Mar 31, 2015
A Basis of Accounting:
The Financial Statements have been prepared under the historical cost
convention on an accrual basis and in compliance with all material
aspects with the notified Accounting Standards specified 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 the guidelines issued by the Securities Exchange
Board of India (SEBI).
B Use of Estimates:
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles requires estimates and assumptions to be
made that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities on the financial statements and
the reported amounts of revenues and expenses during the reporting
period.
Difference between actual results and estimates are recognized in the
periods in which the results are known/ materialize.
C Revenue Recognition
i) Revenue is recognised when it is earned and no significant
uncertainty exists as to its realisation or collection.
ii) Sales are recognised when all significant risks and rewards of
ownership of the goods are passed on to the buyer.
iii) Revenue in respect of export sales is recognised on shipment of
products.
iv) Export incentives are recognised in the Statement of Profit and
Loss when the right to receive establishes as per the terms of the
Scheme in respect of export made.
v) Interest is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable.
vi) The Interest subsidy accrued under Technology Upgradtion Fund (TUF)
Scheme are recognised on accrual basis and reduced from the cost of
funds available on loan. The recognition of TUF subsidy amount has been
made on the basis of entitlement under the scheme.
D Fixed Assets:
All Fixed Assets are stated at cost of acquisition/installation as
reduced by accumulated depreciation/ amortisation. Cost of Assets
includes direct/indirect and incidental costs incurred to bring such
assets into its present location and working condition for its intended
use.
E 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 Statement
of Profit and Loss 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.
F Depreciation:
a) Tangible Assets :
i) No depreciation is charged on Freehold Land.
ii) Leasehold Land is amortised over the remaining period of lease.
iii) Depreciation on Other Fixed Assets has been provided on 'Straight
Line Method' on triple shift basis wherever applicable as per the
manner specified and as per the useful life mentioned in Schedule II of
the Companies Act, 2013
b) Intangible Assets:
i) Accounting Software is amortised on Straight Line Method over a
period of ten years.
ii) Right to receive power is amortised on Straight Line Method over a
period of ten years.
G Inventories:
Inventories are valued as follows:
i) Finished Goods are valued at lower of cost or net realisable value.
ii) Raw Materials are valued at lower of cost or net realisable value.
iii) Work-in-Process are valued at lower of cost or net realisable
value.
iv) Stores & Spares are valued at lower of cost or net realisable
value.
v) Packing Materials are valued at lower of cost or net realisable
value.
vi) Scrap is valued at net realisable value.
Raw Materials, Stores and Spares and Packing Materials are determined
on FIFO basis.
H 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 a 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, requires 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.
I Borrowing Costs :
Borrowing costs are recognized as an expense in the period in which
they are incurred except the borrowing costs attributable to the
acquisition/ construction of qualifying assets which are capitalized as
a part of the cost of the fixed assets, up to the date, the assets are
ready for its intended use.
J Leases :
Assets leased out under operating leases are capitalized. Rental income
is recognised on accrual basis over the lease term. All direct costs up
to date of put to use of Leased Assets are capitalised and thereafter
treated as revenue expenditure except in case of increase in utility of
the assets.
K Investments:
Investments that is intended to be held for more than a year from the
date of acquisition are classified as long term investments and are
carried at cost less any provision for diminution other than temporary
in value. Investments other than long term investments being current
investments are valued at cost or fair market value whichever is lower.
L Expenditure during Construction Period:
i) Expenditure of capital nature incurred during construction period in
respect of a capital asset being executed by the Company is grouped
under Capital work in progress. Such Expenditure is capitalized upon
the commencement of commercial operations of the capital asset.
ii) Pre operative expenses pending allocation included in capital work
in progress represents expenditure incurred in connection with the
capital asset which is intended to be capitalized to the capital asset.
M Purchases are inclusive of Cenvat after deducting purchase returns,
discounts, rebates and incentives, if any.
N Sales are inclusive of Excise Duty after deducting sales returns,
discounts if any.
O Earnings per share:
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to the equity shareholders by the
weighted average number of equity shares outstanding during the period.
The weighted number of equity shares outstanding during the period is
adjusted for events such as bonus issue, bonus element in rights issue
that have changed the number of outstanding equity shares, without a
corresponding change in resources.
