a. Basis of accounting
In accordance with the notification issued by the Ministry of Corporate Affairs, the Company has
adopted Indian Accounting Standards (referred to as "Ind AS") notified under the Companies (Indian
Accounting Standards) Rules, 2015 with effect from April 1, 2017.
These financial statements have been prepared in accordance with Ind AS as notified under
Companies (Indian Accounting Standards) Rule, 2015 read with Section 133 of Companies Act, 2013.
b. Use of estimates
The presentation of Financial Statements requires management to make estimates and
assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and
disclosure of contingent liabilities. The estimates and assumption used in the accompanying
Financial Statements are based upon management's evaluation of the relevant facts and
circumstances as of the date of the financial statement. Actual results may differ from the estimates
and assumptions used in preparing the accompanying Financial statements.
c. Basis of preparation
These financial statements have been prepared on the historical cost basis, except for certain
financial instruments which are measured at fair values at the end of each reporting period, as
explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods
and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.
d. Property, plant & equipment
Property, Plant and Equipments are stated at cost of acquisition, including any attributable cost for
bringing the asset to its working condition for its intended use, less accumulated depreciation and
impairment loss except plant & machinery, which have revalued, are stated at revalued figure.
Intangible assets purchased are measured at cost or fair value as of the date of acquisition, as
applicable, less accumulated amortization and accumulated impairment, if any.
e. Depreciation
Depreciation is provided on the Straight-Line Method at the manner prescribed under schedule II
of the companies Act, 2013.
f. Inventories
Inventories of Fabrics is valued at Lower of cost and market value
g. Investment
i) Non-current investment is carried at fair value through OCI.
ii) Current investment is carried at fair value through OCI.
h. Revenue recognition
i) The revenue is recognized as and when goods are dispatched to the party, in case of sale of
services on completion of Job and in case of sale of trading, on raising of invoice and transfer of
material to the party.
ii) Other income is recognized on accrual basis.
i. Retirement benefits
PF and other retirement benefits are not applicable to the Company.
Gratuity is accounted for as per Ind AS-19 issued by the Institute of Chartered Accountants of India,
on the basis of actuarial valuation.
j. Foreign currency transactions
Foreign currency transactions are recorded at the exchange rates prevailing on the date of
transaction. Gains & Losses arising out of subsequent fluctuations are accounted for on actual
payment or realization. Current assets & liabilities denominated in foreign currency as at the
Balance Sheet date are converted at the exchange rates prevailing on that date. Exchange
differences are recognized in the Profit & Loss Account.
k. Taxes on income
Current tax is determined as the amount of tax payable in respect of estimated taxable income for
the year. Deferred tax is recognized subject to the consideration of prudence, on timing deference,
being the difference between taxable income & accounting income that originate in one period and
are capable of reversal in one or more subsequent periods.
l. Financial assets and liabilities
Financial assets and liabilities are recognized when the Company becomes a party to the
contractual provisions of the instrument. Financial assets and liabilities are initially measured at
fair value. Transaction costs that are directly attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from the fair value measured on initial recognition
of financial assets or financial liability.
m. Borrowing cost
Borrowing cost incurred in relation to the acquisition, construction of asset is capitalized as the
part of the cost of such assets up to the date when such assets are ready for intended use.
Other borrowing costs are charged as expenses in the year in which these are incurred.
n. Impairment of assets
Impairment loss is provided to the extent the carrying amounts of assets exceed their recoverable
amount. Recoverable amount is the higher of an assets net selling price and its value in use. Value
in use is the present value of estimated future cash flows expected to arise from the continuing use
of an asset and from its disposal at the end of its useful life. Net selling price is the amount
obtainable from the sale of an asset in an arms length transaction between knowledgeable, willing
parties, less the costs of disposal.
|