Accounting Policies of Alstone Textiles (India) Ltd. Company

Mar 31, 2024

Note: 2- BASIS OF PREP., MEASUREMENT AND SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preparation and Measurement

(a) Basis for preparation of Accounts:

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

The financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements. All assets and liabilities have been classified as current or noncurrent as per the Company’s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

The financial statements are presented in INR, the functional currency of the Company. Items included in the financial statements of the Company are recorded using the currency of the primary economic environment in which the Company operates (the ‘functional currency’). Transactions and balances with values below the rounding off norm adopted by the Company have been reflected as “0” in the relevant notes in these financial statements. The financial statements of the Company for the year.

(b) Current - Non Current classification

All assets and liabilities are classified into current and non-current as per company normal accounting cycle.

Assets

An asset is classified as current when it satisfies any of the following criteria:

(i) it is expected to be realized in, or is intended for sale or consumption in, the Company’s normal operating cycle;

(ii) it is held primarily for the purpose of being traded;

(iii) It is expected to be realized within 12 months after the reporting date; or

(iv) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

(ii) Liabilities

A liability is classified as current when it satisfies any of the following criteria:

(I) it is expected to be settled in the company’s normal operating cycle;

(II) it is held primarily for the purpose of being traded;

(III) it is due to be settled within 12 months after the reporting date; or

(IV) The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity Instruments do not affect its classification.

Current liabilities include current portion of non-current financial liabilities.

All other liabilities are classified as non-current.

"Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realization

in cash or cash equivalents.

(c) Basis of measurement

These financial statements are prepared under the historical cost convention unless otherwise

indicated.

(d) Key Accounting Estimates and Judgments Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reposting year end. Although these estimates are based upon management’s best knowledge of current events and actions, actual result could differ from these estimates. Any revisions to the accounting estimates are recognized prospectively in the current and future years.

(e) Tangible fixed assets

"Tangible fixed assets (except freehold land which is carried at cost) are stated at cost of acquisition less accumulated depreciation and impairment loss, if any. Cost of acquisition includes freight inward, duties, taxes and other directly attributable expenses incurred to bring the assets to their working condition.

(f) Depreciation and amortization

The company has followed the WDV method for the depreciation and amortization of all tangible and intangible assets. There is no change in the method of depreciation during previous year.

(g) Investments:

Investments are carried at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of investments in subsidiaries, associates and joint venture, the difference between net disposal proceeds and the carrying amounts are recognized in the Statement of Profit and Loss.

(h) Cash and Cash Equivalents:

Cash and cash equivalents are short-term (three months or less from the date of acquisition), highly liquid investments that are readily convertible into cash and which are subject to an insignificant risk of changes in value.

(i) Trade Receivables and Loans:

Trade receivables are initially recognized at fair value. Subsequently, these assets are held at amortized cost, using the effective interest rate (EIR) method net of any expected credit losses. The EIR is the rate that discounts estimated future cash income through the expected life of financial instrument.

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Mar 31, 2023

Note: 2- BASIS OF PREP., MEASUREMENT AND SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of Preparation and Measurement

(a) Basis for preparation of Accounts:

These financial statements have been prepared in accordance with the Indian Accounting Stanc rds (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section B3 of the Companies Act, 20B read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 205 and Companies (Indian Accounting Standar (Amendment Rules, 206

The financial statements have been prepared on accrual and going concern basis. The accoun ng policies are applied consistently to all the periods presented in the financial statements. All a set: and liabilities havebeen classified as current or noncurrent as per the Company’s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 20B Based on the nature of products and the time between acquisition of asis epnofossing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 2 months for the purpose of current or-aurtrent classification of assets and liabilities.

T he financial statements are spited in INR, the functional currency of the Company. Item s included in the financial statements of the Company are recorded using the currency of the pr nar economic environment in which the Company operates (the ‘functional currency’). Transactions and balances with values below the rounding off norm adopted by the Company have been reflected is “0” in the relevant notes in these financial statements. The financial statements of the Company for the year ended 3^sl March, 2023 were approved for issue accordance with the resolution of the Board of Directors 26May, 2023. '' '' ''

(b) Current - Non Current classification

All assets and liabilities are classified into current andcuronint as per company normal accounting cycle .

