Accounting Policies of Betex India Ltd. Company

Mar 31, 2025

CORPORATE INFORMATION

Betex India Limited is a Public Limited Listed Company domiciled in India and Incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the business of Processing of Art Silk Cloth on job work basis. The Company has three processing units named BETEX, SUMEET SILK MILLS - 1 and SUMEET SILK MILLS - 2. The Company is also engenged in Power generation through its Wind Mill Unit.

1. Significant accounting policies:

1.1 General:

I) The Financial statements have generally, been prepared in accordance with applicable Accounting Standards on the historical cost Convention on accrual basis.

II) Accounting Policies, not specifically referred to otherwise, are in consonance with generally accepted accounting policies.

1.2 Basis of Preparation of Financial Statements :

The Financial statements are prepared in accordance with Indian Accounting Standards (Ind-AS) prescribed under section 133 of the Companies Act, 2013 ("the Companies Act") read with Companies (Indian Accounting Standards) Rules as amended from time to time, the provisions of the the Companies Act as applicable and guidelines issued by the Securiteis and Exchange Board of India ("SEBI"). The accounting policies have been applied consistently to all periods presented in these financial statements. The Company generally follows mercantile system of accounting except otherwise herein stated.

1.3 Property Plant & Equipment [PPE] (Ind AS 16):

Items of Property, Plant and equipment acquired or constructed are initially recognised at historical cost net of recoverable taxes, duties, trade discounts and rebates, less accumulated depreciation and impairment loss, if any. The historical cost of Property, Plant and equipment comprises of its purchase price, borrowing costs and adjustment arising for exchange rate variations attrabuttable to the assets, including any cost directly attributable to bringing the assets to their working condition for the intended use.

Subsequent costs are included in the asset''s carrying amount or recognised as a seperate assets, as appropiate, only when it is probable that future econimic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate assets is derecognised when replaced. All other reparis and maintenance are charged to the Statement of Profit & Loss during the reporting period in which they are incurred.

Capital Work-In-Progress represents PPE that are not ready fir their intended use as at the reporting date.

The Company identifies and determines cost of each component or part of the PPE seperately, if such component or part has a cost which is significant to the total cost of the plant and equipment and has useful lives that is materially different from that of the remaining plant and equipment.

Gains and losses arising from derecognition of PPE are measured as the difference between the net disposal proceeds and the carrying amount of the assets and are recognised in the Statement of Profit and Loss when assets is derecognised.

On the transition to Ind AS, the Company has elected to continue with the carrying with the carrying value of all its Property, Plant & Equipment recognised as per the previous Generally Accepted Accounting Principals and use the carrying value as the deemed cost of the Property, plant and equipment.

1.4 Depreciation

Depreciation has been provided in accordance with the provision of schedule II of the Companies Act 2013, on Straight Line method, except Wind Mill Unit, on which Depreciation has been provided as per Written Down Value Method. Remaining useful life of the assets is as confirmed by the management.

Useful life considered for calculation of depreciation for various assets class are as follows:
Asset Class	Useful Life
Building	30 years
Plant 8 Machinery	15 Years
Furniture and Fixture	10 Years
Computers	3 Years
Office Equipment''s	5 Years
Vehicle	10 Years
Air Conditioner	5 Years

1.5 Investments:

Investments are stated at Cost. Investment in Share & Securities are considered as long term and valued at cost. No provision for shortfall in value at the end of the year is provided for.

1.6 Inventories (Ind AS 2):

a) . Raw Materials : At Cost

b) . Stores & Spares : At Cost

c) . WIP : At average cost (including all overheads)

d) . Power Unit : At Cost

Cost of Inventories is ascertained under FIFO Basis.

1.7 Revenue And Expenditure Recognition (Ind AS 115):

Expenses and incomes, not specifically referred to otherwise consider payable and receivable respectively accounted for on accrual basis except claims, Claims in respect of materials purchased and sold and Rebate & Discount etc. which are accounted on cash basis.

1.8 Impairment of Assets:

An assets is treated as impairment when the carrying cost of the assets exceeds its recoverable amount. An impairment loss is charged to the Profit & Loss Account in the year in which an assets is identified as impaired.

