Mar 31, 2015
A. BASIS OF PREPARATION :
The Financial Statements have been prepared to comply in material
respects with the Accounting Principles generally accepted in India,
including mandatory Accounting Standards specified under Section 133 of
the Companies Act, 2013 read with Rule 7 of the Companies (Accounts)
Rules, 2014 under the historical cost convention and on accrual basis.
The Accounting Policies in all material respect, have been consistently
applied by the Company and are consistent with those used in previous
year.
B. TANGIBLE ASSETS :
Tangible Assets are stated at cost including pre-operative expenses &
borrowing cost allocated to qualifying assets in proportion to costs
thereof.
C. IMPAIREMENT OF ASSETS :
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairement loss is charged to the
profit and loss account in the year in which an asset is identified as
impaired. The impairement loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
D. CAPITAL WORK IN PROGRESS :
Stated at Cost.
E. DEPRECIATION :
a. The full value of Leasehold land is amortized over the period of
lease.
b. Depreciation on Tangible Assets continues to be provided on
straight-line method at the rates prescribed in erstwhile Schedule -
XIV of the Companies Act, 1956. This is a non-compliance of mandatory
Accounting Policy required to be followed by the Company for
Depreciation on Tangible Assets in terms of Accounting Standard (AS) 6
: Depreciation Accounting.
F. INVENTORIES :
Basis of Valuation
Raw Material : At Cost
Stores & Spare Parts : At Weighted Average Cost
Work in Process and Finished Goods : At Cost or Market Value whichever
is lower. Cost for this
purpose is determined with
reference to cost of materials,
labour and appropriate overheads.
Waste Stock : At estimated realizable value
except waste of Silk Division
used for recycling which is
valued at Cost as per past
practice.
G. INVESTMENTS :
Long Term Investments are stated at cost less provision and write off
in cost wherever the management considers the fall in value to be of
permanent in nature.
H. BORROWING COSTS :
Borrowing costs that are attributable to the acquisition and
construction of a qualifying asset are capitalized as part of cost of
that asset. Other borrowing costs are recognised as expense in the
period in which they are incurred.
I. EMPLOYMENT BENEFITS :
i) Short Term Employees Benefits
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees is recognized
during the period when the employee rendered the service. This benefit
includes salary, wages, short-term compensatory absences and bonus.
ii) Long Term Employees Benefits
a) Defined contribution Short Term Employees Benefits to ESIC
(employees State Insurance Corporation) and Provident Fund Schemes.
This contribution is recognized during the period in which employee
renders service.
b) Defined Benefit Scheme: For defined benefit scheme the cost of
providing benefit is determined using the projected unit credit method
with actuarial valuation being carried out at each balance sheet date.
The retirement benefit obligation recognized in the balance sheet
represents the value of defined benefit obligation as reduced by fair
value of planned assets. Actuarial gain and losses are recognized
obligation in full during the period in which they occur.
c) Leave encashment is determined on accrual basis.
J. RECOGNITION OF INCOME AND EXPENDITURE :
Items of Income and Expenditure are recognised on accrual basis.
K. SALES :
Sales are inclusive of Job Processing charges and exclude Inter Unit
transfer, claims etc.
L. FOREIGN EXCHANGE TRANSACTIONS :
a) Assets and Liabilities relating to Foreign Currency outstanding at
the year-end are translated at the year-end rates.
b) Purchases and Sales are accounted for at average rates of exchange
prevailing in the month immediately preceding the month of transactions
and the difference on account of foreign exchange fluctuation on the
date of actual payment/realization are treated as foreign exchange
gain/loss.
M. SEGMENT REPORTING :
The accounting policies adopted for Segment Reporting are in line with
the accounting policies of the company.
Revenue and Expenses have been identified to Segments on the basis of
their relationship to the operating activities of the segment. Revenue
and Expenses that relate to the enterprise as a whole and are not
allocable to segment on a reasonable basis have been included under
"Others".
N. TAXATION :
Current Tax is determined on the basis of the amount of tax payable
under the Income Tax Act, 1961, if any. Deferred Tax Liabilities/Assets
subject to consideration of prudence are recognized and carried forward
only when there is reasonable certainty that sufficient taxable Income
will be available against which such Deferred Tax Liabilities/ Assets
can be adjusted.
