Accounting Policies of Priyadarsini Ltd. Company

Mar 31, 2014

1. ACCOUNTING ASSUMPTION The financial statements of Priyadarshini Spinning Mills Ltd have been prepared and presented in accordance with Indian Generally Accepted Accounting principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises accounting standards notified by the central Government of India under section 211(3c) of the companies Act 1956, other pronouncements of Institute of Chartered Accountants of India, the provisions of companies Act 1956 and guidelines Issued by Securities and Exchange Board of India.

The company has prepared these financial statements as per the format prescribed by Revised Schedule VI to the Companies Act 1956 issued by Ministry of Corporate Affairs. Previous year figures have been recast/restated to conform to the classification required by the Revised Schedule VI.

2. PURCHASES AND SALES:

a) The Purchase cost of Raw Materials and other Inputs has been considered net of CENVAT Credits Receivable for dutiable products and inclusive of CENVAT for exempt products.

b) Sales exclude CENVAT and net of discounts and Sales Tax

3. FIXED ASSETS: Fixed Assets are stated at cost. Cost is inclusive of Freight, Duties, Levies and any directly attributable cost of bringing the assets to their working condition for intended use and net of VAT Credits receivable on the Assets.

4. DEPRECIATION: Depreciation has been provided on Straight Line method on the assets acquired upto 31.12.1986, on Written down Value method on the assets acquired from 01.01.1987 to 31.03.1990 and on Straight Line method on the additions from 1.4.1990 onwards in accordance with the rates stipulated in Schedule XIV to the Companies Act, 1956.

5. INVENTORY VALUATION:

a) Inventories are valued at lower of cost and net realizable value. Cost of inventory comprises all cost of purchase cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

b) The value of Raw materials, stores and spares and packing materials is determined by using the weighted Average cost method. The value of Work-in progress and finished goods is determined by weighted Average Cost Method and includes appropriate share of production overheads

6. FOREIGN EXCHANGE TRANSACTIONS: During the year foreign currency transactions are recorded at the exchange rate prevailing on the date of transactions. Foreign Currency Liabilities / Assets are restated at the rates ruling at the year end. Exchange differences relating to Fixed Assets are adjusted in the cost of the assets. Any other ex-change differences are dealt within the Profit and Loss Account.

7. RETIREMENT BENEFITS: Retirement benefits viz. Provident Fund and Pension Fund are accounted for on accrual basis. Contributions to these funds are made to appropriate authorities. The Company adopted Accounting Standard AS-15 (Revised 2005) on employee benefits. Current year''s provision of gratuity Rs.2350.00 lakhs has been charged to profit and loss account.

8. EXPORT BENEFITS:The Company exports yarn and fabric under Duty Draw Back Scheme and Focus Market scheme. The unutilised benefits under the scheme are accounted for on accrual basis.

9. VALUATION OFPOWERGENERATED:

Power generated through Wind mills project is valued as per the credits given by DISCOMS in regular power bills and is included in ''sales/income from operations''.

10. 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 borrowing costs are recognised as an expense in the period in which they are incurred.

11. 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.

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Jun 30, 2013

1. ACCOUNTING ASSUMPTION The financial statements of Priyadarshini Spinning Mills Ltd have been prepared and presented in accordance with Indian Generally Accepted Accounting principles (GAAP) under the historical cost convention on the accrual basis.GAAP comprises accounting standards notified by the central Government of India under section 211(3c) of the companies Act 1956, other pronouncements of Institute of Chartered Accountants of India , the provisions of companies Act 1956 and guidelines Issued by Securities and Exchange Board of India.

The company has prepared these financial statements as per the format prescribed by Revised Schedule VI to the Companies Act 1956 issued by Ministry of Corporate Affairs. Previous year figures have been recast/restated to conform to the classification required by the Revised Schedule VI.

2. PURCHASES AND SALES:

a) The Purchase cost of Raw Materials and other Inputs has been considered net of CENVAT Credits Receivable for dutiable products and inclusive of CENVAT for exempt products.

b) Sales exclude CENVAT and net of discounts and Sales Tax

3. FIXED ASSETS: Fixed Assets are stated at cost. Cost is inclusive of Freight, Duties, Levies and any directly attributable cost of bringing the assets to their working condition for intended use and net of VAT Credits receivable on the Assets.

4. DEPRECIATION: Depreciation has been provided on Straight Line method on the assets acquired upto 31.12.1986, on Written Down Value method on the assets acquired from 01.01.1987 to 31.03.1990 and on Straight Line method on the additions from 1.4.1990 onwards in accordance with the rates stipulated in Schedule XIV to the Companies Act, 1956.

5. INVENTORY VALUATION:

a) Inventories are valued at lower of cost and net realizable value.Cost of inventory comprises all cost of purchase cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

b) The value of Raw materials, stores and spares and packing materials is determined by using the weighted Average cost method.The value of Work-in progress and Finished goods is determined by weighted Average Cost Method and includes appropriate share of production overheads

6. FOREIGN EXCHANGE TRANSACTIONS: During the year foreign currency transactions are recorded at the exchange rate prevailing on the date of transactions. Foreign Currency Liabilities / Assets are restated at the rates ruling at the year end. Exchange differences relating to Fixed Assets are adjusted in the cost of the assets. Any other ex-change differences are dealt within the Profit and Loss Account.

7. RETIREMENT BENEFITS: Retirement benefits viz. Provident Fund and Pension Fund are accounted for on accrual basis. Contributions to these funds are made to appropriate authorities. The Company adopted Accounting Standard AS-15 (Revised 2005) on employee benefits. Current years provision of gratuity Rs.70.67 lakhs has been charged to profit and loss account.

