Mar 31, 2016
1 Basis of preparation :
The financial statements have been prepared in accordance with generally accepted accounting principles in India under the historical cost convention, on the accrual basis. Pursuant to section 133 of the Companies Act, 2013 read with the Rule 7 of the Companies (Accounts) Rules 2014 and the provisions of the Act (to the extent notified).
The financial statements has been prepared and presented as per requirement of Schedule III as notified under Companies Act, 2013.
2 Revenue recognition :
(a) Sales including export sales and trading sales are recognized when goods are dispatched from the factory and are recorded at net of shortages, claims settled, discounts, rate differences, rebate allowed to customers.
(b) Export Sales are booked on the rate prevailing on the date of transaction and the resultant gain or loss on realization is accounted as âForeign Exchange Rate Fluctuationâ and is dealt in the Statement of Profit and Loss.
(c) Export incentives are accounted in the year of export.
(d) Any fluctuation, on account of a capital asset/ liability are accounted in that relevant accounting head.
3 A) Fixed assets :
(a) During the year ended 31st March, 2016, the company has provided depreciation on fixed assets considering useful lives specified in Schedule II of the Companies Act, 2013 or re-assessed by the Company. Fixed Assets are stated at cost, net of accumulated depreciation and impairment loss, if any. All costs including financing costs till the commencement of commercial production related to the acquisition and installation of the respective assets have been capitalized. This year Fixed Assets value has been recalculated to re-align the depreciation and in turn the carrying value as per Schedule II of Companies Act, 2013.
(b) Cost of leasehold land is not amortized over the period of lease, as the same is not applicable as per Accounting Standards 19.
(c) Amount incurred towards capital work-in-progress will be suitably apportioned to the respective Fixed Assets on commissioning of assets.
(d) Assets, identified and evaluated technically as obsolete and held for disposal have been written off in relevant year and adjusted from profit on sale of Fixed Assets.
(e) Capital Subsidy under TUFS from Ministry of Textiles on specified processing machinery has been deducted from the respective Fixed Assets and is represented at their Net off values.
(f) The Company post for 31st March 2016 decided to discontinue its operation of the spinning unit business and held the asset for sale. The asset holds a gross block value of Rs. 1837.09 Lakhs and have a W.D.V. of ''261.28, which are held for sale. Current market valuation is not available and hence has not been disclosed. This decision was taken before the annual general meeting was held as per letter submitted to SEBI on 14th May, 2016 and the unit was a substantial operation for the company and hence is been disclosed by this note.
B) Depreciation :
Depreciation on fixed assets is charged on Straight Line Method (SLM) on prorata basis, except on the fixed assets purchased during the period 1st April, 1988 to 31st March, 2005 on which depreciation has been charged on Written Down Value Method on prorata basis. Depreciation on addition to Fixed Assets is provided on proprata basis from the date of acquision or installation and depreciation on assets sold/discarded/ demolished/scrapped is provided upto the date on which the said asset is sold/discarded/ demolished/scrapped.
4 Inventories :
Inventories of Raw Materials, Goods in Process, Stores & Spares and Finished Goods are stated at cost or net realizable value whichever is lower except saleable waste which is valued at contracted selling price. Goods in Transit are stated at cost. Cost comprises of cost of purchases, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.
Cost formulae used is âFirst-in-First-out'' (FIFO) or âWeighted Average Cost'', as applicable.
5 Investments :
Investments are classified as Long Term Investments and Current Investments. Long term investments are stated at Cost. Provision is made for diminution in the value of Long term Investments to recognize a decline, if any other than temporary in nature.
6 Foreign exchange transaction :
(a) Foreign currency transactions are recorded at the exchange rates at the date of transaction.
(b) Gains and losses resulting from the settlement of such transactions and from the translation of money receivable and money payable denominated in foreign currencies, are recognized in the Statement of Profit and Loss.
(c) Premium in respect of forward contracts is accounted over the period of the contract.
(d) Forward Exchange contracts entered for trading purposes are valued and marked to its current market value and the resultant gain or loss is dealt with in Statement of Profit and Loss, as per AS-11.
(e) All foreign currency loans outstanding at the close of the balance period are expressed in Indian currency at the exchange rate prevailing on the date of Balance Sheet.
(f) Foreign exchange rate variations relating to acquisition of Fixed Assets are transferred to Statement of Profit and Loss as per the revised Accounting Standard 11 âThe Effects Of Changes In Foreign Exchange Ratesâ.
(g) Current assets & current liabilities in foreign currency, other than those covered by forward exchange contracts, outstanding at the close of the balance sheet date are converted in Indian currency at the appropriate rates of exchange prevailing on the date of Balance Sheet. Resultant gain or loss is accounted as â Foreign Exchange Rate Fluctuationâ, during the year.
7 Use of estimates :
The preparation of financial statement in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenue and expenses and disclosure of contingent liabilities on the date of. The recognition, measurement, classification or disclosure of the information in the financial statement has been made relying on these estimates. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the period in which these results are known/ materialized.
8 Impairment of assets :
Consideration is given at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amounts of the Company''s Assets. If any indication exists, an Asset''s recoverable amount is estimated. An impairment loss is recognized wherever the carrying amount of an assets exceeds its recoverable amount or when there is permanent diminution in its value or functionality. The recoverable amount is the greater of the net selling price and value in use.
9 Employee benefits :
Expenses and liabilities in respect of employee benefits are recorded in accordance with Accounting Standard 15 -Employee benefits.
(a) Short term employee benefits are recognized as an expense at undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.
(b) Post employment and other long term employee benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gain / loss in respect of post employment and other long term benefits are charged to Statement of Profit and Loss.
10 Research and development expenses :
Research and development expenditure of revenue nature is recognized as an expense in the year in which it is incurred and the expenditure of capital nature are depreciated over the useful lives of the assets.