For the purpose of calculating dilutive earnings per share, the net
profit or loss for the period attributable to equity shareholders and
weighted number of shares outstanding during the period is adjusted for
the effects of all dilutive potential equity shares.
P 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 liabilities 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 at each
Balance Sheet date.
Minimum Alternate Tax
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax.
Q Employee Benefits :
i) Company's contribution to Provident Fund and other Funds for the
year is accounted on accrual basis and charged to the Statement of
Profit & Loss for the year.
ii) Retirement benefits in the form of Gratuity are considered as
defined benefit obligations and are provided on the basis of the
actuarial valuation, using the projected unit credit method as at the
date of the Balance Sheet.
R "Foreign Currency Transaction"
i) The transactions in foreign currencies on revenue accounts are
stated at the rate of exchange prevailing on the date of transaction.
ii) The difference on account of fluctuation in the rate of exchange
prevailing on the date of transaction and the date of realisation is
treated as revenue.
iii) Differences on translation of Current Assets and Current
Liabilities remaining unsettled at the year end are recognised in the
Statement of Profit and Loss.
Mar 31, 2014
A Basis of Accounting:
The Financial Statements have been prepared under the historical cost
convention on an accrual basis and in compliance with all material
aspects with the notified Accounting Standards by Companies (Accounting
Standard) Rules 2006 and 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 assumptions to be
made that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities on the financial statements and
the reported amounts of revenues and expenses during the reporting
period.
Difference between actual results and estimates are recognized in the
periods in which the results are known/ materialize.
C Revenue Recognition
i) "Revenue is recognised when it is earned and no significant
uncertainty exists as to its realisation or collection.
ii) Sales are recognised when all significant risks and rewards of
ownership of the goods are passed on to the buyer.
iii) Revenue in respect of export sales is recognised on shipment of
products.
iv) Export incentives are recognised in the Statement of Profit and
Loss when the right to receive establishes as per the terms of the
Scheme in respect of export made.
v) Interest is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable.
vi) The Interest subsidy accrued under Technology Upgradtion Fund (TUF)
scheme are recognised on accrual basis and reduced from the cost of
funds available on loan. The recognition of TUF subsidy amount has been
made on the basis of entitlement under the scheme.
D Fixed Assets:
All Fixed Assets are stated at cost of acquisition/installation as
reduced by accumulated depreciation/ amortisation. Cost of Assets
includes direct/indirect and incidental costs incurred to bring such
assets into its present location and working condition for its intended
use.
E 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 Statement
of Profit and Loss 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.
F Depreciation:
a) Tangible Assets :
i) No depreciation is charged on Freehold Land.
ii) Leasehold Land is amortised over the remaining period of lease.
iii) Depreciation on Other Fixed Assets has been provided on ''Straight
Line Method'' on triple shift basis wherever applicable as per the rates
and in the manner specified in Scheduled XIV of the Companies Act,
1956.
b) Intangible Assets:
i) Accounting Software is amortised on Straight Line Method over a
period of ten years. ii) Right to receive power is amortised on
Straight Line Method over a period of ten years.
G Inventories:
Inventories are valued as follows:
i) Finished Goods are valued at lower of cost or net realisable value.
ii) Raw Materials are valued at lower of cost or net realisable value.
iii) Work-in-Process are valued at lower of cost or net realisable
value.
iv) Stores & Spares are valued at lower of cost or net realisable
value.
v) Packing Materials are valued at lower of cost or net realisable
value.
vi) Scrap is valued at net realisable value.
H 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 a 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, requires 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.
I Borrowing Costs
Borrowing costs are recognized as an expense in the period in which
they are incurred except the borrowing costs attributable to the
acquisition/ construction of qualifying assets which are capitalized as
a part of the cost of the fixed assets, up to the date, the assets are
ready for its intended use.
J Investments:
Investments that is intended to be held for more than a year from the
date of acquisition are classified as long term investments and are
carried at cost less any provision for permanent diminution in value.
Investments other than long term investments being current investments
are valued at cost or fair market value whichever is lower.