8. EXPORT BENEFITS:

The Company exports yarn and fabric under Duty Draw Back Scheme and Focus Market scheme. The unutilised benefits under the scheme are accounted for on accrual basis.

9. VALUATION OF POWER GENERATED:

Power generated through Wind mills project is valued as per the credits given by DISCOMS in regular power bills and is included in ‘sales/income from operations''.

10. 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 borrowing costs are recognised as an expense in the period in which they are incurred.

11. 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.

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Mar 31, 2011

1. BASIS OF ACCOUNTING: The Accounts of the Company are prepared on accrual basis following historical cost convention.

2. PURCHASES AND SALES:

a) The Purchase cost of Raw Materials and other Inputs has been considered net of CENVAT Credits Receivable for dutiable products and inclusive of CENVAT for exempt products.

b) Sales exclude CENVAT and net of discounts and Sales Tax.

3. FIXED ASSETS: Fixed Assets are stated at cost. Cost is inclusive of Freight, Duties, Levies and any directly attributable cost of bringing the assets to their working condition for intended use and net of VAT Credits receivable on the Assets.

4. DEPRECIATION: Depreciation has been provided on Straight Line method on the assets acquired upto 31.12.1986, on Written Down Value method on the assets acquired from 01.01.1987 to 31.03.1990 and on Straight Line method on the additions from 1.4.1990 onwards in accordance with the rates stipulated in Schedule XIV to the Companies Act, 1956. Depreciation has not been provided on buildings, plant and machinery of Gas Power Project as the unit was not in operation for the whole year. Depreciation not provided up to the Current year amounts to Rs.6,15,76,908/-

5. INVESTMENTS: Investments are stated at cost.

6. INVENTORY VALUATION:

a) Raw Materials, Consumable Stores and Spares: at cost

b) Work-in-progress: At cost of raw materials and other variable costs

c) Finished Goods: At lower of cost or net realisable value.

7. FOREIGN EXCHANGE TRANSACTIONS: During the year foreign currency transactions are recorded at the exchange rate prevailing on the date of transactions. Foreign Currency Liabilities / Assets are restated at the rates ruling at the year end. Exchange differences relating to Fixed Assets are adjusted in the cost of the assets. Any other ex-change differences are dealt within the Profit and Loss Account.

8. RETIREMENT BENEFITS: Retirement benefits viz. Provident Fund and Pension Fund are accounted for on accrual basis. Contributions to these funds are made to appropriate authorities. The Company adopted Accounting Standard AS-15 (Revised 2005) on employee benefits. Current years provision of Rs.93.34 lakhs has been charged to profit and loss account.

9. EXPORT BENEFITS:

The Company exports yarn and fabric under Duty Draw Back Scheme and Focus Market scheme. The unutilised benefits under the scheme are accounted for on accrual basis.

10. VALUATION OF POWER GENERATED:

Power generated through Wind mills project is valued as per the credits given by DISCOMS in regular power bills and is included in 'sales/income from operations'.

11. 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 borrowing costs are recognised as an expense in the period in which they are incurred.

12. 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.

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Mar 31, 2010

1. BASIS OF ACCOUNTING: The Accounts of the Company are prepared on accrual basis following historical cost convention.

2. PURCHASES AND SALES:

a) The Purchase cost of Raw Materials and other Inputs has been considered net of CENVAT Credits Receivable for dutiable products and inclusive of CENVAT for exempt products.

b) Sales exclude CENVAT and net of discounts and Sales Tax.

3. FIXED ASSETS: Fixed Assets are stated at cost. Cost is inclusive of Freight, Duties, Levies and any directly attributable cost of bringing the assets to their working condition for intended use and net of VAT Credits receivable on the Assets.

4. DEPRECIATION: Depreciation has been provided on Straight Line method on the assets acquired upto 31.12.1986, on Written Down Value method on the assets acquired from 01.01.1987 to 31.03.1990 and on Straight Line method on the additions from 1.4.1990 onwards in accordance with the rates stipulated in Schedule XIV to the Companies Act, 1956. Depreciation has not been provided on buildings, plant and machinery of Gas Power Project as the unit was not in operation for the whole year. Depreciation not provided up to the Current year amounts to Rs.4,91,41,933/-.

5. INVESTMENTS: Investments are stated at cost.

6. INVENTORY VALUATION:

a) Raw Materials, Consumable Stores and Spares: at cost

b) Work-in-progress: At cost of raw materials and other variable costs

c) Finished Goods: At lower of cost or net realisable value.

7. FOREIGN EXCHANGE TRANSACTIONS: During the year foreign currency transactions are recorded at the exchange rate prevailing on the date of transactions. Foreign Currency Liabilities / Assets are restated at the rates ruling at the year end. Exchange differences relating to Fixed Assets are ad- justed in the cost of the assets. Any other ex-change differences are dealt within the Profit and Loss Account.

8. RETIREMENT BENEFITS: Retirement benefits viz. Provident Fund and Pension Fund are accounted for on accrual basis. Contributions to these funds are made to appropriate authorities. The Company adopted Accounting Standard AS-15 (Revised 2005) on employee benefits. Current years provision of Rs 51.02 lakhs has been charged to profit and loss account.

9. EXPORT BENEFITS:

The Company exports yarn and fabric under Duty Draw Back Scheme and Focus Market scheme. The unutilised benefits under the scheme are accounted for on accrual basis.

10. VALUATION OF POWER GENERATED:

Power generated through Wind mills project is valued as per the credits given by DISCOMS in regular power bills and is included in sales/income from operations.

11. 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 borrowing costs are recognised as an expense in the period in which they are incurred.

12. 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.