Sep 30, 2014
A) Basis of Accounting
These financial statements have been prepared on accrual basis and
under historical cost convention and in compliance, in all material
aspects, with the generally accepted accounting principals in India.
Consequent to the clarification issued by the Ministry of Corporate
Affairs, Government of India vide General Circular 08/2014 dated April
04, 2014, these financial statements have been prepared in accordance
with the relevant provisions/schedules/rules of the Companies Act,1956,
which inter-alia include the applicable Accounting Standards notified
under Section 211 (SQ.The accounting policies have been consistently
applied by the Company and are consistent with those used in the
previous year.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Schedule VI to the Companies Act, 1956. Based
on the nature of products and the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current - non current classification of
assets and liabilities.
b) Fixed Assets and Depreciation
Fixed Assets : Fixed Assets are stated at cost / book value less
depreciation and net of cenvat and subsidy
except on freehold land. Depreciation : (i) Depreciation is being
provided on Straight Line Method in terms of Section 205(2) (b) of the
Companies Act, 1956 at the rates and in the manner specified in
Schedule XIV to the said Act. (ii) In respect of assets acquired/sold
during the year, depreciation has been provided on pro-rata basis.
c) Investments
All long term investments are stated at cost unless there is a
permanent fall in the value of Investments. All current investment are
stated at cost or realisable value which ever is lower.
d) Inventories
(i) Stores and Spares are valued at cost. Cost is arrived at on
F.I.F.O. basis.
(ii) Raw Materials are valued at cost or net realisable value whichever
is lower. Cost is arrived at on the basis of cost of respective lots
remaining in stock and related expenses. (Hi) Materials in Process is
valued at cost (*) or net realisable value whichever is lower. (iv)
Yarn and Knitted Fabrics are valued at cost (*) or net realisable value
whichever is lower. *(v) Cost of Valuation of materials in process and
yarn has been arrived at ''by adding direct cost & relevant overhead
cost'' in accordance with the revised Accounting Standard (AS-2)
"Valuation of Inventories", issued by the Institute of Chartered
Accountants of India.
(vi) Waste is valued at estimated realisable value.
(vii) Materials in transit are valued at cost to date of the Balance
Sheet.
e) Exchange Fluctuations
Monetary Current Assets and Liabilities in foreign currency outstanding
at the close of the financial year are valued at the appropriate
exchange rates at the close of the year. The loss or gain due to
fluctuation of exchange rates is charged to Statement of Profit & Loss.
f) Revenue Recognition
(i) Sale of goods is recognised at the point of transfer of significant
risk and rewards to the customers. (ii) Benefit on account of
entitlement to import goods free of duty under the "Duty Entitlement
Pass Book- under the "Duty Exemption Scheme" and "Duty Draw Back
Scheme" are accounted in the year of export.
g) Government Grants and Subsidy
Revenue Grants and Subsidy received during the year have been shown by
way of deduction from related expenses.
h) Employee Benefits
(i) Defined Contribution Plan : The Company has defined contribution
plans in the form of Provident Fund, Pension Scheme, EDLI, Super
Annuation Fund and Labour Welfare Fund and the contributions are
charged to the Statement of Profit and Loss of the year when the
contribution to the respective funds are due. There are no other
contributions other than the contributions payable to the respective
funds.
(ii) Defined Benefit Plan :
Funded Plan : The Company has defined benefit plans in the form of
Gratuity and Leave Encashment the liability for which is determined on
the basis of actuarial valuation at the end of the year. Gains and
losses arising out of actuarial valuation are recognised immediately to
the Statement of Profit and Loss as income or expense.
Unfunded Plan : The Company has unfunded Defined Benefit Plans in the
form of Compensated Absences, as per Company Policy.