K Expenditure during Construction Period:
Expenditure of capital nature incurred during construction period in
respect of a project being executed by the
Company is grouped under Capital work in progress. Such Expenditure is
capitalized upon the commencement of commercial operations of the
project.
L Purchases are inclusive of Cenvat after deducting purchase returns,
discounts, rebates and incentives, if any.
M Sales are inclusive of Excise Duty after deducting sales returns,
discounts if any.
N Earnings per share:
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to the equity shareholders by the
weighted average number of equity shares outstanding during the period.
The weighted number of equity shares outstanding during the period is
adjusted for events such as bonus issue, bonus element in rights issue
that have changed the number of outstanding equity shares, without a
corresponding change in resources.
For the purpose of calculating dilutive earnings per share, the net
profit or loss for the period attributable to equity shareholders and
weighted number of shares outstanding during the period is adjusted for
the effects of all dilutive potential equity shares.
O 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 liabilities 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 at each
Balance Sheet date.
P Employee Benefits :
i) Company''s contribution to Provident Fund and other Funds for the
year is accounted on accrual basis and charged to the Statement of
Profit & Loss for the year.
ii) Retirement benefits in the form of Gratuity are considered as
defined benefit obligations and are provided on the basis of the
actuarial valuation, using the projected unit credit method as at the
date of the Balance Sheet.
Q "Foreign Currency Transaction"
i) The transactions in foreign currencies on revenue accounts are
stated at the rate of exchange prevailing on the date of transaction.
ii) The difference on account of fluctuation in the rate of exchange
prevailing on the date of transaction and the date of realisation is
treated as revenue.
iii) Differences on translation of Current Assets and Current
Liabilities remaining unsettled at the year end are recognised in the
Statement of Profit and Loss.
c. Terms/rights attached to equity shares
The Company has one class of equity shares having a par value of Rs.1 per
share. Each holder of equity shares is entitled to one vote per share.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
a Loan from State Bank of India amounting to Rs. 302.00 Lakhs (P.Y. Rs.
494.00 Lakhs) was sanctioned during the financial
year 2007-08 and carries Interest @ Base Rate 5% p.a. The loan is
repayable in 81 monthly installments starting from September 2008. The
Loan is Secured By 1st equitable mortgage charge on Company''s Land &
Building, Plant & Machinery, Furniture & Fixtures, Office Equipments &
all other Fixed assets situated at Government Industrial Estate Masat,
Silvassa. 2nd charge on paripassu basis with other Bank on the Land,
Building, Plant & Machinery, Office Equipments and all other Fixed
Assets situated at village Naroli, Silvassa. 1st Charge on office
situated at Goregoan (East) and 2nd charge on parripassu basis with
other lenders over the entire current assets of the company.
b Loan from State Bank of India amounting to Rs. 375.69 Lakhs (P.Y. Rs.
501.33 Lakhs) was sanctioned during the financial
year 2009-10 and carries interest @ Base rate 5% p.a. The loan is
repayable in 78 monthly installments starting from October 2010. The
Loan is Secured By 1st Equitable mortgage on pari-passu basis with
other Banks on the Land & Building (Ground Floor),Plant & Machinery,
Office Equipment (10 texturising machines) and all other Fixed Assets
to be situated at village Naroli Silvassa. 2nd charge on pari passu
basis over entire fixed assets land & building situated at Govt
Industrial Estate Masat, Silvassa and other location.1st Charge on
office situated at Goregoan (East) and 2nd charge on parripassu basis
with other lenders over the entire current assets of the company.
c Loan from State Bank of India amounting to Rs. 422.00 Lakhs (P.Y Rs.
476.00 Lakhs) was sanctioned during the financial
year 2011-12 and carries interest @ Base rate 5.65% p.a. The Loan is
repayable in 80 monthly installments starting from April 2012. The Loan
is secured by 1st equitable charge on Building (1st & 2nd Floor)
situated at village Naroli, Silvassa owned by the Company. 2nd charge
on paripassu basis with other Bank on the Land, Building, Plant &
Machinery, Office Equipments and all other Fixed Assets situated at
village Naroli, Silvassa. 2nd parripassu charge with other Bank Ltd on
entire fixed assets(other than 1st charge on assets to be created out
of TL-IV from SBI) at Govt Industrial Estate Masat,Silvassa and village
Naroli Silvassa. 1st Charge on office situated at Goregoan (East) and
2nd charge on parripassu basis with other lenders over the entire
current assets of the company.)