O. PROVISIONS AND CONTINGENT LIABILITIES :
The company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is possible
obligation or a present obligation and the likelihood of outflow of
resources is remote, no provision or disclosure for contingent
liability is made. Contingent liabilities are generally not provided
for in the accounts and are disclosed separately in Notes on Accounts.
P. EARNING PER SHARE :
Basic earning per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
and for all periods presented is adjusted for the events, such as bonus
share, other than conversion of potential equity shares that have
changed the number of equity shares outstanding, without a
corresponding change in resources. For the purpose of calculating,
diluted earning per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of
shares outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
Mar 31, 2014
A. BASIS OF PREPARATION
The Financial Statements have been prepared to comply in material
respects with the Accounting Principal generally accepted in India.
Including mandatory Accounting Standard notified under the Companies
(Accounting Standard) Rules, 2006 (as amended) under the historical
cost convention and on accrual basis. The Accounting Policies in all
material respects, have been consistently applied by the company and
are consistent with those used in previous year.
B. TANGIBLE ASSETS :
Tangible Assets are stated at cost including pre-operative expenses &
borrowing cost allocated to qualifying assets in proportion to costs
thereof.
C. IMPAIREMENT OF ASSETS :
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairement loss is charged to the
profit and loss account in the year in which an asset is identified as
impaired. The impairement loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
D. CAPITAL WORK IN PROGRESS :
Stated at Cost.
E. DEPRECIATION :
a. The full value of Leasehold land is amortized over the period of
lease.
b. Depreciation on Tangible Assets has been provided on straight-line
method on prorata basis at the rates prescribed in Schedule XIV to the
Companies Act, 1956 (As amended).
F. INVENTORIES :
Basis of Valuation
Raw Material :At Cost
Stores & Spare Parts : At Weighted Average Cost
Work in Process andFinished Goods : At Cost or Market Value whichever
is lower. Cost for this purpose is determined with reference to cost of
materials, labour and appropriate overheads.
Waste Stock : At estimated realizable value except waste of Silk
Division used for recycling which is valued at Cost as per past
practice.
G. INVESTMENTS :
Long Term Investments are stated at cost less provision and write off
in cost wherever the management considers the fall in value to be of
permanent in nature.
H. BORROWING COSTS:
Borrowing costs that are attributable to the acquisition and
construction of a qualifying asset are capitalized as part of cost of
that asset. Other borrowing costs are recognised as expense in the
period in which they are incurred.
I. EMPLOYMENT BENEFITS:
i) Short Term Employees Benefits :
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees is recognized
during the period when the employee rendered the service. This benefit
includes salary, wages, short-term compensatory absences and bonus.
ii) Long Term Employees Benefits :
a) Defined contribution Short Term Employees Benefits to ESIC
(employees State Insurance Corporation) and Provident Fund Schemes.
This contribution is recognized during the period in which employee
renders service.
b) Defined Benefit Scheme : For defined benefit scheme the cost of
providing benefit is determined using the projected unit credit method
with actuarial valuation being carried out at each balance sheet date.
The retirement benefit obligation recognized in the balance sheet
represents the value of defined benefit obligation as reduced by fair
value of planned assets. Actuarial gain and losses are recognized
obligation in full during the period in which they occur.
c) Leave encashment is determined on accrual basis.
J. RECOGNITION OF INCOME AND EXPENDITURE :
Items of Income and Expenditure are recognised on accrual basis.
K. SALES :
Sales are inclusive of Job Processing charges and exclude Inter Unit
transfer, claims etc.
L. FOREIGN EXCHANGE TRANSACTIONS :
a) Assets and Liabilities relating to Foreign Currency outstanding at
the year-end are translated at the year-end rates.
b) Purchases and Sales are accounted for at average rates of exchange
prevailing in the month immediately preceding the month of transactions
and the difference on account of foreign exchange fluctuation on the
date of actual payment/realization are treated as foreign exchange
gain/loss.
