Mar 31, 2015
1 Corporate information
The Company is engaged in the business of manufacturing of cloth and
processing thereof.
2.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 2013. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
2.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognized in the periods in which
the results are known / materialize.
2.3 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and deposits with banks. Cash equivalents
are short-term balances (with an original maturity of three months or
less from the date of acquisition), highly liquid investments that are
readily convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.
2.4 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
2.5 Depreciation and amortization Accounting Policies: Fixed Assets :
a) Gross Block : All Fixed Assets are stated at cost.
b) Depreciation: Depreciation on Plant & Machinery, Factory Building,
Office Premises, Godown at Bhiwandi, Residential Premises, Tube Well,
Bore well, Lab Equipments, Computers and Electric Installations is
provided on Straight Line Method at the rates and in the manner
specified in Schedule II of the Companies Act, 2013 (the Act).
Depreciation on Furniture, Office Equipments and Vehicles is provided
on Written Down Value Method at the rates and in the manner specified
in Schedule II of the Act.
Depreciation on Additions to Fixed Assets during the year is calculated
on pro-rata basis.
5% on the original cost of the asset is considered as residual value of
the asset and depreciation is calculated based on the remaining useful
life of the asset.
2.6 Other income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive it is established.
2.8 Revenue recognition
Sale of goods
Sales are recognized, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers.
2.9 Tangible fixed assets
All Fixed Assets are stated at cost less depreciation.
Fixed assets retired from active use and held for sale are stated at
the lower of their net book value and net realizable value and are
disclosed separately in the Balance Sheet.
2.10 Foreign currency transactions and translations
Initial recognition
Transactions in foreign currencies entered into by the Company and its
integral foreign operations are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction.
Measurement of foreign currency monetary items at the Balance Sheet
date
Foreign currency monetary items (other than derivative contracts) of
the Company and its net investment in non- integral foreign operations
outstanding at the Balance Sheet date are restated at the year-end
rates. In the case of integral operations, assets and liabilities (other
than non-monetary items), are translated at the exchange rate
prevailing on the Balance Sheet date. Non-monetary items are carried at
historical cost. Revenue and expenses are translated at the average
exchange rates prevailing during the year. Exchange differences arising
out of these translations are charged to the Statement of Profit and
Loss.
Treatment of exchange differences
Exchange differences arising on settlement / restatement of short-term
foreign currency monetary assets and liabilities of the Company and its
integral foreign operations are recognized as income or expense in the
Statement of Profit and Loss. The exchange differences on restatement /
settlement of loans to non-integral foreign operations that are
considered as net investment in such operations are accumulated in a
"Foreign currency translation reserve" until disposal / recovery of the
net investment. The exchange differences arising on restatement /
settlement of long-term foreign currency monetary items are capitalized
as part of the depreciable fixed assets to which the monetary item
relates and depreciated over the remaining useful life of such assets
or amortized on settlement / over the maturity period of such items if
such items do not relate to acquisition of depreciable fixed assets.
The unamortized balance is carried in the Balance Sheet as "Foreign
Currency monetary item translation difference account" net of the tax
effect thereon.
2.11 Investments
Long-term investments (excluding investment in properties), are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. Cost of
investments include acquisition charges such as brokerage, fees and
duties.
2.12 Employee benefits
Employee benefits include provident fund & gratuity fund. Defined
contribution plans: The Company's contribution to provident fund are
considered as defined contribution plans and are charged as an expense
as they fall due based on the amount of contribution required to be
made. Short-term employee benefits: The undiscounted amount of short-term
employee benefits expected to be paid in exchange for the services
rendered by employees are recognized during the year when the employees
render the service. These benefits include performance incentive and
compensated absences which are expected to occur within twelve months
after the end of the period in which the employee renders the related
service. The cost of such compensated absences is accounted as under
:(a) in case of accumulated compensated absences, when employees render
the services that increase their entitlement of future compensated
absences; and(b) in case of non-accumulating compensated absences, when
the absences occur.