d Loan State Bank of India amounting to Rs. 3810.00 Lakhs (PY Rs. 4290.00
Lakhs) was sanctioned during the financial year
2011-12 and carries interest @ Base rate 4.50% p.a. The loan is
repayable in 76 monthly installments starting from October 2012. The
Loan is secured by 1st hypothecation charge on shed, plant & machinery
at Naroli, Silvassa owned by the company and extension of 1st charge on
Building (1st & 2nd Floor) at Naroli. 2nd charge on paripassu basis
with other Bank on the Land, Building, Plant & Machinery, Office
Equipments and all other Fixed Assets situated at Naroli, Silvassa.
2nd parripassu charge with other Bank Ltd on entire fixed assets(other
than 1st charge on assets to be created out of TL-IV from SBI) at Govt
Industrial Estate Masat, Silvassa and S.No. 185/P Naroli Silvassa. 1st
Charge on office situated at Goregoan (East) and 2nd charge on
parripassu basis with other lenders over the entire current assets of
the company.
e Loan from Axis Bank amounting to Rs. 948.90 Lakhs (P.Y. Rs.1224.90 Lakhs)
was sanctioned during the financial year 2010-
11 and carries interest @ Base rate 3.50% p.a The loan is repayable in
78 monthly installments starting from January 2011. The loan is secured
by Equitable mortgage of land and building & hypothecation of Plant &
Machinery(both acquired out of TL and installed at Silavassa ,D&N
Haveli (UT) on parripassu with SBI. Second parripassu charge on entire
fixed assets of the company with SBI (for land & building at Govt
Industrial Estate Masat, Silvassa to the extent of Rs. 10 Crore).Second
parripassu charge on entire current assets of the company with SBI.
f All the above term loans are personally guaranteed by the Chairman &
Managing Director of the Company.
Vehicle Loan (Secured)
Vehicle Loan amounting to Rs.13.46 Lakhs (P.Y. Rs. 22.02 Lakhs ) was
obtained during the financial year 2009-10 and carries interest @ 8.67%
p.a. The loan is repayable in 60 monthly instalments along with
interest starting from Oct 2010.The loan is secured by 1st charge on
the vehicle specifically financed out of the loan
Loan from Companies (Unsecured)
Loan from a Company amounting to Rs. 100.00 Lakhs was obtained during the
year 2013-14 and carries @ 12% p.a..The loan is unsecured and is
repayable after 31st March 2015.
Loan from Related Parties (Unsecured)
Loan from Related Parties amounting to Rs. 1810.00 Lakhs (P.Y. Rs. 508.00
Lakhs) was obtained in the financial year 2013- 14 and is interest
free. The loan is unsecured and is repayable after 31st March 2015.
a Cash credit from State Bank of India amounting to Rs. 4,889.23 Lakhs
(P.Y. 3467.45 Lakhs) is secured by 1st Hypothecation charge on entire
current assets of the company on parripassu basis. 2nd charge on pari
passu basis on Land & Building, Plant & Machinery, Office Equipments
and all other Fixed Assets situated at village Naroli Silvassa. 2nd
charge on pari passu basis over entire fixed assets Land & Building at
Govt Industrial Estate, Masat, Silvassa and othe location(for land and
building to the extent of Rs.10 Crores). 2nd charge on building Shed,
Plant & Machinery of Proposed Project at Unit-3 situated at Naroli
(under New project) 1st charge in office situated at Goregoan
(East).The cash credit is repayable on demand and carries interest @
Base Rate 4% p.a.
b Cash credit from Axis bank amounting to Rs.118.90 Lakhs (P.Y.184.75
Lakhs ) is secured by 1st parri passu charge over entire current assets
of the company, present & future. 2nd parripassu charge over the entire
fixed assets of the company, present, future (for land & building at
Govt Industrial Estate Masat, Silvassa. The cash credit is repayable on
demand and carries interest @Base Rate 3.5% p.a.
c All the above secured short term borrowings are personally guaranteed
by the Chairman & Managing Director of the Company .
