basis of preparation and presentation of financial statements
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under section 211(3C) of the Companies Act, 1956
read with Companies (Accounting Standards) Rules, 2006 and other
relevant provisions of the said Act.
b) Inventories
Raw materials, work-in-progress, finished goods, consumables have been
valued at cost and net realizable value. The cost in respect of
various items of inventory is computed as under :
- Raw materials at actual cost plus direct expenses incurred to bring
the stock at its present position and location excluding VAT.
- Work-in-progress at raw material cost plus conversion cost depending
upon the stage of completion.
- Finished goods at raw material cost plus conversion cost incurred to
bring the goods up to their present condition and location.
- Consumables at actual cost plus direct expenses incurred to bring
the stock at its present position and location excluding VAT.
- Waste has been valued at net realizable value.
c) Revenue Recognition
Sale of Products & services: Sales are recognised when all the
significant risks and rewards of ownership are transferred to the
buyer and the company retains no effective control of the goods
transferred to a degree associated with ownership.
d) Fixed Assets
Fixed Assets have been stated at original cost including any
attributable costs relating to acquisition and installation thereof
and duties and taxes less modvat/cenvat credit and value added tax
credit, if any, and less depreciation up to date.
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.
Losses arising from the retirement of, and gains or losses arising
from disposal of tangible assets are recognised in the Statement of
Profit and Loss.
e) Depreciation
Depreciation on fixed assets has been provided on pro-rata basis at
the rates and in the manner specified in Schedule - XIV to the
Companies Act, 1956 as under:-
i. In respect of shoddy section: on written down value method basis
ii. In respect of lambs wool section : on straight line method basis
f) Earnings Per Share
"Basic earnings per share is computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding during
the period. Diluted earnings per share is computed by dividing the
profit after tax by the weighted average number of equity shares
considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shades. The diluted
potential equity shares are adjusted for the proceeds receivable had
the shares been actually issued at fair value which is the average
market value of the outstanding shares. Dilutive potential equity
shares are deemed converted as of the beginning of the period, unless
issued at a later date. Dilutive potential equity shares are
determined independently for each period presented.
"The number of shares and potentially dilutive equity shares are
adjusted retrospectively for all periods presented for any share
splits and bonus shares issues including for changes effected prior to
the approval of the financial statements by the Board of Directors."
g) Impairment of Assets
The Company has considered all the external sources of information and
internal sources of information indicating whether an individual asset
or a cash-generating unit of the company has impaired. On the basis of
those sources of information, no indication of a potential impairment
loss is present, as such no formal estimate of recoverable amount has
been made at the balance sheet date.
h) Employee Benefits
i. Contribution to Provident Fund and ESI is made in accordance with
the provisions of their respective acts and is recognised in the
statement of profit & loss.
ii. Leave with Wages
Provision for leaves, if any, is made on the basis of leaves accrued
to the employees during the year.
iii. Gratuity
Liability for gratuity is provided through a policy taken from Life
Insurance Corporation of India (LIC) by a trust formed for the
purpose. The liability is provided on the basis of actuarial valuation
made by LIC as at the close of the year to cover the year''s liability
and such liability is charged to the profit and loss account.
i) Borrowing Costs
General and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, which
are assets that necessarily take a substantial period of time to get
ready for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready for
their intended use or sale. All other borrowing costs are recognised
in Statement of Profit and Loss in the period in which they are
incurred.
j) Accounting for Taxes on Income
Tax Expense comprise current and deferred tax. Provision for current
tax is made in accordance with the provisions of Income Tax Act,1961.
Deferred Tax resulting from timing differences between taxable income
and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods is accounted for using the
tax rates and laws that are enacted or substantively enacted as on the
balance sheet date. Deferred tax assets are recognized only to the
extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax
assets can be realized. However, deferred tax assets arising on
account of brought forward losses and unabsorbed depreciation are
recognized only when there is virtual certainty by convincing evidence
that sufficient future taxable income will be available against which
such deferred tax.
k) Provisions and Contingent Liabilities
Provisions are recognised for present obligations of uncertain timing
or amount arising as a result of a past event where a reliable
estimate can be made and it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation.
