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Accounting Policies of VTM Ltd. Company

Mar 31, 2015

AS - 1 Disclosure of accounting policies

The financial statements have been prepared on the basis of going concern, under the historic cost convention, to comply in all the material aspects with applicable accounting principles in India, the accounting standards notified under the Companies Act, 1956 / Companies Act, 2013 as applicable.

AS - 2 Valuation of inventories

a. Raw materials, components, stores and spares are valued at cost determined on weighted average basis. Work in process includes material cost and applicable direct overheads. Finished goods are valued at the aggregate of material cost and applicable direct and indirect overheads or market value whichever is lower.

b. The Excise Duty is exempt on finished grey goods.

c. There is no goods lying in customs bonded warehouses and hence the provision of duty does not arise.

AS - 3 Cash flow statements

Cash flow statement has been prepared under "Indirect Method".

AS - 4 Contingencies and Events occurring after the Balance Sheet Date

There are no contingencies and events after the Balance Sheet date that affect the financial position of the company. Contested liabilities are disclosed by way of a note.

AS - 5 Net profit or loss for the Year, prior period items and changes in accounting policies:

This is not applicable as there is no change in accounting policies.

1. Upto March 31,2014, depreciation has been provided in the accounts on the following basis, at the rates prescribed in Schedule XIV to the Companies Act, 1956.

(a) Plant and machinery other than Windmill:

i) On additions till 31st December 1977. Under the written down value method.

ii) On additions from 1st January 1978. Under straight line method at the rates specified in Clause (II) (I) (a).

(b) On all other Assets: Under the written down value method.

(c) Windmill: Under straight line method at the rates specified in Clause (II) (I) (b).

(d) In respect of additions during the year, full depreciation has been provided irrespective of the period of use. Similarly no depreciation to be provided on assets disposed off during the year.

2. Pursuant to the enactment of the Companies Act, 2013 (the ''Act''), the Company has, effective 1st April 2014, reviewed and revised the estimated useful lives of its fixed assets, in accordance with the provisions of Schedule II of the Act and depreciation is now provided based on the remaining useful life of the asset. As a result of these changes the depreciation charge for the year ended March 31, 2015 is lesser by Rs. 157.32 Lakhs with a corresponding increase in the profit for the year.

3. Further in accordance with the transitional provision specified in Schedule II of the Act, the carrying amount of the Fixed Assets have been reviewed with the consequential impact relating to the period prior to April 1,2014 amounting to Rs.45.09 Lakhs has been adjusted with the General Reserve.

AS - 7 Accounting for Construction contracts

The company is not engaged in any Construction business covered by this Standard.

AS - 8 Accounting for Research and Development

This standard stands withdrawn from the date of Accounting Standard 26 Intangible Assets becoming mandatory.

AS - 9 Revenue recognition

a) Income and expenditure are accounted on a going concern basis.

b) Sales are recognized at the time of despatches of the goods to the customers and recorded net of sales returns and includes export benefits.

c) Interest income is recognized on a time proportion basis taking into account the amount of outstanding and rate applicable.

d) Dividend income: The company has derived income during the current year out of its investment and is recognized when the Company''s right to receive dividend is established.

e) Lease rentals in respect of assets given on "lease" are taken to Profit & Loss Account under the head of Non-operative income on the basis of the terms and conditions specified in the lease agreement.

AS -10 Accounting for fixed assets

Fixed assets are stated at cost of acquisition which includes expenditure incurred upto the date the asset is put to use, less accumulated depreciation. Land is stated at cost or revaluation. Building is stated at cost or revaluation less depreciation. Plant and Machinery etc., are stated at cost less depreciation.

AS - 11 Accounting for effects in foreign exchange rates

a. Purchase of imported components and spare parts are accounted based on retirement memos from banks.

b. In respect of exports of cloth made on or before 31.03.2015, the amount due have been accounted at the rate at which the export bills were tendered to the Bank for Collection/ Discounting.

c. There is no year end foreign currency denominated liabilities and receivables.

d. Derivative Transactions:

The Company uses forward exchange contracts to hedge its exposure in foreign currency.

As on March 31, 2015 there is no Foreign Exchange Contracts outstanding exposure.

No Mark to Market component arises as the Company do not have any outstanding contract as at the end of the year.

AS - 12 Accounting for Government Grants

During the year, the company has received a sum of Rs. 124.48 Lakhs as Capital subsidy under Technology Upgradation Fund (TUF) Scheme, a fund constituted by the Ministry of Textiles, Government of India.