Mar 31, 2013
A Basis of Accounting:
The Financial Statements have been prepared under the historical cost
convention on an accrual basis and in compliance with all material
aspects with the notified Accounting Standards by Companies (Accounting
Standard) Rules 2006 and 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 assumptions to be
made that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities on the financial statements and
the reported amounts of revenues and expenses during the reporting
period.
Difference between actual results and estimates are recognized in the
periods in which the results are known/ materialize.
C Revenue Recognition:
i) Revenue is recognised when it is earned and no significant
uncertainty exists as to its realisation or collection.
ii) Sales are recognised when all significant risks and rewards of
ownership of the goods are passed on to the buyer.
iii) Revenue in respect of export sales is recognised on shipment of
products.
iv) Interest is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable.
v) Export incentives are recognised in the Statement of Profit and Loss
when the right to receive credit as per the terms of the Scheme is
established in respect of export made.
D Fixed Assets:
All Fixed Assets are stated at cost of acquisition/installation as
reduced by accumulated Depreciation/ amortisation. Cost of Asset
includes direct/indirect and incidental cost incurred to bring such
assets into its present location and working condition for its intended
use.
E 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 Statement
of Profit and Loss 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.
F Depreciation:
a) Tangible Assets :
i) No depreciation is charged on Freehold Land.
ii) Leasehold Land is amortised over the remaining period of lease.
iii) Depreciation on Other Fixed Assets has been provided on
''Straight Line Method'' on triple shift basis wherever applicable as
per the rates and in the manner specified in Scheduled XIV of the
Companies Act, 1956.
b) Intangible Asset :
i) Accounting Software is amortised on Straight Line Method over a
period of ten years.
ii) Right to receive power is amortised on Straight Line Method over a
period of ten years.
G Inventories: Inventories are valued as follows:
i) Finished Goods, Raw Material, Work-in-Process, Stores & Spares and
Packing Material are valued at lower of cost or net realisable value.
ii) Yarn Scrap is valued at net realisable value.
H 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 a 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, requires 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.
I Borrowing costs
Borrowing costs are recognized as an expenses in the period in which
they are incurred except the borrowing cost attributable to be
acquisition/ construction of qualifying assets which are capitalized as
a part of the cost of the fixed assets, up to the date, the assets are
ready for its intended use.
J Investments:
Investments that is intended to be held for more than a year from the
date of acquisition are classified as long term investments and are
carried at cost less any provision for permanent diminution in value.
Investments other than long term investments being current investments
are valued at cost or fair market value whichever is lower.
K Expenditure during Construction Period:
Expenditure of capital nature incurred during construction period in
respect of a project being executed by the Company is grouped under
Capital work in progress. Such Expenditure is capitalized upon the
commencement of commercial operations of the project.
L Purchases are inclusive of Cenvat after deducting purchase returns,
discounts, rebates and incentives, if any.
M Sales are inclusive of Excise Duty after deducting sales returns,
discounts if any.
N Earnings per share:
Basic Earnings per share are calculated by dividing the net profit or
loss for the period attributable to the equity shareholders by the
weighted average number of equity shares outstanding during the period.
The weighted number of equity shares outstanding during the period is
adjusted for events such as bonus issue, bonus element in rights issue
that have changed the number of equity shares outstanding, without a
corresponding change in resources.
For the purpose of calculating Dilutive Earnings per share, the net
profit or loss for the period attributable to equity shareholders and
weighted number of shares outstanding during the period is adjusted for
the effects of all dilutive potential equity shares.
O Accounting forTaxes of Income: CurrentTaxes
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.
DeferredTaxes
Deferred tax assets and liabilities 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.
P Employee Benefits :
i) Company''s contribution to Provident Fund and other Funds for the
year is accounted on accrual basis and charged to the Statement of
Profit & Loss for the year.
ii) Retirement benefits in the form of Gratuity are considered as
defined benefit obligations and are provided on the basis of the
actuarial valuation, using the projected unit credit method as at the
date of the Balance Sheet.