11 Treatment of contingent liabilities :
Contingent Liabilities not provided for are disclosed by way of Notes on Accounts.
12 Taxation :
Tax expense comprises current and deferred tax. Current tax is measured at the amount estimated/calculated to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Deferred tax reflects the tax effect of the timing differences between accounting income and taxable income originating and reversing during the year. Deferred tax is measured based on the tax rate and tax laws enacted or substantially enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.
Mar 31, 2015
1 Basis of preparation :
The financial statements are prepared under the historical cost
convention, on the accrual basis of accounting and comply with the
provisions of Companies Act, 2013, generally accepted accounting
principles in India and Companies (Accounting Standards) Rules 2006 as
amended from time to time to the extent applicable.
2 Revenue recognition :
(a) Sales including export sales and trading sales are recognised when
goods are dispatched from the factory and are recorded at net of
shortages, claims settled, discounts, rate differences, rebate allowed
to customers.
(b) Export Sales are booked on the rate prevailing on the date of
transaction and the resultant gain or loss on realisation is accounted
as "Foreign Exchange Rate Fluctuation" and is dealt in the Statement of
Profit and Loss.
(c) Export incentives are accounted in the year of export.
(d) Any fluctuation, on account of a capital asset/ liability are
accounted in that relevant accounting head.
3 A) Fixed assets :
(a) During the year ended 31st March, 2015, the company has provided
depreciation on fixed assets considering useful lives specified in
Schedule II of the Companies Act, 2013 or re-assessed by the Company.
Fixed Assets are stated at cost, net of accumulated depreciation and
impairment loss, if any. All costs including financing costs till the
commencement of commercial production related to the acquisition and
installation of the respective assets have been capitalized. This year
Fixed Assets value has been recalculated to re- align the depreciation
and in turn the carrying value as per Schedule II of Companies Act,
2013. Depreciation to the tune of Rs.289.71 lacs has been charged
towards recalculations pertaining to previous years, and Rs. 90.00 has
been charged to Deferred Tax Assets. Remaining balance Rs.199.71 lacs
has been deducted from Reserve and Surplus.
The depreciation and amotisation expenses charged for the year ended
31st March, 2015 would have been lower by Rs. 621.49 lacs had the
company contnued with previous assessment of useful life of such asset.
(b) Cost of leasehold land is not amortised over the period of lease,
as the same is not applicable as per Accounting Standards 19.
(c) Amount incurred towards capital work-in-progress will be suitably
apportioned to the respective Fixed Assets on commissioning of assets.
(d) Assets, identified and evaluated technically as obsolete and held
for disposal have been written off in relevant year and adjusted from
profit on sale of Fixed Assets.
(e) The 10% Capital Subsidy under TUFS from Ministry of Textiles on
specified processing machinery has been deducted from the respective
Fixed Assets and is represented at their Net off values.
B) Depreciation :
Depreciation on fixed assets is charged on Straight Line Method (SLM)
on prorata basis, except on the fixed assets purchased during the
period 1st April, 1988 to 31st March, 2005 on which depreciation has
been charged on Written Down Value Method on prorata basis.
Drepreciation on addition to Fixed Assets is provided on proprata basis
from the date of acquision or installation and depreciation on assets
sold/discarded/ demolished/ scrapped is provided upto the date on which
the said asset is sold/discarded/ demolished/scrapped.
4 Inventories :
Inventories of Raw Materials, Goods in Process, Stores & Spares and
Finished Goods are stated at cost or net realisable value whichever is
lower except saleable waste which is valued at contracted selling
price. Goods in Transit are stated at cost. Cost comprises of cost of
purchases, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition.
Cost formulae used is 'First-in-First-out' (FIFO) or 'Weighted Average
Cost', as applicable.
5 Baramati Unit:
Under Slump Sale,Baramati Unit has been handed over to To M/s GTN
Engineering (India) Ltd at a value of Rs.29.80 crores as against the
Book value of Rs. 26.56 crores. In this process, M/s GTN Engineering
(India) Ltd. did not take over the liabilities and creditors as as on
09.06.2013 (the day of handover and transfer).
6 Investments :
Investments are classified as Long Term Investments and Current
Investments. Long term investments are stated at Cost. Provision is
made for diminution in the value of Long term Investments to recognise
a decline, if any other than temporary in nature.
7 Foreign exchange transaction :
(a) Foreign currency transactions are recorded at the exchange rates at
the date of transaction.
(b) Gains and losses resulting from the settlement of such transactions
and from the translation of money receivable and money payable
denominated in foreign currencies, are recognised in the Statement of
Profit and Loss.
(c) Premium in respect of forward contracts is accounted over the
period of the contract.
(d) Forward Exchange contracts entered for trading purposes are valued
and marked to its current market value and the resultant gain or loss
is dealt with in Statement of Profit and Loss, as per AS-11. The gross
expenses of forward exchange contracts is amortised over the period fo
the contract.
(e) All foreign currency loans outstanding at the close of the balance
period are expressed in Indian currency at the exchange rate prevailing
on the date of Balance Sheet.
(f) Foreign exchange rate variations relating to acquisition of Fixed
Assets are transferred to Statement of Profit and Loss as per the
revised Accounting Standard 11 "The Effects Of Changes In Foreign
Exchange Rates".
(g) Current assets & current liabilities in foreign currency, other
than those covered by forward exchange contracts, outstanding at the
close of the balance sheet date are converted in Indian currency at the
appropriate rates of exchange prevailing on the date of Balance Sheet.
Resultant gain or loss is accounted as " Foreign Exchange Rate
Fluctuation", during the year.
8 Use of estimates :
The preparation of financial statement in confirmity with generally
accepted accounting principles requires the management to make
estimates and assumptions that affect the reported amount of assets,
liabilities, revenue and expenses and disclosure of contingent
liabilities on the date of financial statement. The recognition,
measurement, classification or disclosure of the information in the
financial statement has been made relying on these estimates. Future
results could differ due to these estimates and the differences between
the actual results and the estimates are recognised in the period in
which these results are known/ materialised.