The company has treated the same as capital receipt.

Further the company is availing Duty Drawback subsidy and the same is treated as revenue receipt.

AS - 13 Accounting for Investments

Investments are stated at cost. Provision for diminution in the carrying cost of investments is made if such diminution is other than temporary in nature.

AS - 14 Accounting for amalgamation

This standard is not applicable to the company for the year under review.

AS - 15 Borrowing cost

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalized.

AS - 16 Segment reporting

The Company operates in only one business segment viz. Textiles.

AS -17 Related party disclosure

Disclosure is made as per the requirements of the standard and as per the clarifications issued by the Institute of Chartered Accountants of India.

AS - 18 Leases

This standard is not applicable as the company does not have any finance lease agreement in force.

AS - 19 Earnings per share

The Disclosure is made in the Profit and Loss account as per requirement.

AS - 20 Consolidated financial statements

There is no subsidiary company and the company has one Associate company and the investments are held only for investment purposes.

AS - 21 Accounting for taxes on income

Provision is made for income tax liability estimated to arise on the results for the year at the current rate of tax in accordance with the Income Tax Act, 1961.

Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation are recognized only when there is virtual certainty supported by convincing evidence that such assets will be realized. Deferred tax assets arising on other temporary timing differences are recognized only if there is a reasonable certainty of realization.

AS - 22 Accounting for Investments in Associates in Consolidated Financial Statements

This standard is not applicable to the company for the year under review.

AS - 23 Discontinuing Operations:

This is not applicable to the Company.

AS - 24 Interim Financial Reporting:

Quarterly financial results are published in accordance with the requirement of listing agreement with Stock Exchanges. The recognition and measurement principle as laid down in the standard have been followed in the preparation of these results.

AS - 25 Intangible Assets

The company has no intangible assets. Hence this is not applicable.

AS - 26 Financial Reporting of Interest in Joint Ventures

This standard is not applicable to the Company as the company does not have any joint venture.

AS - 27 Impairment of Assets

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on intemal/extemal factors. Hence there is no impairment loss on the assets of the company requiring provisioning for the year under review.

AS - 28 Provisions, Contingent Liabilities and Contingent Assets Contingent Liabilities are disclosed in Note No.2.

AS - 29 Financial Instruments: Recognition and Measurement This standard is not applicable to the company for the year under review.

AS - 30 Financial Instruments: Presentation

This standard is not applicable to the company for the year under review.

AS - 31 Financial Instruments: Disclosures

This standard is not applicable to the company for the year under review.


Mar 31, 2014

Not Available


Mar 31, 2013

AS-1 Disclosure of Accounting Policies

The financial statements have been prepared on the basis of going concern, under the historic cost convention, to comply in all the material aspects with applicable accounting principles in India, the accounting standards notified under Section 211 (3C) of the Companies Act, 1956 and the relevant provision of the said Act.

AS-2 Valuation of Inventories

a) Raw materials, components, Stores and spares are valued at cost determined on weighted average basis. Work in process includes material cost and applicable direct overheads. Finished goods are valued at the aggregate of material cost and applicable direct and indirect overheads or market value whichever is lower.

b) The Excise Duty is exempt on finished grey goods.

c) There is no goods lying in customs bonded warehouses and hence the provision of duty does not airse.

AS-3 Cash Flow Statements

Cash flow statement has been prepared under "Indirect Method".

AS-4 Contingencies and Events occurring after the Balance Sheet Date

There are no contingencies and events after the Balance Sheet date that affect the financial position of the company. Contested liabilities are disclosed by way of a note.

AS-5 Net Profit or Loss for the Year, Prior Period Items and Changes in Accounting Policies:

This is not applicable as there is no change in accounting policies.

AS-6 Depreciation Accounting

Depreciation has been provided in the accounts on the following basis, at the rates prescribed in Schedule XIV to the Companies Act, 1956:

a) Plant and Machinery other than Windmill:

i) On additions till 31" December 1977. Under the written down value method.

ii) On additions from 1st January 1978.

Under straight line method at the rates specified in Clause (II) (i) (a).

b) On all other Assets:

Under the written down value method.

c) Windmill:

Under strainght line method at the rates specified in Clause (II) (i) (b).

d) In respect of additions during the year, full depreciation has been provided irrespective of the period of use. Similarly no depreciation to be provided on assets disposed off during the year.

AS-7 Accounting for Construction Contracts

The Company is not engaged in any construction business covered by this Standard.

