Accounting Policies of Veekayem Fashion and Apparels Ltd. Company

Mar 31, 2025

1 Corporate Information

Veekayem Fashion And Apparels Ltd.(the Company) was incorporated on 17th September 1985 Under companies act 1956.

The company is engaged in the manufacturing of processing,manufacturing, dyeing ,printing,finishing, weaving,twisting, texturising, dobling,s elling buying exporting and otherwise dealing in as wholeseller,retailers, principlaes, broker and commission agent in all types of wearable and non wearable textiles,synthetic texties and goods,cloth fabric,yarn,cotton silk,rayon,nylon, polyster yarn man made synthetic filamets and fibres , wool linen. Terelene and tere cotton.

2 Summary of Significant Accounting Policies

(a) Basis of Accounting

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principle ("GAAP") in conformity with the provisions of the Companies Act, 2013 and Accounting Standards issued by the Institute of Chartered Accountants of India.

The preparation of Financial Statements in conformity with GAAP required that the management of the company makes estimates & assumption that affect the reported amounts of Income & Expenses of the year, the reported balances of Assets & Liabilities and the disclosers relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of tangible & intangible fixed assets, provision for doubtful debts/advances etc. Actual result could differ from these estimates and would be recognized in the period in which the results are known.

(b) Revenue Recognition

(a) Fee collection from the users of facility is accounted for as and when the amount is due and recovery is certain.

(b) Interest income is accrued at applicable rates

(c) Other items of income are accounted for as and when the right to receive arises.

(c) Inventories

Inventories of Raw Materials,Packing Material, Stores and Spares are valued ''at cost''. Finished Good and Work in Progress are stated ''at cost or net realisable value, whichever is lower''. Cost comprises all cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

(d) Fixed Assets

Tangible

Tangible Fixed Assets are stated at the cost of acquisition less accumulated depreciation. Cost of acquisition is inclusive of freight, insurance, duties, levies and all incidentals attributable to bringing the assets to its working condition.

(e) Depreciation & Amortization

Depreciation on tangible fixed assets has been provided on the SLM as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of the following categories of assets, wherein the life of the assets has been assessed as under based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc.

Depreciation on additions/ deductions is calculated pro-rata basis.

(f) Borrowing Cost

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such asset, till such time as the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

(g) Impairment of Assets

As at each Balance Sheet date, the carrying amount of assets are assessed for any indication of impairment so as to determine

- The provision for impairment loss, if any, required or

- The reversal, if any, required of impairment loss recognized in previous periods.

Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is determined:

- In the case of individual assets, at the higher of the net selling price and the value in use;

- In the cash generating unit (a group of assets that generates identified, independent cash flows), at the higher

of cash generating unit''s net selling price and the value in use;

(Value in use is determined as the present value of estimated future cash flows from the continuing use of an asset from its disposal at the end of its useful life)

(h) Taxes on Income

Tax on income for the current period is determined on the basis of taxable income and tax computed in accordance with the provisions of the Income tax is determined in accordance with the provisions of the Income Tax Act, 1961 and based on expected outcome of assesment/appeals.

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable income and accounting income that originate in one period if they are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(i) Provision, Contingent Liabilities and Contingent Assets

Provision are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

- The company has a present obligation as a result of a past event

- A Probable Outflow of resources Expected to Settle the Obligation and

- The amount of the obligation can be reliably estimated

Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received Contingent Liability is disclosed in the case of -A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

A possible obligation, unless the probability of outflow of resources is remote

Contingent Assets are neither recognized nor disclosed. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each balance sheet date.

(j) Foreign Currency Transaction

a) The reporting currency of the company is the Indian Rupee.

b) Foreign currency transactions are recorded on initial recognition in the foreign currency, using the exchange rate on the date of the transaction.

c) At each Balance Sheet date, foreign currency monetary items are reported using the closing rate.

Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date of monetary items at the closing rate are adjusted in pre-operative expenses.

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Mar 31, 2024

2 Summary of Significant Accounting Policies

(a) Basis of Accounting

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principle ("GAAP") in conformity with the provisions of the Companies Act, 2013 and Accounting Standards issued by the Institute of Chartered Accountants of India.

The preparation of Financial Statements in conformity with GAAP required that the management of the company makes estimates & assumption that affect the reported amounts of Income & Expenses of the year, the reported balances of Assets & Liabilities and the disclosers relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of tangible & intangible fixed assets, provision for doubtful debts/advances etc. Actual result could differ from these estimates and would be recognized in the period in which the results are known.

