Mar 31, 2015
A. Basis & Method of Accounting:
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis except for certain financial
instruments which are measured at fair values. GAAP comprises mandatory
accounting standards as prescribed under Section 133 of the Companies
Act, 2013 ('the Act'), read with Rule 7 of the Companies (Accounts)
Rules, 2014 and guidelines issued by the Securities and Exchange Board
of India (SEBI). Accounting policies have been consistently applied
except where a newly issued accounting standard is initially adopted or
a revision to an existing accounting standard requires a change in the
accounting policy hitherto in use.
b. Use of Estimates:
The preparation of financial statements is conformity with generally
accepted Accounting principles requires the management to make
estimates and assumptions that affects the reported balances of assets
and liabilities as of the date of financial statement and reported
amount of income and expenses during the year.
Accounting estimates could change from period to period. Actual results
could differ from those estimates. Appropriate changes in estimates are
made as the Management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made and, if
material, their effects are disclosed in the notes to the financial
statements.
c. Fixed Assets:
Tangible assets are stated at cost, less accumulated depreciation and
impairment, if any. Direct costs are capitalized until such assets are
ready for use. Capital work-in-progress comprises the cost of fixed
assets that are not yet ready for their intended use at the reporting
date.
d. Impairment of Assets:
The carrying amount of assets are reviewed at each Balance Sheet date,
if there is any indication of impairment based on internal / external
factors. An asset is impaired when the carrying amount of the asset
exceed the recoverable amount. An impairment loss is charged to the
Profit and Loss Account in the year in which the asset is identified as
being impaired.
e. Depreciation:
The depreciation on Fixed Assets is provided on straight line method,
in accordance with the Schedule II to the companies Act, 2013. The
depreciation on Assets added during the year has been provided on
pro-rata basis with reference to the date on which the assets were put
to use. No depreciation has been provided on the fixed assets, which
have not been put to use during the year end.
f. Revenue recognition:
Sales represent invoice value of goods supplied and service rendered,
including Sales Tax applicable and are net of rate difference and goods
returned.
g. Inventories:
Inventories are valued at cost or net realizable value whichever is
lower. The cost is worked out on weighted average basis.
h. Research and Development Expenses:
Expenditure relating to capital items is debited to fixed assets and
depreciated at applicable rates. Revenue expenses are charged to profit
& loss account of the year.
i. Retirement Benefits:
Retirement benefits are given as per term & condition of contract with
employee. Short term employee's benefits are recognized at the
undiscounted amount in the profit and loss account.
j. Taxation:
Income-tax expenses comprise current tax and deferred tax charge or
credit. The Deferred tax asset and deferred tax liability is calculated
by applying tax rate and Tax laws that have been enacted or
substantially enacted by the Balance Sheet date. Deferred tax Assets
arising mainly on account of brought forward losses And unabsorbed
depreciation under tax laws, are recognized, only if there is a Virtual
certainty of its realization, supported by convincing evidence.
Deferred tax Liability on account of other timing differences is
recognized only to the extent there is a reasonable certainty of its
realization. At each Balance Sheet date, the Carrying amount of
deferred tax assets is reviewed to reassure realization.
k. Earning Per Shares:
The earnings considered in ascertaining the Company's EPS are
computed as per Accounting Standard 20 on "Earning Per Share",
issued by the Institute of Chartered Accountants of India. The number
of shares used in computing basic EPS is the weighted average number of
shares outstanding during the period. The diluted EPS is calculated on
the same basis as Basic EPS, after adjusting for the effects of
potential dilutive equity shares unless the effect of the potential
dilutive equity shares is anti-dilutive.
l. Segment Reporting:
The Company is engaged in the textile fabric and allied services
thereof being a single segment hence disclosure as requirements of
Accounting Standard AS-17 issued by the Institute of Chartered
Accountants of India is not applicable
m. Other Accounting policies:
These are consistent with generally accepted accounting practices.
