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Moneycontrol.com India | Accounting Policy > Textiles - Spinning - Cotton Blended > Accounting Policy followed by Padam Cotton Yarns - BSE: 531395, NSE: N.A
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Padam Cotton Yarns

BSE: 531395|ISIN: INE448D01017|SECTOR: Textiles - Spinning - Cotton Blended
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VOLUME 22
Padam Cotton Yarns is not listed on NSE
Mar 14
Accounting Policy Year : Mar '15
Corporate Information
 
 The company is engaged in the business of providing consultation
 relating to textile industry and wholesale trading in Agricultural 
 Pumping Seles and Implements during the year. The company Is having its
 Registered Office at 196,1st Floor. G.T. Road, Opp Road Cross Market,
 Karnal- 132001 & Corporate Office At C-5/2A, Rana Pratap Bagh, Opp 
 Colony, New Delhi
 
 2.1 Accounting Standards
 
 The Company is non-SMC as defined In the General Instructions in
 respect of Accounting Standard notified under the companies (Accounting
 Standards) Rules, 2006 (as amended) 4 under section 133 of the
 Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules.
 2014 Accordingly, the Company  compiled with accounting Standards as
 applicable to a non Small and Medium Sited Company.
 
 2.2 Basis of Accounting and Preparation of financial Statements
 
 The financial statements of the Company have been prepared to comply
 with the Generally Accepted 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
 accounting policies adopted in the preparation of the financial
 statements are consistent with those followed in the previous year
 except for adjustments required to compute financial accounts in
 accordance with the revised schedule VI.
 
 2.3 Use of Estimates
 
 The preparation of the financial statements in conformity with Indian
 GAAP requires the Management to make estimates, judgments and
 assumptions to be made that affect the reporting amounts of assets and
 liabilities (including contingent liabilities) on the date of the
 financial statements and the reported amount of revenues and expenses
 during the reporting period. Difference between the actual results and
 estimates are recognised in the period in which the results are
 knot/materialised. The Management believes that the estimates used in
 preparation of the financial statements are prudent and reasonable.
 Future results could differ due to these estimates and the differences
 between the actual results and the estimates are recognised In the
 periods In which the results are known / materialise.
 
 2.4 Cash flow statement
 
 Cash flows are reported using the indirect method, whereby profit /
 (loss) before extraordinary items and tax is adjusted for the effects
 of transactions of non-cash nature and any deferrals or accruals of
 past or future cash receipts Of payments. The cash flows from
 operating, Investing and financing activities of the Company are
 segregated based on the available Information.
 
 2.5 Inventor1es
 
 Items of Inventories are valued at the lower of Cost and net realisable
 value after providing for. obsolescence. If any, except In case of by
 product which arc valued at net realizable value (on FIFO basis). Cost
 of inventories comprises or cost of purchase, cost of conversion and
 other cost is Including manufacturing overheads Incurred In bringing them
 to their respective present location and condition,
 
 2.6 Depreciation and amortisation
 
 Depreciation or. Fixed Assets provided to the Control or depreciable
 amount on the wrists down value (WDV) method. Depreciation is provided
 based on useful life of the assets as prescribed in Schedule II of the
 Companies Act, 2013.
 
 2.7 Revenue Recognition 
 
 Sale of Goods
 
 Revenue from operations including Sales of goods, services, service
 tax, excise duty and sales art recognised, adjusted net of returns and
 trade discounts, and gains on corresponding hedge contracts, on
 transfer of significant risks and rewards of ownership to the buyer,
 which generally coincides with the delivery or goods to customers.
 Sales excludes Central sales. value added tax and TCS
 
 2.8 Tangible fixed asset
 
 Fixed assets, are carried at cost net of recoverable taxes, trade
 discounts and rebates and less accumulated depreciation and Impairment
 losses, I f any. The cost of Ta table fixed asset com praised Its
 purchase price, borrowing cost a any cost directly attributed We
 to bringing the asset to Is working conditions for is intended use,
 net charges on foreign exchange contracts and adjustments arising from
 exchange rate variation attributable to the assets. Subsequent
 expenditure related to an item of Tangible Asset are added to Is book
 value only If they Increase the future benefits from the existing
 assets beyond is previously asset behind is previously assessed
 standard or performance.  Projects under which assets are not ready or
 their Intended use are disclosed under Capital Work-in Progress.
 
 2.9 Intangible fixed assets
 
 Intangible assets are stated at cost of acquisition net of recoverable
 taxed less accumulated amortisation/option and impairment loss, If
 any.  The cost comprises purchase price, borrowing costs, and any cost
 directly attributable to bringing the asset to is working condition
 for is intended use and net charges on foreign exchange contracts and
 adjustments arising from exchange rate variation attributed to the
 Intangible assets.
 
 2.11 Employee Benefits
 
 Defined Contribution Plans,
 
 The Company''s contribution to provident fund and superannuation fund
 are considered as defined contribution plans and are charged as an
 expense as they fall due based on the amount of contribution required
 to be made. These benefits Include performance incentive and
 compensated absences.
 
 2.12 Taxes on Income
 
 Current tax is the amount of tax payable on the taxable income for the
 year as determined in accordance with the provisions of the Income Tax
 Act, 1961.Deferred tax k recognised on timing differences, being the
 differences between the taxable Income and the accounting income that
 originate In one period and are capable of reversal In one or more
 subsequent periods. Deferred tax is measured using the rates and
 the lax laws enacted or substantially enacted as at the reporting date.
 Deferred tax liabilities are recognised for all timing differences.
 Deferred tax assets In respect of unabsorbed depredation and carry
 forward of losses are recognised only It there Is virtual certainty
 that there will be sufficient future taxable income available to
 realise such assets. Deferred lax assets are recognised for timing
 differences of other Items only to the extent that reasonable certainty
 exists that sufficient future taxable Income will be available against
 which these can be realised. Deferred assets and liabilities are
 offset if such Items relate to taxes on Income levied by the same
 governing tax laws and the Company has a legally enforceable right for
 such set off. Deferred tax assets are reviewed at each Balance Sheet
 date for their rachis ability 2.1) Impairment of Assets
 
 The carrying values of assets / cash generating units at each Balance
 Sheet date are reviewed for Impairment. If any indication or impairment
 exists, the recoverable amount of such assets is estimated and
 Impairment is recognised, if the carrying amount of these assets
 exceeds their recoverable amount.
 
 2.14 Other Issues
 
 The Company''* unit tor manufacturing of cotton yam, was destroyed in
 fire on 13/06/2001. The Insurance claim of the company was repudiated
 by the Insurance Company. The Hon'' We National Consumer has decided the
 case of issuance of Insurance calm In favour of the company against
 which the Insurance company ha, filed an appeal before Hon''ble Supreme
 Court. The Company was allowed 50% clam by the Supreme Court against
 security, the same Is shown as new current liabilities as the matter is
 contingent and is tub Jud iced. The same has not been adjusted against
 the insurance claim receivable account, due to is contingent nature
 as a matter of abundant precaution and sheer uncertainly of the verdict
 of Hon'' We Supreme court.
Source : Dion Global Solutions Limited
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