Mar 31, 2015
(i) Basis of Preparation of financial Statements :
The financial statements have been prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis except for certain financial
instruments which are measured at fair values. GAAP comprises mandatory
Accounting standards notified under 133 of the Companies Act, 2013 read
together with Rules 7 of the Companies (Accounts) Rules, 2014, the
provisions of the Companies Act, 2013 and guide lines issued by the
securities and Exchange Board of India ( SEBI ). Accounting policies
have been consistently applied except where a newly issued accounting
standard is initially adopted or a revision to an existing accounting
standard requires a change in the accounting policy hitherto in use or
different accounting policy is required by status.
(ii) Use of Estimates :
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles requires estimates and assumption to be
made. That affect the reported amounts of assets and liabilities on the
date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Difference between the actual
result and estimates are recognized in the period in which the results
are known/materialized.
(iii) Investments :
Long term Investment are stated at cost. Provision for permanent
diminution in value of Long term investment is made only if such
decline is other than temporary in the opinion of management.
Investments other than long term investments being current investments
are valued at cost or fair value whichever is lower.
(iv) Provision :
Provision are recognized when an enterprise has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are deremined based on
management estimate require to settle the obligation at the balance
sheet date. These are reviewed at each balance sheet date and adjusted
to reflect the current management estimates.
(v) Treatment of Contingent Liabilities :
Contingent Liabilities are disclosed by way of notes. Provision is made
in the accounts for those liabilites which are likely to materialize
after the year end till the finalization of accounts and having effect
on the position stated in the balance sheet as at the year end.
(vi) Taxation :
Provision for taxation has been made in accordance with the rates of
Income Tax Act, 1961 prevailing for the relevant assessment year.
(vii) Deferred Taxation :
Deferred tax assets and liabilites are recognized for the future tax
consequences attributable to timing differences that result between the
profits offered for income taxes and the profits as per the financial
statements. Deferred tax assets and liabilities are measured using the
tax rates and the tax laws that have been enacted or substantially
enacted at the balance sheet date. Deferred tax Assets are recognized
only to the extent there is reasonable certainty that the assets can be
realized in the future. Deferred tax Assets are reviewed as at each
Balance Sheet date.
(viii) Revenue Recognition :
Sales are recognized, net of returns discounts, on dispatch of goods to
Customers.
Interest income is recognized on time proportion basis.
Dividends are recognized when actually received.
(ix) Employee Retirement Benefits :
Company's contributions to provident fund and subscription to Employees
group gratuity scheme of life Insurance Corporation of India is charged
to profit and Loss Account and further, leave salary and bonus are
charged to profit and loss account on cash basis.
Mar 31, 2014
A. Basis of Accounting :
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis except for certain financial
instruments which are measured at fair values. GAAP comprises mandatory
Accounting standards as prescribed by the Companies (Accounting
Standard) Rules 2006 the provisions of the Companies Act, 1956 and
guide lines issued by the securities and Exchange Board of India ( SEBI
) Accounting policies have been consistently applied except where a
newly issued accounting standard is initially adopted or a revision to
an existing accounting standard requires a change in the accounting
policy hitherto in use.
B. Use of Estimates :
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles requires estimates and assumption to be
made that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilites on the financial statements and the
reported amounts of revenues and expenses during the reporting period.
C. Revenue Recognition :
The principal source of revenue for the company is from sale of Fabrics
and other sources are dividend and interest income which are recognized
as follows :
i) Sales are recognized as and when the significant risk & rewards in
respect of goods is transferred to the buyer.
ii) Interest income is recognized on time proportion basis.
iii) Dividends are recognized when actually received.
D. Investments :
Investments that are intended to be held for more than a year, from the
date of acquisition, are classified as long term. Investment are
carried at cost less any provision for permanent diminution in value.
Investment other than long term investments being current investments
are valued at cost or fair value whichever is lower.
E. Accounting for Taxes of Income :
Current Taxes
Provision for current income-tax is recognized in accordance with the
provisions of Indian Income-tax Act, 1961 and is made annually based on
the tax liability after taking credit for tax allowances and
exemptions.
Deferred Taxes :
Deferred tax assets and liabilites are recognized for the future tax
consequences attributable to timing differences that result between the
profits offered for income taxes and the profits as per the financial
statements. Deferred tax assets and liabilities are measured using the
tax rates and the tax laws that have been enacted or substantially
enacted at the balance sheet date. Deferred tax Assets are recognized
only to the extent there is reasonable certainty that the assets can be
realized in the future. Deferred tax Assets are reviewed as at each
Balance Sheet date.
F. Provisions and Contingent Liabilities :
i) Provision are recognized in terms of Accounting Standard 29 -
"Provisions, Contingent Liabilities and Contingent Assets" issued by
The Institute of Chartered Accountants of India (ICAI ), when there is
a present legal or statutory obligation as a result of past events
where it is probable that there will be outflow of resources to settle
the obligation and when a reliable estimate of the amount of the
obligation can be made.
ii) Contingent Liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of
the company or where reliable estimate of the obligation cannot be
made. Obligations are assessed on an ongoing basis and only those
having a largely probable outflow of resources are provided for.
iii) Contingent Liabilities are disclosed by way of notes.
Mar 31, 2013
A. Basis of Accounting :
The financial statements have been prepared under the historical cost
convention, on the accrual basis of accounting and in accordance with
the Generally Accepted Accounting Principles in India and comply with
the Accouting Standards prescribed by the Companies (Accounting
Standard) Rules 2006 to the extent applicable and in accordance with
the relevant provisions of the Companies Act, 1956.
