Texel Industries Ltd. कंपली की लेखा नीति

Mar 31, 2025

1.3 Summary of significant accounting policies

1. Property, Plant and Equipment.

Freehold land is carried at cost. All other items of property,
plant and equipment are stated at cost less depreciation
and impairment, if any. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying
amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits
associated with the item will flow to the Company
and the cost of the item can be measured reliably. The
carrying amount of any component accounted for as a
separate asset is derecognised when replaced. All other
repairs and maintenance are charged to the Statement
of Profit and Loss during the reporting period in which
they are incurred.

Depreciation methods, estimated useful lives and
residual value

Depreciation is provided using straight line method
(SLM) as specified schedule II of the companies Act 2013.
Depreciation on assets acquired / disposed off during the
year if any, is provided on pro-rata basis with reference to
the date of addition / disposal. The estimated useful lives
of assets are as under:

The management believes that the useful life as given
above the best represent the period over which the
management expects to use these assets. The residual
values are not more than 5% of the original cost of the
asset. The assets residual values and useful lives are
reviewed, and adjusted if appropriate, at the end of each
reporting period.

Depreciation on assets added/sold or discarded during
the year is being provided on pro-rata basis up to the date
on which such assets are added/sold or discarded.

Gains/Losses on disposals/de-recognition of property,
plant and equipment are determined by comparing
proceeds with carrying amount and these are recognized
in statement of profit & Loss.

Capital work in process

Expenditure related to and incurred during the
implementation of capital project, to get the assets ready
for intended use is shown under ''capital work in process''.
The same is allocated to the respective items'' property,
plant and equipment on completion of construction /
erection of the capital assets. The cost of assets not put
to use before the year end capital inventory are disclosed
under Capital work in process.

Impairment of Tangible Assets

The Company reviews at each reporting period whether
there is any indication that an asset may be impaired. If
any such indication exists, the company estimates the
recoverable amount of the asset. If such recoverable
amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less
than its carrying amount, the carrying amount is reduced
to its recoverable amount. The reduction is treated as
an impairment loss and is recognized in the Statement
of Profit and Loss. If at the reporting period, there is an

indication that there is change in the previously assessed
impairment loss, the recoverable amount is reassessed,
and the asset is reflected at the recoverable amount.
Recoverable amount is the higher of fair value less costs of
disposal and value in use.

In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax
discount rate that reflects current market assessments
of the time value of money and the risks specific to the
asset for which the estimates of future cash flows have
not been adjusted.

If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit)
is reduced to its recoverable amount. An impairment
loss is recognized immediately in the Statement of
Profit and Loss.

2. Inventories

Inventories of Raw Materials, Work-in-Progress, Stores
and spares, Finished Goods and Stock-in-trade are stated
''at cost or net realisable value, whichever is lower'' except
for Waste / Scrap which are valued at net realisable value.
Cost comprises all cost of purchase, cost of conversion and
other costs incurred in bringing the inventories to their
present location and condition. Cost formulae used are
First-in-First-out, ''Specific identification'', as applicable.

Due allowance is estimated and made for defective and
obsolete items, wherever necessary.

3. Segment Reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to Chief Operating
Decision Maker (CODM). The Company has identified
its Managing Director as CODM who is responsible for
allocating resources and assessing performance of the
operating segments and makes strategic decisions.

4. Borrowings

Borrowings are initially recognised at net transaction costs
incurred and measured at amortised cost. Any difference
between the proceeds (net of transaction costs) and the
redemption amount is recognised in the Statement of
Profit and Loss over the period of the borrowing using the
effective interest method.

Preference shares, which are mandatorily redeemable
on a specific date are classified as liabilities. The dividend
on these preference shares is recognised in Statement of
Profit and Loss as finance costs.

5. Borrowing costs

Borrowing cost directly attributable to the acquisition,
construction of qualifying asset that necessarily takes a
substantial period of time to get ready for its intended
use, capitalised as part of cost of asset. The borrowing
costs includes interest and transaction cost that a
company incurs in connection with the borrowing of the
funds. Other interest and borrowing costs are charged to
Statement of Profit and Loss.

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Mar 31, 2024

1.3 Summary of significant accounting policies 1. Property, Plant and Equipment.

Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost less depreciation and impairment, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are incurred.

Depreciation methods, estimated useful lives and residual value

Depreciation is provided using straight line method (SLM) as specified schedule II of the companies Act 2013. Depreciation on assets acquired / disposed off during the year if any, is provided on pro-rata basis with reference to the date of addition / disposal. The estimated useful lives of assets are as under:

The residual values are not more than 5% of the original cost of the asset. The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Capital work in process

Expenditure related to and incurred during the implementation of capital project, to get the assets ready for intended use is shown under "capital work in process". The same is allocated to the respective items'' property, plant and equipment on completion of construction / erection of the capital assets. The cost of assets not put to use before the year and capital inventory are disclosed under Capital work in process.