1.9 Retirement Benefit (Ind AS 15):

All the Retirement Benefits to the employees are being made on the payment basis.

1.10 Income Tax (Ind AS 12):

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. Tax expenses for the year, comprising Current Tax and Deferred Tax is included in determining the Net Profit for the year. Deferred Tax Assets and Liabilities are recognised for the Future Tax consequences of temporary difference between the carrying value of assets and liabilities in their respective tax base, and operating loss carry forward. The Deferred Tax Assets are recognised subject to managements judgements that realisation is more likely than not. Deferred Tax Assets and Liabilities are measured using the enacted tax rates expected to apply to taxable income in the year in which the temporary difference are expected to be reviewed or settled.

1.11 Borrowing Costs:

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

1.12 Prior Period Adjustments:

Prior period items noted during the year are debited / credited to respective heads of account being not material in nature.

1.13 Where the company has not used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date, the company shall disclose the details of where they have been used : - Not Applicable

1.14 If, in the opinion of the Board, any of the assets other than Property, Plant and Equipment, Intangible Assets and non-current investments do not have a value on realization in the ordinary course of business at least equal to the amount at which they are stated, the fact that the Board is of that opinion, shall be stated Not Applicable

1.15 Where the Company has revalued its Property, Plant and Equipment, the company shall disclose as to whether the revaluation is based on the valuation by a registered value as defined under rule 2 of the Companies (Registered Value’s and Valuation) Rules, 2017:- Not Applicable

1.16 Capital Working in Progress Ageing : Not Applicable to the Company

1.17 Capital Working in Progress Completion Schedule : Not Applicable to the Company

1.18 Intangible Tangible Assets under Development: Not Applicable

1.19 The Company does not have any benami property, and no proceeding has been initiated against the Company for holding any benami property.

1.20 The Company does not have borrowings on the basis of security of Current Assets: Not Applicable.

1.21 The Company is not a declared wilful defaulter by any bank/ financial Institution/ other lender.

1.22 Charges / Satisfaction yet to be registered with ROC beyond the statutory period along with details and reasons thereof: Not Applicable to the Company.

1.23 Any Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, the company shall disclose that the effect of such Scheme of Arrangements have been accounted for in the books of account of the Company ‘in accordance with the Scheme’ and ‘in accordance with accounting standards’ and deviation in this regard shall be explained Not Applicable

1.24 Financial instruments: [Ind AS 109]

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets:

Classification

The Company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and

• those measured at amortized cost.

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

Initial recognition and measurement

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through Profit and Loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through Profit and Loss are expensed in the Statement of Profit and Loss.

Subsequent measurement

After initial recognition, financial assets are measured at:

• fair value (either through other comprehensive income or through Profit and Loss), or

• amortized cost.

Amortised cost:

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost is recognized in the Standalone Statement of Profit and Loss when the asset is derecognized or impaired. Interest income from these financial assets is included in other income using the effective interest rate method.

Fair Value through Other Comprehensive Income (FVOCI):

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets, cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in the Standalone Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss previously recognised in OCI is reclassified from equity to Standalone Statement of Profit and Loss and recognised in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

Fair Value through Profit and Loss (FVTPL):

Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognised in Standalone Statement of Profit and Loss in the period in which it arises. Interest income from these financial assets is recognised in the Standalone Statement of Profit and Loss.

Equity instruments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company decides to classify the same either as at FVTOCI or FVTPL.

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the company changes its business model for managing financial assets.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in Other Comprehensive Income (OCI). There is no recycling of the amounts from OCI to Standalone Statement of Profit and Loss, even on sale of such investments.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Standalone Statement of Profit and Loss.

Debt instruments

Debt instruments are subsequently measured at amortized cost on the basis of:

(i) the entity''s business model for managing the financial assets and

(ii) the contractual cash flow characteristics of the financial asset.

De-recognition

A financial asset shall be derecognized only when:

(a) the contractual rights to the cash flows from the financial asset expire, or

(b) it transfers the financial asset and the transfer qualifies for derecognition.

(c) On de-recognition of a financial asset, the difference between:

a. the carrying amount (measured at date of derecognition); and

b. tlie consideration received shall be recognized in Standalone Statement of Profit and Loss.