(iii) Other Defined Benefits : Provision for other defined benefit for
long term leave encashment is made based on an independent actuarial
valuation on projetced unit credit method at the end of each financial
year. Actuarial gain and losses are recognised immediately in the
Statement of Profit and Loss as income or expenses. Company recognised
the undiscounted amount of short term employee benefits during the
accounting period based on service rendered by an employee.
i) Borrowing Cost
Borrowing costs in relation to acquisition and construction of assets
are capitalised as part of the cost of such assets up to the date when
such assets are ready for intended use. ther borrowing costs are
charged as an expense in the year in which these are incurred.
j) Taxes on Income
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred Tax is recognised, subject to the
consideration of prudence in respect of deferred tax assets, on timing
differences,being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods.
k) Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal/external
factors. An impairment loss will be recognised wherever the carrying
amount of an asset exceeds its recoverable amount. The recoverable
amount is greater of the assets net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to the present value by using weighted average cost of capital.
Sep 30, 2013
1. SIGNIFICANT ACCOUNTING POLICIES
a) Basis of Accounting
The financial statements have been prepared to comply in all material
respects with the Accounting Standards notified by Companies
(Accounting Standards) Rules, 2006, (as amended) and the relevant
provisions of the Companies Act, 1956. The financial statements have
been prepared under the historical cost convention on an accrual basis.
The accounting policies have been consistently applied by the Company
and are consistent with those used in the previous year.
All assets and liabilities have been classified as current or non
current as per the Company''s normal operating cycle and other criteria
set out in the Schedule VI to the Companies Act, 1956. Based on the
nature of products and the time between the acquisition of assets for
processing and their realization in cash and cash equivalents, the
Company has ascertained its operating cycle as 12 months for the
purpose of current non current classification of assets and
liabilities.
b) Fixed Assets and Depreciation
Fixed Assets : Fixed Assets are stated at cost / book value less
depreciation and net of cenvat and subsidy except on freehold land.
Depreciation : (i) Depreciation is being provided on Straight Line
Method in terms of Section 205(2) (b) of the Companies Act, 1956 at the
rates and in the manner specified in Schedule XIV to the said Act.
(ii) In respect of assets acquired/sold during the year, depreciation
has been provided on pro rata basis.
c) Investments
All long term investments are stated at cost unless there is a
permanent fall in the value of Investments. All current investment are
stated at cost or realisable value which ever is lower.
SIGNIFICANT ACCOUNTING POLICIES AND OTHER NOTES TO ACCOUNT (Contd.)
d) Inventories
(i) Stores and Spares are valued at cost. Cost is arrived at on
F.I.F.O. basis.
(ii) Raw Materials are valued at cost or net realisable value whichever
is lower. Cost is arrived at on the
basis of cost of respective lots remaining in stock and related
expenses. (Hi) Materials in Process is valued at cost (*) or net
realisable value whichever is lower. (iv) Yarn and Knitted Fabrics are
valued at cost(*) or net realisable value whichever is lower. *(v)
Cost of Valuation of materials in process and yarn has been arrived at
''by adding direct cost & relevant overhead cost'' in accordance with the
revised Accounting Standard(AS 2) "Valuation of Inventories", issued by
the Institute of Chartered Accountants of India. (vi) Waste is valued
at estimated realisable value. (vii) Materials in transit are valued
at cost to date of the Balance Sheet.
e) Exchange Fluctuations
Monetary Current Assets and Liabilities in foreign currency outstanding
at the close of the financial year are valued at the appropriate
exchange rates at the close of the year. The loss or gain due to
fluctuation of exchange rates is charged to Statement of Profit & Loss.
f) Revenue Recognition
(i) Sale of goods is recognised at the point of transfer of significant
risk and rewards to the customers. (ii) Benefit on account of
entitlement to import goods free of duty under the "Duty Entitlement
Pass Book under the "Duty Exemption Scheme" and "Duty Draw Back Scheme"
are accounted in the year of export.
g) Government Grants and Subsidy
Revenue Grants and Subsidy received during the year have been shown by
way of deduction from related expenses.
h) Employee Benefits
(i) Defined Contribution Plan : The Company has defined contribution
plans in the form of Provident Fund, Pension Scheme, EDLI, Super
Annuation Fund and Labour Welfare Fund and the contributions are
charged to the Statement of Profit and Loss of the year when the
contribution to the respective funds are due. There are no other
contributions other than the contributions payable to the respective
funds.
