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Accounting Policies of VTM Ltd. Company

Mar 31, 2017

Annexure X: Remuneration Policy Nomination and Remuneration Committee

The Nomination and Remuneration Committee comprises the Chairperson and Non-Executive Directors of the Company out of which at least one-half are Independent Directors and as such complies with the obligations of the Companies Act, 2013 and the corporate governance requirements of the Listing Agreement with stock exchanges. The Chairperson of this Committee is an Independent Director. The Chairperson of the Board of Directors is a member of this Committee but will not Chair this Committee.

The Committee operates under formal terms of reference which were approved by the Board on April 29,2014. These terms of reference have been prepared in a manner to generally maintain ovetall continuity with the nomination and remuneration policies of the company while complying with the Companies Act, 2013 and the Listing Agreements with stock exchanges.

Role and Responsibilities

The Committee’s foremost priorities are to ensure that the Company has the best possible leadership and maintains a clear plan for both Executive and Non-executive Director succession. The Committee also reviews senior management succession. Its prime focus is therefore on the strength of the Board and the senior management team and ensuring that appointments are made on merit, against objective criteria, selecting the best candidate for the post. 1 he Committee advises the Board on the appointments, retirements and resignations from the Board and its Committees. It also advises the Board on similar changes to the senior management of the Company.

The Committee and its members are empowered to obtain outside legal or other independent professional advice, at the cost of the Company, in relation to its deliberations and to secure the attendance at its meetings of any employee or other parties it considers necessary.

Criteria for appointments and independence of Directors

When considering appointments to the Board and its Committees, the Nomination and Remuneration Committee will draw up a specification for the role taking into consideration the balance of skills, knowledge and experience of its existing members, the diversity of the Board and the Company''s ongoing requirements. The Company believes that diversity underpins the successful operation of an effective Board and embraces diversity as a means of enhancing the business.

The recruitment process then focuses on appointing candidates who meet the criteria, who have the relevant professional knowledge, professional qualifications and experience. Successful candidates are likely to have demonstrable leadership qualities and interpersonal communication skills, act with integrity and have international business exposure is taken re that all proposal appointees have Submitted. time available to devote to ; the vol., are compliant with the roles, policies and values of our Company ''nil do not have any conflicts of interest.

On appointments or promotions the Committee will typically use the Remuneration Policy of the Company to determine ongoing remuneration. However, the Committee retains the discretion to make appropriate remuneration decisions outs.de the Standard Policy to meet specific circumstances.

Remuneration Policy i

The overarching philosophy for remuneration within the company is re attract, retain and I motivate individuals of the caliber necessary » successfully implement the Company s business strategy. In particular, this means ensuring that incentive plans are appropriate to encourage enhanced pertinence. and to avoid rewarding nadir performance In viewing and setting Company''s remuneration policy, the Committee seeks to balance the interests of its employees and those of its stakeholders, to support Company strategy and foster a h.gh performance culture, where, meaningful portion of remuneration is performance linked.

Remuneration Policy for Managing Director:

An appropriate level of remuneration may be set to ensure that the Company can appoint Managing Director of the necessary skill and experience by offering him market competitive remuneration reflecting his individual experience, role and contribution^ The appointment may

Before a tenure of such years from the date of his appointment not exceed the penodntems of Section 196 and as prescribed under Schedule V to the Companies Act, 2013. The individual''s performance will be reviewed annually by the Nomination and Remuneration Committee and recommended to the Board enabling it to decide the remuneration payable to the Managing Director.

The total remuneration package may be designed to provide an annual remunerate payable by way of commission and other perquisites as decided by the Board of Directors however, not exceeding 5% of the net profits of the company computed in accordance with the provisions o Sections 198 of the Companies Act. 2013 and as determined by the Board of Directors of t e

Company for each financial year within the maximum permissible limit. Further, m the even c his being Managing Director in any other company, such remuneration shall higher maximum limit admissible from any one of these companies, in terms of Schedule V the Companies Act, 2013.

The Managing Director is not entitled to sitting fees for attending meetings of Director or the Committees where he will be the Chairman/Member. He is entitled to have Chairman s Office at his convenience at company''s expenses. _

Remuneration Policy for Non-Executive Directors

Non-Executive Directors are entitled to sitting fees for attending meetings of the Board or its Committees at rates which are within the limits prescribed under the Companies Act, 2013. They are also entitled to commission on net profits, as determined by the Board from time to time, not exceeding 1% of the net profits of the Company for that year. The level of remuneration is set to attract and retain Non-Executive Directors of the necessary skill and experience by offering them market competitive remuneration.

Non-Executive Directors do not participate in Board discussions which relate to their own remuneration. They receive reimbursement of reasonable expenses incurred in attending the Board, Committee and other ad hoc meetings.

None of the Non-Executive Directors is entitled to receive compensation for loss of office at any time or participate in any retirement plans.

Non-Executive Independent Directors are appointed in compliance with the provisions of the Companies Act 2013 and must adhere to the Code for Independent Directors laid down under Schedule IV to the Companies Act, 2013 and retain their independence during the entire tenure of appointment as an Independent Director. The terms of service of Non-Executive Independent Directors are contained in letters of appointment issued to them after their appointment at a general meeting of the Company. The current policy for Non-Executive Independent Directors of the Company is to serve for a maximum period of two terms of five years each, with review at the end of the first five year term, subject always to mutual agreement and annual performance evaluation.

