GENERAL INFORMATION:
Gem Spinners India Limited was incorporated on 18th October, 1990
under Companies Act, 1956 as a Public Limited Company having
registered office at No.14 Mangalam Village, Madhuranthagam Taluk,
Kancheepuram District, Tamil Nadu. The Company's shares are listed
in Bombay Stock Exchanges. The Company has set up a plant for
the Manufacture of Cotton yarn and Grey Fabrics at No.14 Mangalam
Village, Madhuranthagam Taluk, Kancheepuram District, Tamil Nadu.
NOTE 2
NOTES FORMING PART OF ACCOUNTS
A) BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL
STATEMENTS
The standalone financial statements have been prepared in accordance
with the applicable Indian Accounting Standards (Ind AS) prescribed
under section 133 of the Companies Act. 2013 (the Act) read with the
Companies (India Accounting Standards) Rules, 2015, as amended
from time to time ans presentation requirement of Division Il of
Schedule Ill to the Companies Act, 2013. (Ind AS compliant Schedule
II), as applicable to the Standalone Financial Statements.
The Standalone Financial Statements have been prepared on accrual
and going concern basis. The accounting policies are applied
consistently to all the periods presented in the Standalone Financial
Statements.
B) USE OF ESTIMATES
The preparation of financial statements requires the management to
make judgements, estimates and assumptions that affect the reported
amount of assets, liabilities, revenues and expenses and disclosure of
contingent liabilities, at the end of the reporting period. Although these
estimates are based upon management's best knowledge of current
events and actions, actual results could differ from these estimates in
the future period.
C) REVENUE RECOGNITION
Revenue is recognized to the extent that is probable that the economic
benefits will flow to the Company and the revenue can be reliably
measured. Sale of products is recognized when the significant risk
and reward of ownership of the goods have been passed to the buyer.
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable. As there is no export
during the year under review the Company has not made any provision
as receivables such as Duty Drawback and other schemes.
D) PROPERTY, PLANT AND EQUIPMENT
Fixed Assets are stated at cost of acquisition less accumulated
depreciation and impairment losses if any, except free hold land which
is carried at cost less impairment losses if any. The cost comprises
purchase prices, borrowing cost if capitalization criteria are met and
directly attributable cost of bringing the asset to its working condition
for the intended use. Subsequent expenditure relating to an item of
fixed asset is added to its book value only if it increases the future
benefits from the asset beyond its previous assessed standard of
performance. All other expenses on fixed assets, including day-to¬
day repair and maintenance expenditure and cost of replacing parts
are charged to the statement of profit and loss for the period as and
when they occur.
E) DEPRECIATION
Depreciation on Fixed Assets is provided on Straight Line Method at
the rates prescribed in Schedule II of the Companies Act, 2013 except
Plant & Machinery based on useful life ascertained for such asset.
Gains or losses arising from disposal of fixed assets are measured
as the difference between the net disposal proceeds and the carrying
amount of such assets are recognized in the statement of profit and
loss.
F) EMPLOYMENT BENEFITS
Short Term Obligations
Short term employee benefits viz., salaries and wages are recognised
as expense at the undiscounted amount in the statement of profit and
loss for the year in which the related service is rendered.
POST EMPLOYMENT OBLIGATIONS
. PROVIDENT FUND
Provident Fund is a defined contribution scheme and the
contributions are recognised as expenses in the Profit &
Loss Account for the year in which the employees have
rendered services. The company contributes to provident fund
administered by the Government on a monthly basis at 12% of
employee's basic salary. There is no other obligation other than
the above defined contribution plan.
. GRATUITY
Gratuity is a defined benefit retirement plan. The Company
contributes to the Scheme with Life Insurance Corporation of
India based on actuarial valuation done by them as at the close of
the financial year.
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