AS-8 Accounting for Research and Development

This Standard stands withdrawn from the date of Accounting Standard 26- Intangible Assets becoming mandatory.

AS-9 Revenue Recognition

a) Income and expenditure are accounted on a going concern basis.

b) Sales are recognized at the time of despatches of the goods to the customers and recorded net of sales returns and includes export benefits.

c) Interest Income is recognized on a time proportion basis taking into account the amount of outstanding and rate applicable.

d) Dividend Income: The company has derived income during the current year out of its investment and is recognized when the Company''s right to receive dividend is established.

e) Lease rentals in respect of assets given on "lease" are taken to Profit & Loss Account under the head of Non-Operative Income on the basis of the terms and conditions specified in the lease agreement.

AS-10 Accounting for Fixed Assets

Fixed Assets are stated at cost of acquisition which includes expenditure incurred upto the date the asset is put to use, less accumulated depreciation. Land is stated at cost or revaluation. Building is stated at cost or revaluation less depreciation. Plant and Machinery etc., are stated at cost less depreciation.

AS-11 Accounting for effects in foreign exchange rates

a) Purchase of imported components and spare parts are accounted based on retirement memos from banks.

b) In respect of exports of cloth made on or before 31.03.2013, the amount due have been accounted at the rate at which the export bills were tendered to the Bank for Collection / Discounting.

c) There is no year end foreign currency denominated liabilities and receivables.

d) Derivative Transactions:

The Company uses forward exchange contracts to hedge its exposure in foreign currency.

As on 31st March, 2013 there is no Foreign Exchange Contracts outstanding exposure.

The amendment introduced to ASH by Government of India on 31st March 2009 allowing the loss/profit on restatement of External Commercial Borrowings made for acquisition of Capital assets to be deducted from or added to cost of capital asset is not applicable to the company as it has no External Commercial Borrowings.

No Mark to Market component arises as the Company do not have any outstanding contract as at the end of the year.

AS-12 Accounting for Government Grants

The Company has not received any Government grants during the current accounting year.

AS-13 Accounting for Investments

Investments are stated at cost. Provision for diminution in the carrying cost of investments is made if such diminution is other than temporary in nature.

AS-14 Accounting for Amalgamation

This standard is not applicable to the company for the year under review.

AS-15 Accounting for Retirement Benefits

Gratuity with respect to defined benefit schemes are accrued based on actuarial valuations, carried out by an independent actuary as at the balance sheet date and being paid to Gratuity Fund.

Providend Fund, Employees'' State Insurance Scheme and defined plans and charged to the Profit and Loss Account when incurred.

AS-16 Borrowing Cost

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalized. During the year under review there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalized.

AS-17 Segment Reporting

The Company operates in only one business segment viz., Textiles.

AS-18 Related Party Disclosure

Disclosure is made as per the requirements of the standard and as per the clarifications issued by the Institute of Chartered Accountants of India.

AS-19 Leases

This standard is not applicable as the Company does not have any finance lease agreement in force.

AS-20 Earning per Share

The disclosure is made in the Profit and Loss account as per requirement.

AS-21 Consolidated Financial Statements

There is no subsidiary company and hence this is not applicable

AS-22 Accounting for Taxes on Income

Provision is made for income tax liability estimated to arise on the results for the year at the current rate of tax in accordance with the Income Tax Act, 1961.

Deferred tax resulting from timing differences between book and tax profits is accounted for under liability method, at the current rate of tax.

Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation are recognized only when there is virtual certainty supported by convincing evidence that such assets will be realized. Deferred tax assets arising on other temporary timing differences are recognized only if there is a reasonable certainty of realization.

AS-23 Ace ounting for Investments in Consolidated Financial Statements

This standard is not applicable to the company for the year under review.

AS-24 Discontinuing Operations

This is not applicable to the Company.

AS-25 Interim Financial K-.rtin,.

Quarterly financial results are published in accordance with the requirement of listing agreement with Stock Exchanges. The recognition and measurement principle as laid down in the standard have been followed in the preparation of these results.

AS-26 Intangible Assets

The Company has no intangible assets. Hence this is not applicable.

AS-27 Financial Reporting of Interest in Joint Ventures

This standard is not applicable to the Company as the company does not have any joint venture.

AS-28 Impairment of Assets

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is not less than the recoverable amount of such assets. Hence there is no impairment loss on the assets of the Company.

AS-29 Provisions, Contingent Liablilities and Contingent Assets Contingent Liabilities are disclosed in Note No.2.