9 Impairment of assets :
Consideration is given at each Balance Sheet date to determine whether
there is any indication of impairment of the carrying amounts of the
Company's Assets. If any indication exists, an Asset's recoverable
amount is estimated. An impairment loss is recognized wherever the
carrying amount of an assets exceeds its recoverable amount or when
there is permanent diminution in its value or functionality. The
recoverable amount is the greater of the net selling price and value in
use.
10 Employee benefits :
(a) Short term employee benefits are recognized as an expense at
undiscounted amount in the Statement of Profit and Loss of the year in
which the related service is rendered.
(b) Post employment and other long term employee benefits are
recognized as an expense in the Statement of Profit and Loss for the
year in which the employee has rendered services. The expense is
recognized at the present value of the amounts payable determined using
actuarial valuation techniques. Actuarial gain / loss in respect of
post employment and other long term benefits are charged to Statement
of Profit and Loss.
11 Research and development expenses :
Research and development expenditure of revenue nature is recognised as
an expense in the year in which it is incurred and the expenditure of
capital nature are depreciated over the useful lives of the assets.
12 Treatment of contingent liabilities :
Contingent Liabilities not provided for are disclosed by way of Notes
on Accounts.
13 Taxation :
Tax expense comprises current and deferred tax. Current tax is measured
at the amount estimated/calculated to be paid to the tax authorities in
accordance with the Income-tax Act, 1961. Deferred tax reflects the tax
effect of the timing differences between accounting income and taxable
income originating and reversing during the year. Deferred tax is
measured based on the tax rate and tax laws enacted or substantially
enacted at the balance sheet date. Deferred tax assets are recognised
only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realised.
Mar 31, 2014
1 Basis of preparation :
The financial statements are prepared under the historical cost
convention, on the accrual basis of accounting and comply with the
provisions of Companies Act, 1956, generally accepted accounting
principles in India and Companies (Accounting Standards) Rules 2006 as
amended from time to time to the extent applicable.
2 Revenue recognition :
(a) Sales including export sales and trading sales are recognised when
goods are dispatched from the factory and are recorded at net of
shortages, claims settled, discounts, rate differences, rebate allowed
to customers.
(b) Export Sales are booked on the rate prevailing on the date of
transaction and the resultant gain or loss on realisation is accounted
as "Foreign Exchange Rate Fluctuation" and is dealt in the Statement of
Profit and Loss.
(c) Export incentives are accounted in the year of export.
(d) Any fluctuation, on account of a capital asset/ liability are
accounted in that relevant accounting head.
3 A) Fixed assets :
(a) Fixed Assets are stated at cost, net of accumulated depreciation
and impairment loss, if any. However, in the case of Baramati Unit,
fixed assets are further reduced by the amount of Sales Tax refund due.
All costs including financing costs till the commencement of commercial
production related to the acquisition and installation of the
respective assets have been capitalized.
(b) Cost of leasehold land is not amortised over the period of lease,
as the same is not applicable as per Accounting Standards 19.
(c) Amount incurred towards capital work-in-progress will be suitably
apportioned to the respective Fixed Assets on commissioning of assets.
(d) Assets, identified and evaluated technically as obsolete and held
for disposal have been written off in relevant year and adjusted from
profit on sale of Fixed Assets.
(e) The 10% Capital Subsidy under TUFS from Ministry of Textiles on
specified processing machinery has been deducted from the respective
Fixed Assets and is represented at their Net off values.
B) Depreciation :
(a) Ahmedabad Unit :
Depreciation on fixed assets is charged on Straight Line Method (SLM)
on prorata basis, except on the fixed assets purchased during the
period 1st April, 1988 to 31st March, 2005 on which depreciation has
been charged on Written Down Value Method on prorata basis.
(b) Baramati Unit :
Depreciation on fixed assets is charged on Straight Line Method (SLM)
on pro-rata basis, by applying the rates as specified in Schedule XIV
to the Companies Act, 1956. However, the Plant & Machinery have been
considered as Continuous Process Plant based on technical assessment
and the rate of depreciation has been applied accordingly.The
depreciation on assets of baramati Unit have been charged till the date
these assets were under ownership of the Company.
4 Inventories :
Inventories of Raw Materials, Goods in Process, Stores & Spares and
Finished Goods are stated at cost or net realisable value whichever is
lower except saleable waste which is valued at contracted selling
price. Goods in Transit are stated at cost. Cost comprises of cost of
purchases, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition.
Cost formulae used is ''First-in-First-out'' (FIFO) or ''Weighted Average
Cost'', as applicable.
5 Baramati Unit:
Under Slump Sale,Baramati Unit has been handed over to To M/s GTN
Engineering (India) Ltd at a value of Rs.29.80 crores as against the Book
value of Rs. 26.56 crores.In this process, M/s GTN Engineering (India)
Ltd. did not take over the liabilities and creditors as as on
09.06.2013(the day of handover and transfer).
6 Investments :
Investments are classified as Long Term Investments and Current
Investments. Long term investments are stated at Cost. Provision is
made for diminution in the value of Long term Investments to recognise
a decline, if any other than temporary in nature.
7 Foreign exchange transaction :
(a) Foreign currency transactions are recorded at the exchange rates at
the date of transaction.
(b) Gains and losses resulting from the settlement of such transactions
and from the translation of money receivable and money payable
denominated in foreign currencies, are recognised in the Statement of
Profit and Loss.
(c) Premium in respect of forward contracts is accounted over the
period of the contract.
(d) Forward Exchange contracts entered for trading purposes are valued
and marked to its current market value and the resultant gain or loss
is dealt with in Statement of Profit and Loss, as per AS-11.