Impairment of Tangible Assets

The Company reviews at each reporting period whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than it carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss. If at the reporting period, there is an indication that there is change in the previously assessed impairment loss, the recoverable amount is reassessed and the asset is reflected at the recoverable amount. Recoverable amount is the higher of fair value less costs of disposal and value in use.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in the Statement of Profit and Loss.

2. Inventories

Inventories of Raw Materials, Work-in-Progress, Stores and spares, Finished Goods and Stock-in-trade are stated ''at cost or net realisable value, whichever is lower'' except for Waste / Scrap which are valued at net realisable value. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost formulae used are ''First-in-First-out. ''Specific identification'', as applicable.

Due allowance is estimated and made for defective and obsolete items, wherever necessary.

3. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The company has only single business segment hence the detailed disclosure related to segment reporting is not required to be made.

4. Borrowings

Borrowings are initially recognised at net of transaction costs incurred and measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Profit and Loss over the period of the borrowings using the effective interest method.

Preference shares, which are mandatorily redeemable on a specific date are classified as liabilities. The dividend on these preference shares is recognised in Statement of Profit and Loss as finance costs.

5. Borrowing costs

Borrowing cost directly attributable to the acquisition, construction of qualifying asset that necessarily takes a substantial period of time to get ready for its intended use, capitalised as part of cost of asset. The borrowing costs includes interest and transaction cost that a company incurs in connection with the borrowing of the funds. Other interest and borrowing costs are charged to Statement of Profit and Loss.

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Mar 31, 2013

1.1 Historical Cost Basis:

The financial statements are prepared under the historical cost convention on accrual basis and ongoing concern basis and in accordance with the generally accepted accounting principles, accounting standards issued by the Institute of Chartered Accountants of India as applicable and relevant presentation requirements of the Companies Act, 1956.

1.2 Use of Estimates:

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the bala.ice of assets and liabilities and disclosures relating to the contingent liability as at the date of financial statement and reported amounts of income and expenses like provision of doubtful debts, allowances of slow and non moving inventories, useful lives of fixed assets, provision for taxation and provision of employee benefits etc, during the period. Management believes the estimates used in the preparation of financial statements are prudent and reasonable. Future results may vary from these estimates.

1.3 Revenue Recognition:

All known expenditure and income to the extent payable or receivable respectively and quantifiable till the date of finalisation of accounts are accounted on accrual basis.

1.4 Fixed Assets and Depreciation

(I) Fixed Assets are carried at cost of acquisition and construction including incidental expenses related to acquisition and installation on concerned assets, less accumulated depreciation and amortisation. Certain assets were re- valued for for which proper disclosure is made in accounts.

(II) Depreciation:

Depreciation has been provided at cost on Straight Line Value method in accordance with theprovision of section 205(2)(b) of the Companies Act, 1956 at the rate prescribed in Schedule XIV of the Companies Act, 1956 on prorata basis with reference to the date of acquisition / installation.

1.5 Valuation of Investments:

Long-term investments are stated at cost. Provision for diminution in the value of long-term investment is made only if such decline is other than temporary in the opinion of the management.

1.6 Valuation of Inventories:

i. Raw Materials, stores & spares and packing materials are valued at cost. Cost for this purpose includes interest on usance L/Cs opened for procurement of raw materials, L/C opening charges and other incidental charges directly related with procurement of raw materials.

ii. Work in process is valued at cost. Cost for this purpose includes the cost of direct material, direct labour and other conversion cost incurred upto the respective stages of work in process.

iii. Finished goods are valued at lower of cost or market value. Cost for this purpose includes cost of direct material, direct labour and factory and administration overheads.

iv. Scrap is valued at net realisable value.

1.7 Retirement Benefits:

No provision for retirement''s benefits for employees has been made. The company has adopted Pay- As-You-Go for the method for the payment of retirement benefits if any payable to the employees.

1.8 Foreign currency transaction:

Foreign currency transactions are accounted at the exchange rates ruling on the date of the transactions. Foreign currency monetary items at the Balance Sheet date are restated at the closing exchange rates. Exchange differences arising on actual payments/realisations and the year end restatements are dealt with in the profit and loss account.

1.9 Provisions, Contigent Liabilities and Contingent Assets:

i) Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation if,

a) The company has present obligation as a result of past event.

b) A probable outflow of resources is expected to settle the obligation and

c) The amount of obligation can be reliably estimated.

ii) Contingent liability stated in case of:

a) A present obligation arising from a past event, when it is not probable that an outflow of resources will required to settle the obligation.

b) A possible obligation, unless the probability of outflow of resources in remote.

iii) Contingent assets are not recognised in the financial statements since this may results in the recognition of income that may never realised.

iv) Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date in accordance with the Accounting Standard AS-29 on Provisions, Contingent Liabilities and Contingent Assets issued by the Institute of Chartered Accountants of India.