Assets

An asset is classified as current when it satisfies any of the following criteria:

(i) it is expected to ber ealized in, or is intended for sale or consumption in, thmpany’s normal operating cycle,

(i) it is held primarily for the purpose of being tr aded;

(ii) it isexpected to berealizedwithin 2 months after the reporting date ; or

(iii) it is cash or cash equivalent unless it is restricted from being exchanged or ustdeio liability for at least 2 months after the reporting date.

Current assets include the current portion of non-current financial assets.

All other assets are classified as -nonrent .

(ii) Liabilities

A liability is classified as current when it satisfies any of the following criteria:

(i) it is expected to be settled in the company’s normal operating cycle ;

(ii) it is held primarily for the purpose of being tr aded;

(iii) it is due to be settled within 2 months after the reporting date; or

(iv) The company does not have an unconditional right to defer settlemenheofiabilityfor at least 2 months after the reporting date. Terms of a liabilit ycbhM, at the option of the counterparty, result in its settlement by the issiBqwfty Instruments do not affect its classification.

Current liabilities include current ipor of non-current financial liabilities.

All other liabilities are classified as -current .

"Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their reMictsibnor cash equivalents .

(c) Basis of measurement

These financial statements are prepared under the historical cost convention unless otherwise indicated

(d) Key Accounting Estimates and Judgments Use of Estimates

The preparation of financial statements in confonwith generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of asse i and liabilities and disclosure of contingent liabilities at the date of the financial statements and thf re:ilt o operations during the reposting year end. Although these estimates are based upon management’s best knowledge of current events and actions, actual result could differ from these estimates. Any revisi ns to the accounting estimates are recognized prostpvely in the current and future years.

(e) Tangible fixed assets

"Tangible fixed assets (except freehold land which is carried at cost) are stated at cost of acquisitio less accumulated depreciation and impairment loss, if any. Cost of acquisitiondia^felfreight inward, duties, taxes and other directly attributable expenses incurred to bring the assets to their working condition.

(f) Depreciation and amortization

The company has followed the WDV method for the depreciation and amortizaf ioAl tangible and intangible assets. There is no change in the method of depreciation during previous year.

(g) Investments:

Investments are carried at cost less accumulated impairment lofsespy. Where an indication of impairment exists, thcarrying amount of the investment is assessed and written down immediately tc its recoverable amount. On disposal of investments in subsidiaries, associates and joint venture, the diffei nce between net disposal proceeds and the carrying amounts aregmzed in the Statement of Profit and Loss

(h) Cash and Cash Equivalents:

Cash and cash equivalents are shoetm (three months or less from the date of acquisition), highly liq d investments that are readily convertible into cash and which are subject to an insignificant risk of c mges in value.

(i) Trade Receivables and Loans:

Trade receivables are initially recognised at fair value. Subsequently, these assets are held at amo tized cost, using the effective interest rate (EIR) method net of any expected credit losses. The EIR is ie ra that discounts estimatedtfire cash income through the expected life of financial instrument.

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Mar 31, 2015

(a) Basis for preparation of Accounts:

The Financial Statements of the Company are prepared and presented under the historical cost convention, on the accrual basis of accounting in accordance with Generally Accepted Accounting Principles ("GAAP") in India, mandatory accounting standards, as specified in the Companies (Accounting Standards) Rules, 2014 and the provisions of the Companies Act, 2013, to the extent applicable, and as adopted consistently by the Company.

The Company is a Small and Medium Sized Company ("SMC") as defined in the General Instructions in respect of Accounting Standards notified under the Companies Act, 2013. Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company.

All assets and liabilities have been classified as current or non-current as per the criteria set out in the Revised Schedule VI to the Companies Act, 2013. Based on the nature business the Company has ascertained its operating cycle as 12 months for the purpose of current - noncurrent classification of assets and liabilities.

(b) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reposting year end. Although these estimates are based upon management's best knowledge of current events and actions, actual result could differ from these estimates. Any revisions to the accounting estimates are recognized prospectively in the current and future years.

(c) Investment

Long-term investments are stated at cost. Provision of diminution in the value of long-term investments is made only if; such a decline is other than temporary in the opinion of the management. As in case of our company such decline is presumed to be temporary hence no provision has been created.