Remuneration is paid subject to deduction of Income Tax at source and payment of applicable Service Tax.

Remuneration to Senior Management Personnel

An appropriate level of remuneration is set to ensure that the Company is able to recruit and retain senior management with the necessary skills, professional qualifications, experience, international exposure and compliance with the rules and policies of the Company. Market competitive remuneration is offered to individuals reflecting their experience, role and contribution within the Company. The individual''s performance is reviewed from time to time with changes in remuneration normally. In considering any increase in base salary the Committee will mainly consider the role, changes in job scope, responsibility and complexity and the need to maintain market competitiveness. Total remuneration package is designed to provide an appropriate balance between fixed and variable components with a focus on long term variable pay so that strong performance is incentivized but without encouraging excessive risk taking.

Remuneration arrangements of Senior Management Personnel consist of the same elements as those of other employees i.e. Basic Salary, HRA and other allowances, retirement benefits (i.e. Provident Fund and Gratuity as per the Company''s Schemes applicable to all employees) and perquisites as per Rules of the Company applicable to all employees according to their seniority including corporate club membership, insurance, car and fuel perquisites.

As applicable to all employees, Senior Management Personnel are entitled to avail themselves of 30 days leave in a year and un-availed leave can be accumulated as per the rules of the Company up to a maximum of 30 days.

b) Rights, Preferences and restrictions attached to Equity Shares

I The Company has issued only one class of shares referred to as equity shares having paid up value of Rel/- per share and each shareholder is entitled 10 one vote per share.

2. The Company declares dividend on equity shares. In the event of declaration of interim dividend, the same is as per decision of the Board of Directors Final dividend is proposed by Board of Directors and approved by the shareholders of the Company at the Annual General Meeting.

3. In the event of liquidation, shareholder will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportionate to the no. of equity share held by the shareholder.

4. The Company has no Holding or Subsidiary Companies.

5. During the last five years immediately preceding the date of Balance Sheet, the company has neither issued any shares as Bonus shares nor for consideration other than cash and has not bought back any shares.

6. The Company had split its Rs.10/- paid up shares into Re.l/- paid up shares in October, 2012.

Additional Information :

Term loan under TUF Scheme availed from State Bank of India by securing first charge on the specific assets procured under TUF Scheme repayable in 5 years on half yearly basis. The repayment of TUF loan commenced from October,2014.

Term loan under ATUF Scheme availed from Exam Bank of India by securing first charge on the specific assets procured under ATUF Scheme repayable in 5 years on half yearly Basis. The repayment of ATUF Loan Commenced from December,2016 Term loan, out of 1046.30 lakhs a sum of Rs.348.06 lakhs payable during the year is shown in Other Current Liabilities under Current Maturities of Long Term Loan


Mar 31, 2016

30. NOTES ON ACCOUNTS

I. Statement of Significant Accounting Policies:-

Basis of preparation of Financial Statements:

AS - 1 Disclosure of accounting policies

The financial statements have been prepared on the basis of going concern, under the historic cost convention, to comply in all the material aspects with applicable accounting principles in India, the accounting standards notified under the Companies Act, 195 6 / Companies Act, 2013 as applicable.

AS-2 Valuation of inventories

a. Raw materials, components, stores and spares are valued at cost determined on weighted average basis. Work in process includes material cost and applicable direct overheads. Finished goods are valued at the aggregate of material cost and applicable direct and indirect overheads or market value whichever is lower.

b. The Excise Duty is exempt on finished grey goods.

c. There is no goods lying in customs bonded warehouses and hence the provision of duty does not arise.

AS 3 Cash flow statements

Cash flow statement has been prepared under "Indirect Method .

AS - 4 Contingencies and Events occurring after the Balance Sheet Date

There are no contingencies and events after the Balance Sheet date that affect the financial position of the company. Contested liabilities are disclosed by way of a note.

AS 5 Net profit or loss for the Year, prior period items and changes in accounting policies:

This is not applicable as there is no change in accounting policies.

AS - 6 Depredation accounting

1, Up to March 31,2014, depreciation has been provided in the accounts on the following basis, at the rates prescribed in Schedule XIV to the Companies Act, 1956,

(a) Plant and machinery other than Windmill:

I) On additions till 31st December 1977.

Under the written down value method.

ii) On additions from 1st January 1978.

Under straight line method at the rates specified in Clause (II)(i)(a).

(b) On all other Assets:

Under the written down value method.

(c) Windmill:

Under straight line method at the rates specified in Clause (II) (i) (b),

(d) In respect of additions during the year, full depreciation has been provided irrespective of the period of use. Similarly no depreciation to be provided on assets disposed off during the year.

2. Pursuant to the enactment of the Companies Act, 2013 (the ''Act''), the Company has, effective 1“ April 2014, reviewed and revised the estimated useful lives of its fixed assets, in accordance with the provisions of Schedule II of the Act and depreciation is now provided based on the remaining useful life of the asset.