M. SEGMENT REPORTING :
The accounting policies adopted for Segment Reporting are in line with
the accounting policies of the company.
Revenue and Expenses have been identified to Segments on the basis of
their relationship to the operating activities of the segment. Revenue
and Expenses that relate to the enterprise as a whole and are not
allocable to segment on a reasonable basis have been included under
"Others".
N. TAXATION :
Current Tax is determined on the basis of the amount of tax payable
under the Income Tax Act, 1961, if any. Deferred Tax Liabilities/Assets
subject to consideration of prudence are recognized and carried forward
only when there is reasonable certainty that sufficient taxable Income
will be available against which such Deferred Tax Liabilities/ Assets
can be adjusted.
O. PROVISIONS AND CONTINGENT LIABILITIES :
The company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is possible
obligation or a present obligation and the likelihood of outflow of
resources is remote, no provision or disclosure for contingent
liability is made. Contingent liabilities are generally not provided
for in the accounts and are disclosed separately in Notes on Accounts.
P. EARNING PER SHARE
Basic earning per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
and for all periods presented is adjusted for the events, such as bonus
share, other than conversion of potential equity shares that have
changed the number of equity shares outstanding, without a
corresponding change in resources. For the purpose of calculating,
diluted earning per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of
shares outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
f) Rights, Preferances and Restrictions attached to Shares Issued :
Each Equity Shareholder holding shares of Rs. 10/- each is eligible for
one vote per share held and is entitled to dividend when proposed by
the Board of Directors subject to the approval of the sharesholders in
the Annual General Meeting. Each Equity Shares holders is entitled to
participate in repayament of Capital on liqudation after all secured
creditors have been paid.
Note :
13% Non Convertible Cumulative Redeemable Preference Shares have
already matured for redemption completely by 12th December'' 2002 as per
terms of redemtion. However, no part of this Share Capital amount could
be redeemed by the aforesaid date. The Company has received during the
year 2010-11 a letter from IDBI, The holders demanding forthwith the
payament of the entire amount due on redemption togathet with the
dividends due thereon. However, the matter is pending restructuring of
loans due to banks and financial institutions.
Notes :
1) The company, being a sick industrial undertaking could not redeem
debentures & interest thereof as per the terms of issue, which will be
dealt properly in the restructuring scheme. Accordingly no transfer has
been made to the Account of Investor & Protection fund.
2) Following the declaration of the Company as a Sick Industrial
undertaking by the Board for Industrial and Financial Reconstruction
(BIFR) vides its Order dated 30.01.2006 in terms of Section 3 (1) (A)
of the Sick Industrial Companies (Special Provisions) Act, 1985 and
also athe appointment of Industrial Development Bank of India as scheme
for the Operating Agency for preparation of a viability study report
and revised the Company, Appeals against the said order were preferred
by some of the secured lenders as well as the Company before the
AppellateAuthority for Industrial & Financial Reconstruction (AAIFR).
The said appeals were taken up and adjudicated and vide its order dated
05.12.2007, AAIFR has remanded back to BIFR with a direction to
reconsider the earlier references of the company on the basis of its
earlier Balance Sheets also. During the year 2010-11 in one of the
appeals pending before AAIFR and in pursuance of ARCIL application to
AAIFR has opined that in veiw of the actions taken by ARCIL under
Section 13 (4) of SARFAESI Act, the reference filed by the Company
stood abated under in one of the appeals pendingbefore AAIFR and
inpursuance of ARCIL application to AAIFR has opined that in veiw of
the actions taken by ARCIL under Section 13 (4) of SARFAESI Act, the
reference filed by the Company stood abated under the proviso to
Section 15(1) of SICA.
3) Under the provisions of Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act, 2002
(SARFAESI Act ), ARCIL has taken over possession of the secured assets
of the Company''s plants during the Financial Year 2008-09 and has
appointed Indoworth India Ltd as the Custodian of such assets. The
Company''s business continued since the aforesaid take over as usual.
However, the matter is subjudice in a suit before the Calcutta High
Court and necessary adjustments in the financial statements, if
required, would be made upon final adjudication of the proceedings.