Where it is not probable that an outflow of resources embodying
economic benefits will be required or the amount can not be estimated
reliably, the obligation is disclosed as a contingent liability,
unless the probability of outflow of resources embodying economic
benefits is remote. Possible obligations, whose existence will only be
confirmed by the occurrence or non-occurrence of one or more uncertain
events are also disclosed as contingent liabilities unless the
probability of outflow of resources embodying economic benefits is
remote.
l) Accounting policies not specifically referred to are consistent
with generally accepted accounting practices.
Mar 31, 2013
A) Basis of preparation and presentation of financial statements
These financial statements have been prepared in accordance with the
generally accepted accountimg principles in India under the historical
cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under section 211(3C) of the Companies Act, 1956
read with Companies (Accounting Standards) Rules, 2006 and other
relevant provisions of the said Act.
b) Inventories
Raw materials, work-in-progress, finished goods, consumables have been
valued at lower of cost and net realizable value. The cost in respect
of various items of inventory is computed as under :
- Raw materials at actual cost plus direct expenses incurred to bring
the stock at its present position and location excluding VAT.
- Work-in-progress at raw material cost plus conversion cost depending
upon the stage of completion.
- Finished goods at raw material cost plus conversion cost incurred to
bring the goods up to their present condition and location.
- Consumables at actual cost plus direct expenses incurred to bring the
stock at its present position and location excluding VAT.
- Waste has been valued at net realizable value.
c) Revenue Recognition
Sale of Products & services: Sales are recognised when all the
significant risks and rewards of ownership are transferred to the buyer
and the company retains no effective control of the goods transferred
to a degree associated with ownership.
d) Fixed Assets
Fixed Assets have been stated at original cost including any
attributable costs relating to acquisition and installation thereof and
duties and taxes less modvat/cenvat credit and value added tax credit,
if any, and less depreciation up to date.
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.
Losses arising from the retirement of, and gains or losses arising from
disposal of tangible assets are recognised in the Statement of Profit
and Loss.
e) Depreciation
Depreciation on fixed assets has been provided on pro-rata basis at the
rates and in the manner specified in Schedule - XIV to the Companies
Act, 1956 as under. -
i. In respect of shoddy section: on written down value method basis
ii. In respect of lambs wool section : on straight line method basis
f) Earnings Per Share
"Basic earnings per share is computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding during
the period. Diluted earnings per share is computed by dividing the
profit after tax by the weighted average number of equity shares
considered for deriving basic ernings per share and also the weighted
average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shaes. The diluted
potential equity shares are adjusted for the proceeds receivable had
the shares been actually issued at fair value which is the average
market value of the outstanding shares. Dilutive potential equity
shares are deemed converted as of the beginning of the period, unless
issued at a later date. Dilutive potential equity shares are determined
independently for each period presented. "The number of shares and
potentially dilutive equity shares are adjusted retrospectively for all
periods presented for any share splits and bonus shares issues
including for changes effected prior to the approval of the financial
statements by the Board of Directors."
g) Impairment of Assets
The Company has considered all the external sources of information and
internal sources of information indicating whether an individual asset
or a cash-generating unit of the company has impaired. On the basis of
those sources of information, no indication of a potential impairment
loss is present, as such no formal estimate of recoverable amount has
been made at the balance sheet date.
h) Employee Benefits
i. Contribution to Provident Fund and ESI is made in accordance with
the provisions of their resepctive acts and is recognised in the
statement of profit & loss.
ii Leave with Wages Provision for leaves, if any, is made on the basis
of leaves accrued to the employees during the year.
hi Gratuity
Liability for gratuity is provided through a policy taken from Life
Insurance Corporation of India (LIC) by a trust formed for the purpose.
