Accounting Policies of Western India Cottons Ltd. Company

Mar 31, 2014

I) The Company has been consistently following accrual method in accounting its income and expenditure. The accounting is on the basis of going concern concept.

ii) The values of fixed assets have been arrived at on historical cost including sales tax and other expenses incurred and as reduced by Cenvat credits.

iii) Depreciation has been charged in the accounts as per schedule XIV of Companies Act, 1956. From the year 1990-91 and onwards, depreciation has been calculated on Straight Line Method on additions made to the fixed assets and on Written Down Value Method for assets put into use prior to that date.

iv) Investments are valued at cost

v) Stock of raw materials, stores and spares, finished goods and stock in trade are valued at cost or net realisable value whichever is lower. Cost assigned for valuation of stores and spares is on weighted average basis and of raw materials,finished goodsand stock in trade on first in first out basis, after providing for diminution in value of obsolete/damaged and slow moving items.

vi) Revenue from sales transactions is recognised as and when the property in the goods is transferred to the buyer for a definite consideration. Export incentives are recognised on accrual basis.

vii) Contingent liabilities are generally not provided in the accounts and are shown in item No.24 of notes attached to and forming part of financial statements.

vii) Deferred tax is recognised on the timing differences between the accounting income and taxable income for the year and quantified on the basis of tax rates enacted as on the date of Balance Sheet.

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Mar 31, 2013

I) The Company has been consistently following accrual method in accounting its income and expenditure. The accounting is on the basis of going concern concept.

ii) The values of fixed assets have been arrived at on historical cost including sales tax and other expenses incurred and as reduced by Cenvat credits.

iii) Depreciation has been charged in the accounts as per schedule XIV of Companies Act, 1956. From the year 1990-91 and onwards, depreciation has been calculated on Straight Line Method on additions made to the fixed assets and on Written Down Value Method for assets put into use prior to that date.

iv) Investments are valued at cost

v) Stock of raw materials, stores and spares, finished goods and stock in trade are valued at cost or net realisable value whichever is lower.Cost assigned for valuation of stores and spares is on weighted average basis and of raw materials,finished goodsand stock in trade on first in first out basis, after providing for diminution in value of obsolete/damaged and slow moving items.

vi) Revenue from sales transactions is recognised as and when the property in the goods is transferred to the buyer for a definite consideration. Export incentives are recognised on accrual basis.

vii) Contingent liabilities are generally not provided in the accounts and are shown in item No.25 of notes attached to and forming part of financial statements.

vii) Deferred tax is recognised on the timing differences between the accounting income and taxable income for the year and quantified on the basis of tax rates enacted as on the date of Balance Sheet.

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Mar 31, 2012

I) The Company has been consistently following accrual method in account- ing its income and expenditure. The accounting is on the basis of going concern concept.

ii) The values of fixed assets have been arrived at on historical cost including sales tax and other expenses incurred and as reduced by Cenvat credits.

iii)Depreciation has been charged in the accounts as per schedule XIV of Companies Act, 1956. From the year 1990-91 and onwards, depreciation has been calculated on Straight Line Method on additions made to the fixed assets and on Written Down Value Method for assets put into use prior to that date.

iv) Investments are valued at cost

v) Stock of raw materials, stores and spares, finished goods and stock in trade are valued at cost or net realisable value whichever is lower.Cost as- signed for valuation of stores and spares is on weighted average basis and of raw materials,finished goodsand stock in trade on first in first out basis, after providing for diminution in value of obsolete/damaged and slow moving items.

vi)Revenue from sales transactions is recognised as and when the property in the goods is transferred to the buyer for a definite consideration. Export incentives are recognised on accrual basis.

vii)Contingent liabilities are generally not provided in the accounts and are shown in item No.25 of notes attached to and forming part of financial statements.

viii)Deferred tax is recognised on the timing differences between the ac- counting income and taxable income for the year and quantified on the basis of tax rates enacted as on the date of Balance Sheet.

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Mar 31, 2010

I) The Company has been consistently following accrual method in accounting its income and expenditure. The accounting is on the basis of going concern concept only.

ii) The value of fixed assets have been arrived at on historical cost including sales tax and other expenses incurred and as reduced by Cenvat credits.

iii) Depreciation has been charged in the accounts as per schedule XIV of Companies Act, 1956. From the year 1990-91 and onwards, depreciation has been calculated on Straight Line Method on additions made to the fixed assets and on Written Down Method for assets put into use prior to that date.

iv) Investments are valued at cost

v) Stock of raw materials, stores & spares and finished goods are valued at cost or net realisable value whichever is lower.Cost assigned for valuation of stores and spares is on weighted average basis and of raw materials and finished goods on first in first out basis, after providing for diminution in value of obsolete/damaged and slow moving items.

vi) Provision for gratuity is made as per LIC Cash Accumulation Scheme.The liability for gratuity to the extent not covered by the scheme is provided for in the accounts.

vii) Revenue from sales transactions is recognised as and when the property in the goods is transferred to the buyer for a definite consideration. Export incentives are recognised on accrual basis.

viii) Contingent liabilities are generally not provided in the accounts and are shown in item No.1 of Notes on Accounts.

ix) Deferred tax is recognised on the timing differences between the accounting income and taxable income for the year and quantified on the basis of tax rates enacted as on the date of Balance Sheet.