Mar 31, 2015
A. Basis of Preparation of Financial Statements
The financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis, except as otherwise stated, to the
extent disclosed in the notes on Accounts. These financial statements
have been prepared to comply in all material aspects with the
accounting standards notified under Section 211(3C) [Companies
Accounting Standards Rules, 2006, as amended] and the other relevant
provisions of the Companies Act, 2013.
B. Use of Estimates
The presentation of financial statements requires that the management
makes estimates and assumption that affect the reported amount of
assets and liabilities on the date of the financial statements and the
reported amount of revenues and expenses during the reporting period.
Although, these estimates are based upon management's best knowledge of
current events and actions, actual results could differ from these
estimates. Difference between the actual result and estimates are
recognized in the period in which the results are known /materialized.
C. Fixed Assets and Depreciation
1. Fixed Assets are stated at cost less accumulated depreciation. All
cost, including financing cost till commencement of assets put to use,
effect of foreign exchange contracts and adjustment arising from
exchange rate variations attributable to the fixed assets are
capitalised.
2. Expenditure including finance costs related to borrowed funds for
the fixed assets incurred on projects under implementation is included
under "Capital Work in Progress". These expenses are transferred to
fixed assets on commencement of respective projects.
3. Tangible Assets
(i) Depreciation on Fixed Assets is provided to the extent of
depreciable amount on Straight Line Method based on balance useful
lives of the Assets as per useful life prescribed in Schedule II to the
Companies Act, 2013.
(ii) The carrying amount of the asset, as on date of Schedule II
becoming effective, after retaining the residual value, shall be
recognised in the opening balance of retained earnings where the
remaining useful life of an asset is NIL.
D. Impairment of Assets
The Company tests for impairments at the close of the accounting period
if and only if there are indications that suggest a possible reduction
in the recoverable value of an asset. If the recoverable value amount
of an Asset, i.e the net releasable value or the economic value in use
of a cash generating unit, is lower than the carrying amount of the
Assets the difference is provided for as impairment. However, if
subsequently the position reverses and the recoverable amount become
higher than the carrying value the provision to the extent of the then
difference is reversed, but not higher than the amount provided for.
There was no impairment loss on fixed assets on the basis of review
carried out by the management in accordance with Accounting Standard 28
issued by The Institute of Chartered Accountant of India.
E. Investments
Investments that are intended to be held for more than a year, from the
date of acquisition, are classified as Long Term Investments. Long Term
Investments and Current Investments are carried at cost. Unquoted
investments are stated at book value. In case of Non Current
Investments, the management is of the opinion to recover its book value
and hence provision for diminution in value of investment is not made
to recognise a decline in the value of investment. However, the Company
do recognize a decline in the value of Current investment and provision
for diminution in the value of investment is being made as required.
F. Inventories
Cost of inventories have been computed to include all cost of purchase,
cost of conversion and other cost incurred in bringing them to their
respective present location and condition.
Raw materials and components, stores and spares are valued at cost.
Cost is determined on Moving Average price basis.
G. Employee Retirement Benefits
Short Term Employees Benefits : The undiscounted amount of short term
employee benefits expected to be paid in exchange for the service
rendered by employees is recognized during the year when the employee
render the services.
Post Employee Benefits : No provision is made for accrued liability for
payment leave encashment & gratuity under the Payment of Gratuity Act,
1972. and encashment of leave as the liabilities are not ascertainable.
The company will charge the same to the revenue in the year of actual
payment.
H. Revenue, Turnover & Expenses Recognition In case of sale of goods:
Revenue is recognizing when the significant risks and rewards of
ownership of goods have passed to the buyer, which generally coincides
with delivery.
The sales are recorded when supply of goods takes place in accordance
with the terms of sale and on change of title in the goods and is net
of Central Sales Tax, VAT, Sales return and rate difference.
I. Income & Expenditure
All Income and Expenses to the extent consider payable and receivable
respectively, unless specifically stated to be otherwise, are accounted
for on accrual basic except otherwise stated, considering the concept
of materiality. Leave encashment and Gratuity Expenses are considered
as payable when paid.
J. Provisions and Contingent Liabilities
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
K. Prior Period Adjustment
Transactions pertaining to prior period to current accounting year have
been accounted under respective heads of account in Profit & Loss
Account.
L. Foreign Currency Transactions
Initial Recognition : Transaction in foreign currencies are recorded in
Indian Rupees using the forward booking rate to the extent available
and for the balance amount using the rates of exchange prevailing on
the dates of the transactions. At each balance sheet date, recorded
monetary balances are reported in Indian Rupees at the rates of
exchange prevailing at the balance sheet date.