The liability is provided on the basis of actuarial valuation made by
LIC as at the close of the year to cover the year''s liability and such
liability is charged to the profit and loss account.
i) Borrowing Costs
General and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready
for their intended use or sale, are added to the cost of those assets,
until such time as the assets are substantially ready for their
intended use or sale. All other borrowing costs are recognised in
Statement of Profit and Loss in the period in which they are incurred.
j) Accounting for Taxes on Income
Tax Expense comprise current and deferred tax. Provision for current
tax is made in accordance with the provisions of Income Tax Act,1961.
Deferred Tax resulting from timing differences between taxable income
and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods is accounted for using the
tax rates and laws that are enacted or substantively enacted as on the
balance sheet date. Deferred tax assets are recognized only to the
extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. However, deferred tax assets arising on account of
brought forward losses and unabsorbed depreciation are recognized only
when there is virtual certainty by convincing evidence that sufficient
future taxable income will be available against which such deferred
tax.
k) Provisions and Contingent Liabilities
Provisions are recognised for present obligations of uncertain timing
or amount arising as a result of a past event where a reliable estimate
can be made and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation. Where it
is not probable that an outflow of resources embodying economic
benefits will be required or the amount can not be estimated reliably,
the obligation is disclosed as a contingent liability, unless the
probability of outflow of resources embodying economic benefits is
remote. Possible obligations, whose existence will only be confirmed by
the occurrence or non-occurrence of one or more uncertain events are
also disclosed as contingent liabilities unless the probability of
outflow of resources embodying economic benefits is remote.
I) Accounting policies not specifically referred to are consistant with
generally accepted accounting practices.
Mar 31, 2012
A) Basis of preparation and presentation of financial statements
These financial statements have been prepared in accordance with the
generally accepted accountimg principles in India under the historical
cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under section 211(3C) of the Companies Act, 1956
read with Companies (Accounting Standards) Rules, 2006 and other
relevant provisions of the said Act.
b) Inventories 3 Raw materials, work-in-progress, finished goods,
consumables have been valued at lower of cost and net realizable value.
The cost in respect of various items of inventory is computed as under
:
- Raw materials at actual cost plus direct expenses incurred to bring
the stock at its present position and location excluding VAT.
- Work-in-progress at raw material cost plus conversion cost depending
upon the stage of completion.
- Finished goods at raw material cost plus conversion cost incurred to
bring the goods up to their present condition and location.
- Consumables at actual cost plus direct expenses incurred to bring the
stock at its present position and location excluding VAT.
- Waste has been valued at net realizable value.
c) Revenue Recognition
Sale of Products & services: Sales are recognised when all the
significant risks and rewards of ownership are transferred to the buyer
and the company retains no effective control of the goods transferred
to a degree associated with ownership.
d) Fixed Assets
Fixed Assets have been stated at original cost including any
attributable costs relating to acquisition and installation thereof and
duties and taxes less modvat/cenvat credit and value added tax credit,
if any, and less depreciation up to date.
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.
Losses arising from the retirement of, and gains or losses arising from
disposal of tangible assets are recognised in the Statement of Profit
and Loss.
e) Depreciation
Depreciation on fixed assets has been provided on pro-rata basis at the
rates and in the manner specified in Schedule - XIV to the Companies
Act, 1956 as under:- i. In respect of shoddy section: on written down
value method basis ii. In respect of lambs wool section : on straight
line method basis
f) Earnings Per Share
"Basic earnings per share is computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding during
the period. Diluted earnings per share is computed by dividing the
profit after tax by the weighted average number of equity shares
considered for deriving basic ernings per share and also the weighted
average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shaes. The diluted
potential equity shares are adjusted for the proceeds receivable had
the shares been actually issued at fair value which is the average
market value of the outstanding shares. Dilutive potential equity
shares are deemed converted as of the beginning of the period, unless
issued at a later date. Dilutive potential equity shares are determined
independently for each period presented.
