Dhar Textile Mills Ltd. कंपली की लेखा नीति

Mar 31, 2014

1. Basis of preparation of financial statements:

a) The financial statements have been prepared under historical cost convention in accordance with generally accepted accounting principles.

b) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. Fixed Assets:

Fixed assets are stated at cost of acquisition/construction net of modvat and accumulated depreciation. The cost includes cost of spares, all preoperative expenses and the financing cost of borrowed funds relating to the construction period.

3. Depreciation:

Depreciation on fixed assets is provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

4. Inventories:

Inventories are valued at cost or netrealizable value whichever is less.

5. Sales:

A sale of goods is recognized at the point of dispatch of finished goods. Sales are net of sales returns & discount.

6. Foreign Currency Liabilities:

Assets and Liabilities related to foreign currency transactions are translated at exchange rate prevailing at the end of the year. No such foreign currency liabilities exist during the year.

7. Retirement Benefits:

Retirement benefits are accounted for on accrual basis.

8. Amortization of Miscellaneous Expenditure:

Share issued expenses are written off over a period of ten years and revenue expenses over a period of five years.

1. Share Capital

The 14.5% Cumulative Redeemable Preference Shares of Rs. 350 Lacs redeemed at par in 3 annual installments commencing from February 1, 2005, installment failing due on February 2005 is in arrears. The subscribers reserve the right to convert CRPS assistance into rupee term loan after one event of default with respect to payment of dividend/ redemption and/or into Equity shares at par after two consecutive defaults with respect to payment of dividend/redemption. Payment of dividends on these shares is in arrears since 01.04.1999.

2. Secured Loans

a) The company''s debts from banks/IDBI had been restructured involving carving out of working capital term loans (WCTLs) from the existing working capital limits, reduction in interest rates, waiver of liquidated damages/ penal interest etc., funding of interest and reschedulement of term loans under the Corporate debt restructuring (CDR) mechanism of the Reserve bank of India. However it could not be implemented.

b) Foreign currency Loan and Rupee Term Loans (other than Working capital term loans interest term loan) from State Bank of India* and IDBI are secured by first charge ranking pari passu by way of mortgage/hypothecation of the fixed assets (excluding assets acquired under hire purchase agreements) of the Company at Pithampur and pologround, Indore. Working capital term loans and funded interest term loans from State Bank of India*, Canara Bank and State Bank of Saurashtra* and funded interest term loan from Industrial Development Bank of India are secured by pari passu charge on the assets of the Company.

c) Working Capital Limits from State Bank of India*, Canara Bank and State Bank of Saurashtra* are secured by second charge ranking pari passu by way of Mortgage/ Hypothecation of the fixed assets of the Company at Pithampur and pologround, Indore. *Standard Chartered Bank has takeover account of State Bank of India,State Bank of Indore and State Bank of Saurashtra and Kotak Mahindra Bank Ltd. has takeover account of IDBI.

During the year, Asset Reconstruction Company India Ltd. (ARCIL) and ASREC India Ltd. have takeover account of Standard Chartered Bank and Kotak Mahindra Bank Ltd., Canara Bank respectively.

d) All the above loans are further secured by way of personal guarantees of Managing Director, one director and others.

e) Sales tax deferred is secured by first available charge by way of hypothecation of the fixed assets of the Company.

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Mar 31, 2013

1. Basis of preparation of financial statements:

a) The financial statements have been prepared under historical cost convention in accordance with generally accepted accounting principles.

b) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. Fixed Assets:

Fixed assets are stated at cost of acquisition/construction net of modvat and accumulated depreciation. The cost includes cost of spares, all preoperative expenses and the financing cost of borrowed funds relating to the construction period.

3. Depreciation:

Depreciation on fixed assets is provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

4. Inventories:

Inventories are valued at cost or net realizable value whichever is less.

5. Sales:

A sale of goods is recognized at the point of dispatch of finished goods. Sales are net of sales returns & discount.

6. Foreign Currency Liabilities:

Assets and Liabilities related to foreign currency transactions are translated at exchange rate prevailing at the end of the year. No such foreign currency liabilities exist during the year.

7. Retirement Benefits:

Retirement benefits are accounted for on accrual basis.