AS - 7 Accounting for Construction contracts

The company is not engaged in any Construction business covered by this Standard.

AS - 8Aecounting for Research and Development

This standard stands withdrawn front the date of Accounting Standard 26 - Intangible Assets becoming mandatory.

AS - 9 Revenue recognition

a) Income and expenditure are accounted on a going concern basis.

b) Sales are recognized at the time of dispatches of the goods to the customers and recorded net of sales returns and includes export benefits.

c) Interest income is recognized on a time proportion on basis taking into account the amount of outstanding and rate applicable.

d) Dividend income: The company has derived income during the current year out of its investment and is recognized when the Company''s right to receive dividend is established.

e) Lease rentals in respect of assets given on “lease” arc taken to Profit & Loss Account under the head of Non-operative income on the basis of the terms and conditions specified in the lease agreement,

f) Income of Profit on sale of investments have been accounted on the basis of realization.

AS 10 Accounting for fixed assets

Fixed assets are stated at cost of acquisition which includes expenditure incurred up to the date the asset is put to use, less accumulated depreciation. Land is stated at cost or revaluation.

Building is stated at cost or revaluation less depreciation, Plant and Machinery etc., are stated at cost less depreciation.

AS -11 Accounting for effects in foreign exchange rates

a. Purchase of imported components and spare parts are accounted based on retirement memos from banks,

b. In respect of exports of cloth made on or before 31.03.2016, the amount due have been accounted at the rate at which the export bills were tendered to the Bank for Collection/ Discounting,

c. There is no year end foreign currency denominated liabilities and receivables.

d. Derivative Transactions:

The Company uses forward exchange contracts to hedge its exposure in foreign currency.

As on March 31,2016 there is no Foreign Exchange Contracts outstanding exposure.

No Mark to Market component arises as the Company do not have any outstanding contract as at the end of the year.

AS - 12 Accounting for Government Grants

The company is availing Duty Drawback subsidy and the same is treated as revenue receipt.

AS-13 Accounting for Investments

Investments are stated at cost. Provision for diminution in the carrying cost of investments is made if such diminution is other than temporary in nature.

AS -14 Accounting for amalgamation

This standard is not applicable to the company for the year under review.

AS -15 Accounting for Retirement benefits

Gratuity with respect to defined benefit schemes are accrued based on actuarial valuations, carried out by an independent actuary as at the balance sheet date and being paid to Gratuity Fund.

The estimate of future salary increases considered in actuarial valuation lakes into account inflation, seniority, promotion and other relevant factors.

Provident Fund, Employees'' State Insurance Scheme and defined contribution plans are charged to the Profit and Loss Account when incurred.-6-

AS -16 Borrowing cost

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalized.

AS -17 Segment reporting

The Company operates in only one business segment viz. Textiles.

AS -18 Related party disclosure

Disclosure is made as per the requirements of the standard and as per the clarifications issued by the Institute of Chartered Accountants of India.

AS - 19 Leases

This standard is not applicable as the company does not have any finance lease agreement in force.

AS - 20 Earnings per share

The Disclosure is made in the Profit and Loss account as per requirement.

AS - 21 Consolidated financial statements

There is no subsidiary company and M/s. Colour Yams Limited, ceased to be an Associate company on and from 28,03.2016 and as such these standards are not applicable to the company.

AS-22 Accounting for taxes on income

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 the Income Tax Act, 1961.

Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation are recognized only when there is virtual certainty supported by convincing evidence that such assets will be realized. Deferred tax assets arising on other temporary timing differences are recognized only if there is a reasonable certainty of realization.

AS - 23 Accounting for Investments in Associates in Consolidated Financial Statements This standard is not applicable to the company for the year under review.

AS - 24 Discontinuing Operations:

This is not applicable to the Company,

AS-25 Interim Financial Reporting:

Quarterly financial results are published in accordance with the requirement of listing agreement with Stock Exchanges. The recognition and measurement principle as laid down in the standard have been followed in the preparation of these results.

AS - 26 Intangible Assets

The company has no intangible assets. Hence this is not applicable.

AS-27FinandalReporting of Interest in Joint Ventures

This standard is not applicable to the Company as the company does not have any joint venture.

AS - 28 Impairment of Assets

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is not less than the recoverable amount of such assets. Hence there is no impairment loss on the assets of the company.

AS - 29 Provisions, Contingent Liabilities and Contingent Assets

Contingent Liabilities are disclosed inNoteNo.2,

AS - 30 Financial Instruments: Recognition and Measurement This standard is not applicable to the company for the year under review.

AS-31 Financial Instruments: Presentation

This standard is not applicable to the company for the year under review.-8-

AS - 32 Financial Instruments: Disclosures

This standard is not applicable to the company for the year under review.


Mar 31, 2015

AS - 1 Disclosure of accounting policies

The financial statements have been prepared on the basis of going concern, under the historic cost convention, to comply in all the material aspects with applicable accounting principles in India, the accounting standards notified under the Companies Act, 1956 / Companies Act, 2013 as applicable.

