| 1. Method of Accounting
The accounts has been proposed as per historical cost convention and an
accrual basis Accounting policies not specifically referred to otherwise
be consistent and in consonance with generally accepted accounting
principles followed by the company.
2. Fixed Assets
a) Fixed assets are stated at their original cost (net of CENVAT)
including incidental expenditure related to acquisition and installation
on less accumulated depreciation.
b) Capital section under erection/ installation in the balance sheet as
capital work-in-progress.
3. Depreciation
a. Depreciation is provided on straight line method based on useful
lives of assets as prescribed under the transactional provisions of
schedule II of companies Act, 2013on pro-rata basis. As the schedule II
comes into affect from 1st April 2014. the carrying amount of the
assets as on the date have been depreciated over the remaining useful
life of the assets after retaining the residual value as prescribed by
the relevant schedule reassessment of useful life of certain assets.
where ever one. is based on the external mechanical advises taken by the
company.
b. Company have a policy to fully depreciate assets up to Rs. 5000/- in
the year of acquisition. Hence the assets closing less than Rs.5000/-
have been fully depreciate in the year of acquisition.
4. Investment.
Investments are stated at cost.
5. Revenue Recognition / Basis of accounting
The company follows the accrual system of accounting except certain
items like interest, rebase, discounts &claims on sales insurance claim
at care audited as and when there is reasonably certainty.
6. inventories
Inventories are valued as under.
Finished Goods : At cost or market realizable value,
whichever is lower
Work in Progress : At Cost inclusive of allocate overheads
Dyes & Chemical,
Stores œ Spares etc : At lower of cost or net realizable value.
7. Job Processing Income
Job Processing Income is stated at net of discount
8. Retirement Benefits
Company's contribution accruing during the year in respect of Provident
Fund and Employee State Insurance Scheme ha been charged to Profit &
Loss Account.
Encashment of leave is accounted on Accrual Basis
"Liability in respect of employees' gratuity is valued on actuarial
basis made by the Life Insurance Corporation of India under employees
group gratuity scheme. Any shortfall or excess based on such valuation
is accounted for.
9. Borrowing Costs
Borrowing cost that are attributable to the acquisition Or construction
of the qualifying assets are capitalized as part of the cost of such
assets. A qualifying assets is one that necessarily take substance of
period of time to get ready for intended use all other borrowing costs
arc charged to revenue.
10. Segment Reporting
The company's main operation relates to the man processing of man made
fabrics and unit i.e. process house which is located at Dhilwara (Raj)
and most of the customers are local. Hence the company does not have any
other segment it disclose separately.
11. Related Party
Related party transactions as required under A3- T9 issued by the ICA!
are disclosed by way of notes to the accounts.
12. Earning Per Share (EPS)
EPS is calculated as per AS 20 issued by the Institute Of Chartered
Accountants Of India,
13. Deferred tax
Provision for current tax is made after taking into consideration
admissible benefit under the provision of the income ta Act, 1961.
Differed ax resulting from timing differences between book profit and
taxable profits is accounted for using the laws and rates that have
been or substantively enacted as on the Balance-Sheet date Deferred tax
asset is recognized and named forward to the extant there is a
reasonable certainty that the assets will be realized in future.
14. Impairment of Assets
Factored giving rise to any indication of any impairment of the carrying
amount of the company's assets are appraised at each of Ss determine
and provide/revert an impairment loss following accounting standard
AS-28 for impairment
15 Contingent Liabilities
Contingent Liabilities disposed by way of notes
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