Mar 31, 2015
1. Basis of Accounting & Revenue Recognition:
a) 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
Section 211(3C) of the Companies Act, 1956 ("the 1956 Act") (which
continues to be applicable in respect of Section 133 of the Companies
Act, 2013("the 2013Act") in terms of General Circular 15/2013 Dated
September 13, 2013 Act, as applicable.
b) The Company follows the mercantile system of accounting and
recognizes income & expenditure on an accrual basis except those with
significant uncertainties.
2. Fixed assets:
Fixed Assets are stated at cost of acquisition and inclusive of
freight, taxes and incidental expenses related to acquisition of the
said fixed assets.
3. Depreciation:
Depreciation on tangible assets is provided on the straight line method
as per Schedule II of the Companies Act, 2013 over the useful lives of
assets estimated by the Management.
4. Inventories:
Inventories are valued at the lower of the cost & estimated net
realizable value.
5. Retirement benefits:
As per the Company's management, the Gratuity and Provident Fund are
not provided in the books as the same is not applicable.
6. Provisions, Contingent Liabilities and Contingent Assets:
A provision is recognized if, as a result of a past event, the Company
has a present legal obligation that is reasonably estimate, and it is
probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by the best estimate
of the outflow of economic benefits required to settle the obligation
at the reporting date. Where no reliable estimate can be made, a
disclosure is made as contingent liability. A disclosure for contingent
liability is also made when there is a possible obligation or a present
obligation that may, but probably will not, require an outflow of
resources. Where there is a possible obligations or a present
obligation in respect of which the likelihood of outflow of resources
is remote, no provision or disclosure is made.
7. Earnings Per Sharer-
Basic and diluted earnings per share are computed in accordance with
Accounting Standard-20. Basic earnings per share is calculated by
dividing the net profit or loss after tax for the year attributable to
equity shareholders by the weighted average number of equity shares
outstanding during the year. Diluted earnings per equity share are
computed using the weighted average number of equity shares and
dilutive potential equity shares outstanding during the year, except
where the results are anti-dilutive.
8. Cash Flow Statement
Cash flow are reported using indirect method, whereby profit before tax
is adjusted for the effects of the transactions of a non-cash nature,
any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or
financing cash flows. The cash flow from operating, investing and
financing activities of the Company is segregated.
9. Capital Issue Expenditure:
Company has write off Preliminary and Pre-operative expenses partially
during the year.
Mar 31, 2014
I) ACCOUNTING CONCEPT;
a. These accounts are prepared on the historical cost convention and
on the accounting principle of a going concern.
b. Accounting policies not specifically referred to otherwise be
consistent and in consonance with generally accepted accounting
principle.
ii) RECOGNITION OF INCOME AND EXPENDITURE
Company accounts Incomes and Expenses on accrual basis in accordance
with the generally accepted accounting principles except dividend which
are accounted on cash basis.
iii) USE OF ESTIMATES
The presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and reported amount
of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/ materialized.
iv) FIXED ASSETS & DEPRECIATION
The Gross Block of Fixed Assets is shown at historical cost, which
includes taxes and other identifiable direct Expenses, less impairment
loss. The cost of fixed assets includes the cost of acquisition
including freight, taxes, duties and other identifiable direct
expenses, except otherwise specifically excluded and expressed by way
of note, attributable to acquisition of assets up to the date the asset
put to use less the accumulated depreciation on it.
Depreciation is provided on Written Down Value Method at the rates and
in the manner specified in Schedule XIV of the Companies Act, 1956. The
depreciation on addition / disposal is provided pro-rate basis.
v) SALES / TURNOVER
Sales are recognized, net of returns, on dispatch of goods to customers
the satisfaction of the customer and are reflected in the accounts at
net value.
vi) INVESTMENT
Investments are carried at cost. They are long-term investment. The
fall in value being temporary in nature, no provision is made for
diminution in value.
vii) INVENTORY
Inventories are valued on FIFO basis at lower of cost or market price
except cotton waste and scrap material, which are shown at Net
Realizable Value.
vii) TREATMENT OF RETIREMENT BENEFITS
1. Short Term Employee Benefits: The undiscounted amount of short term
employee benefits expected to be paid in exchange for the service
rendered by employee is recognized during the period when the employee
render the service.
