NOTES TO FINANCIAL STATEMENTS NOTE NO-1-SIGNIFICANT ACCOUNTING POLICIES : a] Corporate Information: The Company is a Public Company domiciled in India and Incorporated under the Provision of Companies Act,1956.Its Equity Share are Listed on BSE. The Company is engaged in Trading of Textile [ mainly used as Furnishing Fabrics] b] Accounting Assumption : These Financial Statements have been brpared to comply with the Generally Accounting Principles in India [Indian GAAP], including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The Financial Statements are Prepared on accrual basis under the Historical Cost Convention .The Financial Statements are brsented in Indian Rupees rounded off to the Nearest Rupees. c] Fixed Assets and Debrciation : i) Fixed Assets are stated at historical cost less accumulated debrciation. The cost of the Assets includes Purchase price, freight, installation cost, duties, taxes and other direct incidental expenses for bringing the assets to working condition. ii) Debrciation has been provided on straight-line method on pro-rata basis at the rates brscribed in Companies Act, 2013. c) Inventories. Finished goods are valued at lower of Cost or Estimated Net realizable Value. The Cost is based on the 'First in First out method'. d) Revenue Recognition : i) Revenue is recognized on sale of grey cloth and finished cloth on dispatch of goods from the factory. Sales are recorded net of rebate, trade discounts and returns. ii) Dividend is accounted on an accrual basis when the right to receive the dividend is established. iii) Interest income on loans & advances is recognized in the profit & loss account as it accrues. e) Retirement Benefits : Gratuity: Provision is made towards retirement gratuity for the Employees who have completed 5 years of service and those in the opinion of the board are expected to complete 5 years of service in the future. f) Income Tax: Provision for current tax is made on the basis of Estimated Taxable Income of the Current Accounting Year in accordance with Income Tax Act, 1961. The Deferred Tax liability/asset for timing difference between the book and tax profits for the year is accounted for, based on current tax Rates. Deferred Tax assets are recognized and carried forward only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such asset items can be realized g) Investments: Long term investments are carried at cost less provision for permanent diminution in value of such investments. Current investments are carried at lower of cost and fair value. Unit of mutual funds though held as current investments and are valued at cost. |