AS-30 Financial Instruments: Recognition and Measurement

This standard is not applicable to the company for the year under review.

AS-31 Financial Instruments: Presentation

This standard is not applicable to the Company for the year under review.

AS-32 Financial Instruments : Disclosures

This standard is not applicable to the company for the year under review.


Mar 31, 2012

Basis of preparation of Financial Statements:

As-1 Disclosure of Accounting Policies .

The financial statements have been prepared on the basis. of going concern, under the historic cost convention, to comply in all the material aspect with applicable accounting principles in India. the accounting standard notified under Section 211 (3C) of the Companies Act, 1956 and the relevant provision of the said Act.

AS-2 Valuation of Inventories

a) Raw materials, components, stores and spares are valued at cost determined on weighted average basis Work in process includes material cost and applicable direct overhead Finished goods are valued at the aggregate of material cost and applicable direct and indirect overheads of market value whichever is lower

b) The Excise Duty is exempt on finished grey goods However the Excise Duty on Made UPs lying within the factory is included in the valuation of inventories.

c) There is no goods lying in customs bonded warehouses and hence the provision of duty does not arise

AS-3 Cash Flow Statements

Cash flow statement has been prepared under "Indirect Method"

AS-4 Contingencies and F, vents occurring after the Balance sheet Date

There are no contingencies and events after the Balance Sheet date that affect the Financial position of the company. Contested liabilities are disclosed by way of a note

AS-5 Net Profit or Loss for the year prior period items and Changes In Accounting Policies.

This is not applicable as there is no change in accounting policies.

AS-6 Depreciation Accounting

Depreciation has been provided in the accounts on the following basis, at the rules prescribed in Schedule to the Companies Act 1956:

a) Plant and Machinery other than Windmill

i) On additions till 31st December 1977 Under the written down value method

ii) On additions from 31st January 1978

Under straight line method at the rates specified in Clause (IT) (i) (a).

iii) On all other Assets:

Under the written down value method.

c) Windmill

Under straight line method at the rates specified in Clause (II) (i) (b)

d) In respect of addition during the year, full depreciation has been provided irrespective of the period of use Similarly no depreciation to be provided on assets disposed off during the year.

AS-7 Accounting for Construction Contracts

The Company is not engaged in any construction business covered by this Standard.

AS-8 Accounting for Research and Development

This Standard stands withdrawn from the date of Accounting Standard 26- Intangible Assets becoming mandatory.

AS-9 Revenue Recognition

a) Income and expenditure are accounted on a going concern basis

b) Sales are recognized on a time of dispatches of the goods to the customers and recorded net of sales returns and includes export benefits

c) Interest Income is recognized on a time proportion basis taking into account the amount of outstanding and rate applicable.

d) Dividend Income: The company has derived income during the current year out of its investment and is recognized when the Company's right to receive dividend is established

e) Lease rentals in respect of assets given on "lease" are taken to Profit & Loss Account under the head of Non- Operative Income on the basis of the terms and conditions specified in the lease agreement

AS-10 Accounting for Fixed Assets

Fixed Assets are stated at cost of acquisition Which includes expenditure incurred up to the date the asset is put to use, less accumulated depreciation. Laud is stated at cost or revaluation Building is stated at cost or revaluation less depreciation. Plant and Machinery etc.. are stated at cost less depreciation

AS-11 Accounting for effects in foreign exchange rates

a) Purchase of imported components and spare parts are accounted based on retirement memos from banks.

b) In respect of exports of cloth made on or before 31.03,2012, the amount due have been accounted at the rate at which the export bills were tendered to the Bank for Collection / Discounting

C) There is no yearend foreign currency denominated liabilities and receivables.

d) Derivative Transactions:

The Company uses forward exchange contracts to hedge its exposure in foreign currency

As on 31st March, 2012 there is no Foreign exchange Contracts outstanding exposure.

The amendment introduced to AS 11 by Government of India on 31st March 2009 allowing the loss/profit on restatement of External Commercial Borrowings made for acquisition of Capital asset', to be deducted from or added in cost of capital asset is not applicable in the company as it has no External Commercial Sorrowing

AS-12 Accounting for Government Grants

The Company has not received any Government grants during the current accounting year

AS-13 Accounting for Investments

Investments are stated at cost Provision for diminution in the carrying cost of investments is made if such diminution is other than temporary in nature.

AS- 14 Accounting for Amalgamation

This standard is not applicable to the company for the year under review.