Q Foreign CurrencyTransaction
i) The transactions in foreign currencies on revenue accounts are
stated at the rate of exchange prevailing on the date of transaction.
ii) The difference on account of fluctuation in the rate of exchange
prevailing on the date of transaction and the date of realisation is
treated as revenue.
iii) Differences on translation of Current Assets and Current
Liabilities remaining unsettled at the year end are recognised in the
Statement of Profit and Loss.
Mar 31, 2012
A) Basis of Accounting
i) The financial statements have been prepared in compliance with the
Accounting Standards notified by Companies (Accounting Standard) Rules
2006 and the relevant provisions of the Companies Act, 1956 in all
material aspects.
ii) Financial Statements are based on historical cost convention and
are prepared on accrual basis.
b) Recognition of Revenue & Expenditure
i) Revenue is recognised when it is earned and no significant
uncertainty exists as to its realisation or collection.
ii) Sales are recognised when all significant risks and rewards of
ownership of the goods are passed on to the buyer.
iii) Revenue in respect of export sales is recognised on shipment of
products.
iv) Interest is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable.
v) Dividend income is recognised when the right to receive payment is
established.
vi) Export incentives are recognised in the Profit and Loss Account
when the right to receive credit as per the terms of the Scheme is
established in respect of export made.
c) Use of Estimates
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles requires estimates and assumptions to be
made that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities on the financial statements and
the reported amounts of revenues and expenses during the reporting
period.
Difference between actual results and estimates are recognized in the
periods in which the results are known/materialize.
d) Fixed Assets
All Fixed Assets are stated at cost of acquisition/installation as
reduced by accumulated Depreciation/ amortisation. Cost of Asset
includes direct/indirect and incidental cost incurred to bring such
assets into its present location and working condition for its intended
use.
e) Impairment of Fixed Assets
At the end of each year, the Company determines whether a provision
should be made for impairment loss on fixed assets by considering the
indication that an impairment loss may have occurred in accordance with
Accounting Standard 28 on "Impairment of AssetsÃ. Where the recoverable
amount of any fixed assets is lower than its carrying amount, a
provision for impairment loss on fixed assets is made for the
difference.
f) Depreciation a) Tangible Assets :
i) No depreciation is charged on Freehold Land.
ii) Leasehold Land is amortised over the remaining period of lease.
ii) Depreciation on Other Fixed Assets has been provided on 'Straight
Line Method' on triple shift basis wherever applicable as per the rates
and in the manner specified in Scheduled XIV of the Companies Act,
1956.
b) Intangible Asset:
I) Accounting Software is amortised on Straight Line Method over a
period of ten years
ii) Right to receive power is amortised on Straight Line Method over a
period of ten years.
g) Borrowing Costs
Borrowing costs are recognized as an expenses in the period in which
they are incurred except the borrowing cost attributable to be
acquisition/ construction of qualifying assets which are capitalized as
a part of the cost of the fixed assets, up to the date, the assets are
ready for its intended use.
h) Valuation of Inventories
i) Finished Goods, Work-in-Process, Raw Materials, Stores & Spares and
Packing Materials are valued at lower of cost or net realisable value.
ii) Yarn Scrap is valued at net realisable value.
i) Investments:
Investments that is intended to be held for more than a year from the
date of acquisition are classified as long term investments and are
carried at cost less any provision for permanent diminution in value.
Investments other than long term investments being current investments
are valued at cost or fair market value whichever is lower.
j) Employee Benefits:
i) Company's contribution to Provident Fund and other Funds for the
year is accounted on accrual basis and charged to the Profit & Loss
Account for the year.
ii) Retirement benefits in the form of Gratuity are considered as
defined benefit obligations and are provided on the basis of the
actuarial valuation, using the projected unit credit method as at the
date of the Balance Sheet.
k) Expenditure during Construction Period:
Expenditure of capital nature incurred during construction period in
respect of a project being executed by the Company is grouped under
Capital work in progress. Such Expenditure is capitalized upon the
commencement of commercial operations of the project.
l) Purchases are inclusive of Cenvat after deducting purchase returns,
discounts, rebates and incentives, if any.
m) Sales are inclusive of Excise Duty after deducting sales returns,
discounts if any.
n) Earnings per share:
Basic Earnings per share are calculated by dividing the net profit or
loss for the period attributable to the equity shareholders by the
weighted average number of equity shares outstanding during the period.