Exchange Difference: Exchange difference arising on the settlement of
the monetary items or on the reporting company's monetary items at
rates different from those at which they were initially recorded during
the year, or reported in previous financial statements, are recognized
as income or as expense in the year in which they arise in the
statement of Profit & Loss.
M. Borrowing Costs
Borrowing costs directly attributable to acquisition, construction and
production of qualifying assets are capitalized as a part of the cost
of such asset up to the date of completion. Other borrowing costs are
charged to the profit & loss account.
N. Taxes on Income
Deferred Taxation: Deferred Tax resulting from timing differences
between book and tax profits is accounted for under the liability
method, at the current rate of tax, to the extent that the timing
difference are expected to crystallize. In case of Deferred Tax Assets
and Liabilities with reasonable certainty and in case of Deferred Tax
Assets represented by unabsorbed depreciation and carried forward
business losses, with virtual certainty that there would be adequate
future taxable income against which Deferred tax Assets can be
realized.
Current Tax: Provision for Taxation is made on the basis of the Taxable
Profits computed for the current accounting period in accordance with
the Income tax Act, 1961.
O. Preliminary Expenses
Preliminary expenses have been amortized to the extent of 1/10th during
the year.
P. Earnings per Share
Basic Earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earning per share, the net
profit attributable to equity shareholders and the weighted average
number of shares outstanding during the period are adjusted for the
effect of the dilutive potential equity share. Share application money
pending allotments have been ignored while calculating Basic and
Diluted Earning per share.
Mar 31, 2014
[A] Basis of Preparation of Financial Statements:
The financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis, except as otherwise stated, to the
extent disclosed in the notes on Accounts. These financial statements
have been prepared to comply in all material aspects with the
accounting standards notified under Section 211(3C) [Companies
Accounting Standards Rules, 2006, as amended] and the other relevant
provisions of the Companies Act, 1956.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Schedule VI to the Companies Act, 1956. Based
on the nature of products and the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents, the company has ascertained its operating cycle as 12
months for the purpose of current- noncurrent classification of assets
and liabilities.
[B] Use of Estimates:
The presentation of financial statements requires that the management
makes estimates and assumption that affect the reported amount of
assets and liabilities on the date of the financial statements and the
reported amount of revenues and expenses during the reporting period.
Although, these estimates are based upon management''s best knowledge of
current events and actions, actual results could differ from these
estimates. Difference between the actual result and estimates are
recognized in the period in which the resuits are known/materialized.
[C] Tangible and Intangible Fixed Assets:
Tangible Fixed Assets: Tangible fixed assets are stated at cost price
including cost attributable to the assets less the accumulated
depreciation on it. Cost comprises the purchase price and any
attributable cost of bringing the assets to its working condition for
its intended use. Any trade discounts and rebates are deducted in
arriving at the purchase price. Fixed assets installed and put to use
have been certified by management and relied by the auditors being a
technical matter.
Intangible Fixed Assets: intangible assets acquired separately are
measured on initial recognition at costs. Following initial
recognition, intangible assets are carried at cost less accumulated
amortization and accumulated impairment losses, if any,
[D] Depreciation:
Depreciation on tangible assets has been provided on "Straight Line"
basis in accordance with the provisions of the Companies Act, 1956, in
the manner and at the rates specified in Schedule XIV to the said Act,
Depreciation on addition / deletion from fixed assets made during the
year is provided on pro rata basis from the date of acquisition /
deletion of the fixed assets to the end of the financial year. As per
the consistent policy, the management has not provided any depreciation
on Windmill.
[E] impairment of Assets:
The Company tests for impairments at the close of the accounting period
if and only if there are indications that suggest a possible reduction
in the recoverable value of an asset. If the recoverable value amount
of an Asset, i.e the net releasable value or the economic value in use
of a cash generating unit, is lower than the carrying amount of the
Assets the difference is provided for as impairment. However, if
subsequently the position reverses and the recoverable amount become
higher than the carrying value the provision to the extent of the then
difference is reversed, but not higher than the amount provided for.
There was no impairment loss on fixed assets on the basis of review
carried out by the management in accordance with Accounting Standard 28
issued by The Institute of Chartered Accountant of India.
[F] Investments:
All investments are classified as longterm investment. Long term
investments are stated at cost. The fall in value being temporary in
nature, no provision is made for diminution in value.
