KK SILK MILLS LIMITED
(Formerly known as KK SILK MILLS PRIVATE LIMITED)

Note 1: Background

KK SILK MILLS LIMITED (Formerly known as KK SILK MILLS PRIVATE LIMITED) was incorporated in Maharashtra on 26th August 1991. Company is in business of manufacturing, exporting, importing and trading of Garments. Company has industrial units in Umbergaon, Valsad from where it manufactures Garments for sale in Local market respectively.

Note 2: Statement of Significant Accounting Policies

Basis of Accounting

The financial statements are brpared under historical cost convention on an accrual basis and are in accordance with the generally accepted accounting principles in India, the applicable mandatory accounting standards as notified by Companies (Accounting Standards) Rules, 2014 and the relevant provisions of The Companies Act, 2013.

Use of Estimates

The brparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures relating to contingent liabilities as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Difference between the actual result and estimates are recognized in periods in which the results are known / materialized. 

Fixed Assets

Fixed Assets are carried at historical cost less debrciation accumulated thereon.

Debrciation

Debrciation is systematic allocation of the debrciable amount of an asset over its useful life and is provided on a straight line basis over the useful life brscribed in Schedule II to the Companies Act, 2013, unless otherwise specified.


Impairment of Assets

The carrying amounts of fixed assets are reviewed at each Balance Sheet date to ascertain if there is any indication of impairment based on internal/external factors. An impairment loss is recognized where the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of the net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their brsent value.

Valuation of Inventories

Inventories are valued at Cost or Realizable value, whichever is lower

Revenue Recognition:

Sale of goods is recognised when the risk and rewards of ownership are passed on to the customers, which is generally on dispatch of goods. Sales are stated net of returns and excluding goods and service tax.

Purchases are accounted at total purchase prices as per the bills. The difference on account of delayed payment, if any, is accounted for at the time of settlement / payment of the respective bill.

Foreign Exchange Transactions

Transactions in foreign currencies are recorded at exchange rates existing at the time of the transactions and exchange difference arising from foreign currency transactions are dealt with in the Profit and Loss Statement.

All Assets and Liabilities relating to transactions involving foreign currencies are converted at exchange rates brvailing at the year-end. Any loss or gain arising out of settlements/conversion is adjusted in the Profit and Loss Statement.

Retirement Benefits

Retirements benefits to the staff such as gratuity are accounted when the amounts become payable.

Borrowing Cost

Borrowing costs attributable to the acquisition or construction of qualifying asset are capitalized as part of the cost of asset. Other borrowing costs are recognized as an expense in the period for which they are incurred.

Material Events

Material events occurring after the Balance Sheet date are taken into cognizance.

Provision, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

Taxation

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961.

Deferred tax is recognized, subject to prudence, on timing difference, being the tax on difference between the taxable income and the accounting income that originate in one period and is capable of reversal in one or more subsequent periods. Deferred tax assets are recognized for unabsorbed debrciation and carry forward losses to the extent there is virtual certainty that sufficient future taxable income will be available against which deferred tax assets can be realized

Earnings Per Share

Earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders, by the weighted average number of equity shares outstanding during the period.

Dues to Micro & Small Enterprises.

As per the information and records available with the Company, there is no dues to Micro, Small and Medium enterprises as on the date of balance sheet. This information has been relied upon by the statutory auditor.

Contingent Liability

There are no Contingent Liabilities as on 31st March 2022 (Previous year – Nil)
Balance confirmations

The balance of unsecured loans, loans and advances, creditors, advances to suppliers and debtors are subject to confirmations.
Provision for gratuity is not made as per on the balance sheet date. This, however, is not alien according to Accounting Standard -15, “Accounting for Employee’s Benefit” issued by ICAI, which requires quantification thereof on the basis of an actuarial valuation. Consequently, the details as required under the said accounting standard have not been furnished.