(e) All foreign currency loans outstanding at the close of the balance
period are expressed in Indian currency at the exchange rate prevailing
on the date of Balance Sheet.
(f) Foreign exchange rate variations relating to acquisition of Fixed
Assets are transferred to Statement of Profit and Loss as per the
revised Accounting Standard 11 "The Effects Of Changes In Foreign
Exchange Rates".
(g) Current assets & current liabilities in foreign currency, other
than those covered by forward exchange contracts, outstanding at the
close of the balance sheet date are converted in Indian currency at the
appropriate rates of exchange prevailing on the date of Balance Sheet.
Resultant gain or loss is accounted as " Foreign Exchange Rate
Fluctuation", during the year.
8 Use of estimates :
The preparation of financial statement in confirmity with generally
accepted accounting principles requires the management to make
estimates and assumptions that affect the reported amount of assets,
liabilities, revenue and expenses and disclosure of contingent
liabilities on the date of financial statement. The recognition,
measurement, classification or disclosure of the information in the
financial statement has been made relying on these estimates.Future
results could differ due to these estimates and the differences between
the actual results and the estimates are recognised in the period in
which these results are known/ materialised.
9 Impairment of assets :
Consideration is given at each Balance Sheet date to determine whether
there is any indication of impairment of the carrying amounts of the
Company''s Assets. If any indication exists, an Asset''s recoverable
amount is estimated. An impairment loss is recognized wherever the
carrying amount of an assets exceeds its recoverable amount or when
there is permanent diminution in its value or functionality. The
recoverable amount is the greater of the net selling price and value in
use.
10 Employee benefits :
(a) Short term employee benefits are recognized as an expense at
undiscounted amount in the Statement of Profit and Loss of the year in
which the related service is rendered.
(b) Post employment and other long term employee benefits are
recognized as an expense in the Statement of Profit and Loss for the
year in which the employee has rendered services. The expense is
recognized at the present value of the amounts payable determined using
actuarial valuation techniques. Actuarial gain / loss in respect of
post employment and other long term benefits are charged to Statement
of Profit and Loss.
11 Research and development expenses :
Research and development expenditure of revenue nature is recognised as
an expense in the year in which it is incurred and the expenditure of
capital nature are depreciated over the useful lives of the assets.
12 Treatment of contingent liabilities :
Contingent Liabilities not provided for are disclosed by way of Notes
on Accounts.
13 Taxation :
Tax expense comprises current and deferred tax. Current tax is measured
at the amount estimated/calculated to be paid to the tax authorities in
accordance with the Income-tax Act, 1961. Deferred tax reflects the tax
effect of the timing differences between accounting income and taxable
income originating and reversing during the year. Deferred tax is
measured based on the tax rate and tax laws enacted or substantially
enacted at the balance sheet date. Deferred tax assets are recognised
only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realised.
Mar 31, 2013
1 Basis of accounting :
The financial statements are prepared under the historical cost
convention, on the accrual basis of accounting and comply with the
provisions of Companies Act, 1956, generally accepted accounting
principles in India and Companies (Accounting Standards) Rules, 2006 as
amended from time to time to the extent applicable.
2 Revenue recognition :
(a) Sales including export sales and trading sales are recognised when
goods are dispatched from the factory and are recorded at net of
shortages, claims settled, discounts, rate differences, rebate allowed
to customers.
(b) Export Sales are booked on the rate prevailing on the date of
transaction and the resultant gain or loss on realisation is accounted
as "Foreign Exchange Rate Fluctuation" and is dealt in the Statement of
Profit and Loss.
3 A) Fixed Assets :
(a) Fixed Assets are stated at cost, net of accumulated depreciation.
However, in the case of Baramati Unit, fixed assets are further reduced
by the amount of Sales Tax refund due. All costs including financing
costs till the commencement of commercial production related to the
acquisition and installation of the respective assets have been
capitalized.
(b) Cost of land is not amortised as the same being a perpetual lease,
amortisation of the same over the period of lease is not required.
(c) Amount incurred towards capital work-in-progress will be suitably
apportioned to the respective Fixed Assets on commissioning of the
respective assets.
(d) Assets, identified and evaluated technically as obsolete and held
for disposal have been written off in relevant year and adjusted from
profit on sale of Fixed Assets.
(e) The 10% Capital Subsidy under TUFS from Ministry of Textiles on
specified processing machinery has been deducted from the respective
Fixed Assets in accordance with AS -12.
B) Depreciation :
(a) Ahmedabad Unit :
Depreciation on fixed assets is charged on Straight Line Method (SLM)
on prorata basis, except on the fixed assets purchased during the
period 1st April, 1988 to 31st March, 2005 on which depreciation has
been charged on Written Down Value Method on prorata basis.
(b) Baramati Unit :
Depreciation on fixed assets is charged on Straight Line Method (SLM)
on pro-rata basis, by applying the rates as specified in Schedule XIV
to the Companies Act, 1956. However, the Plant & Machinery have been
considered as Continuous Process Plant based on technical assessment
and the rate of depreciation has been applied accordingly.
4 Inventories :
Inventories of Raw Materials, Goods in Process, Stores & Spares and
Finished Goods are stated at cost or net realisable value whichever is
lower except saleable waste which is valued at contracted selling
price. Goods in Transit are stated at cost. Cost comprises of cost of
purchases, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition.
Cost formulae used is ÂFirst-In-First-Out'' (FIFO) or ÂWeighted Average
Cost'', as applicable.
5 Investments :
Investments are classified as long term investments and current
investments. Long term investments are stated at Cost. Provision is
made for diminution in the value of Long term Investments to recognise
a decline, if any other than temporary in nature.
6 Foreign exchange transaction :
(a) Foreign currency transactions are recorded at the exchange rates at
the date of transaction.
(b) Gains and losses resulting from the settlement of such transactions
and from the translation of monetary assets and liabilities denominated
in foreign currencies, are recognised in the Statement of Profit and
Loss.