Financial liabilities:

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. In the case of a financial liability not at FVTPL, transaction costs that are directly attributable to the issue/origination of the financial liability.

Preference Shares being redeemable at fixed date and having right of cumulative dividend are considered as financial liability.

Subsequent measurement

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held for trading, or it is a derivative or it is designated as such an initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in standalone statement of profit and loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in Standalone Statement of Profit and Loss. Any gain or loss on de-recognition is also recognized in Standalone Statement of Profit and Loss.

De-recognition

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the standalone statement of profit or loss.

Offsetting of financial instruments:

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

Fair value measurement [Ind AS 113]

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.

? Level 1 - Quoted (unadjusted) prices in active market for identical assets or liabilities. Investments in Quoted Shares are valued as per quoted price in active market.

? Level 2 -(Inputs other than quoted prices included in Level 1) Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

I Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. For financial assets and liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the carrying amount approximates fair value due to the short maturity of these instruments.

1.25 Additional Regulatory Information:

Title deeds of Immovable Property are held in name of the Company.

Details of Benami Property held: Not Applicable

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Mar 31, 2024

1. Significant accounting policies:

1.1 General:

I) The Financial statements have generally, been prepared in accordance with applicable Accounting Standards on the historical cost Convention on accrual basis.

II) Accounting Policies, not specifically referred to otherwise, are in consonance with generally accepted accounting policies.

1.2 Basis of Preparation of Financial Statements :

The Financial statements are prepared in accordance with Indian Accounting Standards (Ind-AS) prescribed under section 133 of the Companies Act, 2013 ("the Companies Act") read with Companies (Indian Accounting Standards) Rules as amended from time to time, the provisions of the the Companies Act as applicable and guidelines issued by the Securiteis and Exchange Board of India ("SEBI"). The accounting policies have been applied consistently to all periods presented in these financial statements. The Company generally follows mercantile system of accounting except otherwise herein stated.

1.3 Property Plant & Equipment [PPE] (Ind AS 16):

Items of Property, Plant and equipment acquired or constructed are initially recognised at historical cost net of recoverable taxes, duties, trade discounts and rebates, less accumulated depreciation and impairment loss, if any. The historical cost of Property, Plant and equipment comprises of its purchase price, borrowing costs and adjustment arising for exchange rate variations attrubuttable to the assets, including any cost directly attributable to bringing the assets to their working condition for the intended use.

Subsequent costs are included in the asset''s carrying amount or recognised as a seperate assets, as appropiate, only when it is probable that future econimic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate assets is derecognised when replaced. All other reparis and maintenance are charged to the Statement of Profit & Loss during the reporting period in which they are incurred.

Capital Work-In-Progress represents PPE that are not ready fir their intended use as at the reporting date.

The Company identifies and determines cost of each component or part of the PPE seperately, if such component or part has a cost which is significant to the total cost of the plant and equipment and has useful lives that is materially different from that of the remaining plant and equipment.

Gains and losses arising from derecognition of PPE are measured as the difference between the net disposal proceeds and the carrying amount of the assets and are recognised in the Statement of Profit and Loss when assets is derecognised.

On the transition to Ind AS, the Company has elected to continue with the carrying with the carrying value of all its Property, Plant & Equipment recognised as per the previous Generally Accepted Accounting Principals and use the carrying value as the deemed cost of the Property, plant and equipment.

1.4 Depreciation

Depreciation has been provided in accordance with the provision of schedule II of the Companies Act 2013, on Straight Line method, except Wind Mill Unit, on which Depreciation has been provided as per Written Down Value Method. Remaining useful life of the assets is as confirmed by the management.

1.5 Investments:

Investments are stated at Cost. Investment in Share & Securities are considered as long term and valued at cost. No provision for shortfall in value at the end of the year is provided for.

1.6 Inventories (Ind AS 2):

a) . Raw Materials : At Cost

b) . Stores & Spares : At Cost

c) . WIP : At average cost (including all overheads)

d) . Power Unit : At Cost

Cost of Inventories is ascertained under FIFO Basis.

