Accounting Policies of Thambbi Modern Spinning Mills Ltd. Company

Mar 31, 2015

A) General

The accounts have been prepared under historical cost convention and conform to the statutory provisions and prevailing practices.

b) Fixed Assets

Expenditure, which results in the creation of new independent assets with an economic life of a sizeable period and considering the nature of the assets is capitalized. Fixed assets are depreciated on Straight Line Method (SLM) by taking useful life of assets prescribed under Schedule II of the Companies Act 2013.

C) Employee Benefits

The company does not have any manufacturing /commercial activity .Hence there are no permanent workers / employees at the end of the year. Accordingly there are no liabilities regarding Bonus, Gratuity and Leave Encashment.

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Mar 31, 2014

A) General

The accounts have been prepared under historical cost convention and conform to the statutory provisions and prevailing practices.

b) Fixed Assets

Expenditure, which results in the creation of new independent assets with an economic life of a sizeable period and considering the nature of the assets is capitalized. Fixed assets are depreciated on Straight Line Method (SLM) at the rates prescribed for the corresponding assets under Schedule XIV of the Companies Act, 1956.

c) Inventories

(i) Stores, packing materials, cotton and usable waste cotton are valued at Cost. Cost includes all expenditure incurred till the stage of putting them into use for the purpose for which it is intended.

(ii) Yarn and saleable waste are valued at lower of cost or net realisable value.

d) Employee Benefits

(i) Gratuity : Provision is made on the actuarial valuation in accordance with AS15 (Revised)

(ii) Leave SalaryA/Vages : The Company does not have the policy of accumulation and encashment of Leave.

e) Foreign Currency Transactions

Foreign currency transactions are recorded at the rates prevailing at the date of transactions .Any exchange difference on realization is accounted in the profit and loss account. Outstanding balances are converted at the exchange rates on the last date of the financial year and the difference is adjusted in the profit and loss account.

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Mar 31, 2013

A) General

The accounts have been prepared under historical cost convention and conform to the statutory provisions and prevailing practices.

b) Fixed Assets

Expenditure, which results in the creation of new independent assets with an economic life of a sizeable period and considering the nature of the assets is capitalized. Fixed Assets are depreciated on Straight Line Method (SLM) at the rates prescribed for the corresponding assets under Schedule XIV of the Companies Act, 1956.

c) Inventories

(i) Stores, packing materials, cotton and usable waste cotton are valued at Cost. Cost includes all expenditure incurred till the stage of putting them into use for the purpose for which it is intended.

(ii) Yarn and saleable waste are valued at lower of cost or net realizable value.

d) Employee Benefits

(i) Gratuity: Provision is made based on the actuarial valuation obtained in accordance with AS15 (Revised)

(ii) Leave Salary/Wages : The Company does not have the policy of year and the difference is adjusted in the Profit and Loss Account.

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Mar 31, 2012

A) General

The accounts have been prepared under historical cost convention and conform to the statutory provisions and prevailing practices.

b) Fixed Assets

Expenditure, which results in the creation of new independent assets with an economic life of a sizeable period and considering the nature of the assets is capitalised. Fixed Assets are depreciated on Straight Line Method (SLM) at the rates prescribed for the corresponding assets under Schedule XIV of the Companies Act, 1956.

c) Inventories

(i) Stores, packing materials, cotton and usable waste cotton are valued at Cost. Cost includes all expenditure incurred till the stage of putting them into use for the purpose for which it is intended.

(ii) Yarn and saleable waste are valued at lower of cost or net realisable value.

d) Employee Benefits

(i) Gratuity: Provision is made based on the actuarial valuation obtained in accordance with AS 15 (Revised)

(ii) Leave Salary/Wages : The Company does not have the policy of accumulation and encashment of Leave.

e) Foreign Currency Transactions

Foreign currency transactions are recorded at the rates prevailing at the date of transactions. Any exchange difference on realisation is accounted in the Profit and Loss Account. Outstanding balances are converted at the exchange rates on the last date of the financial year and the difference is adjusted in the Profit and Loss Account.

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Mar 31, 2010

(a) General

The accounts have been prepared under historical cost convention and conform to the statutory provisions and prevailing practices.

(b) Fixed Assets

Expenditure, which results in the creation of new independent assets with an economic life of a sizeable period and considering the nature of the assets is capitalised. Fixed Assets are depreciated on Straight Line Method (SLM) at the rates prescribed for the corresponding assets under Schedule XIV of the Companies Act, 1956.

(c) Inventories

(i) Stores, packing materials, cotton and usable waste cotton are valued at Cost. Cost includes all expenditure incurred till the stage of putting them into use for the purpose for which it is intended.

(ii) Yarn and saleable waste are valued at lower of cost or net realisable value.

(d) Employee Benefits (i) Gratuity

Provision is made based on the actuarial valuation obtained in accordance with AS15 (Revised)

(iii) Leave Salary/Wages

The Company does not have the policy of accumulation and encashment of Leave.

e) Foreign Currency Transactions

Foreign currency transactions are recorded at the rates prevailing at the date of transactions. Any exchange difference on realisation is accounted in the Profit and Loss Account. Outstanding balances are converted at the exchange rates on the last date of the financial year and the difference is adjusted in the Profit and Loss Account.