Mar 31, 2015
1. Basis of preparation and presentation of financial statements
i) The financial statements have been prepared under the historical
cost concept and in accordance with generally accepted accounting
polices, the mandatory Accounting Standards issued by the Institute of
Chartered Accountants and notified under the Companies (Accounting
Standards) Rules, 2006 and relevant provisions of Companies Act 2013,
as adopted consistently by the company.
ii) The company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
iii) All inventories, raw material, process stock, stores and spares
and finished goods are valued at cost or net realizable value whichever
is lower.
2. Use of Estimates
The preparation of financial statements is in accordance with generally
accepted accounting principles and requires management to make
judgments, estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and disclosures of contingent
liabilities, at the end of the reporting period. Although these
estimates are based upon management's best knowledge of current events
and actions, actual results could differ from these estimates in the
future period.
3. Tangible fixed assets
i) Tangible fixed assets are stated at cost of acquisition (net of
CENVAT/ VAT wherever applicable) less accumulated depreciation/
amortization and impairment losses if any, except free hold land which
is carried at cost less impairment losses if any. The cost comprises
purchase prices, borrowing cost if capitalization criteria are met and
directly attributable cost of bringing the asset to its working
condition for the intended use. Subsequent expenditure relating to an
item of fixed asset is added to its book value only if it increases the
future benefits from the asset beyond its previous assessed standard of
performance. All other expenses on fixed assets, including day-to-day
repair and maintenance expenditure and cost of replacing parts are
charged to the statement of profit and loss for the period as and when
they occur.
ii) Depreciation for plant and machinery has been provided on Straight
line method and for all other assets Written down value method has been
followed.
iii) Gains or losses arising from disposal of fixed assets are measured
as the difference between the net disposal proceeds and the carrying
amount of such assets are recognized in the statement of profit and
loss.
4. Intangible fixed assets
The cost of computer software that are installed are accounted at cost
of acquisition of such assets and are carried at cost less accumulated
amortization and impairment, if any. Internally generated software is
not capitalized and the expenditure is reflected in the statement of
profit and loss in the year in which the expenditure is incurred.
5. Investments
All investments being long term and non trade are stated at cost less
permanent diminution in value if any.
6. Inventories
i) Inventories are valued at cost or net realizable value whichever is
lower. Cost includes the cost incurred in bringing the inventories to
their present location and condition.
ii) Raw materials, stores and spares are valued at cost or net
realizable value whichever is lower. Cost includes the cost incurred
in bringing the inventories to their present location and condition.
For cost calculation of raw materials as it is not ordinarily inter
changeable specific identification method is used. For cost calculation
of stores and spares weighted average method is used.
iii) For valuation of finished goods / stock-in-process, cost includes
material, direct labour, overheads (other than selling and
administrative overheads) wherever applicable.
7. Revenue Recognition
i) Revenue is recognized to the extent that is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
ii) Sale of products is recognized when the significant risk and reward
of ownership of the goods have been passed to the buyer. Sale value
excludes excise duty, education cess, secondary and higher education
cess, CST and VAT
iii) Dividend income, if any, is recognized when the company's right to
receive dividend is established by the reporting date.
iv) Wind Mill Operation
The power generated at Wind Mill is fully consumed at mills and the
maintenance expenses of the wind mills and cost of wheeling of power is
charged to Statement of profit and loss.
8. Employee Benefits
i) Short-term employee benefits viz., salaries and wages are recognized
as expense at the undiscounted amount in the statement of profit and
loss for the year in which the related service is rendered.
ii) Defined contribution plan viz., contribution to provident fund is
recognized as an expense in the statement of profit and loss for the
year in which the employees have rendered services. The company
contributes to provident fund administered by the Government on a
monthly basis at 12% of employees basic salary. There are no other
obligation other than the above defined contribution plan.
iii) Defined Benefit Plan.
Gratuity:
a) Company's liability towards gratuity in respect of employees who
beneficially own shares in the company carrying more than 5% of the
total voting power has been provided for on the basis of actuarial
valuation and not funded.
b) Company's liability towards gratuity in respect of all other
employees is worked out on the basis of actuarial valuation and is
normally funded.
Leave:
As per policy of the company, unavailed leave, casual leave/ earned
leave cannot be carried forward or encashed and hence there is no
additional cost. The company recognize the cost as expense as and when
the employee avails paid leave.
9. Provision, Contingent Liability and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as result of past
events and it is probable that there will be outflow of resources.