(ii) Defined Benefit Plan :
Funded Plan: The Company has defined benefit plans in the form of
Gratuity and Leave Encashment the liability for which is determined on
the basis of actuarial valuation at the end of the year. Gains and
losses arising out of actuarial valuation are recognised immediately to
the Statement of Profit and Loss as income or expense.
Unfunded Plan : The Company has unfunded Defined Benefit Plans in the
form of Compensated Absences, as per Company Policy.
(iii) Other Defined Benefits : Provision for other defined benefit for
long term leave encashment is made based on an independent actuarial
valuation on projetced unit credit method at the end of each financial
year. Actuarial gain and losses are recognised immediately in the
Statement of Profit and Loss as income or expenses. Company recognised
the undiscounted amount of short term employee benefits during the
accounting period based on service rendered by an employee. i)
Borrowing Cost
Borrowing costs in relation to acquisition and construction of assets
are capitalised as part of the cost of such assets up to the date when
such assets are ready for intended use. Other borrowing costs are
charged as an expense in the year in which these are incurred.
j) Taxes on Income
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred Tax is recognised, subject to the
consideration of prudence in respect of deferred tax assets, on timing
differences,being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods.
SIGNIFICANT ACCOUNTING POLICIES AND OTHER NOTES TO ACCOUNT (Contd.)
k) Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal/external
factors. An impairment loss will be recognised wherever the carrying
amount of an asset exceeds its recoverable amount. The recoverable
amount is greater of the assets net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to the present value by using weighted average cost of capital.
Sep 30, 2012
A) Basis of Accounting
The financial statements have been prepared to comply in all material
respects with the Accounting Standards notified by Companies
(Accounting Standards) Rules, 2006, (as amended) and the relevant
provisions of the Companies Act, 1956. The financial statements have
been prepared under the historical cost convention on an accrual basis.
The accounting policies have been consistently applied by the Company
and are consistent with those used in the previous year.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Schedule VI to the Companies Act, 1956. Based
on the nature of products and the time between the acquition of assets
for processing and their realization in cash and cash equivalents, the
Company has ascertained its operating cycle as 12 months for the
purpose of current - non current classification of assets and
liabilities.
b) Fixed Assets and Depreciation
Fixed Assets : Fixed Assets are stated at cost / book value less
depreciation and net of cenvat and subsidy except on freehold land.
Depreciation : (i) Depreciation is being provided on Straight Line
Method in terms of Section 205(2) (b) of the Companies Act, 1956 at the
rates and in the manner specified in Schedule XIV to the said Act.
(ii) In respect of assets acquired/sold during the year, depreciation
has been provided on pro-rata basis.
c) Investments
All long term investments and are stated at cost unless there is a
permanent fall in the value of Investments. All current investment are
stated at cost or realisable value which ever is lower.
d) Inventories
(i) Stores and Spares are valued at cost. Cost is arrived at on
F.I.F.O. basis.
(ii) Raw Materials are valued at cost or net realisable value whichever
is lower. Cost is arrived at on the basis of cost of respective lots
remaining in stock and related expenses.
(iii) Materials in Process is valued at cost (*) or net realisable
value whichever is lower.
(iv) Yarn and Knitted Fabrics are valued at cost(*) or net realisable
value whichever is lower.
*(v) Cost of Valuation of materials in process and yarn has been
arrived at Âby adding direct cost & relevant overhead cost'' in
accordance with the revised Accounting Standard(AS-2) "Valuation of
Inventories".
(vi) Waste is valued at estimated realisable value.
(vii) Materials in transit are valued at cost to date of the Balance
Sheet.
e) Exchange Fluctuations
Monetary Current Assets and Liabilities in foreign currency outstanding
at the close of the financial year are valued at the appropriate
exchange rates at the close of the year. The loss or gain due to
fluctuation of exchange rates is charged to Statement of Profit & Loss.
f) Revenue Recognition
(i) Sale of goods is recognised at the point of transfer of significant
risk and rewards to the customers.