AS - 2 Valuation of inventories

a. Raw materials, components, stores and spares are valued at cost determined on weighted average basis. Work in process includes material cost and applicable direct overheads. Finished goods are valued at the aggregate of material cost and applicable direct and indirect overheads or market value whichever is lower.

b. The Excise Duty is exempt on finished grey goods.

c. There is no goods lying in customs bonded warehouses and hence the provision of duty does not arise.

AS - 3 Cash flow statements

Cash flow statement has been prepared under "Indirect Method".

AS - 4 Contingencies and Events occurring after the Balance Sheet Date

There are no contingencies and events after the Balance Sheet date that affect the financial position of the company. Contested liabilities are disclosed by way of a note.

AS - 5 Net profit or loss for the Year, prior period items and changes in accounting policies:

This is not applicable as there is no change in accounting policies.

1. Upto March 31,2014, depreciation has been provided in the accounts on the following basis, at the rates prescribed in Schedule XIV to the Companies Act, 1956.

(a) Plant and machinery other than Windmill:

i) On additions till 31st December 1977. Under the written down value method.

ii) On additions from 1st January 1978. Under straight line method at the rates specified in Clause (II) (I) (a).

(b) On all other Assets: Under the written down value method.

(c) Windmill: Under straight line method at the rates specified in Clause (II) (I) (b).

(d) In respect of additions during the year, full depreciation has been provided irrespective of the period of use. Similarly no depreciation to be provided on assets disposed off during the year.

2. Pursuant to the enactment of the Companies Act, 2013 (the ''Act''), the Company has, effective 1st April 2014, reviewed and revised the estimated useful lives of its fixed assets, in accordance with the provisions of Schedule II of the Act and depreciation is now provided based on the remaining useful life of the asset. As a result of these changes the depreciation charge for the year ended March 31, 2015 is lesser by Rs. 157.32 Lakhs with a corresponding increase in the profit for the year.

3. Further in accordance with the transitional provision specified in Schedule II of the Act, the carrying amount of the Fixed Assets have been reviewed with the consequential impact relating to the period prior to April 1,2014 amounting to Rs.45.09 Lakhs has been adjusted with the General Reserve.

AS - 7 Accounting for Construction contracts

The company is not engaged in any Construction business covered by this Standard.

AS - 8 Accounting for Research and Development

This standard stands withdrawn from the date of Accounting Standard 26 Intangible Assets becoming mandatory.

AS - 9 Revenue recognition

a) Income and expenditure are accounted on a going concern basis.

b) Sales are recognized at the time of despatches of the goods to the customers and recorded net of sales returns and includes export benefits.

c) Interest income is recognized on a time proportion basis taking into account the amount of outstanding and rate applicable.

d) Dividend income: The company has derived income during the current year out of its investment and is recognized when the Company''s right to receive dividend is established.

e) Lease rentals in respect of assets given on "lease" are taken to Profit & Loss Account under the head of Non-operative income on the basis of the terms and conditions specified in the lease agreement.

AS -10 Accounting for fixed assets

Fixed assets are stated at cost of acquisition which includes expenditure incurred upto the date the asset is put to use, less accumulated depreciation. Land is stated at cost or revaluation. Building is stated at cost or revaluation less depreciation. Plant and Machinery etc., are stated at cost less depreciation.

AS - 11 Accounting for effects in foreign exchange rates

a. Purchase of imported components and spare parts are accounted based on retirement memos from banks.

b. In respect of exports of cloth made on or before 31.03.2015, the amount due have been accounted at the rate at which the export bills were tendered to the Bank for Collection/ Discounting.

c. There is no year end foreign currency denominated liabilities and receivables.

d. Derivative Transactions:

The Company uses forward exchange contracts to hedge its exposure in foreign currency.

As on March 31, 2015 there is no Foreign Exchange Contracts outstanding exposure.

No Mark to Market component arises as the Company do not have any outstanding contract as at the end of the year.

AS - 12 Accounting for Government Grants

During the year, the company has received a sum of Rs. 124.48 Lakhs as Capital subsidy under Technology Upgradation Fund (TUF) Scheme, a fund constituted by the Ministry of Textiles, Government of India.

The company has treated the same as capital receipt.

Further the company is availing Duty Drawback subsidy and the same is treated as revenue receipt.

AS - 13 Accounting for Investments

Investments are stated at cost. Provision for diminution in the carrying cost of investments is made if such diminution is other than temporary in nature.

AS - 14 Accounting for amalgamation

This standard is not applicable to the company for the year under review.

AS - 15 Borrowing cost

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalized.

AS - 16 Segment reporting

The Company operates in only one business segment viz. Textiles.

AS -17 Related party disclosure

Disclosure is made as per the requirements of the standard and as per the clarifications issued by the Institute of Chartered Accountants of India.

AS - 18 Leases

This standard is not applicable as the company does not have any finance lease agreement in force.

AS - 19 Earnings per share

The Disclosure is made in the Profit and Loss account as per requirement.

AS - 20 Consolidated financial statements

There is no subsidiary company and the company has one Associate company and the investments are held only for investment purposes.

AS - 21 Accounting for taxes on income

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 the Income Tax Act, 1961.

Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation are recognized only when there is virtual certainty supported by convincing evidence that such assets will be realized. Deferred tax assets arising on other temporary timing differences are recognized only if there is a reasonable certainty of realization.

