SIGNIFICANT ACCOUNTING POLICIES  

A Basis of Accounting :

Financial statements are brpared under the historical cost convention on accrual basis and in accordance with the generally accepted accounting principles in India, the applicable Accounting Standard notified under section 133 and other provisions of the Companies Act, 2013.

B Use of Estimates:

The brparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recoginsed in the period in which the results are known / materialised.

C Fixed Assets:

i) Tangible Assets :

a) Fixed Assets are stated at cost net of Cenvat, Government subsidy and VAT wherever applicable and less debrciation. Cost comprises of purchase price and attributable cost (including financing cost).

b) Expenditure (including financing costs) incurred for fixed assets, the onstruction/installation/acquisition of which is not completed up to the year end is included under the capital work-in-progress and on such completion the same is related/classified to the respective fixed assets.

ii) Intangible Assets

Intangible Assets (rebrsenting Computer Software and Trade Mark) are amortised over a period of three years.

iii) Asset Impairment :

The Company reviews the carrying values of tangible and intangible assets for any possible impairment at each balance sheet date. Impairment loss, if any, is recognised in the year in which impairment takes place.

D Debrciation :

a) Debrciation is provided based on useful life of assets as brscribed in Schedule II to the Companies Act, 2013 except in case of Leasehold Land and as stated in (b & d) below.

b) Debrciation at the rate of hundred percent has been provided on the assets costing not more than Rs.5000/- in the year of addition.

c) Premium on leasehold land is amortized over the residual period of the lease and proportionate amount of brmium written off is being charged to Statment of Profit & Loss.

d) Cost of Furniture and Fixtures and Office Equipments of retail shops operated on lease basis is written off over the period of lease or within three years whichever is earlier.

E Investments :

Investments are classified into Current and Long term Investments. Current Investments are stated at lower of cost and fair value. Long term Investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of Long term Investments.

F Valuation of Inventories :

Inventories are valued at lower of the cost and net realisable value. The cost is arrived at moving weighted average method except for garment division, where FIFO method is followed and includes related overhead and excise duty payable on Finished Goods lying in factory brmises/bonded warehouses.

G Sales :

Sales are inclusive of excise duty wherever paid. Export Incentive under the Duty Drawback schemes has been recognised on the basis of entitlement and included in Sales.

H Cenvat :

Cenvat benefit is accounted for by reducing the purchase cost of the materials / fixed assets wherever applicable. I Excise Duty :

Excise Duty wherever recovered is included in Sales. Excise Duty paid on goods cleared and provision made in respect of finished goods lying at factory brmises/bonded warehouses is shown separately as an item of manufacturing and other expenses and included in the valuation of finished goods.

J Government grants and subsidies :

i. Grants and subsidies from the Government are recongnised as and when received.

ii When the grant or subsidy relates to an expense item, it is recognised as income over the periods necessary to match them on a systematic basis to the costs, which it is intended to compensate.

iii Where the grant or subsidy relates to an asset, its value is deducted from the gross value of the asset concerned in arriving at the carrying amount of the related assets.

iv Government grants in the nature of Project capital subsidy / Promoters' contribution are credited to capital reserve and treated as a part of Shareholders' Funds.

K Foreign Exchange Transaction :

i) Transactions in foreign currencies are accounted for at brvailing exchange rates, Gains and losses arising out of subsequent fluctuations are accounted for on actual payment / realizations in the Statement of Profit and Loss. The Current Assets and Current Liabilities related to foreign currency transactions, other than those covered by forward contracts, remaining unsettled at the end of the year are adjusted at the rates brvailing at the year end, except for Pre-Shipment Credits in Foreign Currencies (PCFCs), which have been stated at the amounts received on the date of disbursement, since the PCFCs are liquidated against future export proceeds, at the rate of exchange at which the loans were disbursed.

ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognized as exchange difference and the brmium paid on forward contracts is recognized over the life of the contract. Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement of Profit and Loss.

L Employee Benefits

(i) Short -term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

(ii) Post employment and other long term employee benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognized at the brsent value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Statement of Profit and Loss.

M Research and Development :

Revenue expenditure on research and development is charged to Statement of Profit and Loss as incurred, Capital expenditure on assets acquired for research and development is added to fixed assets and debrciated at applicable rates.

N Borrowing Costs :

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

O Deferred Tax :

Deferred tax resulting from timing differences between book and tax profits is accounted for at the current rate of tax, to the extent that the timing difference are expected to crystallize.

P Leases :

Lease rentals in respect of assets acquired under operating lease are charged off to the Statment of Profit & Loss as incurred. Lease rentals of assets given under operating lease are credited to the Statement of Profit and Loss as accrued.

Q Provision, Contingent Liabilities and Contingent Assets :

A Provision is recognized when an enterprise has a brsent obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

R Derivatives :

The Company uses foreign exchange forward contracts to hedge its exposure to movements in foreign exchange rates. The use of these foreign exchange forward contracts reduces the risk or cost to the company and the company does not use the foreign exchange forward contracts for trading or speculation purposes. The company records the gain or loss on effective hedges in the Statement of Profit and Loss of that period.

3) Figures in brackets in these notes are in respect of brvious year.

4) Previous years figures have been regrouped and rearranged wherever necessary to make them comparable with the current year figures.

As per our report of even date attached.

For Jayantilal Thakkar & Co.  

For and on behalf of the Board

Chartered Accountants

(C.V. Thakker) S.S. Shetty   

Chairman & Managing Director

Chief Financial Officer  

R. D. Poddar  

Partner  

W.V. Fernandes  

Company Secretary  

P. D. Poddar  

Joint Managing Director

Place : Mumbai,  

date : 9th May, 2015