(ii) Benefit on account of entitlement to import goods free of duty
under the "Duty Entitlement Pass Book under the Duty Exemption Scheme"
and "Duty Draw Back Scheme" are accounted in the year of export.
g) Government Grants and Subsidy
Revenue Grants and Subsidy received during the year have been shown by
way of deduction from related expenses.
h) Employee Benefits
(i) Defined Contribution Plan : The Company has defined contribution
plans in the form of Provident Fund, Pension Scheme, EDLI, Super
Annuation Fund and LabourWelfare Fund and the contributions are charged
to the Statement of Profit and Loss of the year when the contribution
to the respective funds are due. There are no other contributions other
than the contributions payable to the respective funds.
(ii) Defined Benefit Plan :
Funded Plan: The Company has defined benefit plans in the form of
Gratuity, the liability for which is determined on the basis of
actuarial valuation at the end of the year. Gains and losses arising
out of actuarial valuation are recognised immediately to the Statement
of Profit and Loss as income or expense. Unfunded Plan : The Company
has unfunded Defined Benefit Plans in the form of Compensated Absences,
as per Company Policy.
(iii) Other Defined Benefits : Provision for other defined benefit for
long term leave encashment is made based on an independent actuarial
valuation on projetced unit credit method at the end of each financial
year. Actuarial gain and losses are recognised immediately in the
Statement of Profit and Loss Account as income or expenses. Company
recognised the undiscounted amount of short term employee benefits
during the accounting period based on service rendered by an employee.
i) Borrowing Cost
Borrowing costs in relation to acquisition and construction of assets
are capitalised as part of the cost of such assets up to the date when
such assets are ready for intended use. Other borrowing costs are
charged as an expense in the year in which these are incurred.
j) Taxes on Income
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred Tax is recognised, subject to the
consideration of prudence in respect of deferred tax assets, on timing
differences,being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods.
k) Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal/external
factors. An Impairment loss will be recognised wherever the carrying
amount of an asset exceeds its recoverable amount. The recoverable
amount is greater of the assets net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to the present value by using weighted average cost of capital.
Mar 31, 2011
1) Basis of Accounting
(a) The Company generally follows mercantile system of accounting
unless otherwise stated and recognises income and expenditure on
accrual basis except those with significant uncertainties.
(b) The accounts have been prepared in accordance with historical cost
convention method.
2) Fixed Assets and Depreciation
(a) Fixed Assets : Fixed Assets are stated at cost / book value less
depreciation and net of cenvat and subsidy except on freehold land.
(b) Depreciation: (i) Depreciation is being provided on Straight Line
Method in terms of Section 205(2) (b) of the Companies Act, 1956 at the
rates and in the manner specified in Schedule XIV to the said Act.
(ii) In respect of assets acquired/sold during the year, depreciation
has been provided on pro-rata basis.
3) Investments All Investments are held as long term investments and
are stated at cost unless there is a permanent fall in the value of
Investments.
4) Inventories
(a) Stores and spares are valued at cost. Cost is arrived at on
F.I.F.O. basis.
(b) Raw materials are valued at cost or net realisable value whichever
is lower. Cost is arrived at on the basis of cost of respective lots
remaining in stock and related expenses.
(c) Materials in Process is valued at (*) cost or net realisable value
whichever is lower.
(d) Yarn and Knitted Fabrics are valued at cost(*) or net realisable
value whichever is lower.
*(e) Cost of Valuation of materials in process and yarn has been
arrived at by adding direct cost & relevant overhead cost in
accordance with the revised Accounting Standard(AS-2) "Valuation of
Inventories" issued by the Instititue of Chartered Accountants of
India.
(f) Waste is valued at estimated realisable value.
(g) Materials in transit are valued at cost to date of the Balance
Sheet.
5) Exchange Fluctuations
Monetary Current Assets and Liabilities in foreign currency outstanding
at the close of the financial year are valued at the appropriate
exchange rates at the close of the year. The loss or gain due to
fluctuation of exchange rates is charged to Profit & Loss Account.