(b) Revenue Recognition

(a) Fee collection from the users of facility is accounted for as and when the amount is due and recovery is certain.

(b) Interest income is accrued at applicable rates

(c) Other items of income are accounted for as and when the right to receive arises.

(c) Inventories

Inventories of Raw Materials,Packing Material, Stores and Spares are valued ''at cost''. Finished Good and Work in Progress are stated ''at cost or net realisable value, whichever is lower''. Cost comprises all cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

(d) Fixed Assets

Tangible

Tangible Fixed Assets are stated at the cost of acquisition less accumulated depreciation. Cost of acquisition is inclusive of freight, insurance, duties, levies and all incidentals attributable to bringing the assets to its working condition.

(e) Depreciation & Amortization

Depreciation on tangible fixed assets has been provided on the SLM as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of the following categories of assets, wherein the life of the assets has been assessed as under based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc.

Depreciation on additions/ deductions is calculated pro-rata basis.

(f) Borrowing Cost

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such asset, till such time as the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

(g) Impairment of Assets

As at each Balance Sheet date, the carrying amount of assets are assessed for any indication of impairment so as to determine

- The provision for impairment loss, if any, required or

- The reversal, if any, required of impairment loss recognized in previous periods.

Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

Recoverable amount is determined:

- In the case of individual assets, at the higher of the net selling price and the value in use;

- In the cash generating unit (a group of assets that generates identified, independent cash flows), at the higher

of cash generating unit''s net selling price and the value in use;

(Value in use is determined as the present value of estimated future cash flows from the continuing use of an asset from its disposal at the end of its useful life)

(h) Taxes on Income

Tax on income for the current period is determined on the basis of taxable income and tax computed in accordance with the provisions of the Income tax is determined in accordance with the provisions of the Income Tax Act, 1961 and based on expected outcome of assesment/appeals.

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable income and accounting income that originate in one period if they are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

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Mar 31, 2023

2 Summary of Significant Accounting Policies

(a) Basis of Accounting

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principle ("GAAP") in conformity with the provisions of the Companies Act, 2013 and Accounting Standards issued by the Institute of Chartered Accountants of India.

The preparation of Financial Statements in conformity with GAAP required that the management of the company makes estimates & assumption that affect the reported amounts of Income & Expenses of the year, the reported balances of Assets & Liabilities and the disclosers relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of tangible & intangible fixed assets, provision for doubtful debts/advances etc. Actual result could differ from these estimates and would be recognized in the period in which the results are known.

(b) Revenue Recognition

(a) Fee collection from the users of facility is accounted for as and when the amount is due and recovery is certain.

(b) Interest income is accrued at applicable rates

(c) Other items of income are accounted for as and when the right to receive arises.

(c) Inventories

Inventories of Raw Materials,Packing Material, Stores and Spares are valued ''at cost''. Finished Good and Work in Progress are stated ''at cost or net realisable value, whichever is lower''. Cost comprises all cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

(d) Fixed Assets

Tangible

Tangible Fixed Assets are stated at the cost of acquisition less accumulated depreciation. Cost of acquisition is inclusive of freight, insurance, duties, levies and all incidentals attributable to bringing the assets to its working condition.

(e) Depreciation & Amortization

Depreciation on tangible fixed assets has been provided on the SLM as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of the following categories of assets, wherein the life of the assets has been assessed as under based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc.

Depreciation on additions/ deductions is calculated pro-rata basis.

(f) Borrowing Cost

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such asset, till such time as the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

(g) Impairment of Assets

As at each Balance Sheet date, the carrying amount of assets are assessed for any indication of impairment so as to determine

- The provision for impairment loss, if any, required or

- The reversal, if any, required of impairment loss recognized in previous periods.

Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

Recoverable amount is determined:

- In the case of individual assets, at the higher of the net selling price and the value in use;

- In the cash generating unit (a group of assets that generates identified, independent cash flows), at the higher

of cash generating unit''s net selling price and the value in use;

(Value in use is determined as the present value of estimated future cash flows from the continuing use of an asset from its disposal at the end of its useful life)

(h) Taxes on Income

Tax on income for the current period is determined on the basis of taxable income and tax computed in accordance with the provisions of the Income tax is determined in accordance with the provisions of the Income Tax Act, 1961 and based on expected outcome of assesment/appeals.

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable income and accounting income that originate in one period if they are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.