However, these Accounts have been prepared on a Going Concern basis as
the Management is of the view that the Going Concern assumption is not
vitiated for the reason as stated above.
Note :
1) Amount dues to suppliers, which are subject to cnfirmation of the
parties.
2) There are certain cases pending in appropriate court regarding goods
supplied by various creditors which are being disputed by the company.
Advance given to them will be adjusted once the cases are disposed off
and settled
3) The Company has amounts due to suppliers under the Micro, Small and
Medium Enterprises Development Act, 2006 (MSMED Act) as at 31st March,
2014 as under :
Note : 1. Mode of valuation - Refer Accounting Policy Note-1(f) 2.
Finished Goods
i) Value of Rs.351.27 Lacs lying with thrid party.
ii) Value of Rs.115.51 Lacs under seizer of the Excise Department for a
storage of Stock with a third party without obtaining permission of the
Excise Department.
Note :
1) Trade Recievable includes Rs.1453.62 Lacs due from a Company which
has become sick and registered with BIFR under the Sick Industrial
Companies ( Special Provisions ) Act, 1985. Quantum of amount
considered doubtful is not ascertainable at this Stage. Accordingly no
provision has been made in the account in this regards.
2) In respect of Sundry Debtors (including Domestic sales Debtors )
adjustments are pending against supplies and other liabilities, etc due
to the buyers Managent is confident of recovering the balance after
such adjustments pending approval from concerned regulatory authority.
3) Certain Debtors are subject to Confirmation.
4) Trade Recievable includes :- i) Rs. 3697.89 Lacs representing
overdue Export Bills outstanding for long against which the acompany
has obtained a decree for realizing the outstanding debts over a period
of time ranging up to twenty years. The company has also filed an
appeal for reduction/variation of the period of time.
ii) Rs. 27097.12 lacs representing overdue Export Bills outstanding for
long that will be set off against import liabilities, claims, and
commission etc. of the respective parties.
iii) Rs. 992.30 lacs representing overdue Export Bills outstanding for
long against which the management has taken appropriate steps for its
recovery.
Note :
1) Balances with the Bank in Current Account include certain Debit
balances in Current Account which are subject to receipt of
confirmation because of restructuring being in progress.
2) Fixed Deposit lodged with Bank as margin for Guarantee Rs. 5.19 Lacs
and with Sales Tax Authorities Rs 0.40 Lacs.
Note :
1) Claim receivable of Rs. 689.36 lacs due from various banks on
account of excess interest charged by them in earlier years are subject
to confirmation. No provision has been made there against.
2) Short Term Loans and Advances includes Rs.1387.19 Lacs which have
become sick and referred to BIFR under the Sick Industrial Companies (
Special Provisions ) Act, 1985. Quantum of amount considered doubtful
is not ascertainable at this Stage. Accordingly no provision has been
made in the account in this regards.
3) Advance includes Rs 2827.47 Lacs due from a party which in opinion
of the Management is considered t be fully recoverable.
4) Advance includes Rs 4.30 Lacs due from a director ( Max Amount at
any time during the year Rs 4.30 Lacs )
5) Certain Advances are subject to Confirmation.
Note :
The adjustment of Rs. 5948.37 lacs pertaining to transfer of Fixed
Assets of the company in earlier years under scheme of demerger is
still pending and will be dealt in restructuring Scheme.
Mar 31, 2013
A. BASIS OF PREPARATION
The Financial Statements have been prepared to comply in material
respects with the Accounting Principal generally accepted in India,
including mandatory Accounting Standard notified under the Companies
(Accounting Standard) Rules, 2006 (as amended) under the historical
cost convention and on accrual basis. The Accounting Policies in all
material respects, have been consistently applied by the company and
are consistent with those used in previous year.
B. TANGIBLE ASSETS :
Tangible Assets are stated at cost including pre-operative expenses &
borrowing cost allocated to qualifying assets in proportion to costs
thereof.
C. IMPAIREMENT OF ASSETS :
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairement loss is charged to the
profit and loss account in the year in which an asset is identified as
impaired. The impairement loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
D. CAPITAL WORK IN PROGRESS :
Stated at Cost.
