Mar 31, 2013
(i) Basis of Preparation of Financial Statements:
The financial statements has been prepared under the historical cost
convention under accrual method of accounting and as a going concern,
in accordance with the Generally Accepted Accounting Principles (GAAP)
prevalent in India and the Mandatory Accounting Standards issued by the
Institute of Chartered Accountants of India (ICAI) and according to the
Provisions of the Companies Act, 1956.
(ii) Inventories :
Stock of goods are valued at cost or market price whichever is less.
(iii) Prior Period items and Extraordinary items :
Prior period items and extraordinary items are separately classified,
identified and dealt with as required under Accounting Standard 5 on
''Net Profit or Loss for the Period, Prior Period items and changes in
Accounting Policies'' issued by the Institute of Chartered Accountants
of India.
(iv) Depreciation and Amortisation :
a Depreciation has been provided on SLM method at the rates specified
in Schedule XIV of the Companies Act, 1956.
b Depreciation on new assets acquired during the year is provided at
the rates applicable from the date of acquisition to the end of the
financial year.
c No Assets Sold During The year, depreciation is not provided on such
assets during the year.
d Individual assets acquired for Rs.5,000/- and below are fully
depreciated in the year of acquisition.
(v) Revenue Recognition :
Turnover of the company both manufactured and traded have been
recognised on the basis of actual delivery of goods.
(vi) Fixed
Assets :
All Fixed Assets are stated at their original cost of acquisition less
accumulated depreciation. Additional cost relating to the acquisition
and installation of fixed assets are capitalized.
(vii) Borrowing Cost :
All borrowing costs are expensed as incurred.
(viii) Segment Reporting :
The Company has complied with Accounting Standard 17 - ''Segment
Reporting'' with Business as the primary segment.
Mar 31, 2012
(i) Basis of Preparation of Financial Statements:
The financial statements has been prepared under the historical cost
convention under accrual method of accounting and as a going concern,
in accordance with the Generally Accepted Accounting Principles (GAAP)
prevalent in India and the Mandatory Accounting Standards issued by the
Institute of Chartered Accountants of India (ICAI) and according to the
Provisions of the Companies Act, 1956.
(ii) Inventories:
Stock of goods are valued at cost or market price whichever is less.
(iii) Prior Period items and Extraordinary items :
Prior period items and extraordinary items are separately classified,
identified and dealt with as required under Accounting Standard 5 on
''Net Profit or Loss for the Period, Prior Period items and changes in
Accounting Policies'' issued by the Institute of Chartered Accountants
of India.
(iv) Depreciation and Amortisation :
a Depredation has been provided on SLM method at the rates specified in
Schedule XIV of the Companies Act, 1956.
b Depreciation on new assets acquired during the yearis provided at the
rates applicable from the date of acquisition to the end of the
financial year.
c No Assets Sold During The year, depreciation is not provided on such
assets during the year, d Individual assets acquired for Rs.5,000/- and
below are fully depreciated in the year of acquisition.
(v) Revenue Recognition :
Turnover of the company both manufactured and traded have been
recognised on the basis of actual delivery of goods.
(vi) Fixed Assets :
All Fixed Assets are stated at their original cost of acquisition less
accumulated depreciation. Additional cost relating to the acquisition
and installation of fixed assets are capitalized.
(vii) Borrowing Cost:
All borrowing costs are expensed as incurred.
(viii) Segment Reporting :
The Company has complied with Accounting Standard 17 - ''Segment
Reporting'' with Business as the primary segment.
(ix) Taxation:
i. Income Tax : .
Income Tax is computeckising the tax effect accounting method, where
taxes are accrued in the same period as and when the related revenue
and expense arise. A provision is made for Income Tax annually based on
the tax liability computed after considering tax allowances and
exemptions.
ii. Deferred Tax :
The differences that result between the profit calculated for income
tax purposes and the profit as per the financial statements are
identified and thereafter deferred tax asset or deferred tax liability
is recorded for timing differences, namely the differences that
originate in one accounting period and get reversed in another, based
on the effect of the aggregate amount being considered. Deferred Tax
assets are not recognized unless there is virtual certainty that
sufficient future taxable income will be available against which such
deferred tax asset can be realized. The tax effect is calculated on the
accumulated timing differences at the beginning of this accounting year
based on the prevailing enacted or substantially enacted regulations.