1.10 Accounting for Taxes of Income:

i) Current Tax Provision for current income tax is made in accordance with provisions of Income Tax Act 1961.

ii) Deferred Tax

Provision for deferred tax is calculated at the current rate of Income Tax enacted or substantially enacted as at the balance sheet date and recognized on timing difference, being the difference between taxable income and accounting income that origin in one period and are capable of reversal in one or more subsequent period.

Deferred tax assets, subject to the consideration of prudence is recognized and carried forward only to the extent that there is reasonable certainty that sufficient future income will be available against which such deferred tax assets can be set off.

1.11 Impairment of Fixed Assets:

Factors giving rise to any indication of impairment of the carrying amounts of the companies assets are appraised at each Balance Sheet date to determine and provide/reverse an impairment loss. There is no impairment in carrying cost of company''s Assets.

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Mar 31, 2011

1. Significant Accounting Policies Historical Cost Basis:

The financial statements are prepared under the historical cost convention on accrual basis and ongoing concern basis and in accordance with the generally accepted accounting principles, accounting standards issued by the Institute of Chartered Accountants of India as applicable and relevant presentation requirements of the Companies Act,1956.

2. Use of Estimates:

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the balance of assets and liabilities and disclosures relating to the contingent liability as at the date of financial statement and reported amounts of income and expenses like provision of doubtful debts, allowances for slow or non moving inventories, useful lives of fixed assets, provision for taxation and provision of employee benefits etc. during the period. Management believes the estimates used in the preparation of financial statements are prudent and reasonable. Future results may vary from these estimates.

3 Revenue Recognition:

All known expenditure and income to the extent payable or receivable respectively and quantifiable till the date of finalisation of accounts are accounted on accrual basis.

4 Fixed Assets and Depreciation :

(I) Fixed Assets are carried at cost of acquisition and construction including incidental expenses related to acquisition and installation on concerned assets, less accumulated depreciation and amortisation. Certain assets were re-valued for which proper disclosure is made in accounts. Refer Note -17.

(II) Depreciation:

Depreciation has been provided at cost on Straight Line Value method in accordance with the provision of section 205(2)(b) of the Companies Act, 1956 at the rate prescribed in Schedule XIV of the Companies Act, 1956 on prorata basis with reference to the date of acquisition / installation.

5 Valuation of Investments:

Long-term investments are stated at cost. Provision for diminution in the value of long-term investment is made only if such decline is other than temporary in the opinion of the management.

- Valuation of Inventories:

i. Raw Materials, stores & spares and packing materials are valued at cost. Cost for this purpose includes interest on insurance L/Cs opened for procurement of raw materials, L/C opening charges and other incidental charges directly related with procurement of raw materials.

ii. Work in process is valued at cost. Cost for this purpose includes the cost of direct material, direct labour and other conversion cost incurred up to the respective stages of work in process.

iii. Finished goods are valued at lower of cost or market value. Cost for this purpose includes cost of direct material, direct labour and factory and administration overheads.

iv. Scrap is valued at net realisable value.

6 Retirement Benefits:

No provision for retirement's benefits for employees has been made. The company has adopted Pay-As-You-Go for the method for the payment of retirement benefits if any payable to the employees.

7) Provisions. Contingent Liabilities and Contingent Assets:

i) Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

A) the company has a present obligation as a result of a past event.

B) A probable outflow of resources is expected to settle the obligation and

C) The amount of obligation can be reliably estimated.

ii) Contingent liability is stated in case of:

a) a present obligation arising from a past event, when it is not probable that an outflow of resources will required to settle the obligation.

b) A possible obligation, unless the probability of outflow of resources in remote.

iii) Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.

iv) Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date in accordance with the Accounting Standard AS-29 on Provisions, Contingent Liabilities and Contingent Assets issued by the Institute of Chartered Accountants of India.

8 Accounting for Taxes of Income:

i) Current Tax

Provision for current income tax is made in accordance with provisions of Income Tax Act 1961.

ii) Deferred Tax

Provision for deferred tax is calculated at the current rate of Income Tax rates enacted or substantially enacted as at the balance sheet date and recognized on timing difference, being the difference between taxable income and accounting income that origin in one period and are capable of reversal in one or more subsequent period.

Deferred tax asset, subject to the consideration of prudence is recognized and carried forward only to the extent that there is reasonable certainty that sufficient future income will be available against which such deferred tax asset can be set off.

9 Impairment of Fixed Assets:

Factors giving rise to any indication of impairment of the carrying amounts of the companies assets are appraised at each Balance Sheet date to determine and provide/reverse an impairment loss. There is no impairment in carrying cost of company's Assets.