E. DEPRECIATION :
a. The full value of Leasehold land is amortized over the period of
lease.
b. Depreciation on Tangible Assets has been provided on straight-line
method on prorata basis at the rates prescribed in Schedule XIV to the
Companies Act, 1956 (As amended).
F. INVENTORIES :
Basis of Valuation
Raw Material : At Cost
Stores & Spare Parts : At Weighted Average Cost
Work in Process andFinished Goods : At Cost or Market Value whichever
is lower. Cost for this purpose is determined with reference to cost of
materials, labour and appropriate overheads. Waste Stock : At
estimated realizable value except waste of Silk
Division used for recycling which is valued at Cost as per past
practice.
G. INVESTMENTS :
Long Term Investments are stated at cost less provision and write off
in cost wherever the management considers the fall in value to be of
permanent in nature.
H. BORROWING COSTS:
Borrowing costs that are attributable to the acquisition and
construction of a qualifying asset are capitalized as part of cost of
that asset. Other borrowing costs are recognised as expense in the
period in which they are incurred.
I. EMPLOYMENT BENEFITS:
i) Short Term Employees Benefits :
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees is recognized
during the period when the employee rendered the service. This benefit
includes salary, wages, short-term compensatory absences and bonus.
ii) Long Term Employees Benefits :
a) Defined contribution Short Term Employees Benefits to ESIC
(employees State Insurance Corporation) and Provident Fund Schemes.
This contribution is recognized during the period in which employee
renders service.
b) Defined Benefit Scheme : For defined benefit scheme the cost of
providing benefit is determined using the projected unit credit method
with actuarial valuation being carried out at each balance sheet date.
The retirement benefit obligation recognized in the balance sheet
represents the value of defined benefit obligation as reduced by fair
value of planned assets. Actuarial gain and losses are recognized
obligation in full during the period in which they occur.
c) Leave encashment is determined on accrual basis.
J. RECOGNITION OF INCOME AND EXPENDITURE :
Items of Income and Expenditure are recognised on accrual basis.
K. SALES :
Sales are inclusive of Job Processing charges and exclude Inter Unit
transfer, claims etc.
L. FOREIGN EXCHANGE TRANSACTIONS :
a) Assets and Liabilities relating to Foreign Currency outstanding at
the year-end are translated at the year-end rates.
b) Purchases and Sales are accounted for at average rates of exchange
prevailing in the month immediately preceding the month of transactions
and the difference on account of foreign exchange fluctuation on the
date of actual payment/realization are treated as foreign exchange
gain/loss.
M. SEGMENT REPORTING :
The accounting policies adopted for Segment Reporting are in line with
the accounting policies of the company.
Revenue and Expenses have been identified to Segments on the basis of
their relationship to the operating activities of the segment. Revenue
and Expenses that relate to the enterprise as a whole and are not
allocable to segment on a reasonable basis have been included under
"fOthers"f.
N. TAXATION :
Current Tax is determined on the basis of the amount of tax payable
under the Income Tax Act, 1961, if any. Deferred Tax Liabilities/Assets
subject to consideration of prudence are recognized and carried forward
only when there is reasonable certainty that sufficient taxable Income
will be available against which such Deferred Tax Liabilities/ Assets
can be adjusted.
O. PROVISIONS AND CONTINGENT LIABILITIES :
The company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is possible
obligation or a present obligation and the likelihood of outflow of
resources is remote, no provision or disclosure for contingent
liability is made. Contingent liabilities are generally not provided
for in the accounts and are disclosed separately in Notes on Accounts.
P. EARNING PER SHARE
Basic earning per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
and for all periods presented is adjusted for the events, such as bonus
share, other than conversion of potential equity shares that have
changed the number of equity shares outstanding, without a
corresponding change in resources. For the purpose of calculating,
diluted earning per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of
shares outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
Mar 31, 2012
1. SIGNICANT ACCOUNTING POLICIES
A. BASIS OF PREPARATION
The Financial Statements have been prepared to comply in material
respects with the Accounting Principal generally accepted in India.