The weighted number of equity shares outstanding during the period is
adjusted for events such as bonus issue, bonus element in rights issue
that have changed the number of equity shares outstanding, without a
corresponding change in resources.
For the purpose of calculating Dilutive Earnings per share, the net
profit or loss for the period attributable to equity shareholders and
weighted number of shares outstanding during the period is adjusted for
the effects of all dilutive potential equity shares.
o) 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 a 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, requires 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.
p) Taxes on 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 liabilities are recognized for the future tax
consequences attributable to timing differences that result between the
profits offered for Income tax 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.
q) Foreign Currency Transaction
i) The transactions in foreign currencies on revenue accounts are
stated at the rate of exchange prevailing on the date of transaction.
ii) The difference on account of fluctuation in the rate of exchange
prevailing on the date of transaction and the date of realisation is
treated as revenue.
iii) Differences on translation of Current Assets and Current
Liabilities remaining unsettled at the year end are recognised in the
Profit and Loss Account.
Mar 31, 2011
1) Basis of Accounting
i) The financial statements have been prepared in compliance with the
Accounting Standards notified by Companies (Accounting Standard) Rules
2006 and the relevant provisions of the Companies Act, 1956 in all
material aspects.
ii) Financial Statements are based on historical cost convention and
are prepared on accrual basis.
2) Recognition of Revenue & Expenditure
i) Revenue is recognised when it is earned and no significant
uncertainty exists as to its realisation or collection.
ii) Sales are recognised when all significant risks and rewards of
ownership of the goods are passed on to the buyer.
iii) Revenue in respect of export sales is recognised on shipment of
products.
iv) Interest is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable.
v) Dividend income is recognised when the right to receive payment is
established.
3) Use of Estimates
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles requires estimates and assumptions to be
made that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities on the financial statements and
the reported amounts of revenues and expenses during the reporting
period.
Difference between actual results and estimates are recognized in the
periods in which the results are known/ materialize.
4) Fixed Assets
All Fixed Assets are stated at cost of acquisition/installation as
reduced by accumulated Depreciation/ amortisation. Cost of Asset
includes direct/indirect and incidental cost incurred to bring such
assets into its present location and working condition for its intended
use.
5) Impairment of Fixed Assets
At the end of each year, the Company determines whether a provision
should be made for impairment loss on fixed assets by considering the
indication that an impairment loss may have occurred in accordance with
Accounting Standard 28 on "Impairment of Assets". Where the recoverable
amount of any fixed assets is lower than its carrying amount, a
provision for impairment loss on fixed assets is made for the
difference.
6) Depreciation
a) Tangible Assets :
i) No depreciation is charged on Freehold Land.
ii) Leasehold Land is amortised over the remaining period of lease.
iii) Depreciation on Other Fixed Assets has been provided on ÃStraight
Line Methodà on triple shift basis wherever applicable as per the rates
and in the manner specified in Scheduled XIV of the Companies Act,
1956.
iv) Mobile Instruments (reflected under Office Equipments) are fully
depreciated in the year of purchase.
b) Intangible Asset:
i) Accounting Software is amortised on Straight Line Method over a
period of ten years
7) Borrowing Costs
Borrowing costs are recognized as an expenses in the period in which
they are incurred except the borrowing cost attributable to be
acquisition/ construction of qualifying assets which are capitalized as
a part of the cost of the fixed assets, up to the date, the assets are
ready for its intended use.
8) Valuation of Inventories
i) Raw Materials, Work-in-Process, Stores & Spares and Packing
Materials are valued at lower of cost or net realisable value.
ii) Finished Goods and Yarn Scrap are valued at lower of cost or net
realisable value.
9) Investments:
Investments that is intended to be held for more than a year from the
date of acquisition are classified as long term investments and are
carried at cost less any provision for permanent diminution in value.
Investments other than long term investments being current investments
are valued at cost or fair market value whichever is lower.
10)Employee Benefits:
i) CompanyÃs contribution to Provident Fund and other Funds for the
year is accounted on accrual basis and charged to the Profit & Loss
Account for the year..
ii) Retirement benefits in the form of Gratuity are considered as
defined benefit obligations and are provided on the basis of the
actuarial valuation, using the projected unit credit method as at the
date of the Balance Sheet.