8. Amortization of Miscellaneous Expenditure:

Share issued expenses are written off over a period of ten years and revenue expenses over a period of five years.

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Mar 31, 2012

1. Basis of preparation of financial statements:

a) The financial statements have been prepared under historical cost convention in accordance with generally accepted accounting principles.

b) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. Fixed Assets:

Fixed assets are stated at cost of acquisition/construction net of modvat and accumulated depreciation. The cost includes cost of spares, all preoperative expenses and the financing cost of borrowed funds relating to the construction period.

3. Depreciation:

Depreciation on fixed assets is provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956 except on Plant & Machinery and vehicles of the yarn division, which have been commissioned /acquired before 01.04.95, on which depreciation has been provided on Written down value at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

4. Inventories:

Inventories are valued at cost or net realizable value whichever is less.

5. Sales:

A sale of goods is recognized at the point of dispatch of finished goods. Sales is net of sales returns & discount.

6. Foreign Currency Liabilities:

Assets and Liabilities related to foreign currency transactions are translated at exchange rate prevailing at the end of the year. No such foreign currency liabilities exist during the year.

7. Retirement Benefits:

Retirement benefits are accounted for on accrual basis.

8. Amortization of Miscellaneous Expenditure:

Share issued expenses are written off over a period of ten years and revenue expenses over a period of five years.

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Mar 31, 2011

1. Basis of preparation of financial statements:

a) The financial statements have been prepared under historical cost convention in accordance with generally accepted accounting principals and the provisions of the Companies act, 1956, subject to what is stated herein below, as adopted consistently by the company.

b) The Company generally follows Mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. Fixed Assets:

Fixed assets are stated at cost of acquisition/construction net of modvat and accumulated depreciation. The cost includes cost of spares, all preoperative expenses and the financing cost of borrowed funds relating to the construction period.

3. Depreciation:

Depreciation on fixed assets is provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956 except on Plant & Machinery and vehicles of the yarn division, which have been commissioned /acquired before 01.04.95, on which depreciation has been provided on Written down value at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

4. Inventories:

Inventories are valued at cost or net realizable value whichever is less.

5. Sales:

A sale of goods is recognized at the point of dispatch of finished goods. Sales is net of sales returns & discount.

6. Foreign Currency Liabilities:

Assets and Liabilities related to foreign currency transactions are translated at exchange rate prevailing at the end of the year. No such foreign currency liabilities exist during the year.

7. Retirement Benefits: _ _

Retirement benefits are accounted for on accrual basis.

8. Amortization of Miscellaneous Expenditure:

Share issued expenses are written off over a period of ten years and revenue expenses over a period of five years.

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Mar 31, 2010

1. Basis of preparation of financial statements:

a) The financial statements have been prepared under historical cost convention in accordance with generally accepted accounting principals and the provisions of the Companies act,l956, subject to what is stated herein below, as adopted consistently by the company.

b) Ihe Company generally follows Mercantile system of accounting and recognizes significant terms of income and expenditure on accrual basis.

2. Fixed Asset*:

Fixed assets are stated at cost of acquisition/construction net of modvat and accumulated depreciation. The cost includes cost of spares, all preoperative expenses and the financing cost of borrowed funds relating to the construction period.

3. Depreciation:

Depreciation on fixed assets is provided on straight line method at the rates prescribed under Schedule XIV to die Companies Act. 1956 except on Plant & Machinery and vehicles of the yarn division, which have been commissioned /acquired before 01.04.95, on which depreciation has been provided on Written down value at the rates and in the manner prescribed under Schedule XTV of thc Companies Act, 1956.

4. Inventories:

Inventories are valued at cost or net realizable value whichever is less.

5. Sales:

A sale of goods is recognised at the point of dispatch of finished goods. Sales is net of sales returns & discount.

6. Foreign Currency Liabilities:

Assets and labilities related to foreign currency transactions are translated at exchange rate prevailing at the end of the year. Exchange difference in respect of fixed assets is adjusted lo carrying cost of fixed assets.

7. Retirement Benefits:

Retirement benefits arc accounted for on accrual basis,

8. Amortization of Miscellaneous Expenditure:

Share Issued expenses are written off over a period of ten years and deferred revenue expense over a period of five years.