Mar 31, 2014
I Basic Of preparation of Financial Statement
a. The financial statements are prepared under the historical cost
convention, on a going concern basis and in accordance with the
Generally Accepted Accounting Principles in India to comply with the
Accounting Standards notified under Section 211 (3C) of the Companies
Act 1956 ("the 1956 Act") [which continues to be applicable in respect
of section 133 of the Companies Act''2013("the 2013 Act") in terms of
general circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs] and the relevant provision of the 1956 Act/2013 Act
as applicable.
b. The company generally follows mercantile system of accounting and
recognizes significant item of income and expenditure on accrual basis.
ii Use Of Estimates
The presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the year. Difference between the
actual results and estimates are recognised in the year in which the
results are known / materialised.
iii Revenue And Cost Recognition
Revenue & Costs are recognised on accrual basis. Revenue recognition is
postponed in instances where in conditions for revenue recognition are
not met. In case of uncertainty of receipt, recognition of revenue is
postponed. Brokerage, turnover incentive & export sales commission
accrues at the time of realisation from Debtors.
iv Prior Period Items, Non recurring & Extra ordinary items.
Material items relating to prior period, if any, and non-recurring and
extra ordinary items, if any, are disclosed separately.
v Fixed Assets & Depreciation
Fixed assets are stated at cost of acquisition or construction. They
are stated at historical cost less accumulated
amortisation/impairment/depreciation.
Depreciation on fixed assets has been provided on straight-line method
at the rates specified in schedule XIV of the Companies Act, 1956.
Depreciation is provided on pro-rata basis in the year of addition and
no depreciation is provided in the year of disposal. Assets costing
Rs.5,000/- or less are depreciated at the rate of 100%. Land acquired
under long term leases is not amortised.
In accordance with AS 28, where there is an indication of impairment of
the Company''s asset the carrying amounts of the Company''s assets are
reviewed at each balance sheet date to determine whether there is any
impairment. The recoverable amount of the assets is estimated, as the
higher of its net selling price and its value in use. An impairment
loss is recognized whenever the carrying amount of an asset or a cash
generating unit exceeds its recoverable amount. Impairment loss is
recognized in the profit and loss account or against revaluation
surplus where applicable.
vi Investments
Long term investments are stated at cost. Provision for diminution in
value of investments of permanent nature, if any, is provided for.
Current Investments, if any, are valued at cost or market value
whichever is lower.
vii Inventories
Raw material and consumable stores are valued at cost or net realisable
value which ever is lower. Cost comprises of purchase price, freight,
taxes & duties reduced to the extent of value of Cenvat benefit & sales
tax set off if any. Finished goods (fabrics) and in-process goods are
valued at cost (which includes material cost, cost of conversion and
appropriate production overhead thereof) or net realisable value,
whichever is lower. Traded goods in stock are valued at cost (which
includes cost of purchase as direct cost) or net realisable value,
whichever is lower.
viii Retirement Benefits
a. Contribution to Provident fund is accounted on accrual basis with
corresponding contribution to recognised fund.
b. Contribution to Superannuation and Gratuity Fund is accounted on
accrual basis with corresponding contribution to LIC for participation
in Superannuation and Gratuity Scheme.
c. Provision for the value of un-encashed leave due to employees is
made on actuarial valuation basis.
ix Research And Development
Expenditure incurred for developing new designs are considered as R&D
expenditure and charged to Profit & Loss account in the year of
expenditure.
x Borrowing Costs
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalised as part of the cost of such assets.
All other borrowing costs are charged to revenue.
xi Provision For Taxation
Provision for current Income Tax shall be made on the tax payable on
the taxable income after considering tax allowances deductions and
exemptions determined in accordance with the prevailing tax laws.
Deferred tax assets and liabilities are recognised for the timing
differences between profit as per financial statements and the taxable
profits based on the tax rates that have been enacted or substantially
enacted at the Balance Sheet date. Deferred tax assets are recognised
only if there is reasonable certainty or virtual certainty that
sufficient future taxable income will be available against which tax
assets can be realised.
xii Foreign Currency Transactions
Foreign currency transactions of revenue nature are accounted using a
conversion rate prevailing on the date of transaction.