AS-15 Accounting for Retirement Benefits

Gratuity with respect to defined benefit schemes. Are accrued based on actuarial valuations carried out by an independent actuary as at the balance sheet date and being paid to Gratuity Fund.

Provided Fund, Employees' State Insurance Scheme and defined contribution plans are charged to the Profit and Loss Account when incurred

AS-16 Borrowing Cost

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalized. During the year under review there was no borrowing attributable to qualifying assets and hence no borrowing cost was civilized.

AS-17 Segment Reporting

The Company operate in only one business segment viz., Textiles.

AS-18 Related party Disclosure

Disclosure is made as per the- requirements of the standard and as per the clarifications issued by the restitute of Chartered Accountants of India.

AS-19 Lenses

This standard is not applicable as The Company does not have any finance lease agreement is force.

AS-20 Earning per Share

The disclosure is made in the Profit and Loss account as per requirement

AS-21 Consolidated Financial statements

There is no subsidiary company and hence this is not applicable

AS-22 Accounting for Taxes in Income

Provision is made for income tax liability estimated to arise on the results for the year at the current rate of tax in accordance with the Income Tax Act. 1961

Deferred tax resulting From timing differences between book and tax profits is accounted for under liability method. at the current rate of tax.

Deferred tax assets arising on account of brought Forward losses and unabsorbed depreciation are recognized only when there is virtual certainty supported by convincing evidence that such assets will be realized Deferred tax assets arising on other temporary timing differences are recognized only if there is a reasonable certainty of realization

AS-23 Accounting for Investments in Associate in Consolidated Financial Statements

This standard is not applicable to the company for the year under review.

AS-24 Discontinuing Operations

This is not applicable to the Company

AS-25 Interim Financial Reporting

Quarterly financial results are published in accordance with the requirement of agreement with Stock Exchanges. The recognition and measurement principle as laid down In the standard have been followed In the preparation of these results.

AS-26 Intangible Assets

The company has no intangible assets Hence this is not applicable

AS-27 Financial Reporting of Interest in Joint Ventures

This standard is not applicable to the Company as the company does not have any joint venture

AS-28 Impairment of Assets

As on The Balance Sheet date the carrying amounts of the assets not of accumulated depreciation is not less than the recoverable amount of such assets. Hence there is no impairment loss on the asset of the Company

AS-29 Provisions Contingent Liabilities and Contingent Assets

Contingent Liabilities are disclosed in Note No.2

This standard is not applicable to the company for the year under review

AS-30 Financial Instruments: presentation

This standard is not applicable to the company for the year under review

AS-31 Financial Instruments: Recognition and Measurement

The standard is not applicable to the company for the year under review

AS-32 Financial Instruments: Disclosures

This standard is not applicable to the company for the year under review


Mar 31, 2011

A) Basis of preparation of Financial Statements:

The financial statements have been prepared on the basis of going concern, under the historic cost convention, to comply in all the material aspects with applicable accounting principles in India, the accounting standards notified under section 211 (3C) of the Companies Act, 1956 and the relevant provision of the said Act.

B) FIXED ASSETS :

Land is stated at cost or. revaluation. Building is stated at cost or revaluation less depreciation. Depreciation has been provided in the accounts on the following basis, at the rates prescribed in Schedule XIV to the Companies Act, 1956.

(a) Plant and Machinery other than Windmill :

i) On additions till 31st December, 1977 : Under the Written Down Value method.

ii) On additions from 1st January, 1978 : Under straight line method at the rates specified in Clause (II) (i) (a).

(b) On all other Assets : Under the Written Down Value method.

(c) Windmill : Under straight line method at the rates specified in Clause (II) (i) (b).

(d) In respect of additions during the year, full depreciation has been provided irrespective of the period of use. Similarly no depreciation to be provided on assets disposed off during the year.

C) REVENUE RECOGNITION :

i) Income and expenditure are accounted on a going concern basis

ii) Sales are recognized at the time of despatches of the goods to the customers and recorded net of sales return and includes export benefits.

iii) Interest income is recognized on a time proportion basis taking into account the amount of outstanding and rate applicable.

iv) Dividend income : The Company has derived income during the current year out of its investment and is recognised when the Companys right to receive dividend is established.

v) Lease rentals in respect of assets given on "operating lease" are taken to Profit &¦ Loss Account under the head of Miscellaneous income on the basis of the terms and conditions specified in the lease agreement.

D) INVENTORIES :

Inventories are valued at lower of cost and net realisable value. Cost is determined on weighted average basis. Cost of work-in-progress and the finished goods includes labour and manufacturing overheads, where applicable.

