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. Unutilised Grant-in-aid refunded back 
Rs.NIL(Previous year Rs.4675000)

The Council has not made the following provisions for its employees as required by Accounting Standard 15 “Accounting for Retirement Benefits in the Financial Statements of Employers” issued by the Institute of Chartered Accountants of India.

Provision for Leave Encashment

Provision for Gratuity:
Provisions of The Payment of Gratuity Act,1972 have become applicable to the Council from 1st March,2005. However, provision for Gratuity has not been made in the accounts pending the approval of the Textile Commissioner and the Staff Committee in respect of the Group Gratuity ( Cash Accumulation) Scheme of the Life Insurance Corporation of  India. Contribution to the Scheme will be accounted for as and when paid and the amount ascertained.

The Council has made a payment of Rs. 10,00,000 towards the Prime Minister’s National Relief Fund. The said payment had been discussed in the meeting 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 included in “Other Advances” under the head “ Loans and Advances”.

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.8,48,051 which has been shown under the head “Current Liabilities”.

The Council classifies its expenditure in accordance with the format suggested by the Ministry of Commerce.

Disclosure as required by Accounting Standard AS-19 “Leases” in respect of Indenture of Lease for the Council’s Erode Office :-

Lease Rent debited to the Income and Expenditure Account Rs.51,124

Interest-free refundable deposit given amounting to Rs. 25,000 and

Interest shall be payable @ 1% per month by the Lessor to the Lessee
commencing from the date of vacation upto the date of final payment of security deposit on the amount due.