[G] Inventories:
Cost of inventories have been computed to include all cost of purchase,
cost of conversion and other cost incurred in bringing them to their
respective present location and condition.
Raw materials and components, stores and spares are valued at cost.
Cost is determined on Moving Average price basis.
[H] Employee Retirement Benefits:
Short Term Employees Benefits : The undiscounted amount of short term
employee benefits expected to be paid in exchange for the service
rendered by employees is recognized during the year when the employee
render the services.
Post Employee Benefits : No provision is made for accrued liability for
payment leave encashment & gratuity under the Payment of Gratuity Act,
1972, and encashment of leave as the liabilities are not ascertainable.
The company will charge the same to the revenue in the year of actual
payment.''
[I] Revenue, Turnover & Expenses Recognition: in case of sale of goods:
Revenue is recognizing when the significant risks and rewards of
ownership of goods have passed to the buyer, which generally coincides
with delivery.
The sales are recorded when supply of goods takes place in accordance
with the terms of sale and on change of title in the goods and is net
of Central Sales Tax, VAT, Sales return and rate difference.
[J] Income & Expenditure:
All Income and Expenses to the extent consider payable and receivable
respectively, unless specifically stated to be otherwise, are accounted
for on accrual basic except otherwise stated, considering the concept
of materiality. Leave encashment and Gratuity Expenses are considered
as payable when paid.
[K] Provisions and Contingent Liabilities:
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
[L] Prior Period Adjustment:
Transactions pertaining to prior period to current accounting year have
been accounted under respective heads of account in Profit & Loss
Account.
[M] Foreign Currency Transactions:
Initial Recognition: Transaction in foreign currencies are recorded in
Indian Rupees using the forward booking rate to the extent available
and for the balance amount using the rates of exchange prevailing on
the dates of the transactions. At each balance sheet date, recorded
monetary balances are reported in Indian Rupees at the rates of
exchange prevailing at the balance sheet date.
Exchange Difference: Exchange difference arising on the settlement of
the monetary items or on the reporting company''s monetary items at
rates different from those at which they were initially recorded during
the year, or reported in previous financial statements, are recognized
as income or as expense in the year in which they arise in the
statement of Profit & Loss.
[N] Borrowing Costs:
Borrowing costs directly attributable to acquisition, construction and
production of qualifying assets are capitalized as a part of the cost
of such asset up to the date of completion. Other borrowing costs are
charged to the profit & loss account.
[O] Taxes on Income:
Deferred Taxation: Deferred Tax resulting from timing differences
between book and tax profits is accounted for under the liability
method, at the current rate of tax, to the extent that the timing
difference are expected to crystallize. In case of Deferred Tax Assets
and Liabilities with reasonable certainty and in case of Deferred Tax
Assets represented by unabsorbed depreciation and carried forward
business losses, with virtual certainty that there would be adequate
future taxable income against which Deferred tax Assets can be
realized.
Current Tax: Provision for Taxation is made on the basis of the Taxable
Profits computed for the current accounting period in accordance with
the Income tax Act, 1961.
[P] Preliminary Expenses:
Preliminary expenses have been amortized to the extent of l/10th during
the year.
[Q] Earning Per Share:
Basic Earning per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earning per share, the net
profit attributable to equity shareholders and the weighted average
number of shares outstanding during the period a re adjusted for the
effect of the dilutive potential equity share. Share application
money pending allotments have been ignored while calculating Basic and
Diluted Earning per share.
Mar 31, 2013
A. Basis of Preparation of Financial Statements
The financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis, except as otherwise stated, to the
extent disclosed in the notes on Accounts. These financial statements
have been prepared to comply in all material aspects with the
accounting standards notified under Section 211(3C) [Companies
Accounting Standards Rules, 2006, as amended] and the other relevant
provisions of the Companies Act, 1956.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Schedule VI to the Companies Act, 1956. Based
on the nature of products and the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents, the company has ascertained its operating cycle as 12
months for the purpose of current-noncurrent classification of assets
and liabilities.
B. Use of Estimates
The presentation of financial statements requires that the management
makes estimates and assumption that affect the reported amount of
assets and liabilities on the date of the financial statements and the
reported amount of revenues and expenses during the reporting period.
Although, these estimates are based upon management''s best knowledge of
current events and actions, actual results could differ from these
estimates. Difference between the actual result and estimates are
recognized in the period in which the results are known /materialized.