Consumption of Raw Materials    Rs. In Lacs

Particulars

2021-2022

2020-2021

	Rs.	%	Rs.	%
Imported	-	-	-	-
Indigenous	1747.42	100%	1523.69	100%
Total	1747.42	100%	1523.69	100%

Remuneration paid or payable to Auditors
Rs. In Lacs

Particular	2021-2022	2020-2021
As Statutory Auditor	2.00	2.00
As Tax Auditor	0.70	0.70

Disclosure as required by AS- 18 (Related Party) issued by ICAI

Related party disclosures (as identified and certified by the management)
Individuals Controlling the enterprises and Key Management Personnel

Manish Shah (Director)

Nilesh Shah (Director)

Asha M. Shah (Director)

Pinky N. Shah (Director)

Mahaveer Patwari (Director)

Rakesh Kumar Puranmal Giria (Director)

Other Parties where control exists

Nilesh K. HUF

Manish K. HUF

Other Related Parties

JK Fabtex Industries Pvt. Ltd.

                                    Rs. In Lacs

Nature of Transaction	2021-2022	2020-2021
Purchases - JK Fabtex Industries Pvt. Ltd	583.67	76.24
Job Work Charges - JK Fabtex Industries Pvt. Ltd	304.69	173.37
Remuneration -Mr. Manish K Shah -Mr. Nilesh Shah - Ms. Pinky Shah	4.50 6.00 6.00	6.50 6.00 6.00
Interest Received -JK Fabtex Industries Pvt. Ltd.	10.38	17.31
Rent Received -JK Fabtex Industries Pvt. Ltd.	6.00	2.18
Loan & Advances Taken -Mr. Manish K Shah - Manish K Shah HUF -Mr. Nilesh Shah -Mrs. Asha M. Shah - Mrs. Pinky N. Shah -JK Fabtex Industries Pvt. Ltd.	107.49 26.55 20.30 41.64 23.90 681.42	7.22 -        1.40 0.24 - 288.05
Repayment of Loan & Advances Taken -Mr. Manish K Shah - Manish K Shah HUF -Mr. Nilesh K Shah -Mrs. Asha M. Shah -Mrs. Pinky N Shah -JK Fabtex Industries Pvt. Ltd.	104.90 26.55 19.77 15.99 13.70 653.71	12.84 - 4.15 1.81 Nil 712.36
Outstanding Balance- Dr/(Cr)-Loan & Advances -Mr. Manish K Shah -Mr. Nilesh K Shah -Mrs. Pinky N Shah -Mrs. Asha M. Shah -JK Fabtex Industries Pvt. Ltd. -Loan Outstanding Balance- Dr/(Cr)-Remuneration -Mrs.Pinky N Shah -Mr. Manish K Shah - Mr. Nilesh K Shah Outstanding Balance- Dr/(Cr)-Debtor/Creditor - JK Fabtex Industries Pvt. Ltd	(0.14)         0.13         (10.19)        (23.76)        (13.52)          (2.51) (0.20) (2.00) (86.82)	(0.04)        (0.19)        (0.01)        (0.03)        0.84        (1.06) (0.05) - 3.26

Earnings Per Share                                          Rs. In Lacs

Particular	2021-2022	2020-2021
Net Profit available for Equity Shareholder	46.19	32.95
Weighted average number of Equity shares outstanding (No.’s)	74,69,680	74,69,680
Earnings per share - Basic & Diluted (Rs.)	0.62	0.44
(Face value of Re.10 per share)

Since the company has only one reportable segment under Accounting Standard 17 (AS-17) issued by ICAI viz. Textiles, no disclosures are required to comply with the said AS-17. The volumes of other segments are insignificant in this context.

Previous year’s figures have been regrouped and rearranged wherever necessary to conform to current year’s brsentation.

Provision for gratuity is not made as per on the balance sheet date. This, however, is not alien according to Accounting Standard -15, “Accounting for Employee’s Benefit” issued by ICAI, which requires quantification thereof on the basis of an actuarial valuation. Consequently, the details as required under the said accounting standard have not been furnished.