Contingent liabilities not provided for, are disclosed in the accounts
by way of Notes. Contingent Assets are not recognized.
10. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition,
construction of qualifying assets are capitalized as part of the cost
of those assets as per Accounting Standard 16. All other borrowing
costs are charged to revenue.
11. Government Subsidy / Grant
Interest subsidy under the Technology Upgradation Fund Scheme (TUFs) is
credited to the finance cost.
12. Foreign Currency Transactions
Foreign Currency Transactions are recorded at the rate of exchange
prevailing on the date of the transaction. At the year end, all
monetary assets and liabilities denominated in foreign currency are
restated at the year end exchange rates. The premium / discount on
forward contracts are amortized over the period of the contract.
Exchange differences arising on actual payment/ realization and year
end reinstatement referred to above are adjusted.
i) In respect of fixed assets acquired outside the country to the
related cost of fixed assets and
ii) In all other cases in the statement of profit and loss.
13. Earning Per Share
Net profit after tax is divided by weighted average number of equity
shares as stipulated in Accounting Standard 20.
14. Income Tax
The tax provision is considered as stipulated in Accounting Standard 22
and includes current and deferred tax liability. The company recognizes
the accumulated deferred tax liability based on accumulated time
difference using current tax rate. The company as a conservative
measure, does not reckon deferred tax asset.
The company has considered credit entitlement of Minimum Alternate Tax
(MAT) where it is reasonably certain that the credit will be available
for set-off in accordance with the provision of the Income Tax Act,
1961.
15. Segment Reporting
As the company has only one business segment i.e., Textile and only one
geographical segment, the segment reporting requirement as per
Accounting Standard 17 is not applicable to the company
16. Impairment of Assets
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
company's fixed assets. If any indication exists, an asset's
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds recoverable amount.
Mar 31, 2014
1. Basis of preparation and presentation of financial statements
i) The financial statements have been prepared under the historical
cost concept and in accordance with generally accepted accounting
polices, the mandatory Accounting Standards issued by the Institute of
Chartered Accountants of India and notified under the Companies
(Accounting Standards) Rules, 2006 and relevant provisions of Companies
Act 1956, as adopted consistently by the company.
ii) The company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
iii) During the year all inventories, raw material, process stock,
stores and spares and finished goods are valued at cost or net
realizable value whichever is lower. Hitherto, raw materials, process
stock and stores and spares are valued at cost and finished goods at
cost or market price whichever is lower. However, this change does not
have any impact in the financial statements.
2. Use of Estimates
The preparation of financial statements is in accordance with generally
accepted accounting principles and requires management to make
judgements, estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and disclosures of contingent
liabilities, at the end of the reporting period. Although these
estimates are based upon management''s best knowledge of current events
and actions, actual results could differ from these estimates in the
future period.
3. Tangible fixed assets
i) Tangible fixed assets are stated at cost of acquisition (net of
CENVAT/ VAT wherever applicable) less accumulated depreciation/
amortization and impairment losses if any, except free hold land which
is carried at cost less impairment losses if any. The cost comprises
purchase prices, borrowing cost if capitalization criteria are met and
directly attributable cost of bringing the asset to its working
condition for the intended use. Subsequent expenditure relating to an
item of fixed asset is added to its book value only if it increases the
future benefits from the asset beyond its previous assessed standard of
performance. All other expenses on fixed assets, including day-to-day
repair and maintenance expenditure and cost of replacing parts are
charged to the statement of profit and loss for the period as and when
they occur.
ii) Depreciation for plant and machinery has been provided on Straight
line method and for all other assets Written down value method has been
followed.
iii) Gains or losses arising from disposal of fixed assets are measured
as the difference between the net disposal proceeds and the carrying
amount of such assets are recognized in the statement of profit and
loss.
4. Intangible fixed assets
The cost of computer software that are installed are accounted at cost
of acquisition of such assets and are carried at cost less accumulated
amortization and impairment, if any. Internally generated software is
not capitalized and the expenditure is reflected in the statement of
profit and loss in the year in which the expenditure is incurred.
5. Investments
All investments being long term and non trade are stated at cost less
permanent diminution in value if any.
6. Inventories
i) Inventories are valued at cost or net realizable value whichever is
lower. Cost includes the cost incurred in bringing the inventories to
their present location and condition.
ii) Raw materials, stores and spares are valued at cost or net
realizable value whichever is lower. Cost includes the cost incurred
in bringing the inventories to their present location and condition.