C. Tangible and Intangible Fixed Assets :
Tangible Fixed Assets: Tangible fixed assets are stated at cost price
including cost attributable to the assets less the accumulated
depreciation on it. Cost comprises the purchase price and any
attributable cost of bringing the assets to its working condition for
its intended use. Any trade discounts and rebates are deducted in
arriving at the purchase price. Fixed assets installed and put to use
have been certified by management and relied by the auditors being a
technical matter.
Intangible Fixed Assets: Intangible assets acquired separately are
measured on initial recognition at costs. Following initial
recognition, intangible assets are carried at cost less accumulated
amortization and accumulated impairment losses, if any.
D. Depreciation :
Depreciation on tangible assets has been provided on "Straight Line"
basis in accordance with the provisions of the Companies Act, 1956, in
the manner and at the rates specified in Schedule XIV to the said Act.
Depreciation on addition / deletion from fixed assets made during the
year is provided on pro rata basis from the date of acquisition /
deletion of the fixed assets to the end of the financial year.
E. Impairment of Assets :
The Company tests for impairments at the close of the accounting period
if and only if there are indications that suggest a possible reduction
in the recoverable value of an asset. If the recoverable value amount
of an Asset, i.e the net releasable value or the economic value in use
of a cash generating unit, is lower than the carrying amount of the
Assets the difference is provided for as impairment. However, if
subsequently the position reverses and the recoverable amount become
higher than the carrying value the provision to the extent of the then
difference is reversed, but not higher than the amount provided for.
There was no impairment loss on fixed assets on the basis of review
carried out by the management in accordance with Accounting Standard 28
issued by The Institute of Chartered Accountant of India.
F. Investments:
All investments are classified as long term investment. Long term
investments are stated at cost. The fall in value being temporary in
nature, no provision is made for diminution in value.
G. Inventories:
Cost of inventories have been computed to include all cost of purchase,
cost of conversion and other cost incurred in bringing them to their
respective present location and condition. Raw materials and
components, stores and spares are valued at cost. Cost is determined on
Moving Average price basis.
H. Employee Retirement Benefits :
Short Term Employees Benefits: The undiscounted amount of short term
employee benefits expected to be paid in exchange for the service
rendered by employees is recognized during the period when the employee
render the services.
Post Employee Benefits: Contribution to defined contribution scheme
such as provident fund etc. is charged to P & L Account as incurred.
I. Revenue, Turnover & Expenses Recognition:
In case of sale of goods:
Revenue is recognizing when the significant risks and rewards of
ownership of goods have passed to the buyer, which generally coincides
with delivery.
The sales are recorded when supply of goods takes place in accordance
with the terms of sale and on change of title in the goods and is net
of Central Sales Tax, VAT, Sales return and rate difference.
In case of job work:
In contract involve rendering of services, revenue is measured using
the proportionate completion method.
J. Income & Expenditure :
All Income and Expenses to the extent consider payable and receivable
respectively, unless specifically stated to be otherwise, are accounted
for on accrual basic except otherwise stated, considering the concept
of materiality. Leave encashment expenses are considered as payable
when paid.
K. Provisions and Contingent Liabilities :
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
L. Prior Period Adjustment:
Transactions pertaining to prior period to current accounting year have
been accounted under respective heads of account in Profit & Loss
Account.
M. Foreign Currency Transactions:
Initial Recognition: Transaction in foreign currencies are recorded in
Indian Rupees using the rates of exchange prevailing on the dates of
the transactions. At each balance sheet date, recorded monetary
balances are reported in Indian Rupees at the rates of exchange
prevailing at the balance sheet date.
Exchange Difference: Exchange difference arising on the settlement of
the monetary items or on the reporting company''s monetary items at
rates different from those at which they were initially recorded during
the year, or reported in previous financial statements, are recognized
as income or as expense in the year in which they arise in the
statement of Profit & Loss.
N. Borrowing Costs:
Borrowing costs directly attributable to acquisition, construction and
production of qualifying assets are capitalized as a part of the cost
of such asset up to the date of completion. Other borrowing costs are
charged to the profit & loss account.
O. Taxes on Income:
Deferred Taxation: Deferred Tax resulting from timing differences
between book and tax profits is accounted for under the liability
method, at the current rate of tax, to the extent that the timing
difference are expected to crystallize. In case of Deferred Tax Assets
and Liabilities with reasonable certainty and in case of Deferred Tax
Assets represented by unabsorbed depreciation and carried forward
business losses, with virtual certainty that there would be adequate
future taxable income against which Deferred tax Assets can be
realized.