11)Expenditure during Construction Period:
i) Expenditure of capital nature incurred during construction period in
respect of a project being executed by the Company is grouped under
Capital work in progress. Such Expenditure is capitalized upon the
commencement of commercial operations of the project.
ii) Pre operative expenses pending allocation included in capital work
in progress represents expenditure incurred in connection with the
project which is intended to be capitalized to the project.
12)Excise Duty
Excise duty on manufactured goods is accounted for at the time of their
clearance from the Factory.
13)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 a 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, requires 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.
14)Taxes on 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 liabilities are recognized for the future tax
consequences attributable to timing differences that result between the
profits offered for Income tax 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.
15)Foreign Currency Transaction
i) The transactions in foreign currencies on revenue accounts are
stated at the rate of exchange prevailing on the date of transaction.
ii) The difference on account of fluctuation in the rate of exchange
prevailing on the date of transaction and the date of realisation is
treated as revenue.
iii) Differences on translation of Current Assets and Current
Liabilities remaining unsettled at the year end are recognised in the
Profit and Loss Account.
Mar 31, 2010
1) Basis of Accounting
i) The financial statements have been prepared in compliance with the
Accounting Standards notified by Companies (Accounting Standard) Rules
2006 and the relevant provisions of the Companies Act, 1956 in all
material aspects.
ii) Financial Statements are based on historical cost convention.
2) Recognition of Revenue & Expenditure
i) The Company follow the accrual basis of accounting except in case of
Gratuity and Bonus which is accounted for on cash basis.
ii) Revenue is recognised when it is earned and no significant
uncertainty exists as to its realisation or collection.
iii) Revenue in respect of export sales is recognised on shipment of
products.
3) Fixed Assets
All Fixed Assets are stated at cost of acquisition/Installation as
reduced by accumulated Depreciation. Cost of Asset includes
Direct/Indirect and incidental cost incurred to bring such assets into
its present location and working condition for its intended use.
4) Impairment of Fixed Assets
At the end of each year, the Company determines whether a provision
should be made for impairment loss on fixed assets by considering the
indication that an impairment loss may have occurred in accordance with
Accounting Standard 28 on "Impairment of Assets". Where the
recoverable amount of any fixed assets is lower than its carrying
amount, a provision for impairment loss on fixed assets is made for the
difference.
5) Depreciation
i) No depreciation charged on Freehold Land.
ii) Leasehold land is amortised over the remaining period of lease.
iii) Depreciation on Fixed Assets has been provided on ''Straight Line
Method'' on triple shift basis as per the rates and in the manner
specified in Scheduled XIV of the Companies Act, 1956.
iv) Mobile phones are fully depreciated in the year of purchase.
6) Borrowing Cost I
Borrowing costs are recognized as an expenses in the period in which
they are incurred except the borrowing cost attributable to be I
acquisition/ construction of qualifying assets which are capitalized as
a part of the cost of the fixed assets, up to the date, the assets I
are ready for its intended use.
7) Valuation of Inventories
i) Raw Materials, Work-in-Process, Stores & Spares and Packing
Materials are valued at lower of cost or net realisable value.
ii) Finished goods are valued at lower of cost or net realisable value.
8) Excise Duty
Excise duty on manufactured goods is accounted for at the time of their
clearance from the Factory.
9) 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 a 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, requires 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.
10) Taxes on 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 liabilities are recognized for the future tax
consequences attributable to timing differences that result between the
profits offered for Income tax 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.
11) Use of Estimates
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles requires estimates and assumptions to be
made that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities on the financial statements and
the reported amounts of revenues and expenses during the reporting
period.
Difference between actual results and estimates are recognized in the
periods in which the results are known/materialize.
12) Foreign Currency Transaction
a. The transactions in foreign currencies on revenue accounts are
stated at the rate of exchange prevailing on the date of transaction.
b. The difference on account of fluctuation in the rate of exchange
prevailing on the date of transaction and the date of realisation is
treated as revenue.
c. Differences on translation of Current Assets and Current
Liabilities remaining unsettled at the year end are recognised in the
Profit and Loss Account.