(c) Premium in respect of forward contracts is accounted over the
period of the contract.
(d) Forward Exchange contracts entered for trading purposes are valued
and marked to its current market value and the resultant gain or loss
is dealt with in Statement of Profit and Loss.
(e) All foreign currency loans outstanding at the close of the balance
period are expressed in Indian currency at the exchange rate prevailing
on the date of Balance Sheet.
(f) Foreign exchange rate variations relating to acquisition of Fixed
Assets are transferred to Statement of Profit and Loss as per the
revised Accounting Standard 11 "The Effects Of Changes In Foreign
Exchange Rates".
(g) Current assets & current liabilities in foreign currency, other
than those covered by forward exchange contracts, outstanding at the
close of the balance sheet date are converted in Indian currency at the
appropriate rates of exchange prevailing on the date of Balance Sheet.
Resultant gain or loss is accounted as "Foreign Exchange Rate
Fluctuation" during the year.
7 Use of estimates :
The preparation of financial statement requires the management to make
estimates and assumptions that affect the reported amount of assets,
liabilities, revenue and expenses and disclosure of contingent
liabilities on the date of financial statement. The recognition,
measurement, classification or disclosure of the information in the
Financial Statement has been made relying on these estimates.
8 Impairment of assets :
Consideration is given at each Balance Sheet date to determine whether
there is any indication of impairment of the carrying amounts of the
Company''s Assets. If any indication exists, an Asset''s recoverable
amount is estimated. An impairment loss is recognized wherever the
carrying amount of an assets exceeds its recoverable amount or when
there is permanent diminution in its value or functionality. The
recoverable amount is the greater of the net selling price and value in
use.
9 Employee benefits :
(a) Short term employee benefits are recognized as an expense at
undiscounted amount in the Statement of Profit and Loss of the year in
which the related service is rendered.
(b) Post employment and other long term employee benefits are
recognized as an expense in the Statement of Profit and Loss for the
year in which the employee has rendered services. The expense is
recognized at the present value of the amounts payable determined using
actuarial valuation techniques. Actuarial gain/loss in respect of post
employment and other long term benefits are charged to Statement of
Profit and Loss.
10 Research and development expenses :
Research and development expenditure of revenue nature is recognised as
an expense in the year in which it is incurred and the expenditure of
capital nature are depreciated over the useful lives of the assets.
11 Treatment of contingent liabilities :
Contingent Liabilities not provided for are disclosed by way of Notes
on Accounts.
12 Taxation :
Tax expense comprises current and deferred tax. Current tax is measured
at the amount estimated/calculated to be paid to the tax authorities in
accordance with the Income-tax Act, 1961. Deferred tax reflects the tax
effect of the timing differences between accounting income and taxable
income originating and reversing during the year. Deferred tax is
measured based on the tax rate and tax laws enacted or substantially
enacted at the balance sheet date. Deferred tax assets are recognised
only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realised.
Mar 31, 2012
1 Basis of accounting :
The financial statements are prepared under the historical cost
convention, on the accrual basis of accounting and comply with the
provisions of Companies Act, 1956, generally accepted accounting
principles in India and Companies (Accounting Standards) Rules 2006 as
amended from time to time to the extent applicable.
2 Revenue recognition :
(a) Sales including export sales and trading sales are recognized when
goods are dispatched from the factory and are recorded at net of
shortages, claims settled, discounts, rate differences and rebate
allowed to customers.
(b) Export Sales are booked on the rate prevailing on the date of
transaction and the resultant gain or loss on realization is accounted
as "Foreign Exchange Rate Fluctuation" and is dealt in the Profit
and Loss Statement.
3 A) Fixed assets :
(a) Fixed Assets are stated at cost, net of accumulated depreciation.
However, in the case of Baramati Unit, fixed assets are further reduced
by the amount of Sales Tax refund due. All costs including financing
costs till the commencement of commercial production related to the
acquisition and installation of the respective assets have been
capitalized.
(b) Cost of leasehold land is not amortized over the period of lease,
as the same is not applicable as per Accounting Standards 19(1)(c).
(c) Amount incurred towards capital work-in-progress will be suitably
apportioned to the respective Fixed Assets on commissioning of assets.
(d) Assets, identified and evaluated technically as obsolete and held
for disposal have been written off in relevant year and adjusted from
profit on sale of fixed assets.
(e) The 10% Capital Subsidy under TUFS from Ministry of Textiles on
specified processing machinery has been deducted from the respective
Fixed Assets.
B) Depreciation :
(a) Ahmadabad Unit :
Depreciation on fixed assets is charged on Straight Line Method (SLM)
on prorata basis, except on the fixed assets purchased during the
period 1st April, 1988 to 31st March, 2005 on which depreciation has
been charged on Written Down Value Method on prorate basis.
(b) Baramati Unit :
Depreciation on fixed assets is charged on Straight Line Method (SLM)
on pro-rata basis, by applying the rates as specified in Schedule XIV
to the Companies Act, 1956. However, the Plant & Machinery have been
considered as Continuous Process Plant based on technical assessment
and the rate of depreciation has been applied accordingly.
4 Inventories :
Inventories of Raw Materials, Goods in Process, Stores & Spares and
Finished Goods are stated at cost or net realizable value whichever is
lower except saleable waste which is valued at contracted selling
price. Goods in Transit are stated at cost. Cost comprises of cost of
purchases, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition.
Cost formulae used is 'First-in-First-out' (FIFO) or 'Weighted
Average Cost', as applicable.
5 Investments :
Investments are classified as Long Term Investments and Current
Investments. Long term investments are stated at Cost. Provision is
made for diminution in the value of Long term Investments to recognize
a decline, if any other than temporary in nature.
6 Foreign exchange transaction :
(a) Foreign currency transactions are recorded at the exchange rates at
the date of transaction.