(d) Accounting of Inventories:

(i) Finished goods, goods for trade and stores, spares, etc. are valued at cost or net realizable value, whichever is lower. Materials and supplies held for use in production of finished goods are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

(ii) Goods in transit are valued at cost to date.

(iii) 'Cost' comprises all costs of purchase. The cost formulae used is either 'first in first out', or 'specific identification', or the 'average cost', as applicable.

(e) Revenue Recognition

(i) Revenue/Income and Cost/Expenditure are generally accounted for on accrual as they are earned or incurred, except in case of significant uncertainties. However, where the ultimate collection of the same lacks reasonable certainty revenue recognition is postponed to extent of uncertainty.

(ii) Sale of goods is recognized on transfer of significant risks and rewards of ownership which is generally on the dispatch of goods and are recognized net of discounts, rebates.

(iii) Dividend income on investments is accounted for as and when the right to receive the same is established.

(f) Employee Benefits

Company do not follow the provision of the accounting Standard-15 "Employee benefits" as the company do not have employee more than 10 personnel's. So it is the policy of the company that any kind of provision mentioned in the AS -15 will not be entertained. And the company does not make provision for gratuity also.

In case the company's employee limits goes beyond the prescribed limits then AS-15 for Employee benefits will be taken into consideration.

(g) Provisions, contingents Liabilities and contingent Assets:

(i) A Provision is recognized when the company has present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(ii) Contingent Liabilities are disclosed separately by way of note to financial statements after careful evaluation by the managements of the facts and legal aspects of the matter involved in case of:

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

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

(iii) Contingent Assets are neither recognized, nor disclosed in the financial statements.

(h) Taxation

Provisions for current tax is made in accordance with and at the rates specified under the Income Tax Act, 1961, in accordance with Accounting Standard 22- 'Accounting for taxes on Income', issued by the Institute of Chartered Accountant of India.

(i) Earning per share

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted averages number of equity shares outstanding during the year.

For the purpose of calculating diluted earning per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all diluted potential equity shares.

(j) Cash and Cash Equivalents

Cash and cash equivalents in the cash flow statements comprise cash at bank and in hand and highly liquid investments that are readily convertible into known amount of cash.

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Mar 31, 2013

A) GENERAL

(a) The Financial Statements are drawn up in accordance with Historical Cost Convention and on the Going Concern Concept. Income and Expenses are accounted for on Accrual Basis except where otherwise indicated.

(b) Accounting Policies not specifically referred to otherwise are consistent with generally accepted Accounting Principles followed by the company.

B) INCOME FROM INVESTMENTS & LOANS ADVANCES

Income from Investments in Interest Bearing Securities, Loans and Advances Is Accounted for on Accrual Basis. Dividend Income from Investments in Shares Is Recognized accruing as Income of that year in which Dividend is received by the Company.

C) INVESTMENTS

(a) During the year the company has treated all fresh purchase of shares as Investment.

(b) Investments (Long Term are valued at Acquisition Cost (including brokerage &Transfer expenses; No provision is made for diminution in the value of Long Term Investments, As in the opinion of the management the diminution is temporary and Not permanent.

D) DEFERRED TAXATION

Tax Liability of the company is estimated considering the Provisions of the Income Tax Act 1961, Deferred Tax is recognized subject to the consideration of Prudence, On Timing Difference, 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.

E) In the opinion of the management, The value on realization of Current Assets, Loans and Advances in the ordinary course of business will not be less than the Amount at which these are stated in the Balance Sheet.

F) Adequate Disclosure has been made in terms of Related Party Disclosure as required in terms of Related Party Disclosure (As identified by the Management) In terms of Accounting Standard -18 Related Party Disclosure issued by the Institute Of Chartered Accountants of India.

G) In the opinion of the management the company has only single Business Segment of Investment & Finance Activities; therefore no Segment Reporting has been Presented In Terms Of Accounting Standard-17 of "Segment Reporting" Issued by the Institute of Chartered Accountant of India.

H) Payment to Auditor 2012 - 2013 2011 - 2012

Audit Fee 4,494/- 4,408/-

l) Expenditure & Earning in Foreign Currency - Nil

J) Payment to Director Remuneration - Nil