For cost calculation of Raw materials as it is not ordinarily inter
changeable specific identification method is used. For cost calculation
of stores and spares weighted average method is used.
iii) For valuation of finished goods / stock-in-process, cost includes
material, direct labour, overheads (other than selling and
administrative overheads) wherever applicable.
7. Revenue Recognition
i) Revenue is recognized to the extent that is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
ii) Sale of products is recognized when the significant risk and reward
of ownership of the goods have been passed to the buyer. Sale value
excludes excise duty, education cess, secondary and higher education
cess, CST and VAT.
iii) Dividend income, if any, is recognized when the company''s right to
receive dividend is established by the reporting date.
iv) Wind Mill Operation
The power generated at Wind Mill is fully consumed at mills and the
maintenance expenses of the wind mills and cost of wheeling of power is
charged to Statement of profit and loss .
8. Employee Benefits
i) Short term employee benefits viz., salaries and wages are recognized
as expense at the undiscounted amount in the statement of profit and
loss for the year in which the related service is rendered.
ii) Defined contribution plan viz., contribution to provident fund is
recognized as an expense in the statement of profit and loss for the
year in which the employees have rendered services. The company
contributes to provident fund administered by the Government on a
monthly basis at 12% of employees basic salary. There are no other
obligation other than the above defined contribution plan.
iii) Defined Benefit Plan.
Gratuity:
a) Company''s liability towards gratuity in respect of employees who
beneficially own shares in the company carrying more than 5% of the
total voting power has been provided for on the basis of actuarial
valuation and not funded.
b) Company''s liability towards gratuity in respect of all other
employees is worked out on the basis of actuarial valuation and is
funded.
Leave:
As per policy of the company, unavailed leave, casual leave/ earned
leave cannot be carried forward or encashed and hence there is no
additional cost. The company recognize the cost as expense as and when
the employee avails paid leave.
9. Provision, Contingent Liability and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as result of past
events and it is probable that there will be outflow of resources.
Contingent liabilities not provided for, are disclosed in the accounts
by way of Notes. Contingent Assets are not recognized.
10. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition,
construction of qualifying assets are capitalized as part of the cost
of those assets as per Accounting Standard 16. All other borrowing
costs are charged to revenue.
11. Government Subsidy / Grant
Interest subsidy under the Technology Up gradation Fund Scheme (TUFs) is
credited to the finance cost.
12. Foreign Currency Transactions
Foreign Currency Transactions are recorded at the rate of exchange
prevailing on the date of the transaction. At the year end, all
monetary assets and liabilities denominated in foreign currency are
restated at the year end exchange rates. The premium / discount on
forward contracts are amortised over the period of the contract.
Exchange differences arising on actual payment/ realization and year
end reinstatement referred to above are adjusted.
i) In respect of fixed assets acquired outside the country to the
related cost of fixed assets and
ii) In all other cases in the statement of profit and loss.
13. Earning Per Share
Net profit after tax is divided by weighted average number of equity
shares as stipulated in Accounting Standard 20.
14. Income Tax
The tax provision is considered as stipulated in Accounting Standard 22
and includes current and deferred tax liability. The company recognizes
the accumulated deferred tax liability based on accumulated time
difference using current tax rate.
The company has considered credit entitlement of Minimum Alternate Tax
(MAT) where it is reasonably certain that the credit will be available
for set-off in accordance with the provision of the Income Ta x Act,
1961.
15. Segment Reporting
As the company has only one business segment i.e., Textile and only one
geographical segment, the segment reporting requirement as per
Accounting Standard 17 is not applicable to the company
16. Impairment of Assets
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
company''s fixed assets. If any indication exists, an asset''s
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds recoverable amount.
Mar 31, 2013
1. ACCOUNTING CONCEPTS Financial statements are based on historical
cost concept. Mercantile system of accounting has been followed and
income and expenditure are recognized on accrual basis.
2.FIXED ASSETS AND DEPRECIATION ( IN ACCORDANCE WITH AS -10 ISSUED BY
ICAI ) Fixed assets are stated at cost of acquisition.
METHOD OF PROVIDING DEPRECIATION ( IN ACCORDANCE WITH AS - 6 ISSUED BY
ICAI ) Depreciation for Plant and Machinery has been provided on
Straight Line Method and for other assets on Written Down Value Method.