2.13 Segment reporting
Business Segments :The company is primarily engaged in business of
processing of fabrics and sale .The company also processes fabrics on
job work basis. However the revenue from processing on job work basis
during the year under review and in the preceding financial year is
less than 10% of the total revenue , the disclosure requirements of
Accounting Standard (AS-17) issued by the Institute of chartered
Accountants Of India are not applicable. Since there are no exports
reporting on geographical segments is not required.
2.16 Taxes on income
Tax expense comprises current and differed tax. Current tax is measured
at the amount expected to be paid to the tax authorities in accordance
with the Income tax Act ,1961.Deffered tax reflects the impact of the
current year timing differences between taxable income and accounting
income for the year and the reveresal of timing differences of earlier
years. Deffered Tax is measured based on the tax rate and tax laws
enacted or substantially enacted as at the balance sheet date.
2.17 Impairment of assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
profit and loss account in the year in which the which the asset is
identified as impaired. The impairment loss recognized in prior
accounting periods is reversed if there has been a change in the
estimates of recoverable amount.
2.14 Related party transactions Details of related parties: A) Related
party and their relationships :
i) Enterprises controlled by Director and Relatives.
Eske Tex (India) Private Limited Sunil Fabrics Private Limited
Sunil Synthetics Private Limited Sunil Prints Private Limited
Sunil EXIM Private Limited Sunil Bleaching Co. Private Limited
Apple Mines & Minerals Private Limited Rarefab Textiles pvt ltd
Name of Key Management
Personnel and their relatives :
Mr. Vinod Lath - Managing Director Mr. Laxmikant Lath  Son of Managing
Director
Mr. Ramesh Khanna- Whole time Director Mr. Pradeep Rungta  Whole time
Director
Mr. Prateek Rungta - Son of Director Mrs. Saroj Lath  Wife of Managing
Director
Mrs. Rashmi Khanna  Wife of the Director Mrs. Beena Rungta  Wife of
the Director
Mrs. Vandana Lath  Daughter-in-law of Managing Director
Note: Related parties have been identified by the Management.
2.18 Provisions and contingencies
A provision is recognized when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates. Contingent liabilities
are disclosed in the Notes.
Mar 31, 2014
1.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
2.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
2.3 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and deposits with banks. Cash equivalents
are short-term balances (with an original maturity of three months or
less from the date of acquisition), highly liquid investments that are
readily convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.
2.4 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
2.5 Depreciation and amortisation Accounting Policies:
Fixed Assets :
a) Gross Block :
All Fixed Assets are stated at cost.
b) Depreciation:
Depreciation on Plant & Machinery, Factory Building, Office Premises,
Godown at Bhiwandi, Residential Premises, Tube Well, Lab Equipments,
Computers and Electric Installations is provided on Straight Line
Method at the rates and in the manner specified in Schedule XIV of the
Companies Act, 1956 (the Act).
Depreciation on Furniture, Office Equipments and Vehicles is provided
on Written Down Value Method at the rates and in the manner specified
in Schedule XIV of the Act.
Depreciation on Additions to Fixed Assets during the year is calculated
on pro-rata basis.
2.6 Other income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive it is established.
2.8 Revenue recognition Sale of goods
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers.
2.9 Tangible fixed assets
All Fixed Assets are stated at cost less depreciation.
Fixed assets retired from active use and held for sale are stated at
the lower of their net book value and net realisable value and are
disclosed separately in the Balance Sheet.
2.10 Foreign currency transactions and translations Initial recognition
Transactions in foreign currencies entered into by the Company and its
integral foreign operations are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction.
Measurement of foreign currency monetary items at the Balance Sheet
date
Foreign currency monetary items (other than derivative contracts) of
the Company and its net investment in non-integral foreign operations
outstanding at the Balance Sheet date are restated at the year-end
rates. In the case of integral operations, assets and liabilities
(other than non-monetary items), are translated at the exchange rate
prevailing on the Balance Sheet date. Non-monetary items are carried at
historical cost. Revenue and expenses are translated at the average
exchange rates prevailing during the year. Exchange differences arising
out of these translations are charged to the Statement of Profit and
Loss.