(b) Gains and losses resulting from the settlement of such transactions
and from the translation of monetary assets and liabilities denominated
in foreign currencies, are recognized in the Profit and Loss Statement.
(c) Premium in respect of forward contracts is accounted over the
period of the contract.
(d) Forward Exchange contracts entered for trading purposes are valued
and marked to its current market value and the resultant gain or loss
is dealt with in Profit and Loss Statement.
(e) All foreign currency loans outstanding at the close of the balance
period are expressed in Indian currency at the exchange rate prevailing
on the date of Balance Sheet.
(f) Foreign exchange rate variations relating to acquisition of Fixed
Assets are transferred to Profit and Loss Statement as per the revised
Accounting Standard 11 "The Effects Of Changes In Foreign Exchange
Rates".
(g) Current assets & current liabilities in foreign currency, other
than those covered by forward exchange contracts, outstanding at the
close of the balance sheet date are converted in Indian currency at the
appropriate rates of exchange prevailing on the date of Balance Sheet.
Resultant gain or loss is accounted as " Foreign Exchange Rate
Fluctuation", during the year.
7 Use of estimates :
The preparation of financial statement requires the management to make
estimates and assumptions that affect the reported amount of assets,
liabilities, revenue and expenses and disclosure of contingent
liabilities on the date of financial statement. The recognition,
measurement, classification or disclosure of the information in the
financial statement has been made relying on these estimates.
8 Impairment of assets :
Consideration is given at each Balance Sheet date to determine whether
there is any indication of impairment of the carrying amounts of the
Company's Assets. If any indication exists, an Asset's recoverable
amount is estimated. An impairment loss is recognized wherever the
carrying amount of an assets exceeds its recoverable amount or when
there is permanent diminution in its value or functionality. The
recoverable amount is the greater of the net selling price and value in
use.
9 Employee benefits :
(a) Short term employee benefits are recognized as an expense at
undiscounted amount in the Profit and Loss Statement of the year in
which the related service is rendered.
(b) Post employment and other long term employee benefits are
recognized as an expense in the Profit and Loss Statement for the year
in which the employee has rendered services. The expense is recognized
at the present value of the amounts payable determined using actuarial
valuation techniques. Actuarial gain / loss in respect of post
employment and other long term benefits are charged to Profit and Loss
Statement.
10 Research and development expenses :
Research and development expenditure of revenue nature is recognized as
an expense in the year in which it is incurred and the expenditure of
capital nature are depreciated over the useful lives of the assets.
11 Treatment of contingent liabilities :
Contingent Liabilities not provided for are disclosed by way of Notes
on Accounts.
12 Taxation :
Tax expense comprises current and deferred tax. Current tax is measured
at the amount estimated/calculated to be paid to the tax authorities in
accordance with the Income Tax Act, 1961. Deferred tax reflects the tax
effect of the timing differences between accounting income and taxable
income originating and reversing during the year. Deferred tax is
measured based on the tax rate and tax laws enacted or substantially
enacted at the balance sheet date. Deferred tax assets are recognized
only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
Mar 31, 2011
1 BASIS OF ACCOUNTING :
The financial statements are prepared under the historical cost
convention, on the accrual basis of accounting and comply with the
provisions of Companies Act, 1956, generally accepted accounting
principles in India and Companies (Accounting Standards) Rules 2006 as
amended from time to time to the extent applicable.
2 REVENUE RECOGNITION :
(a) Sales including export sales and trading sales are recognised when
goods are dispatched from the factory and are recorded at net of
shortages, claims settled, discounts, rate differences, rebate allowed
to customers.
(b) Export Sales are booked on the rate prevailing on the date of
transaction and the resultant gain or loss on realisation is accounted
as "Foreign Exchange Rate Fluctuation" and is dealt in the Profit and
Loss Account.
3 A) FIXED ASSETS :
(a) Fixed Assets are stated at cost, net of accumulated depreciation.
However, in the case of Baramati Unit, fixed assets are further reduced
by the amount of Sales Tax refund due. All costs including financing
costs till the commencement of commercial production related to the
acquisition and installation of the respective assets have been
capitalised.
(b) Cost of leasehold land is not amortised over the period of lease,
as the same is exempted as per Accounting Standards 19 (1) (c).
(c) Amount incurred towards capital work-in-progress will be suitably
apportioned to the respective Fixed Assets on commissioning of assets.
(d) Assets, identified and evaluated technically as obsolete and held
for disposal have been written off in relevant year and adjusted from
profit on sale of Fixed Assets.
(e) The 10% Capital Subsidy under TUFS from Ministry of Textiles on
specified processing machinery has been deducted from the respective
Fixed Assets.
B) DEPRECIATION :
(a) Ahmedabad Unit:
Depreciation on fixed assets is charged on Straight-Line method on
prorata basis, except on the fixed assets purchased during the period
1st April, 1988 to 31st March, 2005 on which depreciation has been
charged on Written Down Value Method on prorata basis.
(b) Baramati Unit:
Depreciation on fixed assets is charged on Straight-Line Method on
pro-rata basis, by applying the rates as specified in Schedule XIV to
the Companies Act, 1956. However, the Plant & Machineries have been
considered as Continuous Process Plant based on technical assessment
and are depreciated accordingly.
4 INVENTORIES :
Inventories of Raw Materials, Goods in Process, Stores and Spares and
Finished Goods are stated at cost or net realisable value whichever is
lower except saleable waste which is valued at contracted selling
price. Goods in Transit are stated at cost. Cost comprises of cost of
purchases, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition.
Cost formulae used are 'First-in-First-out' (FIFO) or 'Weighted Average
Cost', as applicable.
5 INVESTMENTS :
Investments are classified as Long Term Investments and Current
Investments as per AS -13 "Accounting for Investments". Long term
investments are stated at Cost. Provision is made for diminution in the
value of Long term Investments to recognise a decline, if any other
than temporary in nature.