1.7 Revenue And Expenditure Recognition (Ind AS 115):

Expenses and incomes, not specifically referred to otherwise consider payable and receivable respectively accounted for on accrual basis except claims, Claims in respect of materials purchased and sold and Rebate & Discount etc. which are accounted on cash basis.

1.8 Impairment of Assets:

An assets is treated as impairment when the carrying cost of the assets exceeds its recoverable amount. An impairment loss is charged to the Profit & Loss Account in the year in which an assets is identified as impaired.

1.9 Retirement Benefit (Ind AS 15):

All the Retirement Benefits to the employees are being made on the payment basis.

1.10 Income Tax (Ind AS 12):

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. Tax expenses for the year, comprising Current Tax and Deferred Tax is included in determining the Net Profit for the year. Deferred Tax Assets and Liabilities are recognised for the Future Tax consequences of temporary difference between the carrying value of assets and liabilities in their respective tax base, and operating loss carry forward. The Deferred Tax Assets are recognised subject to managements judgements that realisation is more likely than not. Deferred Tax Assets and Liabilities are measured using the enacted tax rates expected to apply to taxable income in the year in which the temporary difference are expected to be reviewed or settled.

1.11 Borrowing Costs:

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

1.12 Prior Period Adjustments:

Prior period items noted during the year are debited / credited to respective heads of account being not material in nature.

1.13 Where the company has not used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date, the company shall disclose the details of where they have been used Not Applicable

1.14 If, in the opinion of the Board, any of the assets other than Property, Plant and Equipment, Intangible Assets and non-current investments do not have a value on realization in the ordinary course of business at least equal to the amount at which they are stated, the fact that the Board is of that opinion, shall be stated Not Applicable

1.15 Where the Company has revalued its Property, Plant and Equipment, the company shall disclose as to whether the revaluation is based on the valuation by a registered value as defined under rule 2 of the Companies (Registered Value’s and Valuation) Rules, 2017: - Not Applicable

1.16 Capital Working in Progress Ageing : Not Applicable to the Company

1.17 Capital Working in Progress Completion Schedule : Not Applicable to the Company

1.18 Intangible Tangible Assets under Development: Not Applicable

1.19 The Company does not have any benami property, and no proceeding has been initiated against the Company for holding any benami property.

1.20 The Company does not have borrowings on the basis of security of Current Assets: Not Applicable.

1.21 The Company is not a declared wilful defaulter by any bank/ financial Institution/ other lender.

1.22 Charges / Satisfaction yet to be registered with ROC beyond the statutory period along with details and reasons thereof: Not Applicable to the Company.

1.23 Any Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, the company shall disclose that the effect of such Scheme of Arrangements have been accounted for in the books of account of the Company ‘in accordance with the Scheme’ and ‘in accordance with accounting standards’ and deviation in this regard shall be explained Not Applicable

1.24 Financial instruments: [Ind AS 109]

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets:

Classification

The Company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and

• those measured at amortized cost.

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

Initial recognition and measurement

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through Profit and Loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through Profit and Loss are expensed in the Statement of Profit and Loss.

Subsequent measurement

After initial recognition, financial assets are measured at:

• fair value (either through other comprehensive income or through Profit and Loss), or

• amortized cost.

Amortised cost:

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost is recognized in the Standalone Statement of Profit and Loss when the asset is derecognized or impaired. Interest income from these financial assets is included in other income using the effective interest rate method.

Fair Value through Other Comprehensive Income (FVOCI):

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets, cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in the Standalone Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss previously recognised in OCI is reclassified from equity to Standalone Statement of Profit and Loss and recognised in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

Fair Value through Profit and Loss (FVTPL):

Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognised in Standalone Statement of Profit and Loss in the period in which it arises. Interest income from these financial assets is recognised in the Standalone Statement of Profit and Loss.

Equity instruments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company decides to classify the same either as at FVTOCI or FVTPL.

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the company changes its business model for managing financial assets.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in Other Comprehensive Income (OCI). There is no recycling of the amounts from OCI to Standalone Statement of Profit and Loss, even on sale of such investments.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Standalone Statement of Profit and Loss.

Debt instruments

Debt instruments are subsequently measured at amortized cost on the basis of:

(i) the entity''s business model for managing the financial assets and

(ii) the contractual cash flow characteristics of the financial asset.

