2.13. Provisions, Contingent Liabilities and Contingent Assets:
The Company recognizes provisions when there is present obligation as a result of
past event and it is probable that there will be an outflow of resources and reliable
estimate can be made of the amount of the obligation. A disclosure for Contingent
liabilities is made in the notes on accounts when there is a possible obligation or
present obligations that may, but probably will not, require an outflow of
resources.
Contingent assets are disclosed in the financial statements when flow of economic
benefit is probable.
2.14. Revenue Recognition
Revenue from construction/project related activity and contracts for
supply/commissioning of complex plant and equipment is recognised as follows:
2.14.1. Cost plus contracts: Revenue from cost plus contracts is
determined with reference to the recoverable costs incurred during the period and
the margin as agreed with the customer.
2.14.2. Fixed price contracts: Contract revenue is recognised only to the
extent of cost incurred till such time the outcome of the job cannot be ascertained
reliably subject to condition that it is probable that such cost will be recoverable.
When the outcome of the contract is ascertained reliably, contract revenue is
recognised at cost of work performed on the contract plus proportionate margin,
using the percentage of completion method. Percentage of completions the
proportion of cost of work performed to-date, to the total estimated contract costs.
The estimated outcome of a contract is considered reliable when all the following
conditions are satisfied:
i. the amount of revenue can be measured reliably.
ii. it is probable that the economic benefits associated with the contract will
flow to the company.
iii. the stage of completion of the contract at the end of the reporting period
can be measured reliably; and
iv. the costs incurred or to be incurred in respect of the contract can be
measured reliably.
Expected loss, if any, on a contract is recognised as expense in the period in which
it is foreseen, irrespective of the stage of completion of the contract. For contracts
where progress billing exceeds the aggregate of contract costs incurred to-date and
recognised profits (or recognised losses, as the case may be), the surplus is shown
as the amount due to customers. Amounts received before the related work is
performed are disclosed in the Balance Sheet as a liability towards advance
received. Amounts billed for work performed but yet to be paid by the customer
are disclosed in the Balance Sheet as trade receivables. The amount of retention
money held by the customers is disclosed as part of other current assets and is
reclassified as trade receivables when it becomes due for payment.
2.15. Other income:
2.15.1. Dividend Income: Dividend income from Investments is recognised
when the shareholder’s right to receive payment has been established.
2.15.2. Interest income: Interest income from a financial asset is
recognised when it is probable that the economic benefits will flow to the company
and the amount of income can be measured reliably. Interest income is accrued on
a time basis, by reference to the principal outstanding and at the effective interest
rate applicable, which is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset to that asset's net carrying
amount on initial recognition.
2.15.3. Other Income: Other income (DDU-GKY) included in the Note No.
21 of Financial statements is comprising of the project being run by the Company
is a project under Deen Dayal Upadhya- Grameen Kaushalya Yojana (DDU-GKY)
for skill training & placement of rural candidates in selected districts of Gujarat
which was sanctioned by Gujarat Livelihood Promotion Company Ltd to the
company through Project Implementation Agency (PIA) .All the relevant Expenses,
Revenue, Assets and Liabilities were shown separately in the respective schedules.
2.16. Insurance claims
Insurance claims are accounted for on the basis of claims admitted / expected to
be admitted and to the extent that the amount recoverable can be measured
reliably and it is reasonable to expect ultimate collection.
2.17. Claims
Claims against the company not acknowledged as debts are disclosed under
contingent liabilities. Claims made by the company are recognised as and when
the same is approved by the respective authorities with whom the claim is lodged.
2.18. Commitments
Commitments are future liabilities for contractual expenditure. Commitments are
classified and disclosed as follows
a) Estimated amount of contracts remaining to be executed on capital account
and not provided for
b) Uncalled liability on shares and other investments partly paid
For Pundarikashyam & Associates For and on behalf of the Board of Directors of
Chartered Accountants Filatex Fashions Limited
FRN: 011330S CIN: L51491TG1994PLC017158
B. SURYA PRAKASA RAO Prabhat Sethia Sangeeta Sethia
Partner Managing Director Director
Membership No: 205125 (DIN: 00699415) (DIN:02600900)
UDIN:25205125BMHZOK2685
Place: Hyderaabd
Date: 30-05-2025 Yash Sethia Srinivasa Rao Chintala
Chief Financial Officer Company Secretary
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