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Accounting Policies of Shree Shaleen Textiles Ltd. Company

Mar 31, 2015

A. Basis of accounting and preparation of financial statements

The Financial Statements are consistently prepared and presented under historical cost convention on an accrual basis in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has prepared the financial statements to comply in all material aspects with the accounting standards notified under section 133 of the Companies Act, 2013 (the Act), read together with rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Act. In accordance with first proviso to section 129(1) of the Act and clause 6 of the General instructions given in Schedule III to the Act, the terms used in these financial statements are in accordance with the Accounting Standards as referred to herein.

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 ill to the Act. Based on the nature of operations, the Company has ascertained its operating cycle as 12 months for the purpose of current - non-current classification of assets and liabilities.

The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year

b Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

c Tangible fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. The land has been revalued for increase in its market value.

d Intangible fixed assets

Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates

e Depreciation and amortization

Depreciation on tangible fixed assets has been provided on the written down method as per the useful life prescribed in Schedule II to the Companies Act, 2013.Companies Act, 1956.

f Inventories

Inventories are valued at the lower of cost and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges.

g Segment reporting

The Company considers business segments as its primary segment. The Company's operations arc predominantly relate to garments manufacturing and accordingly, this is the only primary reportable segment.

The Company considers geographical segments as its secondary segment. The Company's operations are predominantly within India and accordingly, this is the only secondary reportable segment.

h Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash and cash equivalents for the cash flow statement comprises cash at bank and in hand and short - term investments with an original maturity of three months or less.

i Investments

Investments, which are readily realizable and intended to be held for not more than one year from the balance sheet date are classified as current investments. All other investments are classified as non-

j Revenue recognition Sale of goods

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the customers. Income from services

Income from services are recognized as and when the services are rendered. Other Income

Interest & Rent Income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

k Earnings per share

Basic earnings per share are computed by dividing the profit / (loss) attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the profit / (loss) for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all diluted potential equity shares.

l Taxes on income

Current tax is determined as the amount of tax payable in respect of taxable income for the year as determined in accordance, with the provisions of the Income Tax Act, 1961.

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. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company

Deferred tax is recognized on tiring difference, being the difference between the taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent years. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred tax assets are recognized for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their readability.

- Foreign currency transactions and translations Initial recognition

Transactions in foreign currencies entered into by the Company and its integral foreign operations are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Measurement of foreign currency monetary items at the Balance Sheet date

Foreign currency monetary items (other than derivative contracts) of the Company and its net investment in non integral foreign operations outstanding at the Balance Sheet date are restated at the year-end rates.

In the case of integral operations, assets and liabilities (other than non-monetary items), are translated at the exchange rate prevailing on the Balance Sheet date. Non-monetary items are carried at historical cost. Revenue and expenses are translated at the average exchange rates prevailing during the year.

Exchange differences arising out of these translations are charged to the Statement of Profit and Loss.

Treatment of exchange differences

Exchange differences arising on settlement / restatement of short-term foreign currency monetary assets and liabilities of the Company and its integral foreign operations are recognized as income or expense in the Statement of Profit and Loss. The exchange differences on restatement / settlement of loans to non-integral foreign operations that are considered as net investment in such operations are accumulated in a "Foreign currency translation reserve" until disposal / recovery of the net investment.

The exchange differences arising on restatement / settlement of long-term foreign currency monetary items are capitalized as part of the depreciable fixed assets to which the monetary item relates and depreciated over the remaining useful life of such assets or amortized on settlement /'over the rnaturity period of such items if such items do not relate to acquisition of depreciable fixed assets. The unamortized balance is carried in the Balance Sheet as "Foreign currency monetary item translation difference account" net of the tax effect thereon.

m Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past events 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 (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.


Mar 31, 2014

A Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles In ind a (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed In the previous year.

b Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

c Tangible fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

d Depreciation and amortisation

Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

e Inventories

Inventories are valued at the lower of cost and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges.

f Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash and cash equivalents for the cash flow statement comprises cash at bank and in hand and short - term investments with an original maturity of three months or less.

g Investments

Investments, which are readily realizable and intended to be held for not more than one year from the balance sheet d3tc are classified as current nvestments. All other investments are classified as non- current investments. However the carrying amount is reduced to recognize a decline, other than temporary, in the value of long-term Investments by a charge to the statement of profit and loss. Current investments are stated at lower of cost or fair market value determined on individual investment basis

h Revenue recognition

Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

Income from services

Income from services are recognized as and when the services are rendered.

Other intome

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

I Segment reporting

Company considers business segment as its primary segment. The Company''s operations are pre- dominantly relates to trading and accordingly, this Is the only prim try reportable segment.

Company considers business segment as its secondary segment. The Company''s operations are pre- dominantly within India and accordingly, this is the only seconday reportable segment.

1 Earnings per share

Basic earnings per share are computed by dividing the profit / (loss) attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the profit / (loss) for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all diluted potential equity shares, k Taxes on income

Income-tax expenses (current and defered) is accrued in accordance with Accounting Standard 22 - Accounting for taxes on income issued by the Institute of Chartered Accountants of India. Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised, subject to the consideration of prudence on timing difference, being the difference between the taxable income and accounting income that originates ir one period and are capable of reversal in one or more subsequent years

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been in force for the year Such assets and liabilities are reviewed at each Balance Sheet date.

I Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events 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 (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

m Share issues expenses

Share issue expenses and redemption premium are adjusted against the Securities Premium Account as permissible under Section 78(2) of the Companies Act, 1956, to the extent balance is available for utilisation in the Securities Premium Account. The balance of share issue expenses is carried as an asset and Is amortised over a period of 5 years from the date of the issue of shares.

The Company has only one class of shares refemed to as equity shares having a par value of''Rs. 2/-. Each holder of equity shares is entitled to one vote per share.

The reconciliation of the number of shares outstanding and the amount of share capital as at March 31. 2014 and March 31. 2013 is set out below:


Mar 31, 2012

A Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b Use of estimates .

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

c Tangible fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for Its intended use, d Depreciation and amortisation Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

e Inventories

Inventories are valued at the lower of cost and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges.

f Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash and cash equivalents for the cash flow statement comprises cash at bank and in mm and short -term investments with an original maturity of three months or less.

g Investments

Investments, which are readily realizable and intended to be held for not more than one year from the balance sheet date are classified as current investments. All other investment are classified as non-current investments. However the carrying amount is reduced to recognize a decline, other than temporary, in the value of long-term investments by a charge to the statement of profit and loss. Current investments are stated at lower of cost or fair market value determined on individual investment basis.

h Revenue recognition Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

Income from services

Income from services are recognized as and when the services are rendered

Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

i Segment reporting

Company considers business segment as its primary segment. The Company's operations are pre- dominantly relates to trading and accordingly, this is the only primary reportable segment.

Company considers business segment as its secondary segment. The Company's operations are pre- dominantly within India and accordingly, this is the only seconday reportable segment,

j Earnings per share

Basic earnings per share are computed by dividing the profit / (loss) attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the profit / (loss) for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all diluted potential equity shares.

k Taxes on income

Income-tax expenses (current and deferred) is accrued in accordance with Accounting Standard 22 - Accounting for taxes on income issued by the Institute of Chartered Accountants of India. Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised, subject to the consideration of prudence on timing difference, being the difference between the taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent years

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been in force for the year. Such assets and liabilities are reviewed at each Balance Sheet date.

I Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events 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 (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes,

m Share issues expenses

Share issue expenses and redemption premium are adjusted against the Securities Premium Account as permissible under Section 78(2) of the Companies Act, 1956, to the extent balance is available for utilisation in the Securities Premium Account. The balance of share issue expenses is carried as an asset and is amortised over a period of 5 years from the date of the issue of shares.


Mar 31, 2011

(a) Method of Accounting

The Account have been prepared on Historical cost Convention on accrual basis.

(b) Fixed Assets

Fixed Assets are stated at W.D.V. after providing Depreciation.

(C) Depreciation

Fixed assets are shown at historical cost inclusive of incidental expenses less accumulated

depreciation.

Depreciation on fixed Assets is provided on Straight line Method at the rate prescribed under schedule XIV of the Companies Act, 1956.

(d) Inventories

Row materials, packing materials and consumables are valued at lower of cost, calculated on "First -in-First out" basis and net Realizable value. Items held for use in the production of inventories are not weitten down below cost if the finished product in which they will be incorporation are expected to be sold at or above cost.

(e) Sales

When the supply of goods taken place in accordance with the terms of sales , the value is recorded as sales.

(f) Retirement Benefits

i Retirement benefits to staff will be recognised only on payment basis.


Mar 31, 2010

1. BASIS OF ACCOUNTING:

The financial statements are prepared under historical cost convention and comply with applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

2. FIXED ASSETS:

Fixed assets are stated at cost of acquisition. Acquisition cost includes taxes, duties, freight, insurance and other incidental expenses related to acquisition and installation and are net of MODVAT credits, where applicable.

3. DEPRECIATION:

The company follows reducing balance method of depreciation.

4. REVENUE RECOGNITION:

Sales inclusive of excise duty are recognized on dispatch, price adjustments for sales made during a year are recorded upon receipt of confirmed customer orders.

5. FOREIGN CURRENCY TRANSACTIONS:

This accounting policy does not apply as there is no foreign currency transaction in current year.

6. INVENTORIES:

This accounting policy does not apply as there is no inventory held by the company.


Mar 31, 2009

A) BASIC OF ACCOUNTING

The Company follows the Mercantile System of accounting.

B) INVESTMENTS

Investment are valued at cost.

C) METHODS OF DEPRECIATION

The company follows reducing balance method of depreciation.

D) FIXED ASSETS

Fixed assets are stated at cost of acquisition. Acquisition cost, includes taxes, duties, freight, insurance and other incidental expenses related to acquisition and installation and are net of modvat credits, where applicble. Revenue expenses incidental and related to projects are capitalized along with the related fixed assets, where appropriate.

E) REVENUE RECOGNITION

Sales inclusive of excise duty are recognized on despatch, price adjustments for sales made during a year are recorded upon receipt of confirmed customer orders.

 
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