Treatment of exchange differences
Exchange differences arising on settlement / restatement of short-term
foreign currency monetary assets and liabilities of the Company and its
integral foreign operations are recognised as income or expense in the
Statement of Profit and Loss. The exchange differences on restatement /
settlement of loans to non-integral foreign operations that are
considered as net investment in such operations are accumulated in a
"Foreign currency translation reserve" until disposal / recovery of the
net investment.The exchange differences arising on restatement /
settlement of long-term foreign currency monetary items are capitalised
as part of the depreciable fixed assets to which the monetary item
relates and depreciated over the remaining useful life of such assets
or amortised on settlement / over the maturity period of such items if
such items do not relate to acquisition of depreciable fixed assets.
The unamortised balance is carried in the Balance Sheet as "Foreign
currency monetary item translation difference account" net of the tax
effect thereon.
2.11 Investments
Long-term investments (excluding investment in properties), are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. Cost of
investments include acquisition charges such as brokerage, fees and
duties.
2.12 Employee benefits
Employee benefits include provident fund & gratuity fund.
Defined contribution plans:
The Company''s contribution to provident fund are considered as defined
contribution plans and are charged as an expense as they fall due based
on the amount of contribution required to be made.
Short-term employee benefits:
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees are recognised
during the year when the employees render the service. These benefits
include performance incentive and compensated absences which are
expected to occur within twelve months after the end of the period in
which the employee renders the related service. The cost of such
compensated absences is accounted as under :
(a) in case of accumulated compensated absences, when employees render
the services that increase their entitlement of future compensated
absences; and
(b) in case of non-accumulating compensated absences, when the absences
occur.
Segment reporting Business Segments :
The company is primarily engaged in business of processing of fabrics
and sale. The company also processes fabrics on job work basis. However
the revenue from processing on job work basis during the year under
review and in the preceding financial year is less than 10% of the
total revenue, the disclosure requirements of Accounting Standard
(AS-17) issued by the Institute of chartered Accountants of India are
not applicable. Since there are no exports reporting on geographical
segments is not required.
Related party transactions
Details of related parties:
A) Related party and their relationships :
i) Enterprises controlled by Director and Relatives.
Eske Tex (India) Private Limited Sunil Fabrics Private Limited Sunil
Synthetics Private Limited Sunil Prints Private Limited Sunil EXIM
Private Limited Sunil Bleaching Co. Private Limited Apple Mines &
Minerals Private Limited Rarefab Textiles pvt ltd
Name of Key Management Personnel and their relatives :
Mr. Vinod Lath - Managing Director
Mr. Laxmikant Lath - Son of Managing Director
Mr. Ramesh Khanna - Whole time Director
Mr. Pradeep Rungta - Whole time Director
Mrs. Saroj Lath - Wife of Managing Director
Mrs. Rashmi Khanna - Wife of the Director
Mrs. Beena Rungta - Wife of the Director
Mrs. Vandana Lath - Daughter-in-law of Managing Director
Note: Related parties have been identified by the Management.
2.16 Taxes on income
Tax expense comprises current and deffered tax. Current tax is measured
at the amount expected to be paid to the tax authorities in accordance
with the Income tax Act ,1961.Deffered tax reflects the impact of the
current year timing differences between taxable income and accounting
income for the year and the reveresal of timing differences of earliers
years. Deffered Tax is measured based on the tax rate and tax laws
enacted or substantially enacted as at the balance sheet date.
2.17 Impairment of assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
profit and loss account in the year in which the which the asset is
identified as imparied. The impairment loss recognized in prior
accounting periods is reversed if there has been a change in the
estimates of recoverable amount.
2.18 Provisions and contingencies
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates. Contingent liabilities
are disclosed in the Notes.
