10. PROVISIONS, CONTINGENT LIABILITY & CONTINGENT ASSETS
(A) Provisions involving substantial degree of estimation in measurement, are recognized when the present obligation of or past events gives rise to a probable outflow embodying economic benefits on settlement and the amount of obligation can be reliably estimated.
(B) Contingent liabilities are disclosed after a careful evaluation of facts and legal aspects of the matter involved.
(C) Contingent assets are neither recognized nor disclosed in financial statements.
(D) Provisions and contingent liabilities are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
11. PRELIMINARY EXPENSES
Preliminary Expenses are written off over a period of 5 years in equal proportion from the date of commencement of commercial activity.
12. EVENTS OCCURRING AFTER BALANCE SHEET DATE
No significant events which could affect the financial position as on 31.03.2024 to a material extent have been reported by the Assesse, after the balance sheet date till the signing of report.
13. PRIOR PERIOD AND EXTRAORDINARY ITEMS
There are no material changes or credits which arise in the current period on accounts of errors and omission in the preparation of the financial statements for the one or more period.
14. BORROWING COST
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other cost is recognized as expenses in the year in which they are incurred.
15. EMPLOYEE BENEFIT EXPENSES
A) Defined Contribution Plan: The Company makes defined contribution to provided fund which are accounted on accrual basis.
B) Defined Benefit Plan: The company’s Liability on account of Gratuity of employee is determine at the end of each financial year on the basis of actuarial valuation certificate obtained from Registered Actuary in accordance with the measurement procedure as per revised accounting standard (AS) - 15 "Employee Benefit". The liability is funded on year to year basis by contribution to respective fund. The cost of providing benefit under this plan also determine on the basis of actuarial valuation at each year end.
16. CASH FLOW STATEMENT
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
17. IMPAIRMENT OF FIXED ASSETS
Impairment of assets is being measured on factors giving rise to any indication of impairment, by comparing the recoverable amount, higher of value in use and net selling price of an asset, with carrying amount of an asset as per the Accounting Standard 28 "Impairment of Assets" issued by ICAI.
18. FOREIGN EXCHANGE TRANSACTION /TRANSLATION
A) Foreign currency transactions arising during the year are recorded at the exchange rates prevailing on the dates of transactions.
B) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.
C) All foreign exchange assets/Liabilities on the closing day are converted at closing exchange rate.
D) Exchange loss on outstanding derivatives transaction are computed on mark to market basis on the closing date and
accounted for as expenses of period. However gain is not recognized as income of the period, following conservative approach.
19. CASH AND CASH EQUIVALENTS
Cash and Cash equivalents for the purpose of cash flow statement comprise cash at bank, Cash in hand, Cheque in hand and other permissible instruments as per AS 3.
20. SEGMENT REPORTING
The dominant source of income of the company is from the manufacturing of fabric of various qualities which do not materially differ in respect of risk perception and the return realized/to be realized. Even the geographical environment in which the company operates does not materially differ considering the political and economic environment, the type of customers, assets employed and the risk and return associated in respect of each of the geographical area. So, the disclosure requirements pursuant to AS17 -Segment Reporting issued by the ICAI are not applicable to the company
21. DISCLOSURES REQUIRED UNDER SECTION 22 OF THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006
The figures have been disclosed on the basis of information received from suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) and/or based on the information available with the Company.
40. Details of Benami Property held: -Noproceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder
41. Where the Company has borrowings from banks or financial institutions on the basis of security of current Assets: - The company has borrowing from bank or financial institution on the basis of security of current assets and it is submitted that:-
1. Quarterly returns are submitted on timely basis.
2. Data provided in stock statement are as per best available quantities subject to physical verification. There is no material difference between stock statement submitted to bank and books of accounts, although minor difference can arise due to method of valuation, Physical verification, return of goods, shortage, wastage, ABC analysis of stock, Debit and credit notes and reconciliation of debtors and creditors.
42. Wilful Defaulter: - Company is not declared wilful defaulter by any bank or financial Institution or other lender during the year under consideration.
43. Relationship with Struck off Companies: - Company has not having any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
44. Registration of charges or satisfaction with Registrar of Companies: - No charge creation or satisfaction yet to be registered with Registrar of Companies beyond the statutory period for the current year.
45. Compliance with number of layers of companies: - Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017
46. Compliance with approved Scheme(s) of Arrangements: - No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013
47. Utilisation of Borrowed funds and share premium: The Company has used the borrowed funds and share premium rose for the specific purpose only.
48. Undisclosed income:- There are no transaction which are not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)
49. Corporate Social Responsibility (CSR):- Company has complied with the provisions of section 135 of the company's act 2013
50. Details of Crypto Currency or Virtual Currency: - Company has not traded or invested in Crypto currency or Virtual Currency during the financial year,
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