(x) Impairment:
The carrying amounts of assets are reviewed at each balance sheet date
to ascertain if there is any indication of impairment based on
internal/external factors. An asset is treated as impaired based on the
cash generating concept at the year end, when the carrying cost of
assets exceeds its recoverable value, in terms of Para 5 to Para 13 of
AS-28 Impairment of Assets issued by the Institute of Chartered
Accountants of India, for the purpose of arriving at impairment loss
thereon, if any. An impairment loss is charged to the profit and loss
account in the year in which an asset is identified as impaired. The
impairment loss recognized in prior accounting periods is reversed if
there has been a change in the estimate of the recoverable amount.
(xi) Miscellaneous Expenditure :
Miscellaneous expenditure is being amortised and charged to profit and
loss A/c. However during the year under consideration there is no
expenses as such.
(xii) Provisions. Contingent Liabilities and Contingent Assets :
A provision is recognized when the company has a present obligation as
a result of a past event and it is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation and a reiiable estimate can be made of the amount of the
obligation.
Contingent liabilities are not provided for unless a reliable estimate
of probable outflow to the company exists as at the Balance Sheet date.
Contingent assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2010
The accounts and financial statements have been prepared on historical
cost basis under mercantile system and on the accounting principle of
Going Concern; Accounting policies not specifically referred to
otherwise be consistent and in consonance with generally accepted
accounting principles.
b) Revenue Recognition :
Income & Expenditure have been accounted on accrual basis.
c) Depreciation on Fixed Assets :
Depreciation on Fixed Assets has been computed on prorate basis on
straight-line method rates as specified in Schedule XIV to the
Companies Act, 1956.
d) Inventories:
i) Raw materials are valued at Cost.
ii) Packing Materials, Consumable stock and spares are valued at
weighted average cost.
iii) Stock in Process is valued at cost of raw material and other
material at weighted average cost.
iv) Finished goods are valued at lower of cost or market value.
v) Wool wastes are valued at selling rate approved by excise
authorities.
e) Gratuity:
Provision for gratuity is made on the basis of premium paid to LIC
under Group Gratuity Scheme in terms of the provisions of the Payment
of Gratuity Act, 1972.
f) Fixed Assets:
Fixed assets are stated at cost of acquisition/construction including
cost relating to bringing the assets into uses less reimbursement of
CST and accumulated depreciation. The machinery and other assets being
installed during Phase-II has been kept under capitalization.
g) Foreign Currency Transaction :
The transactions in foreign currency arising on actual conversion in
1NR are recorded in the books of accounts on realization/payment basis
at the prevailing exchange rate at the time when such transaction took
place.
At the end of financial year, all balances in foreign currency are
converted in INR on prevailing currency conversion rate for preparation
of financial statements. The variations, if any, are charged/added to
revenue account under respective head of account.
Transaction in foreign currency in respect of purchase and sales are
recorded at the rates of prevailing currency conversion at the time of
receipt of issues during the year. The variation in currency conversion
rate at the time of actual payment against purchase and receipt of
export proceeds are adjusted to purchase and sale respectively together
with amount of currency variation for all branches of creditors and
debtors, while preparing financial statements.
h) Export incentive/CST refund. Insurance & Other claims :
Export incentive, Central Sales Tax Refund, Insurance & other claims
are accounted for on accrual basis on book value till amount settled.
i) Interest before commencement of commercial Production:
Amount of interest of capital work-in-progress is capitalized
proportionately to the Gross Block inclusive of interest on deferred
payment.
j) Sale proceeds of Wool waste :
The wool wastes are accounted for on generation at prevailing market
rate approved by excise authorities.
k) Other Accounting Policies:
These are consistent with the generally accepted accounting
policies/practices.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article