RATE OF DEPRECIATION ADOPTED
On all assets acquired upto 31-03-1987, depreciation has been provided
at the then prevailing rate of depreciation as per Income Tax rules.
For assets acquired from 01-04-1987, rates given in Schedule XIV to the
Companies Act, 1956 have been adopted.
3. INVESTMENTS (IN ACCORDANCE WITH AS -13 ISSUED BY ICAI) Investments
are stated at cost
4. INVENTORY VALUATION (IN ACCORDANCE WITH AS - 2 ISSUED BY ICAI) Raw
Materials, Process stock and stores & spares - Valued at cost.
Finished Goods - Valued at cost or Market price, whichever is lower.
5. RETIREMENT BENEFITS (IN ACCORDANCE WITH AS -15 ISSUED BY ICAI) a.
Liability for Gratuity
i) Company''s Liability towards Gratuity in respect of Directors on full
time employment who beneficially own shares in the Company carrying
more than 5% of the total voting power has been provided for and not
funded. The liability on this account, provided for and not funded, is
Rs.25.45 lakhs as on 31.03.2013
ii) Company''s liability towards Gratuity in respect of all other
employees is worked out on actuarial basis and is funded.
b. Contribution to Provident Fund is made as per the provisions of
Employees'' Provident Funds and
Miscellaneous Provisions Act, 1952 and remitted to the Provident Fund
Commissioner.
c. Liability on account of leave salary has been provided for in
accordance with the scheme in force.
6. RELATED PARTY DISCLOSURES (IN ACCORDANCE WITH AS -18 ISSUED BY ICAI)
a) List of Related Parties
Associate Company B.R. Theatres and Industrial Concern Pvt. Ltd.,
b) Key Management Personal
Name of the related Party Nature of relationship
i) Sri R.Srihari Managing Director
ii) Sri S.Balakrishna Wholetime Director
iii) Sri R.Padmanaban Technical Director
7. CONTINGENCIES (IN ACCORDANCE WITH AS -29 ISSUED BY ICAI)
Contingent liabilities are indicated by way of notes forming part of
Accounts.
8. INCOME IN FOREIGN EXCHANGE (IN ACCORDANCE WITH AS -111SSUED BY
ICAI)
Export sales in foreign currency are accounted at the exchange rates
prevailing on the date of invoice/ negotiation of documents where such
sales are not covered by forward contracts.
9. EXPENDITURE IN FOREIGN EXCHANGE (IN ACCORDANCE WITH AS -11 ISSUED
BY ICAI)
Expenditure in foreign currency is accounted at the actual amount spent
and provision for expenses to be paid in foreign currency has been made
at the rate of exchange prevailing on the Balance sheet date.
Mar 31, 2012
1. ACCOUNTING CONCEPTS
Financial statements are based on historical cost concept. Mercantile
system of accounting has been followed and income and expenditure are
recognized on accrual basis.
2. FIXED ASSETS AND DEPRECIATION (IN ACCORDANCE WITH AS -10 ISSUED BY
ICAI)
Fixed assets are stated at cost of acquisition.
METHOD OF PROVIDING DEPRECIATION ( IN ACCORDANCE WITH AS - 6 ISSUED BY
ICAI ) Depreciation for Plant and Machinery has been provided on
Straight Line Method and for other assets on Written Down Value Method.
RATE OF DEPRECIATION ADOPTED
On all assets acquired upto 31-03-1987, depreciation has been provided
at the then prevailing rate of depreciation as per Income Tax rules.
For assets acquired from 01-04-1987, rates given in Schedule XIV to the
Companies Act, 1956 have been adopted.
3. INVESTMENTS (IN ACCORDANCE WITH AS -13 ISSUED BY ICAI)
Investments.are stated at cost
4. INVENTORY VALUATION (IN ACCORDANCE WITH AS - 2 ISSUED BY ICAI)
Raw Materials, Process stock and stores & spares - Valued at cost.
Finished Goods - Valued at cost or Market price, whichever is lower.
5. RETIREMENT BENEFITS (IN ACCORDANCE WITH AS -15 ISSUED BY ICAI)
a. Liability for Gratuity ,
i) Company's Liability towards Gratuity in respect of Directors on
full time employment who beneficially own shares in the Company
carrying more than 5% of the total voting power has been provided for
and not funded. The liability on this account, provided for and not
funded, is Rs.24.58 lakhs as on
31.03.2012
ii) Company's liability towards Gratuity in respect of all other
employees is worked out on actuarial basis and is funded.
b. Contribution to Provident Fund is made as per the provisions of
Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and
remitted to the Provident Fund Commissioner.
c. Liability on account of leave salary has been provided for in
accordance with the scheme in force.
