The Council follows the mercantile system of accounting except where stated otherwise. Fixed Assets are stated at historical cost less depreciation. Depreciation is provided on written down value method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956. In respect of additions and deletion to fixed assets, depreciation is provided on Pro-rate basis. Investments are considered long term in nature and carried at cost. Diminution in value of investments other than temporary in nature, is provided for dividend is accounted for as and when received. Preliminary expenses are amortised over 10 years as per Section 35D of the Income Tax Act, 1961. Foreign Exchange transactions are accounted on the basis of rate of exchange applicable on the date of payment / receipt. Receivables, payables and Cash/Traveller’s Cheques denominated in foreign currency are re-stated at year-end exchange rates, and the resultant gain/loss is considered in revenue. Taxation – The Council is registered Under Section 25 of the Companies Act, 1956 and its income is exempt Under Section 11 of the Income-tax Act, 1961. Hence no provision for taxation is made in the accounts. Retirement Benefits : The Company’s contribution to the Provident Fund and Superannuation Fund are charged to revenue every year . Provision for Gratuity has not been made as the provisions of Gratuity Act, 1972 do not apply. Hitherto Bonus was accounted for as and when paid. However with effect from the current year the same is being accounted on accrual basis. Leave encashment will be accounted for as and when paid.

Previous year’s figures have been regrouped / recast wherever necessary so as to make them comparable with those of the current year. In the opinion of the Committee of Administration, the Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business and provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary. Grant-in-aid is accounted for on cash basis. The Council has not made a provision for leave encashment for its employees as required by Accounting standard 15 issued by the Institute of Chartered Accountants of India. a) The Council has made a payment of Rs. 10,00,000/- towards the Prime Minister’s National Relief Fund. The said payment has been discussed in the meetings of the Committee of Administration held on 2nd December, 1999. However, the objects as detailed in the Memorandum of Association and Articles of Association of the Council clearly prohibit the Council from making such contribution. In the meantime, the Council is pursuing the matter with the Ministry of Textiles, Government of India, New Delhi. In view of the foregoing, the said contribution of Rs. 10,00,000/- has been shown under "Other Advances" under the head Loans and Advances. b) The Council has consequently also requested its members in the meeting of the Committee of Administration dated 2nd December, 1999 to Voluntarily contribute Rs.200 per head so as to recover the contribution as mentioned in (a) above. The amount recovered upto the end of the year amounts to Rs.7,74,200/- which has been shown under Current Liabilities. Since the Committee of Administration does not consider the diminution in the value of investments in US 64 scheme of the Unit Trust of India to be permanent in nature, no provision has been made there against. The Council classifies its expenditure in accordance with the format suggested by the Ministry of Commerce. Expenditure incurred in Foreign Currency during the year in respect of : Sr. No. Particulars Amount (Rs.) a) Sales cum Study tour to South America Previous year Rs.NIL) 578095.50 b) Sales cum Study tour to West Asia(Previous year Rs. NIL) 491585.00 c) Heimtextil Frankfurt Fair(Previous year Rs.193657.50) 231462.50 d) Techtextil South America(Previous year Rs.NIL) 438253.50 e) Sales cum Study tour to Sri Lanka(Previous year Rs.371793.50) --- f) Sales cum Study tour to Australia, New Zealand & Thailand(Previous year Rs. 370415.25) --- g) Techtextil 2001 (Previous year Rs.NIL) 328528.00 h) Sales cum Study tour to Bangladesh(Previous year Rs. 98972.50) --- i) Fenit International Textile Trade Fair(Previous year Rs. 169450.00) 419539.50 j) Membership with other organization(Previous year Rs.NIL) 557850.00 k) International Textiles Manufacturers Federation Conference(Previous year Rs.NIL) 450027.50 l) International Fashion Fabric Exhibition(Previous year Rs. 390023.50) 451779.50 m) International Textile & Clothing Exhibition(Previous year Rs. 208251.50) --- n) TCF Fair Melbourne(Previous year Rs. 309039.50) --- o) Techtextil Asia-2000(Previous year Rs. 409525.50) --- p) Asia Global Sourcing Exhibition – 2002(Previous year Rs. NIL) 499465.50 q) Mexicotextil 2001(Previous year Rs. NIL) 694202.77