B. Use of Estimates :
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles requires estimates and assumption to be
made that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilites on the financial statements and the
reported amounts of revenues and expenses during the reporting period.
C. Revenue Recognition :
i) Sales is recognized as and when the significant risk & rewards in
respect of goods is transferred to the buyer.
ii) Interest income is recognized on time proportion basis.
D. Accounting for Taxes of Income : Current Taxes
Provision for current income-tax is recognized in accordance with the
provisions of Indian Income-tax Act, 1961 and is made annually based on
the tax liability after taking credit for tax allowances and
exemptions.
E. Deferred Taxes :
Deferred tax assets and liabilites are recognized for the future tax
consequences attributable to timing differences that result between the
profits offered for income taxes and the profits as per the financial
statements. Deferred tax assets and liabilities are measured using the
tax rates and the tax laws that have been enacted or substantially
enacted at the balance sheet date. Deferred tax Assets are recognized
only to the extent there is reasonable certainity that the assets can
be realized in the future. Deferred tax Assets are reviewed as at each
Balance Sheet date.
F. Provisions and Contingent Liabilities :
i) Provision are recognized in terms of Accounting Standard 29 -
"Provisions, Contingent Liabilities and Contingent
Assets" issued by the Institute of Chartered Accountants of India ( ICA
), when there is a present legal or statutory obligation as a result of
past events where it is probable that there will be outflow of
resources to settle the obligation and when a reliable estimate of the
amount of the obligation can be made.
(ii) Contingent Liabilities are recognized only when there is a
possible obligation arising from past events due to occurrence or
non-occurrence of one or more uncertain future events not wholly within
the control of the company or where reliable estimate of the obligation
cannot be made. Obligations are assessed on an ongoing basis and only
those having a largely probably outflow of resources are provided for.
(ii) There are no contingent liabilities for the financial year under
audit.
G. Impairment of Assets :
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is changed to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognized in prior accounting period reversed if
there has been a change in the estimate of recoverable amount.
Mar 31, 2012
(i) Basis of Preparation of financial statements:
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis except for certain financial
instruments which are measured at fair values. GAAP comprises mandatory
accounting standards as prescribed by the Companies (Accounting
Standards) Rules, 2006, the provisions of the Companies Act, 1956 and
guide lines issued by the Securities and Exchange Board of India
(SEBI). Accounting policies have been consistently applied except where
a newly issued accounting standard is initially adopted or are vision
to an existing accounting standard requires a change in the accounting
policy hitherto in use.
(ii) Revenue Recognition:
Expenses and Income considered payable and receivable respectively are
accounted for on accrual basis except when no significant uncertainty
as to determination or realization exists
(iii) Debenture Redemption Reserve :
As per the guidelines issued by the Ministry of Finance on 14th
January, 1987, a Debenture Redemption Reserve is to be created by
Companies raising resources through Debentures. The Company is of the
view that these guidelines are not applicable to the Issue of
Debentures opened prior to 14th January, 1987 and has therefore not
created a Debenture Redemption Reserve.
(iv) Retirement and other Employee Benefit:
(a) There is no defined contribution scheme prevailing in the Company
except Gratuity.
(b) Provision in respect of leave encashment is recognized as an
Expense in Profit & Loss Account for the period in which the Employee
has rendered services.
(c) Expenses in respect of other short term benefit are recognized on
the basis of the amount paid or payable for the year for which the
services are rendered by the employee.
(v) Taxation:
Income Tax expenses is accrued in accordance with AS22 '
Accounting
for Taxes on Incomeà which includes current taxes and deferred taxes.
Deferred income taxes reflects the impact of current year timing
difference between taxable income and accounting income for the year.
Deferred tax assets are recognized only to the extent that there is
reasonable certainty that sufficient future taxable Income will be
available.
(vi) Contingent Liability:
Contingent Liabilities are not provided for and are disclosed
separately by way of notes.
Mar 31, 2011
(1) Basis of Accounting :
Financial Statements are prepared on cash basis, except for audit fees,
no other provisions are made.
(2) Debenture Redemption Reserve :
As per the guidelines issued by the Ministry of Finance on 14th
January, 1987, a Debenture Redemption Reserve is to be created by
Companies raising resources through Debentures. The Company is of the
view that these guide-lines are not applicable to the issue of
debentures opened prior to 14th January, 1987 and has therefore not
created a Debenture Redemption Reserve.
(3) Taxes on Income :
(a) Provision for current tax, if any is computed in accordance with
the relevant tax regulations.
(b) Deferred tax is recognized for all timing difference between
accounting Income and taxable income and is quantified using
enacted/substantially enacted tax as at the balance sheet date.
Deferred tax asset are recognized subject to the management judgement
that the realization is virtually certain.
Mar 31, 2010
(1) Basis of Accounting :
Financial Statements are prepared on cash basis, except for audit fees,
no other provisions are made.
(2) Debenture Redemption Reserve :
As per the guidelines issued by the Ministry of Finance on 14th
January, 1987, a Debenture Redemption Reserve is to be created by
Companies raising resources through Debentures. The Company is of the
view that these guide-lines are not applicable to the issue of
debentures opened prior to 14th January, 1987 and has therefore not
created a Debenture Redemption Reserve.
(3) Taxes on Income :
(a) Provision for current tax, if any is computed in accordance with
the relevant tax regulations.
(b) Deferred tax is recognized for all timing difference between
accounting income and taxable income and is quantified using
enacted/substantially enacted tax as at the balance sheet date.
Deferred tax asset are recognized subject to the management judgement
that the realization is virtually certain.
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