Including mandatory Accounting Standard notified under the Companies
(Accounting Standard) Rules, 2006 (as amended) under the historical
cost convention and on accrual basis. The Accounting Policies in all
material respects, have been consistently applied by the company and
are consistent with those used in previous year, except for changes in
the presentation and disclosure of the financial statement as described
in Notes below.
B. TANGIBLE ASSETS :
Tangible Assets are stated at cost including pre-operative expenses &
borrowing cost allocated to qualifying assets in proportion to costs
thereof.
C. IMPAIREMENT OF ASSETS :
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairement loss is charged to the
profit and loss account in the year in which an asset is identified as
impaired. The impairement loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
D. CAPITAL WORK IN PROGRESS :
Stated at Cost.
E. DEPRECIATION :
a. The full value of Leasehold land is amortized over the period of
lease.
b. Depreciation on Tangible Assets has been provided on straight-line
method on prorata basis at the rates prescribed in Schedule XIV to the
Companies Act, 1956 (As amended).
F. INVENTORIES :
Basis of Valuation
Raw Material : At Cost
Stores & Spare Parts : At Weighted Average Cost
Work in Process andFinished Goods : At Cost or Market Value whichever
is lower. Cost for
this purpose is determined with reference to cost of materials, labour
and appropriate overheads.
Waste Stock : At estimated realizable value except waste of Silk
Division used for recycling which is valued at Cost as per past
practice.
G. INVESTMENTS :
Long Term Investments are stated at cost less provision and write off
in cost wherever the management considers the fall in value to be of
permanent in nature.
H. BORROWING COSTS:
Borrowing costs that are attributable to the acquisition and
construction of a qualifying asset are capitalized as part of cost of
that asset. Other borrowing costs are recognised as expense in the
period in which they are incurred.
I. EMPLOYMENT BENEFITS:
i) Short Term Employees Benefits :
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees is recognized
during the period when the employee rendered the service. This benefit
includes salary, wages, short-term compensatory absences and bonus.
ii) Long Term Employees Benefits :
a) Defined contribution Short Term Employees Benefits to ESIC
(employees State Insurance Corporation) and Provident Fund Schemes.
This contribution is recognized during the period in which employee
renders service.
b) Defined Benefit Scheme : For defined benefit scheme the cost of
providing benefit is determined using the projected unit credit method
with actuarial valuation being carried out at each balance sheet date.
The retirement benefit obligation recognized in the balance sheet
represents the value of defined benefit obligation as reduced by fair
value of planned assets. Actuarial gain and losses are recognized
obligation in full during the period in which they occur.
c) Leave encashment is determined on accrual basis.
J. RECOGNITION OF INCOME AND EXPENDITURE :
Items of Income and Expenditure are recognised on accrual basis.
K. SALES :
Sales are inclusive of Job Processing charges and exclude Inter Unit
transfer, claims etc.
L FOREIGN EXCHANGE TRANSACTIONS :
a) Assets and Liabilities relating to Foreign Currency outstanding at
the year-end are translated at the year-end rates.
b) Purchases and Sales are accounted for at average rates of exchange
prevailing in the month immediately preceding the month of transactions
and the difference on account of foreign exchange fluctuation on the
date of actual payment/realization are treated as foreign exchange
gain/loss.
M SEGMENT REPORTING :
The accounting policies adopted for Segment Reporting are in line with
the accounting policies of the company.
Revenue and Expenses have been identified to Segments on the basis of
their relationship to the operating activities of the segment. Revenue
and Expenses that relate to the enterprise as a whole and are not
allocable to segment on a reasonable basis have been included under
"Others".
N TAXATION :
Current Tax is determined on the basis of the amount of tax payable
under the Income Tax Act, 1961, if any. Deferred Tax Liabilities/Assets
subject to consideration of prudence are recognized and carried forward
only when there is reasonable certainty that sufficient taxable Income
will be available against which such Deferred Tax Liabilities/ Assets
can be adjusted.
O PROVISIONS AND CONTINGENT LIABILITIES :
The company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is possible
obligation or a present obligation and the likelihood of outflow of
resources is remote, no provision or disclosure for contingent
liability is made. Contingent liabilities are generally not provided
for in the accounts and are disclosed separately in Notes on Accounts.