2. Post Employee Benefits: Contribution to defined contribution scheme
such as provident fund etc. is charged to P&L Account as incurred.
viii) TAXATION
Tax liabilities of the company are estimated considering the provision
of the I.T. Act, 1961. The deferred tax Liability for timing difference
between the book and tax profit for the year is accounted using the
rates and Tax Laws that have been enacted or substantially enacted at
the balance sheet date. Deferred Tax assets arising from the timing
difference are recognized to the extent that there is reasonable
certainty that sufficient future taxable income will be available.
x) CONTINGENT LIABILITIES
Contingent liabilities are not provided for (unless otherwise stated)
and are disclosed by way of notes on account, if any.
Mar 31, 2013
I) ACCOUNTING CONCEPT:
a. These accounts are prepared on the historical cost convention and
on the accounting principle of a going concern.
b. Accounting policies not specifically referred to otherwise be
consistent and in consonance with generally accepted accounting
principle.
ii) RECOGNITION OF INCOME AND EXPENDITURE
Company accounts Incomes and Expenses on accrual basis in accordance
with the generally accepted accounting principles except dividend which
are accounted on cash basis.
iii) USE OF ESTIMATES
The presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and reported amount
of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/ materialized.
iv) FIXED ASSETS & DEPRECIATION
The Gross Block of Fixed Assets is shown at historical cost, which
includes taxes and other identifiable direct Expenses, less impairment
loss. The cost of fixed assets includes the cost of acquisition
including freight, taxes, duties and other identifiable direct
expenses, except otherwise specifically excluded and expressed by way
of note, attributable to acquisition of assets up to the date the asset
put to use less the accumulated depreciation on it.
Depreciation is provided on Written Down Value Method at the rates and
in the manner specified in Schedule XIV of the Companies Act, 1956. The
depreciation on addition / disposal is provided pro-rate basis.
v) SALES / TURNOVER
Sales are recognized, net of returns, on dispatch of goods to customers
the satisfaction of the customer and are reflected in the accounts at
net value.
vi) INVESTMENT
Investments are carried at cost. They are long-term investment. The
fall in value being temporary in nature, no provision is made for
diminution in value.
vii) INVENTORY
Inventories are valued on FIFO basis at lower of cost or market price
except cotton waste and scrap material, which are shown at Net
Realizable Value.
vii) TREATMENT OF RETIREMENT BENEFITS
1. Short Term Employee Benefits: The undiscounted amount of short term
employee benefits expected to be paid in exchange for the service
rendered by employee is recognized during the period when the employee
render the service.
2. Post Employee Benefits: Contribution to defined contribution scheme
such as provident fund etc. is charged to P&L Account as incurred.
viii) TAXATION
Tax liabilities of the company are estimated considering the provision
of the I.T. Act, 1961. The deferred tax Liability for timing difference
between the book and tax profit for the year is accounted using the
rates and Tax Laws that have been enacted or substantially enacted at
the balance sheet date. Deferred Tax assets arising from the timing
difference are recognized to the extent that there is reasonable
certainty that sufficient future taxable income will be available.
x) CONTINGENT LIABILITIES
Contingent liabilities are not provided for (unless otherwise stated)
and are disclosed by way of notes on account, if any.
Mar 31, 2012
(a) General:
(i) The Accounts of the Company are prepared under the historical cost
convention using the accrual method of accounting and on the accounting
principal of going concern basis.
(ii) Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
(b) Fixed Assets:
Fixed assets are stated at cost net of modvat, less depreciation.
Interest on borrowing attributable till commencement of commercial
production is capitalized.
(c) Depreciation:
Depreciation has been provided in the accounts on straight-line method
at the rates specified in Schedule XIV of the companies Act, 1956.
Depreciation on assets acquired during the year and additions thereto
is calculated pro rata from the following month of the addition
thereto.
(d) Investments: Investments, if any, are stated at cost price.
(e) Current assets:
Inventories are valued as under.
Raw Material : On FlFO basis.
Stock in process : At cost
Finished Goods : At lower of cost or net realizable value.
(f) Sales:
Sales include excise duty only and net of sales tax, returns and
discounts, if any.
(g) Prior period and extraordinary items:
terns of income and expenditure pertaining to prior period Items as
well as extraordinary items, where material are disclosed separately.
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