De-recognition

A financial asset shall be derecognized only when:

(a) the contractual rights to the cash flows from the financial asset expire, or

(b) it transfers the financial asset and the transfer qualifies for derecognition.

(c) On de-recognition of a financial asset, the difference between:

a. the carrying amount (measured at date of derecognition); and

b. the consideration received shall be recognized in Standalone Statement of Profit and Loss.

Financial liabilities:

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. In the case of a financial liability not at FVTPL, transaction costs that are directly attributable to the issue/origination of the financial liability.

Preference Shares being redeemable at fixed date and having right of cumulative dividend are considered as financial liability.

Subsequent measurement

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held for trading, or it is a derivative or it is designated as such an initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in standalone statement of profit and loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in Standalone Statement of Profit and Loss. Any gain or loss on de-recognition is also recognized in Standalone Statement of Profit and Loss.

De-recognition

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the standalone statement of profit or loss.

Offsetting of financial instruments:

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

1.25 Additional Regulatory Information:

Title deeds of Immovable Property are held in name of the Company.

Details of Benami Property held: Not Applicable

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Mar 31, 2015

1.1 GENERAL

I) The Financial statements have generally, been prepared in accordance with applicable Accounting Standards on the historical cost Convention on accrual basis.

II) Accounting Policies, not specifically referred to otherwise, are in consonance with generally accepted accounting policies.

1.2 BASIS OF PREPARATION OF FINANCIAL STATEMENTS (AS -1):

The Company generally follows mercantile system of accounting except otherwise herein stated.

1.3 FIXED ASSETS (AS-10)

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost comprises of Purchase price and all other cost attributable to bringing the assets to its working condition for its intended use. As per the requirement of Sch.ll of Companies Act 2013, Residual value of 5% of Gross Amount of the assets is must to be kept. To adher the provision, the Company has reinstated the Residual value of certain fixed assets. Due this reinstatement, Profit & Loss account is increased by Rs. 14,83,928/- and Assets has been increased with the same amount.

1.4 DEPRECIATION (AS-6)

Depreciation has been provided in accordance with the provision of schedule II of the Companies Act 2013, on Straight Line method, except Wind Mill Unit, on which Depreciation has been provided as per Written Down Value Method. Remaining useful life of the assets is as confirmed by the management. Depreciation on assets exist as on 31.03.2014 is computed based on remaining useful life of asset confirmed by the management.

1.5 INVESTMENTS (AS-13)

Investments are stated at Cost. Investment in Share & Securities are considered as long term and valued at cost. No provision for shortfall in value at the end of the year is provided for

1.6 INVENTORIES (AS-2)

a). Raw Materials At Cost.

b). Stores & Spares At Cost

c). WIP At average cost (including all overheads)

c). Power Unit At Cost

Cost of Inventories is ascertained under FIFO Basis.

1.7 REVENUE AND EXPENDITURE RECOGNITION (AS-9)

Expenses and incomes, not specifically referred to otherwise consider payable and receivable respectively accounted for on accrual basis except claims, Claims in respect of materials purchased and sold and Rebate & Discount etc. which are accounted on cash basis.

1.8 IMPAIRMENT OF ASSETS (AS-28)

An assets is treated as impairment when the carrying cost of the assets exceeds its recoverable amount. An impairment loss is charged to the Profit & Loss Account in the year in which an assets is identified as impaired.

1.9 RETIREMENT BENEFIT (AS-15)

aII the Retirement Benefits to the employees are being made on the payment basis.

1.10 INCOME TAX (AS-22)

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. Tax expenses for the year, comprising Current Tax and Deferred Tax is included in determining the Net Profit for the year. Deferred Tax Assets and Liabilities are recognised for the Future Tax consequences of temporary difference between the carrying value of assets and liabilities in their respective tax base, and operating loss carry forward. The Deferred Tax Assets are recognised subject to managements judgements that realisation is more likely than not. Deferred Tax Assets and Liabilities are measured using the enacted tax rates expected to apply to taxable income in the year in which the temporary difference are expected to be reviewed or settled.