P EARNING PER SHARE
Basic earning per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
and for all periods presented is adjusted for the events, such as bonus
share, other than conversion of potential equity shares that have
changed the number of equity shares outstanding, without a
corresponding change in resources. For the purpose of calculating,
diluted earning per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of
shares outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
Mar 31, 2011
1. FIXED ASSETS
Stated at Cost including pre-operative expenses & borrowing cost
allocated to qualifying assets in proportion to costs thereof.
2. IMPAIREMENT OF ASSETS
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. 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 recognised in prior accounting period is
reversed if there has 'been a change in the estimate of recoverable
amount.
3. CAPITAL WORK IN PROGRESS
Stated at Cost.
4. DEPRECIATION
a. The full value of Leasehold land is amortized over the period of
lease.
b. Depreciation on Fixed Assets has been provided on straight-line
method on prorata basis at the rates prescribed in Schedule XIV to the
Companies Act, 1956 (As amended).
5. INVENTORIES Basis of Valuation
Raw Material : At Cost
Stores & Spare Parts : At Weighted Average Cost
Work in Process and
Finished Goods : At Cost or Market Value whichever is lower. Cost for
this purpose is determined with reference to cost of materials, labour
and appropriate overheads.
Waste Stock : At estimated realizable value except waste of Silk
Division used for recycling which is valued at Cost as per past
practice.
6. INVESTMENTS
Long Term Investments are stated at cost less provision and write off
in cost wherever the management considers the fall in value to be of
permanent in nature.
7. BORROWING COSTS
Borrowing costs that are attributable to the acquisition and
construction of a qualifying asset are capitalized as part of cost of
that asset. Other borrowing costs are recognised as expense in the
period in which they are incurred.
8. EMPLOYMENT BENEFITS
i) Short Term Employees Benefits:
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees is recognized
during the period when the employee rendered the service. This benefit
includes salary, wages, short-term compensatory absences and bonus.
ii) Long Term Employees Benefits:
a) Defined contribution Short Term Employees Benefits to ESIC
(Employees State Insurance Corporation) and Provident Fund Schemes.
This contribution is recognized during the period in which employee
renders service.
b) Defined Benefit Scheme: For defined benefit scheme the cost of
providing benefit is determined using the projected unit credit method
with actuarial valuation being carried out at each balance sheet date.
The retirement benefit obligation recognized in the balance sheet
represents the value of defined benefit obligation as reduced by fair
value of planned assets. Actuarial gain and losses are recognized
obligation in full
- during the period in which they occur.
c) Leave encashment is determined on accrual basis.
9. RECOGNITION OF INCOME AND EXPENDITURE
Items of Income and Expenditure are recognised on accrual basis.
10. SALES
Sales are inclusive of Job Processing charges and exclude Inter Unit
transfer, claims etc. 1t. FOREIGN EXCHANGE TRANSACTIONS
a) Assets and Liabilities relating to Foreign Currency outstanding at
the year-end are translated at the year-end rates.
b) Purchases and Sales are accounted for at average rates of exchange
prevailing in the month immediately preceding the month of transactions
and the difference on account of foreign exchange fluctuation on the
date of actual payment/realization are treated as foreign exchange
gain/loss.
11. SEGMENT REPORTING
The accounting policies adopted for Segment Reporting are in line with
the accounting policies of the company.
Revenue and Expenses have been identified to Segments on the basis of
their relationship to the operating activities of the segment. Revenue
and Expenses that relate to the enterprise as a whole and are not
allocable of segment on a reasonable basis have been included under
"Others".
12. TAXATION
Current Tax is determined on the basis of the amount of tax payable
under the Income Tax Act, 1961, if any. Deferred Tax Liabilities/Assets
subject to consideration of prudence are recognized and carried forward
only when there is reasonable certainty that sufficient taxable Income
will be available against which such Deferred Tax Liabilities/ Assets
can be adjusted.
13. PROVISIONS AND CONTINGENT LIABILITIES
The company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is possible
obligation or a present obligation and the likelihood of outflow of
resources is remote, no provision or disclosure for contingent
liability is made. Contingent liabilities are generally not provided
for in the accounts and are disclosed separately in Notes on Accounts.