Current Tax: Provision for Taxation is made on the basis of the Taxable
Profits computed for the current accounting period in accordance with
the Income tax Act, 1961.
P. Preliminary Expenses:
Preliminary expenses have been amortized to the extent of 1/1 Oth
during the year.
Q. Earning Per Share:
Basic Earning per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. For the
purpose of calculating diluted earning per share, the net profit
attributable to equity shareholders and the weighted average number of
shares outstanding during the period are adjusted for the effect of the
dilutive potential equity share. Share application money pending
allotments have been ignored while calculating Basic and Diluted
Earning per share.
Mar 31, 2012
I) ACCOUNTING CONCEPT:
a. These accounts are prepared on the historical cost convention and on
the accounting principle of a going concern,
b. Accounting policies not specifically referred to otherwise be
consistent and in consonance with generally accepted accounting
principle
ii) RECOGNITION OF INCOME AND EXPENDITURE
Company accounts Incomes and Expenses on accrual basis in accordance
with the generally accepted accounting principles except dividend which
are accounted on cash basis.
iii) USE OF ESTIMATES
The presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and reported amount
of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/ materialized.
iv) FIXED ASSETS & DEPRECIATION
The Gross Block of Fixed Assets is shown at historical cost, which
includes taxes and other identifiable direct Expenses, less impairment
loss. The cost of fixed assets includes the cost of acquisition
including freight, taxes, duties and other identifiable direct
expenses, except otherwise specifically excluded and expressed by way
of note, attributable to acquisition of assets up to the date the asset
put to use less the accumulated depreciation on it.
Depreciation is provided on Straight-line method at the rates and in
the manner specified in Schedule XIV of the Companies Act, 1956. The
depreciation on addition / disposal is provided pro-rate basis.
v) SALES/TURNOVER
Sales are recognized, net of returns, on dispatch of goods to customers
the satisfaction of the customer and are reflected in the accounts at
net value.
vi) INVESTMENT
Investments are carried at cost. They are long-term investment: The
fall in value being temporary in nature, no provision is made for
diminution in value.
vii) INVENTORY
Inventories are valued on FIFO basis at lower of cost or market price
except cotton waste and scrap material, which are shown at Net
Realizable Value.
viii) TREATMENT OF RETIREMENT BENEFITS
1. Short Term Employee Benefits. The undiscounted amount of short term
employee benefits expected to be paid in exchange for the service
rendered by employee is recognized during the period when the employee
render the service.
2. Post Employee Benefits: Contribution to defined contribution scheme
such as provident fund etc. is charged to P&L Account as incurred.
ix) TAXATION
Tax liabilities of the company are estimated considering the provision
of the I.T. Act, 1961. The deferred tax Liability for timing
difference between the book and tax profit for the year is accounted
using the rates and Tax Laws that have been enacted or substantially
enacted at the balance sheet date Deferred Tax assets arising from the
timing difference are recognized to the extent that there is reasonable
certainty that sufficient future taxable income will be available.
translated at the rates of exchange at the balance sheet date and
resultant gain or loss is recognized in the profit and loss account.
x) CONTINGENT LIABILITIES
Contingent liabilities are not provided for (unless otherwise stated)
and are disclosed by way of notes on account, if any.
Mar 31, 2010
I) ACCOUNTING CONCEPT
a. These accounts are prepared on the historical cost convention and
on the accounting principle of a going concern.
b. Accounting policies not specifically referred to otherwise be
consistent and in consonance with generally accepted accounting
principle.
ii) RECOGNITION OF INCOME AMD EXPENDITURE
Company accounts Incomes and Expenses on accrual basis in accordance
with the generally accepted accounting principles excepts dividend and
exports incentives, which are on cash basis.
iii)- USE OF ESTIMATES
The presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and reported amount
of revenues and expenses during the reporting period, Difference
between the actual results and estimates are recognized in the period
in which the results are known/materialized.
iV) FIXED ASSETS & DEPRECIATION,
The Cross Block of Fixed Assets is shown at historical cost, which
includes taxes and Other identifiable direct Expenses, less impairment
Toss. The cost of fixed assets includes the cost of acquisition
including freight, taxes, duties and other identifiable direct
expenses, except otherwise specifically excluded and expressed by way
of note, attributable to acquisition of assets up to the date the asset
put to use less the accumulated depreciation on it.