6 FOREIGN EXCHANGE TRANSACTIONS :
(a) Foreign currency transactions are recorded at the exchange rates at
the date of transaction.
(b) Gains and losses resulting from the settlement of such transactions
and from the translation of monetary assets and liabilities denominated
in foreign currencies, are recognised in the Profit and Loss Account.
(c) Premium in respect of forward contracts is accounted over the
period of the contract.
(d) Forward Exchange contracts entered for trading purposes are valued
and marked to its current market value and the resultant gain or loss
is dealt with in Profit and Loss Account.
(e) All foreign currency loans outstanding at the close of the balance
period are expressed in Indian currency at the exchange rate prevailing
on the date of Balance Sheet.
(f) Foreign exchange rate variations relating to acquisition of Fixed
Assets are transferred to Profit & Loss Account as per the revised
Accounting Standard 11 "The Effects Of Changes In Foreign Exchange
Rates".
(g) Current assets & current liabilities in foreign currency, other
than those covered by forward exchange contracts, outstanding at the
close of the balance sheet date are converted in Indian currency at the
appropriate rates of exchange prevailing on the date of Balance Sheet.
Resultant gain or loss is accounted as " Foreign Exchange Rate
Fluctuation", during the year.
7 USE OF ESTIMATES :
The preparation of financial statement requires management to make
estimates and assumptions that affect the reported amount of assets,
liabilities, revenue and expenses and disclosure of contingent
liabilities on the date of financial statement. The recognition,
measurement, classification or disclosure of the information in the
financial statement has been made relying on these estimates.
8 IMPAIRMENT OF ASSETS :
Consideration is given at each Balance Sheet date to determine whether
there is any indication of impairment of the carrying amounts of the
Company's Assets. If any indication exists, an Asset's recoverable
amount is estimated. An impairment loss is recognized wherever the
carrying amount of an assets exceeds its recoverable amount. The
recoverable amount is the greater of the net selling price and value in
use.
9 EMPLOYEE BENEFITS :
(a) Short term employee benefits are recognized as an expense at
undiscounted amount in the Profit & Loss Account of the year in which
the related service is rendered.
(b) Post employment and other long term employee benefits are
recognized as an expense in the Profit & Loss Account for the year in
which the employee has rendered services. The expense is recognized at
the present value of the amounts payable determined using actuarial
valuation techniques. Actuarial gain / loss in respect of post
employment and other long term benefits are charged to Profit & Loss
Account.
10 RESEARCH AND DEVELOPMENT EXPENSES :
Research and development expenditure of revenue nature is recognised as
an expense in the year in which it is incurred and the expenditure of
capital nature are depreciated over the useful lives of the assets.
11 TREATMENT OF CONTINGENT LIABILITIES :
Contingent Liabilities not provided for are disclosed by way of Notes
on Accounts.
12 AMORTISATION OF MISCELLANEOUS EXPENDITURE :
Upfront processing charges and expenses related to loans from IDBI,
Dena Bank and Exim Bank are being amortised over a period of loan i.e.
ten years.
Preliminary expenses being cost of increasing authorised capital & GDR
issue expenses are amortised over a period of ten years.
Upfront fee and loan processing charges paid to ICICI Bank Limited are
amortised over a period of five years.
In view of AS-26 "Intangible Assets", balance which remained in
"Deferred Revenue Expenditure Account" as on 31st March, 2011 of Rs
7,725,974/- has been written off by charging the same to the Profit &
Loss Acccount under the head "Prior Period Item".
13 EXPORT INCENTIVES :
Following the Accrual Concept of Accountancy, the Company has taken
credits as income for Rs. 16,461,806/- (Previous Year Rs. 12,312,267/-)
being Duty Drawback available and DEPB License at the close of the
year, and the same has been shown as Miscellaneous Receipts under the
head "Other Income"- Schedule 15.
14 TAXATION:
Tax expense comprises current and deferred tax. Current tax is measured
at the amount expected to be paid to the tax authorities in accordance
with the Income-tax Act, 1961. Deferred tax reflects the tax effect of
the timing differences between accounting income and taxable income
originating and reversing during the year. Deferred tax is measured
based on the tax rate and tax laws enacted or substantially enacted at
the balance sheet date. Deferred tax assets are recognised only to the
extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realised.
Mar 31, 2010
1 BASIS OF ACCOUNTING :
The financial statements are prepared under the historical cost
convention, on the accrual basis of accounting and comply with the
provisions of Companies Act, 1956, generally accepted accounting
principles in India and Companies (Accounting Standards) Rules 2006 as
amended from time to time to the extent applicable.
2 REVENUE RECOGNITION :
(a) Sales including export sales and trading sales are recognised when
goods are dispatched from the factory and are recorded at net of
shortages, claims settled, discounts, rate differences, rebate allowed
to customers.
(b) Export Sales are booked on the rate prevailing on the date of
transaction and the resultant gain or loss on realisation is accounted
as ÃForeign Exchange Rate Fluctuationà and is dealt in the Profit and
Loss Account.
3 A) FIXED ASSETS :
(a) Fixed Assets are stated at cost, net of accumulated depreciation.
However, in the case of Baramati Unit, fixed assets are further reduced
by the amount of Sales Tax refund due. All costs including financing
costs till the commencement of commercial production related to the
acquisition and installation of the respective assets have been
capitalised.
(b) Cost of leasehold land is not amortised over the period of lease,
as the same is exempted as per Accounting Standards 19 (1) (c).
(c) Amount incurred towards capital work-in-progress will be suitably
apportioned to the respective Fixed Assets on commissioning of assets.
(d) Assets, identified and evaluated technically as obsolete and held
for disposal have been written off in relevant year and adjusted from
profit on sale of Fixed Assets.