AS - 22 Accounting for Investments in Associates in Consolidated Financial Statements

This standard is not applicable to the company for the year under review.

AS - 23 Discontinuing Operations:

This is not applicable to the Company.

AS - 24 Interim Financial Reporting:

Quarterly financial results are published in accordance with the requirement of listing agreement with Stock Exchanges. The recognition and measurement principle as laid down in the standard have been followed in the preparation of these results.

AS - 25 Intangible Assets

The company has no intangible assets. Hence this is not applicable.

AS - 26 Financial Reporting of Interest in Joint Ventures

This standard is not applicable to the Company as the company does not have any joint venture.

AS - 27 Impairment of Assets

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on intemal/extemal factors. Hence there is no impairment loss on the assets of the company requiring provisioning for the year under review.

AS - 28 Provisions, Contingent Liabilities and Contingent Assets Contingent Liabilities are disclosed in Note No.2.

AS - 29 Financial Instruments: Recognition and Measurement This standard is not applicable to the company for the year under review.

AS - 30 Financial Instruments: Presentation

This standard is not applicable to the company for the year under review.

AS - 31 Financial Instruments: Disclosures

This standard is not applicable to the company for the year under review.


Mar 31, 2014

Not Available


Mar 31, 2013

AS-1 Disclosure of Accounting Policies

The financial statements have been prepared on the basis of going concern, under the historic cost convention, to comply in all the material aspects with applicable accounting principles in India, the accounting standards notified under Section 211 (3C) of the Companies Act, 1956 and the relevant provision of the said Act.

AS-2 Valuation of Inventories

a) Raw materials, components, Stores and spares are valued at cost determined on weighted average basis. Work in process includes material cost and applicable direct overheads. Finished goods are valued at the aggregate of material cost and applicable direct and indirect overheads or market value whichever is lower.

b) The Excise Duty is exempt on finished grey goods.

c) There is no goods lying in customs bonded warehouses and hence the provision of duty does not airse.

AS-3 Cash Flow Statements

Cash flow statement has been prepared under "Indirect Method".

AS-4 Contingencies and Events occurring after the Balance Sheet Date

There are no contingencies and events after the Balance Sheet date that affect the financial position of the company. Contested liabilities are disclosed by way of a note.

AS-5 Net Profit or Loss for the Year, Prior Period Items and Changes in Accounting Policies:

This is not applicable as there is no change in accounting policies.

AS-6 Depreciation Accounting

Depreciation has been provided in the accounts on the following basis, at the rates prescribed in Schedule XIV to the Companies Act, 1956:

a) Plant and Machinery other than Windmill:

i) On additions till 31" December 1977. Under the written down value method.

ii) On additions from 1st January 1978.

Under straight line method at the rates specified in Clause (II) (i) (a).

b) On all other Assets:

Under the written down value method.

c) Windmill:

Under strainght line method at the rates specified in Clause (II) (i) (b).

d) In respect of additions during the year, full depreciation has been provided irrespective of the period of use. Similarly no depreciation to be provided on assets disposed off during the year.

AS-7 Accounting for Construction Contracts

The Company is not engaged in any construction business covered by this Standard.

AS-8 Accounting for Research and Development

This Standard stands withdrawn from the date of Accounting Standard 26- Intangible Assets becoming mandatory.

AS-9 Revenue Recognition

a) Income and expenditure are accounted on a going concern basis.

b) Sales are recognized at the time of despatches of the goods to the customers and recorded net of sales returns and includes export benefits.

c) Interest Income is recognized on a time proportion basis taking into account the amount of outstanding and rate applicable.

d) Dividend Income: The company has derived income during the current year out of its investment and is recognized when the Company''s right to receive dividend is established.

e) Lease rentals in respect of assets given on "lease" are taken to Profit & Loss Account under the head of Non-Operative Income on the basis of the terms and conditions specified in the lease agreement.

AS-10 Accounting for Fixed Assets

Fixed Assets are stated at cost of acquisition which includes expenditure incurred upto the date the asset is put to use, less accumulated depreciation. Land is stated at cost or revaluation. Building is stated at cost or revaluation less depreciation. Plant and Machinery etc., are stated at cost less depreciation.

AS-11 Accounting for effects in foreign exchange rates

a) Purchase of imported components and spare parts are accounted based on retirement memos from banks.

b) In respect of exports of cloth made on or before 31.03.2013, the amount due have been accounted at the rate at which the export bills were tendered to the Bank for Collection / Discounting.

c) There is no year end foreign currency denominated liabilities and receivables.

d) Derivative Transactions:

The Company uses forward exchange contracts to hedge its exposure in foreign currency.

As on 31st March, 2013 there is no Foreign Exchange Contracts outstanding exposure.

The amendment introduced to ASH by Government of India on 31st March 2009 allowing the loss/profit on restatement of External Commercial Borrowings made for acquisition of Capital assets to be deducted from or added to cost of capital asset is not applicable to the company as it has no External Commercial Borrowings.

No Mark to Market component arises as the Company do not have any outstanding contract as at the end of the year.

AS-12 Accounting for Government Grants

The Company has not received any Government grants during the current accounting year.