Mar 31, 2013
1.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention.The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
1.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
1.3 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and deposits with banks. Cash equivalents
are short-term balances (with an original maturity of three months or
less from the date of acquisition), highly liquid investments that are
readily convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.
1.4 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
1.5 Depreciation and amortisation Accounting Policies:
Fixed Assets :
a) Gross Block :
All Fixed Assets are stated at cost.
b) Depreciation:
Depreciation on Plant & Machinery, Factory Building, Office Premises,
Godown at Bhiwandi, Residential Premises, Tube Well, Lab Equipments,
Computers and Electric Installations is provided on Straight Line
Method at the rates and in the manner specified in Schedule XIV of the
Companies Act, 1956 (the Act).
Depreciation on Furniture, Office Equipments and Vehicles is provided
on Written Down Value Method at the rates and in the manner specified
in Schedule XIV of the Act.
Depreciation on Additions to Fixed Assets during the year is calculated
on pro-rata basis.
1.6 Other income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the rightto receive it is established.
1.7 Revenue recognition
Sale of goods
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers.
1.8 Tangiblefixed assets
All Fixed Assets are stated at cost less depreciation.
Fixed assets retired from active use and held for sale are stated at
the lower of their net book value and net realisable value and are
disclosed separately in the Balance Sheet.
1.9 Foreign currency transactions and translations
Initial recognition
Transactions in foreign currencies entered into by the Company and its
integral foreign operations are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction.
Measurement of foreign currency monetary items at the Balance Sheetdate
Foreign currency monetary items (other than derivative contracts) of
the Company and its net investment in non-integral foreign operations
outstanding at the Balance Sheet date are restated at the year-end
rates.In the case of integral operations, assets and liabilities (other
than non- monetary items), are translated at the exchange rate
prevailing on the Balance Sheetdate. Non- monetary items are carried at
historical cost. Revenue and expenses are translated at the average
exchange rates prevailing during the year. Exchange differences arising
out of these translations are charged to the Statement of Profit and
Loss.
Treatment of exchange differences
Exchange differences arising on settlement / restatement of short-term
foreign currency monetary assets and liabilities of the Company and its
integral foreign operations are recognised as income or expense in the
Statement of Profit and Loss. The exchange differences on restatement /
settlement of loans to non-integral foreign operations that are
considered as net investment in such operations are accumulated in a
"Foreign currency translation reserve" until disposal / recovery of the
net investment.The exchange differences arising on restatement /
settlement of long-term foreign currency monetary items are capitalised
as part of the depreciable fixed assets to which the monetary item
relates and depreciated over the remaining useful life of such assets
or amortised on settlement / over the maturity period of such items if
such items do not relate to acquisition of depreciable fixed assets.
The unamortised balance is carried in the Balance Sheet as "Foreign
currency monetary item translation difference account" net of the tax
effect thereon.
1.10 Investments
Long-term investments (excluding investment in properties), are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. Cost of
investments include acquisition charges such as brokeraae. fees and
duties.
1.11 Employee benefits
Employee benefits include provident fund & gratuity fund.
Defined contribution plans:
The Company''s contribution to provident fund are considered as defined
contribution plans and are charged as an expense as they fall due based
on the amount of contribution required to be made.
Short-term employee benefits:
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees are recognised
during the year when the employees render the service. These benefits
include performance incentive and compensated absences which are
expected to occur within twelve months after the end of the period in
which the employee renders the related service. The cost of such
compensated absences is accounted as under:
(a) in case of accumulated compensated absences, when employees render
the services that increase their entitlement of future compensated
absences; and
1.12 Segment reporting
Business Segments :
The company is primarily engaged in business of processing of fabrics
and sale The company also processes fabrics on job work basis. However
the revenue from processing on job work basis during the year under
review and in the preceding financial year is less than 10% of the
total revenue , the disclosure requirements of Accounting Standard
(AS-17) issued by the Institute of chartered Accountants Of India are
not applicable. Since there are no exports reporting on geographical
segments is not required.