Monetary items denominated in foreign currency outstanding at the last
date of the year are restated using the rates of exchange prevalent on
that date. All exchange differences arising on settlement of
transactions at period-end, restatement of monetary items are
recognised in the Profit & Loss Account.
xiii Earning Per Share
Basic EPS excludes dilution and is computed by dividing net income
available to common stock holders by the weighted-average number of
common shares outstanding for the year.
xiv Provisions, Contingent Liabilities and Contingent Assets.
As per AS-29, Provisions, Contingent Liabilities and Contingent Assets,
issued by the Institute of Chartered Accountants of India, the Company
recognises provisions only when it has a present obligation as a result
of past event, it is probable that an outflow of resources embodying
economic benefits will be required to settle that obligation and when a
reliable estimate of the amount of the obligation can be made.
No provision is recognised for any possible obligation that arises from
past events and the existence of which will be confirmed only by that
occurrence or non- occurrence of one or more uncertain future events
not wholly within the control of the Company.
Mar 31, 2012
I Basic Of preparation of Financial Statement
a. The financial statements are prepared under historical cost
convention and in compliance with generally accepted accounting
practices & applicable mandatory accounting standards issued by the
Institute of Chartered Accountants of India from time to time and the
provisions of the Companies Act, 1956. The concept of going concern and
consistency are adhered to.
b. The company generally follows mercantile system of accounting and
recognizes signifiacant item of income and expenditure on accrual
basis.
ii Use Of Estimates
The presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the year. Difference between the
actual results and estimates are recognised in the year in which the
results are known / materialised.
iii Revenue And Cost Recognition
Revenue & Costs are recognised on accrual basis. Revenue recognition is
postponed in instances wherein conditions for revenue recognition are
not met. In case of uncertainty of receipt, recognition of revenue is
postponed. Brokerage, turnover incentive & export sales commission
accrues at the time of realisation from Debtors.
iv Prior Period Items, Non recurring & Extra ordinary items.
Material items relating to prior period, if any, and non-recurring and
extra ordinary items, if any, are disclosed separately.
v Fixed Assets & Depreciation
Fixed assets are stated at cost of acquisition or construction. They
are stated at historical cost less accumulated
amortisation/impairment/depreciation.
Depreciation on fixed assets has been provided on straight-line method
at the rates specified in schedule XIV of the Companies Act, 1956.
Depreciation is provided on pro-rata basis in the year of addition and
no depreciation is provided in the year of disposal. Assets costing
Rs.5,000/- or less are depreciated at the rate of 100%. Land acquired
under long term leases is not amortised.
In accordance with AS 28, where there is an indication of impairment of
the Company's asset the carrying amounts of the Company's assets are
reviewed at each balance sheet date to determine whether there is any
impairment. The recoverable amount of the assets is estimated, as the
higher of its net selling price and its value in use. An impairment
loss is recognized whenever the carrying amount of an asset or a cash
generating unit exceeds its recoverable amount. Impairment loss is
recognized in the profit and loss account or against revaluation
surplus where applicable.
vi Investments
Long term investments are stated at cost. Provision for diminution in
value of investments of permanent nature, if any, is provided for.
Current Investments, if any, are valued at cost or market value
whichever is lower.
vii Inventories
Raw material and consumable stores are valued at cost or net realisable
value which ever is lower. Cost comprises of purchase price, freight,
taxes & duties reduced to the extent of value of Cenvat benefit & sales
tax set off if any. Finished goods (fabrics) and in-process goods are
valued at cost (which includes material cost, cost of conversion and
appropriate production overhead thereof) or net realisable value,
whichever is lower. Traded goods in stock are valued at cost (which
includes cost of purchase as direct cost) or net realisable value,
whichever is lower.
viii Retirement Benefits
a Contribution to Provident fund is accounted on accrual basis with
corresponding contribution to recognised fund.
b. Contribution to Superannuation and Gratuity Fund is accounted on
accrual basis with corresponding contribution to LIC for participation
in Superannuation and Gratuity Scheme.
c. Provision forthe value of un-encashed leave due to employees is
made on actuarial valuation basis.
ix Research And Development
Expenditure incurred for developing new designs are considered as R&D
expenditure and charged to Profit & Loss account in the year of
expenditure.
x Borrowing Costs
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalised as part of the cost of such assets.