AS-13 Accounting for Investments

Investments are stated at cost. Provision for diminution in the carrying cost of investments is made if such diminution is other than temporary in nature.

AS-14 Accounting for Amalgamation

This standard is not applicable to the company for the year under review.

AS-15 Accounting for Retirement Benefits

Gratuity with respect to defined benefit schemes are accrued based on actuarial valuations, carried out by an independent actuary as at the balance sheet date and being paid to Gratuity Fund.

Providend Fund, Employees'' State Insurance Scheme and defined plans and charged to the Profit and Loss Account when incurred.

AS-16 Borrowing Cost

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalized. During the year under review there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalized.

AS-17 Segment Reporting

The Company operates in only one business segment viz., Textiles.

AS-18 Related Party Disclosure

Disclosure is made as per the requirements of the standard and as per the clarifications issued by the Institute of Chartered Accountants of India.

AS-19 Leases

This standard is not applicable as the Company does not have any finance lease agreement in force.

AS-20 Earning per Share

The disclosure is made in the Profit and Loss account as per requirement.

AS-21 Consolidated Financial Statements

There is no subsidiary company and hence this is not applicable

AS-22 Accounting for Taxes on Income

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 the Income Tax Act, 1961.

Deferred tax resulting from timing differences between book and tax profits is accounted for under liability method, at the current rate of tax.

Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation are recognized only when there is virtual certainty supported by convincing evidence that such assets will be realized. Deferred tax assets arising on other temporary timing differences are recognized only if there is a reasonable certainty of realization.

AS-23 Ace ounting for Investments in Consolidated Financial Statements

This standard is not applicable to the company for the year under review.

AS-24 Discontinuing Operations

This is not applicable to the Company.

AS-25 Interim Financial K-.rtin,.

Quarterly financial results are published in accordance with the requirement of listing agreement with Stock Exchanges. The recognition and measurement principle as laid down in the standard have been followed in the preparation of these results.

AS-26 Intangible Assets

The Company has no intangible assets. Hence this is not applicable.

AS-27 Financial Reporting of Interest in Joint Ventures

This standard is not applicable to the Company as the company does not have any joint venture.

AS-28 Impairment of Assets

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is not less than the recoverable amount of such assets. Hence there is no impairment loss on the assets of the Company.

AS-29 Provisions, Contingent Liablilities and Contingent Assets Contingent Liabilities are disclosed in Note No.2.

AS-30 Financial Instruments: Recognition and Measurement

This standard is not applicable to the company for the year under review.

AS-31 Financial Instruments: Presentation

This standard is not applicable to the Company for the year under review.

AS-32 Financial Instruments : Disclosures

This standard is not applicable to the company for the year under review.


Mar 31, 2012

Basis of preparation of Financial Statements:

As-1 Disclosure of Accounting Policies .

The financial statements have been prepared on the basis. of going concern, under the historic cost convention, to comply in all the material aspect with applicable accounting principles in India. the accounting standard notified under Section 211 (3C) of the Companies Act, 1956 and the relevant provision of the said Act.

AS-2 Valuation of Inventories

a) Raw materials, components, stores and spares are valued at cost determined on weighted average basis Work in process includes material cost and applicable direct overhead Finished goods are valued at the aggregate of material cost and applicable direct and indirect overheads of market value whichever is lower

b) The Excise Duty is exempt on finished grey goods However the Excise Duty on Made UPs lying within the factory is included in the valuation of inventories.

c) There is no goods lying in customs bonded warehouses and hence the provision of duty does not arise

AS-3 Cash Flow Statements

Cash flow statement has been prepared under "Indirect Method"

AS-4 Contingencies and F, vents occurring after the Balance sheet Date

There are no contingencies and events after the Balance Sheet date that affect the Financial position of the company. Contested liabilities are disclosed by way of a note

AS-5 Net Profit or Loss for the year prior period items and Changes In Accounting Policies.

This is not applicable as there is no change in accounting policies.

AS-6 Depreciation Accounting

Depreciation has been provided in the accounts on the following basis, at the rules prescribed in Schedule to the Companies Act 1956:

a) Plant and Machinery other than Windmill

i) On additions till 31st December 1977 Under the written down value method

ii) On additions from 31st January 1978

Under straight line method at the rates specified in Clause (IT) (i) (a).

iii) On all other Assets:

Under the written down value method.

c) Windmill

Under straight line method at the rates specified in Clause (II) (i) (b)

d) In respect of addition during the year, full depreciation has been provided irrespective of the period of use Similarly no depreciation to be provided on assets disposed off during the year.

AS-7 Accounting for Construction Contracts

The Company is not engaged in any construction business covered by this Standard.

AS-8 Accounting for Research and Development

This Standard stands withdrawn from the date of Accounting Standard 26- Intangible Assets becoming mandatory.