Mar 31, 2010
The Accounts are prepared on the historical cost convention, on accrual
basis and on a going concern concept and the significant policies
followed by the company as stated here under:
1. FIXED ASSETS
Stated at Cost including pre-operative expenses & borrowing cost
allocated to qualifying assets in proportion to costs thereof.
2. IMPAIREMENT OF ASSETS
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairement loss is charged to the
profit and loss account in the year in which an asset is identified as
impaired. The impairement loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
3. CAPITAL WORK IN PROGRESS
Stated at Cost.
4. DEPRECIATION
a. The full value of Leasehold land is amortized over the period of
lease.
b. Depreciation on Fixed Assets has been provided on straight-line
method on prorata basis at the rates prescribed in Schedule XIV to the
Companies Act, 1956 (As amended).
5. INVENTORIES
Basis of Valuation
Raw Material : At Cost
Stores & Spare Parts : At Weighted Average Cost -
Work in Process and
Finished Goods : At Cost or Market Value whichever is lower. Cost for
this purpose is determined with reference to cost of materials, labour
and appropriate overheads.
Waste Stock : At estimated realizable value except waste of Silk
Division used for recycling which is valued at Cost as per past
practice.
6. INVESTMENTS
Long Term Investments are stated at cost less provision and write off
in cost wherever the management considers the fall in value to be of
permanent in nature.
7. BORROWING COSTS
Borrowing costs that are attributable to the acquisition and
construction of a qualifying asset are capitalized as part of cost of
that asset. Other borrowing costs are recognised as expense in the
period in which they are incurred.
8. EMPLOYMENT BENEFITS
i) Short Term Employees Benefits :
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees is recognized
during the period when the employee rendered the service. This benefit
includes salary, wages, short-term compensatory absences and bonus.
ii) Long Term Employees Benefits :
a) Defined contribution Short Term Employees Benefits to ESIC
(Employees State Insurance Corporation) and Provident Fund
Schemes..This contribution is recognized during the period in which
employee renders service.
b) Defined Benefit Scheme: For defined benefit scheme the cost of
providing benefit is determined using the projected unit credit method
with actuarial valuation being carried out at each balance sheet date.
The retirement benefit obligation recognized in the balance sheet
represents the value of defined benefit obligation as reduced by fair
value of planned assets. Actuarial gain and losses are recognized
obligation in full during the period in which they occur.
c) Leave encashment is determined on accrual basis.
9. RECOGNITION OF INCOME AND EXPENDITURE
Items of Income and Expenditure are recognised on accrual basis.
10. SALES
Sales are inclusive of Job Processing charges and exclude Inter Unit
transfer, claims etc.
11. FOREIGN EXCHANGE TRANSACTIONS
a) Assets and Liabilities relating to Foreign Currency outstanding at
the year-end are translated at the year-end rates.
b) Purchases and Sales are accounted for at average rates .of exchange
prevailing in the month immediately preceding the month of transactions
and the difference on account of foreign exchange fluctuation on the
date of actual payment/realization are treated as foreign exchange
gain/loss.
12. SEGMENT REPORTING
The accounting policies adopted for Segment Reporting are in line with
the accounting policies of the company.
Revenue and Expenses have been identified to Segments on the basis of
their relationship to the operating activities of the segment. Revenue
and Expenses that relate to the enterprise as a whole and are not
allocable to segment on a reasonable basis have been included under
"Others".
13. TAXATION
Current Tax is determined on the basis of the amount of tax payable
under the Income Tax Act, 1961, if any. Deferred Tax Liabilities/Assets
subject to consideration of prudence are recognized and carried forward
only when there is reasonable certainty that sufficient taxable Income
will be available against which such Deferred Tax Liabilities/Assets
can be adjusted.
14. PROVISIONS AND CONTINGENT LIABILITIES
The company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is possible
obligation or a present obligation and the likelihood of outflow of
resources is remote, no provision or disclosure for contingent
liability is made. Contingent liabilities are generally not provided
for in the accounts and are disclosed separately in Notes on Accounts.