6. RELATED PARTY DISCLOSURES (IN ACCORDANCE WITH AS -18 ISSUED BY
ICAI)
a) List of Related Parties
Associate Company Nil
b) Key Management Personal
Name of the related Party , Nature of relationship
i) Sri R.Srihari Managing Director
ii) Sri S.Balakrishna Wholetime Director
iii) Sri R.Padmanaban Technical Director
c) Particulars of Transaction with Related Parties.
I) Transaction with Associate Company Nil
II) Details of Transaction relating to persons referred to in item ( b)
above.
Remuneration - Rs 34,34,511/-( Previous year - Rs. 34,42,769/-)
I ill Details of Transaction relating to Interest paid for short term
loans Rs.6,05,733/- (Previous year - Rs.3,00,000/-) Ã
7. DEFERRED TAX LIABILITY (IN ACCORDANCE WITH AS -22 ISSUED BY ICAI)
Rs.
Opening Deferred tax liability as on 01-04-2011 1,78,48,245
Less:- Transferred from P & L account during 2011-12 1,78,48,245
Closing Deferred tax liability as on 31-03-20t2 NiJ
8. CONTINGENCIES (IN ACCORDANCE WITH AS-29 ISSUED BY ICAI)
Contingent liabilities are indicated by way of notes forming part of
Accounts.
9. INCOME IN FOREIGN EXCHANGE (IN ACCORDANCE WITH AS-11 ISSUED BY
ICAI)
Export sales in foreign currency are accounted at the exchange rates
prevailing on the date of invoice/ negotiation of documents where such
sales are not covered by forward contracts.
10. EXPENDITURE IN FOREIGN EXCHANGE (IN ACCORDANCE WITH AS-11 ISSUED
BY ICAI)
Expenditure in foreign currency is accounted at the actual amount spent
and provision for expenses to be paid in foreign currency has been made
at the rate of exchange prevailing on the Balance sheet -date.
Mar 31, 2010
1. ACCOUNTING CONCEPTS
Financial statements are based on historical cost concept. Mercantile
system of accounting has been followed and income and expenditure are
recognised on accrual basis.
2. FIXED ASSETS AND DEPRECIATION (IN ACCORDANCE WITH AS -10 ISSUED BY
ICAI )
Fixed assets are stated at cost of acquisition.
METHOD OF PROVIDING DEPRECIATION (IN ACCORDANCE WITH AS - 6 ISSUED BY
ICAI)
Depreciation for Plant and Machinery has been provided on Straight Line
Method and for other assets on Written Dowi Value Method.
RATE OF DEPRECIATION ADOPTED
On all assets acquired upto 31-03-1987, depreciation has been provided
at the then prevailing rate of depreciation a; per Income Tax rules.
For assets acquired from 01-04-1987, rates given in Schedule XIV to the
Companies Act, 1950 have been adopted.
3. INVESTMENTS (IN ACCORDANCE WITH AS -13 ISSUED BY ICAI)
Investments are stated at cost
4. INVENTORY VALUATION ( IN ACCORDANCE WITH AS - 2 ISSUED BY ICAI )
Raw Materials, Process stock and stores S spares - Valued at cost.
Finished Goods - Valued at cost or Market price, whichever is lower.
5. RETIREMENT BENEFITS (IN ACCORDANCE WITH AS -15 ISSUED BY ICAI)
a. Liability for Gratuity
I) Companys Liability towards Gratuity in respect of Directors on full
time employment who beneficially own shares in the Company carrying
more than 5% of the total voting power has been provided for and not
funded. The liability on this account, provided for and not funded, is
Rs.22.85 lakhs as on 31.03.2010
ii) Companys liability towards Gratuity in respect of all other
employees is worked out on actuarial basis. The total liability as on
31.03.2010 is Rs.150.77 lakhs. Out of which Rs.54.38 lakhs has been
funded and balance Rs.96.39 lakhs is yet to be funded.
b. Contribution to Provident Fund is made as per the provisions of
Employees Provident Funds and Miscellaneous Provisions Act, 1952 and
remitted to the Provident Fund Commissioner.
c. Liability on account of leave salary has been provided for in
accordance with the scheme in force.