1.13 Related party transactions Details of related parties: A) Related
party and their relationships :
I) Enterprises controlled by Director and Relatives. Eske Tex (India)
Private Limited Sunil Fabrics Private Limited Sunil Synthetics Private
Limited Sunil Prints Private Limited Sunil EXIM Private Limited Sunil
Bleaching Co. Private Limited Apple Mines & Minerals Private Limited
Rarefab Textiles Private Limited
Name of Key Management Personnel and their relatives :
Mr. Vinod Lath - Managing Director
Mr. Laxmikant Lath - Son of Managing Director
Mr. Ramesh Khanna- Whole time Director
Mr. Pradeep Roongta - Whole time Director
Mrs. Saroj Lath - Wfe of Managing Director
Mrs. Rashmi Khanna -Wfe of the Director
Mrs. Beena Roongta -Wife of the Director
Mrs. Vandana Lath - Daughter-in-law of Managing Director
Note: Related parties have been identified by the Management.
1.14 Taxes on income
Tax expense comprises current and deffered tax.Current tax is measured
at the amount expected to be paid to the tax authorities in accordance
with the Income tax Act ,1961 .Deffered tax reflects the impact of the
current year timing differences between taxable income and accounting
income for the year and the reveresal of timing differences of earliers
years.Deffered Tax is measured based on the tax rate and tax laws
enacted or substantially enacted as at the balance sheet date.
1.15 Impairment of assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
profit and loss account in the year in which the which the asset is
identified as imparled. The impairment loss recognized in prior
accounting periods is reversed if there has been a change in the
estimates of recoverable amount.
1.16 Provisions and contingencies
Aprovision is recognised when the Company has a present obligation as a
result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates. Contingent liabilities
are disclosed in the Notes.
1.17 Contingent Liabilities not provided for:
Earnings per quity share is computed as under- 31/3/2013 31/3/2012
Rs. In Lakhs Rs. In Lakhs
I) Disputed Excise Duty
liability 457.85 457.85
ii) Disputed Customs Duty
liability of M/s. Sunil
Impex, a firm in
which the company was an
erstwhile partner sharing
80% profit and loss
(to the extent of the profit
and loss sharing ratio). 336.00 336.00
iii) Bank Guarantee 281.27 356.44
Mar 31, 2010
I) Fixed Assets :
a) Gross Block:
All Fixed Assets are stated at cost.
b) Depreciation:-
- Depreciation on Plant & Machinery, Factory Building, Office Premises,
Godown at Bhiwandi, Residential Premises, Tube Well, Lab Equipments,
Computers and Electric Installations is provided on Straight Line
Method at the rates and in the manner specified in Schedule XIV of the
Companies Act, 1956 (the Act).
- Depreciation on Furniture, Office Equipments and Vehicles is provided
on Written Down Value , Method at the rates and in the manner specified
in Schedule XIV of the Act.
Depreciation on Additions to Fixed Assets during the year is calculated
on pro-rata basis.
ii) Borrowing Cost:
Borrowing costs attributable to fixed assets are capitalised as a part
of the cost of such assets upto the date when such assets are ready for
its intended use. Other borrowing costs are charged to the Profit &
Loss Account.
iii) Investments:
Investments are stated at the cost of acquisition.
iv) inventories:
a) Stock of Raw Material is valued at lower of Cost determined on FIFO
basis or net realisable value.
b) Color, Chemicals, Dyes, Stores and Coal is valued at Cost.
c) Finished Goods are valued at cost or net realizable value whichever
is lower. The cost includes manufacturing expenses and appropriate
overheads.
v) Method of Accounting:
The books of accounts are maintained on accrual basis.
vi) Retirement Benefits:
Retirement benefits and schemes are administered through approved funds
made in accordance with actuarial valuation/premium demanded by Life
Insurance Corporation of India, and are charged to Profit and Loss
Account.
vii) Impairment of assets:
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An important loss is charged to the
profit and loss account in the year in which the asset is identified as
impaired. The impairment loss recognized in prior accounting periods is
reversed if there has been a change in the estimate of recoverable
amount.