6) Sales
(a) Sale of goods is recognised at the point of dispatch of finished
goods to the customers.
(b) Export sales are accounted on the basis of dates of Bill of Lading.
(c) Benefit on account of entitlement to import goods free of duty
under the "Duty Entitlement Pass Book under the Duty Exemption Scheme"
and Duty Draw Back Scheme are accounted in the year of export.
(d) Benefit on account of entitlement to import goods free of duty
under the "Target Plus Scheme" is being accounted in the year in which
license for such benefit is received.
7) Government Grants and Subsidy
Revenue Grants and Subsidy received during the year have been shown by
way of deduction from related expenses.
8) Employee Benefits
(i) Defined Contribution Plan : The Company has defined contribution
plans in the form of Provident Fund, Pension Scheme, EDLI, Super
Annuation Fund and Labour Welfare Fund and the contributions are
charged to the Profit & Loss Account of the year when the contribution
to the respective funds are due. There are no other contributions
other than the contributions payable to the respective funds.
(ii)Defined Benefit Plan : (a) Fund Plan: The Company has defined
benefit plans in the form of Gratuity and Leave Encashment, the
liability for which is determined on the basis of acturial valuation at
the end of the year. Gains and losses arising out of acturial valuation
are recognised immediately to the Profit & Loss Account as income or
expense. (b) Unfunded Plan : The Company has unfunded Defined Benefit
Plans in the form of Compensated Absences, as per Company Policy.
(iii) Other Defined Benefits : Provision for other defined benefit for
long term leave encashment is made based on an independent actuarial
valuation on projetced unit credit method at the end of each financial
year. Acturial gain & losses are recognised immediately in the
Statement of Profit & Loss Account as income or expenses. Company
recognised the undiscounted amount of short term employee benefits
during the accounting period based on service rendered by an employee.
9) Borrowing Cost Borrowing costs in relation to acquisition and
construction of assets are capitalised as part of the cost of such
assets up to the date when such assets are ready for intended use.
Other borrowing costs are charged as an expense in the year in which
these are incurred.
10) Taxes on Income Current tax is determined as the amount of tax
payable in respect of taxable income for the year. Deferred Tax is
recognised, subject to the consideration of prudence in respect of
deferred tax assets, on timing differences, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
11) Impairment of Assets
The carrying amounts of assets are reveiwed at each Balance Sheet date
if there is any indication of impairment based on internal/external
factors. An Impairment loss will be recognised wherever the carrying
amount of an asset exceeds its recoverable amount. The recoverable
amount is greater of the assets net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to the present value by using weighted average cost of capital.
(12) The Company has made reference to the Board of Industrial &
Financial Reconstruction ("BIFR") pursuant to Section 23 of Sick
Industrial Companies (Special Provisions) Act,1985 on account of
erosion of Net Worth of the Company by more than fifty percent.
Mar 31, 2010
1) Basis of Accounting
(a) The Company generally follows mercantile system of accounting
unless otherwise stated and recognises income and expenditure on
accrual basis except those with significant uncertainties.
(b) The accounts have been prepared in accordance with historical cost
convention method.
2) Fixed Assets and Depreciation
(a) Fixed Assets
Fixed Assets are stated at cost / book value less depreciation and net
of cenvat and subsidy except on freehold land.
(b) Depreciation
(i) Depreciation is being provided on Straight Line Method in terms of
Section 205(2) (b) of the
Companies Act, 1956 at the rates and in the manner specified in
Schedule XIV to the said Act. (ii) In respect of assets acquired/sold
during the year, depreciation has been provided on pro-rata basis.
(c) In respect of revalued assets the difference between written down
value of the assets as on the date of revaluation and their replacement
value is transferred to Revaluation Reserve.
3) Investments
All Investments are held as long term investments and are stated at
cost unless there is a permanent fall in the value of Investments.
4) Inventories
(a) Stores and spares are valued at cost. Cost is arrived at on
F.I.F.O. basis.
(b) Raw materials are valued at cost or net realisable value whichever
is lower.Cost is arrived at on the basis of cost of respective lots
remaining in stock and related expenses.