Depreciation is provided on Straight-line method at the rates and in
the manner specified in Schedule XIV of the Companies Act, 1956. The
depreciation on addition / disposal Is provided pro-rate basis.
v) SALES/TURNOVER
Sales are recognized, net of returns, on dispatch of goods to customers
the satisfaction of the customer and are reflected In the accounts at
net value.
vi) INVESTMENT
Investments are carried at cost. They are long-term investment. The
fall in value being temporary in nature, no provision Is made for
diminution in value.
Vii) INVENTORY
Inventories are valued on FIFO basis at lower of cost or market price
except cotton waste and scrape material, which are shown at Net
Realizable Value
viii) TREATMENT OF RETIREMENT BENEFITS
1. Short Term Employee Benefits:Theundiscounted amount of short term
employee benefits expected to be paid in exchange for the service
rendered by employee is recognized during the period when the employee
render the service,
2. Post Employee Benefits: Contribution to defined contribution scheme
such as provident fund etc. is charged to P&L Account as Incurred.
ix) TAXATION
Tax liabilities of the company are estimated considering the provision
of the I,T Act, 1961. - The deferred tax Liability for timing
difference between the book and tax profit for the year la accounted
using the rates and Tax Laws that have been enacted or substantially
enacted at the balance sheet date. Deferred Tax assets arising from the
timing difference are recognized to the extent that there Is reasonable
certainty that sufficient future taxable. Income will be available,
x) FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transaction. Monetary assets and liabilities
denominated In foreign currency are translated at the rates of exchange
at the balance sheet date and resultant gain or loss la recognized in
the profit and loss account.
Xi) CONTINGENT LIABILITIES
Contingent liabilities are not provided (unless otherwise stated) end
are disclosed by way, of notes on account, of following.
Mar 31, 2009
I) ACCOUNTING CONCEPT:
a. These accounts are prepared on the historical cost convention and
on the accounting principle of a going concern.
b. Accounting policies not specifically referred to otherwise be
consistent and in consonance with generally accepted accounting
principle.
ii) RECOGNITION OF INCOME AND EXPENDITURE
Company accounts Incomes and Expenses on accrual basis in accordance
with the generally accepted accounting principles excepts dividend and
exports incentives, which are on cash basis.
iii) USE OF ESTIMATES
The presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and reported amount
of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/materialized.
iv) FIXED ASSETS & DEPRECIATION
The Gross Block of Fixed Assets is shown at historical cost, which
includes taxes and other identifiable direct Expenses, less impairment
loss. The cost of fixed assets includes the cost of acquisition
including freight, taxes, duties and other identifiable direct
expenses, except otherwise specifically excluded and expressed by way
of note, attributable to acquisition of assets up to the date the asset
put to use less the accumulated depreciation on it.
Depreciation is provided on Straight-line method at the rates and in
the manner specified in Schedule XIV of the Companies Act, 1956. The
depreciation on addition / disposal is provided pro-rate basis.
v) SALES/TURNOVER
Sales are recognized, net of returns, on dispatch of goods to customers
the satisfaction of the customer and are reflected in the accounts at
net value.
vi) INVESTMENT
Investments are carried at cost. They are long-term investment. The
fall in value being temporary in nature, no provision is made for
diminution in value.
vii) INVENTORY
Inventories are valued on FIFO basis at lower of cost or market price
except cotton waste and scrape material, which are shown at Net
Realizable Value.
vii) TREATMENT OF RETIREMENT BENEFITS
1. Short Term Employee Benefits: The undiscounted amount of short term
employee benefits expected to be paid in exchange for the service
rendered by employee is recognized during the period when the employee
render the service.
2. Post Employee Benefits: Contribution to defined contribution scheme
such as provident fund etc. is charged to P&L Account as incurred.
viii) TAXATION
Tax liabilities of the company are estimated considering the provision
of the IT. Act, 1961. The deferred tax Liability for timing difference
between the book and tax profit for the year is accounted using the
rates and Tax Laws that have been enacted or substantially enacted at
the balance sheet date. Deferred Tax assets arising from the timing
difference are recognized to the extent that there is reasonable
certainty that sufficient future taxable income will be available.
ix) FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transaction. Monetary assets and liabilities
denominated in foreign currency are translated at the rates of exchange
at the balance sheet date and resultant gain or loss is recognized in
the profit and loss account.
x) CONTINGENT LIABILITIES
Contingent liabilities are not provided (unless otherwise stated) and
are disclosed by way of notes on account, of following,
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