| 1. Method of Accounting :
The financial statements are prepared under the historical cost
convention and as per mercantile system of accounting.
2. Fixed Assets :
Fixed assets are stated at cost of acquisition, inclusive of inward
freight, duties and taxes and incidental expenses related to
acquisition less accumulated depreciation. Capital Work In Progress
comprises outstanding advances paid to acquire fixed assets, and the
cost of fixed assets that are not yet ready for their intended use at
the Balance Sheet date. There are no intangible assets.
3. Depreciation :
The Company has used Continuous Process Method on Plant & Machinery,
Electrical Installation & Lab Equipment and the other fixed assets are
depreciated on Straight Line Method at the rates and in the manner
specified in Schedule XIV to the Companies Act, 1956.
4. Investments :
Investments are stated at cost.
5. Inventories :
Raw Material, Work in Process, Finished Goods is valued at Cost or Net
Realisable value whichever is lower. Waste stock is valued at market
value/net realisable value. Cost comprises of all cost of purchase,
cost of conversion and the cost incurred in brining the inventory to
present location and condition. Cost formulae used is "First in First
Out" .
6. Retirement Benefits :
The Company has provided retirement benefits in the form of
contribution to provident fund as a fixed percentage of salary and
wages to employees. Employees of the Company are covered under Payment
of Gratuity Act, 1972. Provision for Gratuity and Leave Encashment is
made by the Company. Actuarial Valuation reports are not availed.
7. Miscellaneous expenditure :
Preliminary expenses and miscellaneous expenditure are being amortised
over a period of 5 years.
8. Taxes on Income AS - 22:
In view of Losses, no taxation Provision is made during the year. In
Consideration of prudence, no provision is made in respect of net
deferred tax asset, arising due to timing differences after set off of
deferred tax liability, against deferred tax asset.
9. Borrowing Cost AS - 16 :
Interest and other cost in connection with the borrowing of the funds
to the extent related/attributed to the acquisition/ construction of
qualifying fixed assets are accumulated and capitalised upto the date
when such assets are ready for their intended use and other borrowing
cost are charged to Profit & Loss Account.
10. Foreign Currency Transaction :
Revenue in foreign currency is translated at the exchange rate at the
time of negotiation of documents. Expenditure in foreign currency is
translated at the rate prevailing at the time of remittance. Monetary
items denominated in foreign currency remaining unsettled at the end of
the year, are reported using the closing rates as applicable.
Exchange differences arising on the settlement of monetary items or on
reporting Company's monetary items at rates different from those at
which they were initially recorded during the year, or reported in
previous financial statements, are recognised as income or expenses in
the year in which they arise.
Exchange differences in respect of fixed assets acquired, including
foreign currency liabilities relating thereto, are recognised as income
or expenses in the period in which they arise.
11. Revenue Recognition AS - 9 :
Sales of textile and wastes are recognised upon despatch of goods to
customers. There are no revenues from construction division during the
year
12. Related Party Transactions AS - 18 :
1 Promoters : Mr. Ramchandra M. Mohite
2 Key Management Personnel : Mr. Anasaheb R. Mohite, Managing
Director
3 Others - Enterprises in which : M/s Maruti Construction
Promoters Directors hold : M/s R.M. Mohite & Co
Substantial Interest
4 Relatives to Key Managerial : Mrs. Anjali A. Mohite
Personnel Associate Vice
President
5 Relatives : Miss. Apurva A. Mohite.
Transactions carried out with related parties : (Previous year figures
are in brackets)
13. Earnings per Share (EPS) :
The basic earnings per share (EPS) is computed by dividing the net
profit/(loss) after tax for the year by the number of equity shares
outstanding during the year.
14. Segment information for the year ended 31 March 2014 AS - 17 :
The construction division of the Company is inoperative, therefore the
whole of the operations of the Company relates only to the Textile unit
and hence Segment wise reporting is not necessitated.
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