AS-9 Revenue Recognition

a) Income and expenditure are accounted on a going concern basis

b) Sales are recognized on a time of dispatches of the goods to the customers and recorded net of sales returns and includes export benefits

c) Interest Income is recognized on a time proportion basis taking into account the amount of outstanding and rate applicable.

d) Dividend Income: The company has derived income during the current year out of its investment and is recognized when the Company's right to receive dividend is established

e) Lease rentals in respect of assets given on "lease" are taken to Profit & Loss Account under the head of Non- Operative Income on the basis of the terms and conditions specified in the lease agreement

AS-10 Accounting for Fixed Assets

Fixed Assets are stated at cost of acquisition Which includes expenditure incurred up to the date the asset is put to use, less accumulated depreciation. Laud is stated at cost or revaluation Building is stated at cost or revaluation less depreciation. Plant and Machinery etc.. are stated at cost less depreciation

AS-11 Accounting for effects in foreign exchange rates

a) Purchase of imported components and spare parts are accounted based on retirement memos from banks.

b) In respect of exports of cloth made on or before 31.03,2012, the amount due have been accounted at the rate at which the export bills were tendered to the Bank for Collection / Discounting

C) There is no yearend foreign currency denominated liabilities and receivables.

d) Derivative Transactions:

The Company uses forward exchange contracts to hedge its exposure in foreign currency

As on 31st March, 2012 there is no Foreign exchange Contracts outstanding exposure.

The amendment introduced to AS 11 by Government of India on 31st March 2009 allowing the loss/profit on restatement of External Commercial Borrowings made for acquisition of Capital asset', to be deducted from or added in cost of capital asset is not applicable in the company as it has no External Commercial Sorrowing

AS-12 Accounting for Government Grants

The Company has not received any Government grants during the current accounting year

AS-13 Accounting for Investments

Investments are stated at cost Provision for diminution in the carrying cost of investments is made if such diminution is other than temporary in nature.

AS- 14 Accounting for Amalgamation

This standard is not applicable to the company for the year under review.

AS-15 Accounting for Retirement Benefits

Gratuity with respect to defined benefit schemes. Are accrued based on actuarial valuations carried out by an independent actuary as at the balance sheet date and being paid to Gratuity Fund.

Provided Fund, Employees' State Insurance Scheme and defined contribution plans are charged to the Profit and Loss Account when incurred

AS-16 Borrowing Cost

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalized. During the year under review there was no borrowing attributable to qualifying assets and hence no borrowing cost was civilized.

AS-17 Segment Reporting

The Company operate in only one business segment viz., Textiles.

AS-18 Related party Disclosure

Disclosure is made as per the- requirements of the standard and as per the clarifications issued by the restitute of Chartered Accountants of India.

AS-19 Lenses

This standard is not applicable as The Company does not have any finance lease agreement is force.

AS-20 Earning per Share

The disclosure is made in the Profit and Loss account as per requirement

AS-21 Consolidated Financial statements

There is no subsidiary company and hence this is not applicable

AS-22 Accounting for Taxes in Income

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 the Income Tax Act. 1961

Deferred tax resulting From timing differences between book and tax profits is accounted for under liability method. at the current rate of tax.

Deferred tax assets arising on account of brought Forward losses and unabsorbed depreciation are recognized only when there is virtual certainty supported by convincing evidence that such assets will be realized Deferred tax assets arising on other temporary timing differences are recognized only if there is a reasonable certainty of realization

AS-23 Accounting for Investments in Associate in Consolidated Financial Statements

This standard is not applicable to the company for the year under review.

AS-24 Discontinuing Operations

This is not applicable to the Company

AS-25 Interim Financial Reporting

Quarterly financial results are published in accordance with the requirement of agreement with Stock Exchanges. The recognition and measurement principle as laid down In the standard have been followed In the preparation of these results.

AS-26 Intangible Assets

The company has no intangible assets Hence this is not applicable

AS-27 Financial Reporting of Interest in Joint Ventures

This standard is not applicable to the Company as the company does not have any joint venture

AS-28 Impairment of Assets

As on The Balance Sheet date the carrying amounts of the assets not of accumulated depreciation is not less than the recoverable amount of such assets. Hence there is no impairment loss on the asset of the Company

AS-29 Provisions Contingent Liabilities and Contingent Assets

Contingent Liabilities are disclosed in Note No.2

This standard is not applicable to the company for the year under review

AS-30 Financial Instruments: presentation

This standard is not applicable to the company for the year under review

AS-31 Financial Instruments: Recognition and Measurement

The standard is not applicable to the company for the year under review

AS-32 Financial Instruments: Disclosures

This standard is not applicable to the company for the year under review


Mar 31, 2011

A) Basis of preparation of Financial Statements:

The financial statements have been prepared on the basis of going concern, under the historic cost convention, to comply in all the material aspects with applicable accounting principles in India, the accounting standards notified under section 211 (3C) of the Companies Act, 1956 and the relevant provision of the said Act.

B) FIXED ASSETS :

Land is stated at cost or. revaluation. Building is stated at cost or revaluation less depreciation. Depreciation has been provided in the accounts on the following basis, at the rates prescribed in Schedule XIV to the Companies Act, 1956.

(a) Plant and Machinery other than Windmill :

i) On additions till 31st December, 1977 : Under the Written Down Value method.

ii) On additions from 1st January, 1978 : Under straight line method at the rates specified in Clause (II) (i) (a).

(b) On all other Assets : Under the Written Down Value method.

(c) Windmill : Under straight line method at the rates specified in Clause (II) (i) (b).