Mar 31, 2014
A) The books of accounts are maintained on accrual basis.
b) Dividend Income in the books is accounted when right to receive the
payment is established
c) Fixed Assets are stated at historical cost.
d) Depreciation has been provided on Written down value method at the
rates specified in schedule XIV of the Companies Act, 1956.
e) Long Term Investments are stated at cost. Cost is determined on
average method.
f) Stock in Trade quoted (Shares & debentures) are shown at Cost or
Market value whichever is lower.
g) Stock in Trade unquoted (Shares & debentures) are shown at Cost h)
Taxation
i. Income-tax expenses comprise current tax and deferred tax charge or
credit
ii. The deferred tax asset and deferred tax liability is calculated by
applying tax rate and tax loss that have been enacted or substantially
enacted by the Balance Sheet date.
iii. Deferred tax assets arising mainly on account of brought forward
losses and unabsorbed depreciation under tax laws, are recognised, only
if there is a virtual certainly of its realisation, supported by
convincing evidence. Deferred tax assets on account of other timing
differences are recognised only to the extent there is a reasonable
certainty of its realisation.
iv. At each Balance Sheet date, the carrying amount of deferred tax
assets is reviewed to reassure realisation.
i) Other Accounting Policies are consistent with generally accepted
account practices.
Mar 31, 2012
A) The books of accounts are maintained on accrual basis.
b) Dividend Income in the books is accounted when right to receive the
payment is established
c) Fixed Assets are stated at historical cost.
d) Depreciation has been provided on Written down value method at the
rates specified in schedule XIV of the Companies Act, 1956.
e) Long Term Investments are stated at cost. Cost is determined on
average method.
f) Stock in Trade quoted (Shares & debentures) are shown at Cost or
Market value whichever is lower.
g) Stock in Trade unquoted (Shares & debentures) are shown at Cost. h)
Taxation
i. Income-tax expenses comprise current tax and deferred tax charge or
credit
ii. The deferred tax asset and deferred tax liability is calculated by
applying tax rate and tax loss that have been enacted or substantially
enacted by the Balance Sheet date.
iii. Deferred tax assets arising mainly on account of brought forward
losses and unabsorbed depreciation under tax laws, are recognized, only
if there is a virtual certainly of its realization, supported by
convincing evidence. Deferred tax assets on account of other timing
differences are recognized only to the extent there is a reasonable
certainty of its realization.
iv. At each Balance Sheet date, the carrying amount of deferred tax
assets is reviewed to reassure realization.
h) Other Accounting Policies are consistent with generally accepted
account practices.
Mar 31, 2010
A) The books of accounts are maintained on accrual basis.
b) Dividend Income in the books is accounted when right to receive the
payment is established
c) Fixed Assets are stated at historical cost.
d) Depreciation has been provided on Written down value method at the
rates specified in schedule XIV of the Companies Act, 1956.
e) Long Term Investments are .stated at cost. Cost is determined on
average method.
f) Stock in Trade quoted (Shares & debentures) are shown at Cost or
Market value whichever is lower.
g) Stock in Trade unquoted (Shares & debentures) are shown at Cost.
h) Taxation
i. Income-tax expenses comprise current tax and deferred tax charge or
credit
ii. The deferred tax asset and deferred tax liability is calculated by
applying tax rate and tax loss that have been enacted or substantially
enacted by the Balance Sheet date.
iii. Deferred tax assets arising mainly on account of brought forward
losses and unabsorbed depreciation under tax laws, are recognised, only
if there is a virtual certainly of its realisation, supported by
convincing evidence. Deferred tax assets on account of other timing
differences are recognised only to the extent there is a reasonable
certainty of its realisation.
iv. At each Balance Sheet date, the carrying amount of deferred tax
assets is reviewed to reassure realisation.
i) Other Accounting Policies are consistent with generally accepted
account practices.
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