1 Significant accounting policies I. Basis of Presentation The financial statements are brpared under the historical cost convention modified by revaluation of fixed assets and in accordance with applicable accounting standards and relevant brsentation requirements of the Companies Act. For recognition of in come and expenses, mercantile system of accounting is followed. II. Fixed Assets Fixed assets are stated at cost or revaluation net of accumulated debrciation. Cost comprises the purchase price and any directly attributable costs of bringing the assets to working condition for its intended use. When fixed assets are revalued ,surplus on revaluation is credited to revaluation reserve account. III. Investments Investments are stated at cost of acquisition. Market value of quoted investments at the date of the balance sheet is disclosed. Adjustment for increase / decrease in the value of investment, if any, is accounted for on realisation of the investment. IV. Inventories Inventories are valued at lower of cost or net realisable value. Cost for raw materials, store, packing material and consumables is generally determined on FIFO basis. Cost for own manu facturued goods comprises of materials and other attributable expenses and overheads ( including interest). V. Debrciation Debrciation on fixed assets has been provided on streight line method basis. Debrciation on plant and machinery has been provided forat the rates brscribed in Schedule II to the Companies Act 2013. In respect of certain assets whose residual useful life is determined to be less than the residual life as per books ,debrciation is provided at the adjusted higher rates so that the value thereof is written off over the useful life detrmined. VI. Retirement Benefits Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable to the provident fund. The company operates defined benefit plan viz gratuity. The costs of providing benefits under this plan are determined on the basis of actuarial valuation each year. VII. Foreign Currency Transactions Outstanding foreign currency assets and liabilities are translated at the exchange rate brvailing as on balance sheet date or forward cover rate (as stretched over the period of contract), as the case may be. Gains or losses on these assets and liabilities including those on cancellation of forward exchange contracts, relating to the acquisition of fixed assets are adjusted to the cost of such fixed assets and those relating to other accounts are recognised in the profit and loss account under res-pective heads of accounts. The difference between the forward rate and the exchange rate at the date of transaction is recognised as income or expense over the life of contract. VIII. Taxes on Income Current tax is determined as the amount of tax payable in respect of taxable income fortheperiod. Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the differences between taxable income and accounting income that originate in one period and are cap- able of reversal in one or more subsequent periods. Deferred tax assets are not recognised unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. As per our report of even date For and on behalf of the board of directors For A Anand & Co. of Prakash Woollen Mills Limited Chartered Accountants CA AJAYANAND (Partner) Membership No. 074015 V. K. GUPTA CFO & Whole time director DIN -00335325 J. K. GUPTA Managing director DIN-00337659 SHIVANGI AGARWAL Company secretary Place : Village. Amhera (Amroha) Date : 30 May 2015 |