(d) In respect of additions during the year, full depreciation has been provided irrespective of the period of use. Similarly no depreciation to be provided on assets disposed off during the year.

C) REVENUE RECOGNITION :

i) Income and expenditure are accounted on a going concern basis

ii) Sales are recognized at the time of despatches of the goods to the customers and recorded net of sales return and includes export benefits.

iii) Interest income is recognized on a time proportion basis taking into account the amount of outstanding and rate applicable.

iv) Dividend income : The Company has derived income during the current year out of its investment and is recognised when the Companys right to receive dividend is established.

v) Lease rentals in respect of assets given on "operating lease" are taken to Profit &¦ Loss Account under the head of Miscellaneous income on the basis of the terms and conditions specified in the lease agreement.

D) INVENTORIES :

Inventories are valued at lower of cost and net realisable value. Cost is determined on weighted average basis. Cost of work-in-progress and the finished goods includes labour and manufacturing overheads, where applicable.

E) INVESTMENTS :

Investments are stated at cost. Provision for diminution in the carrying cost of investments is made if such diminution is other than temporary in nature.

F) RETIREMENT BENEFITS :

Gratuity with respect to defined benefit schemes are accrued based on actuarial valuations, carried out by an independent actuary as at the balance sheet date and paid to Gratuity Fund.

Provident Fund, Employees State Insurance Scheme and defined contribution plans are charged to the Profit and Loss Account when incurred.

G) TAXATION :

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 the Income Tax Act, 1961.

Defferred tax resulting from timing differences between book and tax profits is accounted for under liability method, at the current rate of tax.

Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation are recognised only when there is virtual certainty supported by convincing evidence that such assets will be realised. Deferred tax assets arising on other temporary timing differences are recognised only if there is a reasonable certainty of realisation.

H) BORROWING COSTS :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised upto the period such assets are ready for its intended use. All other borrowing costs are charged to the Profit and Loss Account.

I) FOREIGN CURRENCIES:

Transactions involving foreign exchange are dealt with as follows:-

(a) In respect of exports of cloth made on or before 31.3.2011, the amount due have been accounted at the rate at which the export bills were tendered to the Bank for Collection/Discounting.

(b) Foreign Currency Current Accounts with Bank are restated at the rate ruling at the year end and the exchange difference is dealt with in the Profit & Loss account (Balance as on 31.03.2011 - US$ 16700.78)

(c) In case of foreign exchange forward contracts, the difference between the forward rate and exchange rate at the date of transaction is recognised as income / expense over the life of the contract.

J) CURRENT LIABILITIES :

a) Total outstanding dues of Micro Enterprises and Small Enterprises: Rs. Nil

b) Total outstanding dues of Creditors others than Micro Enterprises and Small Enterprises: Rs.331.74 Lakhs

c) Investor Education and Protection Fund shall be credited by the following amounts as and when they become due :

Unclaimed Dividend Rs. 39.41 Lakhs

K) The Company operates in only one business segment viz. "TEXTILES".


Mar 31, 2010

A) Basis of preparation of Financial Statements:

The financial statements have been prepared on the basis of going concern, under the historic cost convention, to comply in all the material aspects with applicable accounting principles in India, the accounting standards notified under section 211 (3C) of the Companies Act, 1956 and the relevant provision of the said act.

B) FIXED ASSETS :

Land is stated at cost or revaluation. Building is stated at cost or revaluation less depreciation. Depreciation has been provided in the accounts on the following basis, at the rates prescribed in Schedule XIV to the Companies Act,1956.

(d) In respect of additions during the year, full depreciation has been provided irrespective of the period of use. Similarly no depreciation to be provided on assets disposed off during the year.

C)SALES:

Sales comprise sale of goods net of excise duty of Rs. "Nil1 and includes export benefits.

D) INVENTORIES :

Inventories are valued at lower of cost and net realisable value. Cost is determined on weighted average basis. Cost of work-in-progress and the finished goods includes labour and manufacturing overheads, where applicable.

E) INVESTMENTS :

Investments are stated at cost.

No provision is made for diminution in value of Investments, as the Investments are considered as long term.

F) RETIREMENT BENEFITS :

Gratuity with respect to defined benefit schemes are accrued based on actuarial valuations, carried out by an independent actuary as at the balance sheet date and paid to Gratuity Fund.

Provident Fund, Employees State Insurance Scheme and defined contribution plans are charged to the Profit and Loss Account when incurred.

G) TAXATION :

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 the Income Tax Act, 1961.

Defferred tax resulting from timing differences between book and tax profits is accounted for under liability method, at the current rate of tax.

Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation are recognised only when there is virtual certainty supported by convincing evidence that such assets will be realised. Deferred tax assets arising on other temporary timing differences are recognised only if there is a reasonable certainty of realisation.

H) BORROWING COSTS :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised upto the period such assets are ready for its intended use. All other borrowing costs are charged to the Profit and Loss Account.

I) CURRENT LIABILITIES :

a) No amount is due to any small scale industrial undertaking.

b) Total outstanding dues to small scale industrial undertaking : Rs. Nil

c) Investor Education and Protection Fund shall be credited by the following amounts as and when they become due :

Unclaimed Dividend Rs. 33.34 Lakhs

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