(e) Foreign exchange rate variations relating to acquisition of Fixed
Assets are transferred to Profit & Loss Account as per the revised
Accounting Standard 11 ÃThe Effects Of Changes In Foreign Exchange
RatesÃ.
(f) The 10% Capital Subsidy under TUFS from Ministry of Textiles on
specified processing machinery has been deducted from the respective
Fixed Assets.
B) DEPRECIATION :
(a) Ahmedabad Unit :
Depreciation on fixed assets is charged on Straight-Line method on
prorata basis, except on the fixed assets purchased during the period
1st April, 1988 to 31st March, 2005 on which depreciation has been
charged on Written Down Value Method on prorata basis.
(b) Baramati Unit :
Depreciation on fixed assets is charged on Straight-Line Method on
pro-rata basis, by applying the rates as specified in Schedule XIV to
the Companies Act, 1956. However, the Plant & Machineries have been
considered as Continuous Process Plant based on technical assessment
and are depreciated accordingly.
4 INVENTORIES :
Inventories of Raw Materials, Goods in Process, Stores and Spares and
Finished Goods are stated at cost or net realisable value whichever is
lower except saleable waste which is valued at contracted selling
price. Goods in Transit are stated at cost. Cost comprises of cost of
purchases, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition.
Cost formulae used is ÃFirst-in-First-out (FIFO) basis.
5 INVESTMENTS :
Investments are classified as Long Term Investments and Current
Investments as per AS -13 ÃAccounting for InvestmentsÃ. Long term
investments are stated at Cost. Provision is made for diminution in the
value of Long term Investments to recognise a decline, if any other
than temporary in nature.
6 FOREIGN EXCHANGE TRANSACTIONS :
(a) Foreign currency transactions are recorded at the exchange rates at
the date of transaction.
(b) Gains and losses resulting from the settlement of such transactions
and from the translation of monetary assets and liabilities denominated
in foreign currencies, are recognised in the Profit and Loss Account.
(c) Premium in respect of forward contracts is accounted over the
period of the contract.
(d) Forward Exchange contracts entered for trading purposes are valued
and marked to its current market value and the resultant gain or loss
is dealt with in Profit and Loss Account.
(e) All foreign currency loans outstanding at the close of the balance
period are expressed in Indian currency at the exchange rate prevailing
on the date of Balance Sheet.
(f) Foreign exchange rate variations relating to acquisition of Fixed
Assets are transferred to Profit & Loss Account as per the revised
Accounting Standard 11 "The Effects Of Changes In Foreign Exchange
Rates".
(g) Current assets & current liabilities in foreign currency, other
than those covered by forward exchange contracts, outstanding at the
close of the balance sheet date are converted in Indian currency at the
appropriate rates of exchange prevailing on the date of Balance Sheet.
Resultant gain or loss is accounted as " Foreign Exchange Rate
Fluctuation", during the year.
7 USE OF ESTIMATES :
The preparation of financial statement requires management to make
estimates and assumptions that affect the reported amount of assets,
liabilities, revenue and expenses and disclosure of contingent
liabilities on the date of financial statement. The recognition,
measurement, classification or disclosure of the information in the
financial statement has been made relying on these estimates.
8 IMPAIRMENT OF ASSETS :
Consideration is given at each Balance Sheet date to determine whether
there is any indication of impairment of the carrying amounts of the
Companys Assets. If any indication exists, an Assets recoverable
amount is estimated. An impairment loss is recognized wherever the
carrying amount of an assets exceeds its recoverable amount. The
recoverable amount is the greater of the net selling price and value in
use.
9 EXCISE DUTY :
The Company has obtained exemption for excise duty with effect from
10.11.2004 with respect to Ahmedabad Unit and with effect from
24.02.2006 with respect to Baramati Unit.
10 EMPLOYEE BENEFITS :
(a) Short term employee benefits are recognized as an expense at
undiscounted amount in the Profit & Loss Account of the year in which
the related service is rendered.
(b) Post employment and other long term employee benefits are
recognized as an expense in the Profit & Loss Account for the year in
which the employee has rendered services. The expense is recognized at
the present value of the amounts payable determined using actuarial
valuation techniques. Actuarial gain / loss in respect of post
employment and other long term benefits are charged to Profit & Loss
Account.
11 RESEARCH AND DEVELOPMENT EXPENSES :
Research and development expenditure of revenue nature is recognised as
an expense in the year in which it is incurred and the expenditure of
capital nature are depreciated over the useful lives of the assets.
12 TREATMENT OF CONTINGENT LIABILITIES :
Contingent Liabilities not provided for are disclosed by way of Notes
on Accounts.
13 AMORTISATION OF DEFERRED REVENUE EXPENDITURE :
- Upfront processing charges and expenses related to loans from IDBI,
Dena Bank and Exim Bank are being amortised over a period of loan i.e.
ten years.
- Preliminary expenses including cost of increasing authorised capital
& GDR issue expenses are amortised over a period of ten years.
- Upfront fee and loan processing charges paid to ICICI Bank Ltd. are
amortised over a period of five years.
- Overhauling charges of DG Set are to amortised over expected running
hours of the DG Set. However, the management has decided to write off
100% expenditure during the year, as the Company will not use the DG
set because the MSEB rate is cheaper than generating electricity from
DG set.
14 EXPORT INCENTIVES :
Following the Accrual Concept of Accountancy, the Company has taken
credits as income for Rs.12,312,267/- (Previous year Rs. 22,239,294/-)
being Duty Drawback available and DEPB License at the close of the
year.
15 TAXATION :
Ta x expense comprises current and deferred tax. Current tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income Ta x Act, 1961. Deferred tax reflects the
tax effect of the timing differences between accounting income and
taxable income originating and reversing during the year. Deferred tax
is measured based on the tax rate and tax laws enacted or substantially
enacted at the balance sheet date. Deferred tax assets are recognised
only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realised.