Mar 31, 2014
I) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
a) The financial statements are prepared under the historical cost
convention as a going concern.
b) The Company follows the mercantile system of Accounting and
recognises Income and Expenditure on Accrual basis. Accounting policies
not specifically referred to otherwise are consistent and in consonance
with the generally accepted accounting principles.
ii) SALES
Sales are inclusive of excise duty, if any. However, goods produced
after 7th July, 2004 is exempt from excise duty.
iii) FIXED ASSETS AND DEPRECIATION
a) VALUATION OF FIXED ASSETS
Fixed assets are stated at cost of acquisition inclusive of all
incidental expenses related thereto.
b) DEPRECIATION
Depreciation on all fixed assets have been provided on pro-rata basis
on Written Down Value Method and at the rates specified in Schedule XIV
of the Companies Act, 1956.
iv) INVENTORIES
The method of inventories valuation has been adopted as follows:- Raw
Material, Stores and spares, finished goods is valued at lower of cost
or net realisable value. Cost is determined on FIFO basis. Work in
Process is valued at estimated cost or net realisable value whichever
is lower. Cotton Waste is valued at estimated net realisable value.
Finished goods and Work in Progress includes cost of conversion and
other overheads incurred in bringing the inventories to their present
location and condition.
v) INVESTMENTS
Long Term Investments are stated at cost. In case there is permanent
diminution in the value of investments, provision for the same is made
in the accounts.
vi) RETIREMENT BENEFITS
Liability in respect of retirement benefits is provided and / or funded
and charged to profit and loss account as follows:- a) Provident/Family
Pension as a percentage, of salary/ wages for eligible employees. b)
Gratuity is accounted for on accrual basis, on the basis of actuarial
valuation.
vii) TAXATION
a) Provision is made for income-tax liability estimated to arise on the
results for the year at the current rate of tax in accordance with
Income- Tax Act, 1961.
b) Deferred tax is accounted at the current rate of tax to the extent
of temporary timing differences that originates in one year and are
capable of reversal in one or more subsequent years. However, no
deferred tax asset is created where there is no virtual certainty as to
the sufficient future taxable profit.
viii) CONTINGENT LIABILITIES
Contingent Liabilities are not provided for in the accounts and are
disclosed by way of note.
Mar 31, 2012
I) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
a) The financial statements are prepared under the historical cost
convention as a going concern.
b) The Company follows the mercantile system of Accounting and
recognizes Income & Expenditure on Accrual basis. Accounting policies
not specifically referred to otherwise are consistent and in consonance
with the generally accepted accounting principles.
ii) SALES
Sales are inclusive of excise duty, if any. However, goods produced
after la July, 2004 is exempt from excise duty.
iii) FIXED ASSETS AND DEPRECIATION
a) VALUATION OF FIXED ASSETS
Fixed assets are stated at cost of acquisition inclusive of all
incidental expenses related thereto.
b) DEPRECIATION
Depreciation on all fixed assets have been provided on pro-rata basis
on Written Down Value Method and at the rates specified in Schedule XIV
of the Companies Act, 1956.
iv) INVENTORIES
The method of inventories valuation has been adopted as follows:- Raw
Material, Stores and spares, finished goods is valued at lower of cost
or net realisable value. Cost is determined on FIFO basis. Work in
Process is valued at estimated cost or net realisable value whichever
is lower. Cotton W aste is valued at estimated net realisable value.
Finished goods and Work in Progress includes cost of conversion and
other overheads incurred in bringing the inventories to their present
location and condition.
v) INVESTMENTS
Long Term Investments are stated at cost. In case there is permanent
diminution in the value of investments, provision for the same is made
in the accounts.
vi) RETIREMENT BENEFITS Liability in respect of retirement benefits is
provided and / or funded and charged to profit and loss account as
follows:-
a) Provident/Family Pension as a percentage, of salary/ wages for
eligible employees.
b) Gratuity is accounted for on accrual basis, on the basis of
actuarial valuation. vii) TAXATION
(a) Provision is made for income-tax liability estimated to arise on
the results for the year at the current rate of tax in accordance with
Income- Tax Act, 1961.
(b) No Deferred tax assets has been created in view of the virtual
certainty supported by enhancing evidence that sufficient taxable
income will be available in the next year against which the deferred
assets can be realized.
viii) CONTINGENT LIABILITIES
Contingent Liabilities are not provided for in the accounts and are
disclosed by way of note.
Mar 31, 2010
I) a) The financial statements are prepared under the historical cost
convention as a going concern.
b) The Company follows the mercantile system of Accounting and
recognizes Income & Expenditure on Accrual basis. Accounting policies
not specifically referred to otherwise are consistent and in consonance
with the generally accepted accounting principles.
ii) SALES
Sales are inclusive of excise duty, if any. However, goods produced
after 7th July,2004 is exempt from excise duty.
iii) FIXED ASSETS AND DEPRECIATION
a) VALUATION OF FIXED ASSETS
Fixed assets are stated at cost of acquisition inclusive of all
incidental expenses related thereto.
b) DEPRECIATION
Depreciation on all fixed assets have been provided on pro-rata basis
for the period of use on Straight Line Method and at the rates
specified in Schedule XIV of the Companies Act, 1956.
iv) INVENTORIES
The method of inventories valuation has been adopted as follows:-
Raw Material, Stores and spares, finished goods is valued at lower of
cost or net realisable value. Cost is determined on FIFO basis.
Work in Process is valued at estimated cost or net realisable value
whichever is lower.
Cotton Waste is valued at estimated net realisable value.
Finished goods and Work in Progress includes cost of conversion and
other overheads incurred in bringing the inventories to their present
location and condition.
v) INVESTMENTS
Long Term Investments are stated at cost. In case there is permanent
diminution in the value of investments, provision for the same is made
in the accounts.
vi) RETIREMENT BENEFITS
Liability in respect of retirement benefits is provided and / or funded
and charged to profit and loss account as follows:-
a) Provident/Family Pension as a percentage, of salary/ wages for
eligible employees.
b) Gratuity is accounted for on accrual basis, on the basis of
actuarial valuation.
vii) TAXATION
(a) Provision is made for income-tax liability estimated to arise on
the results for the year at the current rate of tax in accordance with
Income- Tax Act, 1961.
(b) No Deferred tax assets has been created in view of the virtual
certainty supported by enhancing evidence that sufficient taxable
income will be available in the next year against which the deferred
assets can be realized.
viii) CONTINGENT LIABILITIES
Contingent Liabilities are not provided for in the accounts and are
disclosed by way of note.