(c) Materials in Process is valued at (*) cost or net realisable value
whichever is lower.
(d) Yarn and Knitted Fabrics are valued at cost(*) or net realisable
value whichever is lower.
*(e) Cost of Valuation of materials in process and yarn has been
arrived at "by adding direct cost & relevant overhead cost" in
accordance with the revised Accounting Standard(AS-2) "Valuation of
Inventories" issued by the Instititue of Chartered Accountants of
India.
(f) Finished Tea is valued at net realisable value.
(g) Waste is valued at estimated realisable value.
(h) Materials in transit are valued at cost to date of the Balance
Sheet.
5) Exchange Fluctuations
Monetary Current Assets and Liabilities in foreign currency outstanding
at the close of the financial year are valued at the appropriate
exchange rates at the close of the year. The loss or gain due to
fluctuation of exchange rates is charged to Profit & Loss Account.
6) Sales
(a) Sale of goods is recognised at the point of dispatch of finished
goods to the customers.
(b) Export sales are accounted on the basis of dates of Bill of Lading.
(c) Benefit on account of entitlement to import goods free of duty
under the "Duty Entitlement Pass Book under the Duty Exemption Scheme"
and Duty Draw Back Scheme are accounted in the year of export.
(d) Benefit on account of entitlement to import goods free of duty
under the "Target Plus Scheme" is being accounted in the year in which
license for such benefit is received.
7) Government Grants and Subsidy
Revenue Grants and Subsidy received during the year have been shown by
way of deduction from related expenses.
8) Employee Benefits
(i) Defined Contribution Plan :
The Company has defined contribution plans in the form of Provident
Fund, Pension Scheme, EDLI, Super Annuation Fund and Labour Welfare
Fund and the contributions are charged to the Profit & Loss Account of
the year when the contribution to the respective funds are due. There
are no other contributions other than the contributions payable to the
respective funds.
(ii) Defined Benefit Plan :
(a) Fund Plan : The Company has defined benefit plans in the form of
Gratuity and Leave Encashment, the liability for which is determined on
the basis of acturial valuation at the end of the year. Gains and
losses arising out of acturial valuation are recognised immediately to
the Profit & Loss account as income or expense.
(b) Unfunded Plan : The Company has unfunded Defined Benefit Plans in
the form of Compensated Absences, as per Company Policy.
(iii) Other Defined Benefits :
Provision for other defined benefit for long term leave encashment is
made based on an independent actuarial valuation on projetced unit
credit method at the end of each financial year. Acturial gain & losses
are recognised immediately in the Statement of Profit & Loss Account as
income or expenses. Company recognised the undiscounted amount of
short term employee benefits during the accounting period based on
service rendered by an employee.
9) Borrowing Cost
Borrowing costs in relation to acquisition and construction of assets
are capitalised as part of the cost of such assets up to the date when
such assets are ready for intended use. Other borrowing costs are
charged as an expense in the year in which these are incurred.
10) Taxes on Income
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred Tax is recognised, subject to the
consideration of prudence in respect of deferred tax assets, on timing
differences, being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods.
11) Impairment of Assets
The carrying amounts of assets are reveiwed at each Balance Sheet date
if there is any indication of impairment based on internal/external
factors. An Impairment loss will be recognised wherever the carrying
amount of an asset exceeds its recoverable amount. The recoverable
amount is greater of the assets net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to the present value by using weighted average cost of capital.
Mar 31, 2009
1) Basis of Accounting
a) The Company generally follows mercantile system of accounting unless
otherwise stated and recognises income and expenditure on accrual basis
except those with significant uncertainties.
b) The accounts have been prepared in accordance with historical cost
convention modified by revaluation , of certain fixed assets.-
2) Fixed Assets and Depreciation
a) Fixed Assets :
Fixed Assets other than those revalued are stated at cost/book value
less depreciation and net of Cenvat and subsidy, except on freehold
land and land & plantation. "
b) Depreciation:
i) Depreciation is being provided on Straight Line Method in terms of
Section.205(2) (b) of the Companies Act, 1956 at the rates specified
in Schedule XIV to the said Act ii) In respect of assets acquired/sold
during the year, depreciation has been provided on pro-rata basis.
c) In respect of revalued assets the difference between written down
value of,the.assets as on the date of revaluation and their replacement
value is transferred to Revaluation Reserve.