All other borrowing costs are charged to revenue.
xi Provision For Taxation
Provision for current Income Tax shall be made on the tax payable on
the taxable income after considering tax allowances deductions and
exemptions determined in accordance with the prevailing tax laws.
Deferred tax assets and liabilities are recognised for the timing
differences between profit as per financial statements and the taxable
profits based on the tax rates that have been enacted or substantially
enacted at the Balance Sheet date. Deferred tax assets are recognised
only if there is reasonable certainty or virtual certainty that
sufficient future taxable income will be available against which tax
assets can be realised.
xii Foreign Currency Transactions
Foreign currency transactions of revenue nature are accounted using a
conversion rate prevailing on the date of transaction.
Monetary items denominated in foreign currency outstanding at the last
date of the year are restated using the rates of exchange prevalent on
that date. All exchange differences arising on settlement of
transactions at period-end, restatement of monetary items are
recognised in the Profit & Loss Account.
xiii Earning Per Share
Basic EPS excludes dilution and is computed by dividing net income
available to common stock holders by the weighted-average number of
common shares outstanding for the year.
xiv Provisions, Contingent Liabilities and Contingent Assets.
As per AS-29, Provisions, Contingent Liabilities and Contingent Assets,
issued by the Institute of Chartered Accountants of India, the Company
recognises provisions only when it has a present obligation as a result
of past event, it is probable that an outflow of resources embodying
economic benefits will be required to settle that obligation and when a
reliable estimate of the amount of the obligation can be made.
No provision is recognised for any possible obligation that arises from
past events and the existence of which will be confirmed only by that
occurrence or non- occurrence of one or more uncertain future events
not wholly within the control of the Company.
Mar 31, 2011
I Basic Assumptions:
The financial statements are prepared under historical cost convention
and in compliance with generally accepted accounting practices &
applicable mandatory accounting standards issued by the Institute of
Chartered Accountants of India from time to time and the provisions of
the Companies Act, 1956. The concept of going concern and consistency
are adhered to.
ii Use of Estimates
The presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the year. Difference between the
actual results and estimates are recognised in the year in which the
results are known / materialised.
iii Revenue And Cost Recognition
Revenue & Costs are recognised on accrual basis. Revenue recognition is
postponed in instances wherein conditions for revenue recognition are
not met. In case of uncertainty of receipt, recognition of revenue is
postponed. Brokerage, turnover incentive & export sales commission
accrues at the time of realisation from Debtors.
iv Prior Period Items, Non recurring & Extra ordinary items.
Material items relating to prior period, if any, and non-recurring and
extra ordinary items, if any, are disclosed separately.
v Fixed Assets & Depreciation
Fixed assets are stated at cost of acquisition or construction. They
are stated at historical cost less accumulated amortisation/
impairment/ depreciation.
Depreciation on fixed assets has been provided on straight-line method
at the rates specified in schedule XIV of the Companies Act, 1956.
Depreciation is provided on pro-rata basis in the year of addition and
in the year of disposal. Assets costing Rs.5, 000/- or less are
depreciated at the rate of 100%. Land acquired under long term leases
is not amortised.
In accordance with AS 28, where there is an indication of impairment of
the Company's asset the carrying amounts of the Company's assets are
reviewed at each balance sheet date to determine whether there is any
impairment. The recoverable amount of the assets is estimated, as the
higher of its net selling price and its value in use. An impairment
loss is recognized whenever the carrying amount of an asset or a cash
generating unit exceeds its recoverable amount. Impairment loss is
recognized in the profit and loss account or against revaluation
surplus where applicable.
vi Investments
Long term investments are stated at cost. Provision for diminution in
value of investments of permanent nature, if any, is provided for.