E) INVESTMENTS :

Investments are stated at cost. Provision for diminution in the carrying cost of investments is made if such diminution is other than temporary in nature.

F) RETIREMENT BENEFITS :

Gratuity with respect to defined benefit schemes are accrued based on actuarial valuations, carried out by an independent actuary as at the balance sheet date and paid to Gratuity Fund.

Provident Fund, Employees State Insurance Scheme and defined contribution plans are charged to the Profit and Loss Account when incurred.

G) TAXATION :

Provision is made for income tax liability estimated to arise on the results for the year at the current rate of tax in accordance with the Income Tax Act, 1961.

Defferred tax resulting from timing differences between book and tax profits is accounted for under liability method, at the current rate of tax.

Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation are recognised only when there is virtual certainty supported by convincing evidence that such assets will be realised. Deferred tax assets arising on other temporary timing differences are recognised only if there is a reasonable certainty of realisation.

H) BORROWING COSTS :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised upto the period such assets are ready for its intended use. All other borrowing costs are charged to the Profit and Loss Account.

I) FOREIGN CURRENCIES:

Transactions involving foreign exchange are dealt with as follows:-

(a) In respect of exports of cloth made on or before 31.3.2011, the amount due have been accounted at the rate at which the export bills were tendered to the Bank for Collection/Discounting.

(b) Foreign Currency Current Accounts with Bank are restated at the rate ruling at the year end and the exchange difference is dealt with in the Profit & Loss account (Balance as on 31.03.2011 - US$ 16700.78)

(c) In case of foreign exchange forward contracts, the difference between the forward rate and exchange rate at the date of transaction is recognised as income / expense over the life of the contract.

J) CURRENT LIABILITIES :

a) Total outstanding dues of Micro Enterprises and Small Enterprises: Rs. Nil

b) Total outstanding dues of Creditors others than Micro Enterprises and Small Enterprises: Rs.331.74 Lakhs

c) Investor Education and Protection Fund shall be credited by the following amounts as and when they become due :

Unclaimed Dividend Rs. 39.41 Lakhs

K) The Company operates in only one business segment viz. "TEXTILES".


Mar 31, 2010

A) Basis of preparation of Financial Statements:

The financial statements have been prepared on the basis of going concern, under the historic cost convention, to comply in all the material aspects with applicable accounting principles in India, the accounting standards notified under section 211 (3C) of the Companies Act, 1956 and the relevant provision of the said act.

B) FIXED ASSETS :

Land is stated at cost or revaluation. Building is stated at cost or revaluation less depreciation. Depreciation has been provided in the accounts on the following basis, at the rates prescribed in Schedule XIV to the Companies Act,1956.

(d) In respect of additions during the year, full depreciation has been provided irrespective of the period of use. Similarly no depreciation to be provided on assets disposed off during the year.

C)SALES:

Sales comprise sale of goods net of excise duty of Rs. "Nil1 and includes export benefits.

D) INVENTORIES :

Inventories are valued at lower of cost and net realisable value. Cost is determined on weighted average basis. Cost of work-in-progress and the finished goods includes labour and manufacturing overheads, where applicable.

E) INVESTMENTS :

Investments are stated at cost.

No provision is made for diminution in value of Investments, as the Investments are considered as long term.

F) RETIREMENT BENEFITS :

Gratuity with respect to defined benefit schemes are accrued based on actuarial valuations, carried out by an independent actuary as at the balance sheet date and paid to Gratuity Fund.

Provident Fund, Employees State Insurance Scheme and defined contribution plans are charged to the Profit and Loss Account when incurred.

G) TAXATION :

Provision is made for income tax liability estimated to arise on the results for the year at the current rate of tax in accordance with the Income Tax Act, 1961.

Defferred tax resulting from timing differences between book and tax profits is accounted for under liability method, at the current rate of tax.

Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation are recognised only when there is virtual certainty supported by convincing evidence that such assets will be realised. Deferred tax assets arising on other temporary timing differences are recognised only if there is a reasonable certainty of realisation.

H) BORROWING COSTS :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised upto the period such assets are ready for its intended use. All other borrowing costs are charged to the Profit and Loss Account.

I) CURRENT LIABILITIES :

a) No amount is due to any small scale industrial undertaking.

b) Total outstanding dues to small scale industrial undertaking : Rs. Nil

c) Investor Education and Protection Fund shall be credited by the following amounts as and when they become due :

Unclaimed Dividend Rs. 33.34 Lakhs

 
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