3) Investments
- All Investments are held as Long Term lnvestments and are stated at
cost unless there is a permanent fall in the value of Investments.
4) Inventories
a) Stores and spares are valued at cost. Cost is arrived at on F.I.F.O.
basis.
b) - Raw materials are valued at cost or net realisable value whichever
is lower. Cost is arrived at on the basis of cost of respective lots
remaining in stock and related expenses.
c) Materials in Process is valued at cost (*) or net realisable value
whichever is lower.
d) Yarn and Knitted Fabrics are valued at cost (*) or net realisable
value whichever is lower.
e) Cost of Valuation of materials in process and yarn Has been arrived
at "Full absorption basis" in accordance with revised Accounting
Standard (AS-2) "Valuation of Inventories" issued by the Institute of
Chartered Accountants of India.
f) Finished Tea is valued at net realisable value.
g) Waste is valued at estimated realisable value.
h) Materials in transit are valued at cost to date of the Balance
Sheet.
5) Exchange Fluctuations
Current Assets and Liabilities in foreign currency outstanding at the
close of the financial year are valued at the appropriate exchange
rates at the close of the year. The loss or gain due to fluctuation of
exchange rates is charged to Profit & Loss Account.
6) Sales
a) Sale of goods is recognised at the point of dispatch of finished
goods to the customers.
b) Export sales are accounted on the basis of dates of Bill of Lading.
c) Benefit on account of entitlement to import goods free of duty under
the "Duty Entitlement Pass Book under the Duty Exemption Scheme" is
being accounted in the year of export.
d) Benefit on account of entitlement to import goods free of duty under
the "Target Plus Scheme" is being accounted in the year in which
license for such benefit is received.
7) Government Grants and Subsidy
Revenue Grants and Subsidy received during the year have been shown by
way of deduction from related expenses.
8) Retirement Benefits
(i) Defined Contribution Plan :
The Company has defined contribution plans in the form of Provident
Fund, Pension Scheme, EDLI, Super Annuation Fund and Labour Welfare
Fund and the contributions are charged to Profit & Loss Account of the
year when the contribution to the respective funds are due. There are
no other contribution other than the contributions payable to the
respective funds.
(ii) Defined Benefit Plan :
(a) Fund Plan : The Company has defined benefit plans in the form of
gratuity and leave encashment, the liability for which is determined on
the basis of acturial valuation at the end of the year. Gains and
losses arising out of acturial valuation are recognised immediately to
the Profit & Loss Account as income or expenses.
(b) Unfunded Plan : The Company has unfunded Defined Benefit Plans in
the form of Compensated Absences, as per Company Policy.
(iii) Other Defined Benefits :
Provision for other defined benefit for long term leave encashment is
made based on an independent actuarial valuation on projected unit
credit method at the end of each financial year. Acturial gain & losses
are recognised immediately in the Statement of Profit & Loss Account as
income or expenses. Company recognised the undiscounted amount of short
term exployee benefits during the accounting period based on service
rendered by an employee.
9) Borrowing Cost
Borrowing costs in relation to acquisition and construction of assets
are capitalised as part of the cost of such assets up to the date when
such assets are ready for intended use. Other borrowing costs are
charged as an expense in the year in which these are incurred.
10) Taxes on Income
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred Tax is recognised, subject to the
consideration of prudence in respect of deferred tax assets, on timing
differences, being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods.
11) Impairment of Assets
The carrying amounts of assets are reveiwed at each Balance Sheet date
if there is any indication of impairment based on internal/external
factors. An Impairment loss will be recognised wherever the carrying
amount of an asset exceeds its recoverable amount. The recoverable
amount is greater of the assets net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to the present value by using weighted average cost of capital.