Current Investments, if any, are valued at cost or market value
whichever is lower.
vii Inventories
Raw material and consumable stores are valued at cost or net realisable
value which ever is lower. Cost comprises of purchase price, freight,
taxes & duties reduced to the extent of value of Cenvat benefit & sales
tax set off if any. Finished goods (fabrics) and in-process goods are
valued at cost (which includes material cost, cost of conversion and
appropriate production overhead thereof) or net realisable value,
whichever is lower. Traded goods in stock are valued at cost (which
includes cost of purchase as direct cost) or net realisable value,
whichever is lower.
viii Retirement Benefits
a Contribution to Provident fund is accounted on accrual basis with
corresponding contribution to recognised fund.
b. Contribution to Superannuation and Gratuity Fund is accounted on
accrual basis with corresponding contribution to LIC for participation
in Superannuation and Gratuity Scheme.
c. Provision for the value of un-encashed leave due to employees is
made on actuarial valuation basis.
ix Research And Development
Expenditure incurred for developing new designs are considered as R&D
expenditure and charged to Profit & Loss account in the year of
expenditure.
x Borrowing Costs:
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalised as part of the cost of such assets.
All other borrowing costs are charged to revenue.
xi Provision For Taxation
Provision for current Income Tax shall be made on the tax payable on
the taxable income after considering tax allowances deductions and
exemptions determined in accordance with the prevailing tax laws.
Deferred tax assets and liabilities are recognised for the timing
differences between profit as per financial statements and the taxable
profits based on the tax rates that have been enacted or substantially
enacted at the Balance Sheet date. Deferred tax assets are recognised
only if there is reasonable certainty or virtual certainty that
sufficient future taxable income will be available against which tax
assets can be realised.
xii Foreign Currency Transactions
Foreign currency transactions of revenue nature are accounted using a
conversion rate prevailing on the date of transaction.
Monetary items denominated in foreign currency outstanding at the last
date of the year are restated using the rates of exchange prevalent on
that date. All exchange differences arising on settlement of
transactions at period-end, restatement of monetary items are
recognised in the Profit & Loss Account.
xiii Earning Per Share
Basic EPS excludes dilution and is computed by dividing net income
available to common stock holders by the weighted-average number of
common shares outstanding for the year.
xiv Provisions, Contingent Liabilities and Contingent Assets.
As per AS-29, Provisions, Contingent Liabilities and Contingent Assets,
issued by the Institute of Chartered Accountants of India, the Company
recognises provisions only when it has a present obligation as a result
of past event, it is probable that an outflow of resources embodying
economic benefits will be required to settle that obligation and when a
reliable estimate of the amount of the obligation can be made.
No provision is recognised for any possible obligation that arises from
past events and the existence of which will be confirmed only by that
occurrence or non- occurrence of one or more uncertain future events
not wholly within the control of the Company.
Mar 31, 2010
I Basic Assumptions:
The financial statements are prepared under historical cost convention
and in compliance with generally accepted accounting practices &
applicable mandatory accounting standards issued by the Institute of
Chartered Accountants of India from time to time and the provisions of
the Companies Act, 1956. The concept of going concern and consistency
are adhered to.
ii Use Of Estimates
The presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the year. Difference between the
actual results and estimates are recognised in the year in which the
results are known / materialised.
iii Revenue And Cost Recognition
Revenue & Costs are recognised on accrual basis. Revenue recognition is
postponed in instances wherein conditions for revenue recognition are
not met. In case of uncertainty of receipt, recognition of revenue is
postponed. Brokerage, turnover incentive & export sales commission
accrues at the time of realisation from Debtors.
iv Prior Period Items, Non recurring & Extra ordinary items.
