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Indus Fila

BSE: 532821|NSE: INDUSFILA|ISIN: INE025I01012|SECTOR: Textiles - Processing
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Indus Fila is not traded in the last 30 days
Indus Fila is not traded in the last 30 days
Jun 13
Accounting Policy Year : Mar '15
The financial statements have been prepared under the historical cost
 convention in accordance with the accounting principles generally
 accepted in India and comply with the mandatory Accounting Standards
 notified by the Central Government of India under The Companies
 (Accounting Standards) Rules, 2006 and with the provisions of the
 Companies Act, 2013.
 
 The Company''s operating results continue to be materially affected by
 various factors and the company has continuously implemented various
 measures to mitigate those factors to improve the operating results and
 cash flows. In addition, the company continues to explore various
 options to raise finance in order to meet its short term and long term
 obligations. The Company believes that operations will be improved
 considering the measures taken. Accordingly the financial statements
 have been prepared on going concern basis whereby the realization of
 assets and discharge of liabilities are expected to occur in the normal
 course of business.
 
 1. use of estimates
 
 The preparation of the financial statements is in conformity with GAAP
 requires Management to make estimates and assumptions that affect the
 reported balances of assets and liabilities and disclosures relating to
 contingent assets and liabilities as at the date of the financial
 statements and reported amounts of income and expenses during the
 period. Examples of such estimates include provisions for doubtful
 debts, future obligations under employee retirement benefit plans,
 income taxes, post-sales customer support and the useful lives of fixed
 assets and intangible assets. Actual results could differ from those
 estimates. Any revision to accounting estimates is recognized
 prospectively.
 
 2. fixed assets and depreciation
 
 a.  Fixed Assets are stated at cost less accumulated depreciation. Cost
 comprises the purchase price and any attributable cost of bringing
 asset to its working condition for its intended use (including therein
 proportionate expenditure during construction period). Financing costs
 relating to acquisition of fixed assets are also included to the extent
 they relate to the period till such assets are ready to put to use.
 
 b.  Depreciation is provided on Straight Line basis as per Schedule II
 to the Companies Act, 2013.
 
 c.  In respect of buildings on lease hold land, cost is amortized as
 depreciation over the period of lease.
 
 3.  inventories
 
 Inventories are valued at lower of cost or net realizable value. Cost
 includes all cost of purchase, applicable duties and taxes, cost of
 conversion and other costs incurred in bringing the inventories to
 their present location and condition and in the case Finished Goods and
 Work-in-progress includes appropriate allocated/apportioned production
 overheads.
 
 4.  foreign currency transaction
 
 Monetary assets and liabilities are restated at the date of Balance
 Sheet. The resultant difference is charged / credited to Profit and
 Loss Account except in respect of liabilities related to fixed assets
 which is adjusted to the fixed assets. In respect of Foreign Currency
 Forward / Derivative contracts entered for hedge the outstanding
 contracts are evaluated with the foreseeable future transaction and in
 event of the material shortfall in the estimate of future transaction
 corresponding forward adjustment is made for the forward / derivative
 contracts, at the Balance Sheet date. However exchange Loss / Gain on
 the date of maturity of forward / derivative are adjusted in the profit
 and loss account of the period.
 
 5.  revenue recognition
 
 a.  Revenue in respect of sales is recognized on transfer of
 significant risks and rewards of ownership which is generally at the
 point of despatch of materials to customers.
 
 b.  Other revenues including drawback claims etc., are recognized with
 due consideration for significant uncertainty if any in realization of
 such dues.
 
 6.  retirement benefits
 
 a.  Defined Contribution Plan :-
 
 In respect of provident fund benefits the company makes the stipulated
 contribution in respect of the employees to the regional provident fund
 authority under which the company''s liability is limited to the extent
 of the contribution.
 
 b.  Defined Benefit Plan :-
 
 The liability for defined benefit plan of the gratuity is determined on
 the basis of actuarial valuation at the end of the year using projected
 unit credit method. However, the liability has not been funded.
 Actuarial gain & loss which comprises experience adjustments & effect
 of change in actuarial assumption are recognized in the Profit & Loss
 Account.
 
 7.  investments
 
 Long term investments are stated at cost (net of provisions), if any,
 for diminution in value which is not temporary. Current investments are
 stated at lower of cost or fair value determined with reference to its
 market value reliability in consonance with the nature of underlying
 asset.
 
 8. borrowing costs
 
 Interest and other borrowing costs are charged to the profit and loss
 account except in cases where the borrowing is directly attributable to
 the acquisition, construction or production of an asset or group of
 assets, which take(s) substantial period of time to get ready for
 intended use. All other interest and other borrowing costs are
 recognised as expenses in the period in which they are incurred.
 
 9. taxes on income
 
 Income taxes are accounted in accordance with Accounting Standard 22 on
 Accounting for Taxes on Income. Tax expense comprises of both current
 and deferred tax.
 
 Current Tax
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the period using the applicable tax rates and tax
 laws.
 
 Deferred Tax
 
 Deferred Tax Assets and Liabilities are recognised, subject to
 consideration of prudence, on timing differences, being the difference
 between taxable income and accounting income, that originate in one
 period and are capable of reversal in one or more subsequent periods
 and are measured using the tax rates enacted or substantively enacted
 as at the Balance Sheet date. Deferred tax assets are recognized only
 if there is reasonable certainty that they will be realized and are
 reviewed for their appropriateness of their respective caring value at
 each balance sheet date.
 
 10. impairment of asset
 
 The Company assesses the impairment of assets with reference to each
 Cash Generating Unit (CGU) at each Balance Sheet date if events or
 changes in circumstances, based on internal and external factors,
 indicate that the carrying value may not be recoverable in full. The
 loss on account of impairment, which is the difference between the
 carrying amount and recoverable amount, is accounted accordingly.
 Recoverable amount of a CGU is its net Selling price or value in use
 whichever is higher. The value in use is arrived at on the basis of
 estimated future cash flows discounted at company''s pre-tax borrowing
 rates.
 
 11 . provisions & contingencies:
 
 A provision is recognised when the Company has a present obligation as
 a result of past events and it is probable that an outflow of resources
 will be required to settle the obligation in respect of which reliable
 estimate can be made. Provisions are not discounted to present value
 and are determined based on the best estimate required to settle the
 obligation at the Balance Sheet
Source : Dion Global Solutions Limited
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