Layla Textile and Traders Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2016

Note R: Significant Accounting Policies

Basis of preparation of financial statements: The Company maintains its accounts on accrual basis following the historical cost convention in accordance with generally accepted accounting principles ["GAAP"] in India. GAAP comprises mandatory accounting standards as prescribed under section 133 of Companies Act, 2013 (the Act) read with Rule 7 of Companies (Accounts) Rules,2014, the provisions of the Act (to the extent notified). Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Use of estimates: The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. 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 recognized in the periods in which the results are known / materialize.

Revenue Recognitions:

a) Revenue in respect of finished goods is recognized on delivery during the accounting year.

b) Revenue in respect of services is recognized on accrual basis of work performed.

Inventories: Inventories are valued at the lower of cost and net realizable value.

Employee Benefits: All Employees benefits falling due wholly within twelve month of rendering the services are classified as short term employee benefits which include benefits like salary, wages, short term compensated, absences and performance incentives and are recognized as expense in the period in which the employee renders the related services.

Investments: Long term investments are stated at cost less other than temporary diminution in value, if any. Current investments are stated at lower of cost and fair value.

Material events after balance sheet date: Events which are of material nature after the balance sheet date are accounted for in the accounts.

Provisions : A provision is recognized if , as a result of a past event , the Company has a present legal obligation that is reasonably estimate , and it is probable that an outflow of economic benefits will be required to settle the obligation . Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

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.

Earnings per share: Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations.

Pending Litigations: The company does not have any pending litigations which would impact its financial position.

Investor Education and Protection Fund: There were no amounts which were required to be transferred to the Investor Education and Protection Fund of the company.

Forceable Losses: The company does not have any long term contracts including derivative contracts which require any provision for forceable losses.

Cash and Cash equivalents: Cash and Cash equivalents comprise cash and cash on deposit with banks and corporations. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

Cash Flow Statements: Cash Flow Statement has been prepared in accordance with Accounting Standard 3 issued by Institute of Chartered Accountants of India.

Related Party Transaction:

Details of related party transactions are as follows:

Salary paid to Anup Kumar Shah, Managing Director- Rs. 149,400/

Salary paid to Karabi Sarkar Shome, Company Secretary- Rs. 4,887/-

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Mar 31, 2014

1. All assets and liabilities have been classified as current or non-current as per company's normal operating cycle and other criteria set out in the revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the 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 & non-current classification of assets & liabilities.

2. The financial statements of the Company and its subsidiaries are combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses after fully eliminating intra-company balances in accordance with the Accounting Standard 21 on" Consolidated Financial Statements"of the Companies (Accounting Standards] Rules, 2006.

3. The Consolidated Financial Statements are prepared to the extent possible using uniform accounting policies for the like transactions and other events in similar circumstances and are presented in the manner as the Company's separate financial statements

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Mar 31, 2011

1. The financial statement has been prepared on the historical cost convention and with generally accepted accounting principles.

2. Items for Profit & Loss a/c have been accounted for on accrual basis.

3. Investment! have been made In unquoted shares and have been stated at cost.

4. Previous year's figures have been regrouped/ re-arranged wherever necessary.

5. The Company Is listed on Calcutta Stott Exchange.

6. There is ot employee eligible for the benefit of gratuity; hence no such provision is made.

7. In the opinion of the Board and to the best cf their knowledge and belief, the value of realization cf torrent assets in the ordinary cooise of business will not be less than the amount at which they are stated in the Balance Sheet.

8 The Company has no amount to be paid to Micro, Smal1 and Medium Enterprises in accordance with provisions of Micro, Small &. Medium Enterprises Development Act, 2005.

9. In terms of Accounting Standard 2D, the calculation of EPS is given below:

* ProFit/Lo5s) after Taxation:- [Its 434.001

* weighted Average number of Equity Shares outstanding during the year: 246,200 shares.

* Norma value of sha res:- Rs 10/ share

* BaSic a nd Diluted E PS(Ss. 0.002)

10. Accordance with the Accounting Standard AS-22 "Accounting for Taxes on Income" issued by the institute of Chartered Accountants of India, Deferred Tax Asset is not created as a matter of prudence as there is no reasonably certainty of future profit.

11, AS per information and explanation provided by the Management there are no outstanding dues of SSI undertakings as required by Schedule vt of the Companies Act, 1BS6.

12. Balance Sheet Abstract and Company's general Business Profile as required under part IV of Schedule VI to the Companies Act, 39£G is enclosed,