Material items relating to prior period, if any, and non-recurring and
extra ordinary items, if any, are ! disclosed separately.
v Fixed Assets & Depreciation
Fixed assets are stated at cost of acquisition or construction. They
are stated at historical cost less accumulated amortisation/
impairment/depreciation.
Depreciation on fixed assets has been provided on straight-line method
at the rates specified in schedule XIV of the Companies Act, 1956.
Depreciation is provided on pro-rata basis in the year of addition and
in the year of disposal. Assets costing Rs.5, 000/- or less are
depreciated at the rate of 100%. Land acquired under long term leases
is not amortised.
In accordance with AS 28, where there is an indication of impairment of
the Companys asset the carrying amounts of the Companys assets are
reviewed at each balance sheet date to determine whether there is any
impairment. The recoverable amount of the assets is estimated, as the
higher of its net selling price and its value in use. An impairment
loss is recognized whenever the carrying amount of an asset or a cash
generating unit exceeds its recoverable amount. Impairment loss is
recognized in the profit and loss account or against revaluation
surplus where applicable.
vi Investments
Long term investments are stated at cost. Provision for diminution in
value of investments of permanent
nature, if any, is provided for. Current Investments, if any, are
valued at cost or market value whichever is lower.
vii Inventories
Raw material and consumable stores are valued at cost or net realisable
value which ever is lower: Cost comprises of purchase price, freight,
taxes & duties reduced to the extent of value of Cenvat benefit & sales
tax set off if any. Finished goods (fabrics) and in-process goods are
valued at cost (which includes material cost, cost of conversion and
appropriate production overhead thereof) or net realisable value,
whichever is lower. Traded goods in stock are valued at cost (which
includes cost of purchase as direct cost) or net realisable value,
whichever is lower.
viii Retirement Benefits
a Contribution to Provident fund is accounted on accrual basis with
corresponding contribution to recognised fund.
b. Contribution to Superannuation and Gratuity Fund is accounted on
accrual basis with corresponding contribution to LIC for participation
in Superannuation and Gratuity Scheme.
c. Provision for the value of un-encashed leave due to employees is
made on actuarial valuation basis.
ix Research And Development
Expenditure incurred for developing new designs are considered as R&D
expenditure and charged to Profit & Loss account in the reporting
period of expenditure.
x Borrowing Costs:
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalised as part of the cost of such assets.
All other borrowing costs are charged to revenue.
xi Provision For Taxation
Provision for current Income Tax shall be made on the tax payable on
the taxable income after considering tax allowances deductions and
exemptions determined in accordance with the prevailing tax laws.
Deferred tax assets and liabilities are recognised for the timing
differences between profit as per financial statements and the taxable
profits based on the tax rates that have been enacted or substantially
enacted at the Balance Sheet date. Deferred tax assets are recognised
only if there is reasonable certainty or virtual certainty that
sufficient future taxable income will be available against which tax
assets can be realised.
xii Foreign Currency Transactions
Foreign currency transactions of revenue nature are accounted using a
conversion rate prevailing on the date of transaction.
Monetary items denominated in foreign currency outstanding at the last
date of the reporting period are restated using the rates of exchange
prevalent on that date. All exchange differences arising on settlement
of transactions at period-end, restatement of monetary items are
recognised in the Profit & Loss Account.
xiii Earning Per Share
Basic EPS excludes dilution and is computed by dividing net income
available to common stock holders by the weighted-average number of
common shares outstanding for the reporting period.
xiv Provisions, Contingent Liabilities and Contingent Assets.
As per AS-29, Provisions, Contingent Liabilities and Contingent Assets,
issued by the Institute of Chartered Accountants of India/the Company
recognises provisions only when it has a present obligation as a result
of past event, it is probable that an outflow of resources embodying
economic benefits will be required to settle that obligation and when a
reliable estimate of the amount of the obligation can be made.
No provision is recognised for any possible obligation that arises from
past events and the existence of which will be-confirmed only by that
occurrence or non- occurrence of one or more uncertain future events
not wholly within the control of the Company.
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