The number of shares and potentially dilutive equity shares are
adjusted retrospectively for all periods presented. For any share
splits and bonus shares issues including for changes effected prior to
the approval of the financial statements by the Board of Directors."
g) Impairment of Assets
The Company has considered all the external sources of information and
internal sources of information indicating whether an individual asset
or a cash-generating unit of the company has impaired. On the basis of
those sources of information, no indication of a potential impairment
loss is present, as such no formal stimate of recoverable amount has
been made at the balance sheet date.
h) Employee Benefits
i. Contribution to Provident Fund and ESI is made in accordance with
the provisions of their resepctive acts and is recognised in the
statement of profit & loss.
ii. Leave with Wages Provision for leaves, if any, is made on the
basis of leaves accrued to the employees during the year.
iii. Gratuity Liability for gratuity is provided through a policy taken
from Life Insurance Corporation of India (LIC) by a trust formed for
the purpose. The liability is provided on the basis of actuarial
valuation made by LIC as at the close of the year to cover the year's
liability and such liability is charged to the profit and loss account.
i) Borrowing Costs
General and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready
for their intended use or sale, are added to the cost of those assets,
until such time as the assets are substantially ready for their
intended use or sale. All other borrowing costs are recognised in
Statement of Profit and Loss in the period in which they are incurred.
j) Accounting for Taxes on Income
Tax Expense comprise current and deferred tax. Provision for current
tax is made in accordance with the provisions of Income Tax Act,1961.
Deferred Tax resulting from timing differences between taxable income
and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods is accounted for using the
tax rates and laws that are enacted or substantively enacted as on the
balance sheet date. Deferred tax assets are recognized only to the
extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. However, deferred tax assets arising on account of
brought forward losses and unabsorbed depreciation are recognized only
when there is virtual certainty by convincing evidence that sufficient
future taxable income will be available against which such deferred tax
k) Provisions and Contingent Liabilities
Provisions are recognised for present obligations of uncertain timing
or amount arising as a result of a past event where a reliable estimate
can be made and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation. Where it
is not probable that an outflow of resources embodying economic
benefits will be required or the amount can not be estimated reliably,
the obligation is disclosed as a contingent liability, unless the
probability of outflow of resources embodying economic benefits is
remote. Possible obligations, whose existence will only be confirmed by
the occurrence or non-occurrence of one or more uncertain events are
also disclosed as contingent liabilities unless the probability of
outflow of resources embodying economic benefits is remote.
l) Accounting policies not specifically referred to are consistant with
generally accepted accounting practices.
Mar 31, 2010
The accounts are prepared on the historical cost convention on accrual
basis and on a going concern concept and significant accounting
policies followed by the company are stated hereunder :
1. Fixed Assets : All fixed assets are stated at historical cost less
depreciation.
2. Depreciation : Depreciation on fixed assets has been provided on
pro-rate basis at the rates prescribed in schedule (XIV) of the
companies Act, 1956 as under :
a) In respect of Shoddy Section : on written down value method basis.
b) In respect of Lambs Wool Section : on straight line method basis.
3. Inventories are valued at cost or net realisable value whichever is
lower. The cost formula used in valuation of different categories are
as under :
i) For Raw Material, Stores & Spares - FIFO Method
ii) For Finished/Traded Goods - Weighted average conversion cost.
4. Sales : Sale of goods is recognised at the point of despatch to the
customers, sale excludes Vat.
5. Provision for gratuity has been made on the basis of calculation
done by LIC of India.
6. BORROWING COSTS :
Specific borrowing costs that are directly attributable to the
acquisition, construction or production of a qualifying asset are
capitalised as part of the cost of the asset. Other browning costs are
recognised as an expense in the period in which they are incurred.
7. ACCOUNTING FOR TAXES ON INCOME :
The accounting treatment followed for taxes on income is to provide for
current tax and deferred tax. Current tax is the amount of income tax
determined to be payable in respect of taxable income for a period.
Deferred tax is the tax effect of timing differences.
8. Accounting policies not specifically referred to are consistant
with generally accepted accounting practices.