1.11 BORROWING COSTS

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

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Mar 31, 2014

1.1 GENERAL :

I) The Financial statements have generally, been prepared in accordance with applicable Accounting Standards on the historical cost Convention on accrual basis.

II) Accounting Policies, not specifically referred to otherwise, are in consonance with generally accepted accounting policies.

1.2 BASIS OF PREPARATION OF FINANCIAL STATEMENTS (AS -1):

The Company generally follows mercantile system of accounting except otherwise herein stated.

1.3 FIXED ASSETS (AS-10):

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost comprises of Purchase price and all other cost attributable to bringing the assets to its working condition for its intended use

1.4 DEPRECIATION (AS-6) :

Depreciation has been provided at the rates and in accordance with the provision of schedule XIV of the Companies Act 1956, on Straight Line method, except Wind Mill Unit, on which Depreciation has been provided as per Written Down Value Method of Companies Act, 1956

1.5 INVESTMENTS (AS-13) :

Investments are stated at Cost. Investment in Share & Securities are considered as long term and valued at cost. No provision for shortfall in value at the end of the year is provided for.

1.6 INVENTORIES (AS-2):

a). Raw Materials : At Cost.

b). Stores & Spares : At Cost

b). Power Unit : At Cost

Cost of Inventories is ascertained under FIFO Basis.

1.7 REVENUE AND EXPENDITURE RECOGNITION (AS-9) :

Expenses and incomes, not specifically referred to otherwise consider payable and receivable respectively accounted for on accrual basis except claims, Claims in respect of materials purchased and sold and Rebate & Discount etc. which are accounted on cash basis.

1.8 IMPAIRMENT OF ASSETS (AS-28) :

An assets is treated as impairment when the carrying cost of the assets exceeds its recoverable amount. An impairment loss is charged to the Profit & Loss Account in the year in which an assets is identified as impaired.

1.9 RETIREMENT BENEFIT (AS-15):

All the Retirement Benefits to the employees are being made on the payment basis.

1.10 INCOME TAX (AS-22):

Current tax is the amount of tax payable on the taxable income for the year as determined in accodance with the provisions of the Income Tax Act, 1961. Tax expenses for the year, comprising Current Tax and Deferred Tax is included in determining the Net Profit for the year. Deferred Tax Assets and Liabilities are recognised for the Future Tax consequences of temporary difference between the carrying value of assets and liabilities in their respective tax base, and operating loss carry forward. The Deferred Tax Assets are recognised subject to managements judgements that realisation is more likely than not. Deferred Tax Assets and Liabilities are measured using the enacted tax rates expected to apply to taxable income in the year in which the temporary difference are expected to be reviewed or settled.

1.11 BORROWING COSTS :

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

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Mar 31, 2013

1.1 GENERAL:

I) The Financial statements have generally, been prepared in accordance with applicable Accounting Standards on the historical cost Convention on accrual basis.

II) Accounting Policies, not specifically referred to otherwise, are in consonance with generally accepted accounting policies.

1.2 BASIS OF PREPARATION OF FINANCIAL STATEMENTS (AS -1):

The Company generally follows mercantile system of accounting except otherwise herein stated.

1.3 FIXED ASSETS (AS-10):

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost comprises of Purchase price and all other cost attributable to bringing the assets to its working condition for its intended use

1.4 DEPRECIATION (AS-6):

Depreciation has been provided at the rates and in accordance with the provision of schedule XIV of the Companies Act 1956, on Straight Line method, except Wind Mill Unit, on which Depreciation has been provided as per Written Down Value Method of Companies Act, 1956

1.5 INVESTMENTS (AS-13):

Investments are stated at Cost. Investments Share & Securities are considered as long term and valued at cost. No provision for shortfall in value at the end of the year is provided for.

1.6 INVENTORIES (AS-2):

a). Raw Materials : At Cost.

b). Stores & Spares : At Cost

b). Power Unit : At Cost

Cost of Inventories is ascertained under FIFO Basis.

1.7 REVENUE AND EXPENDITURE RECOGNITION (AS-9) :

Expenses and incomes, not specifically referred to otherwise consider payable and receivable respectively accounted for on accrual basis except claims, Claims in respect of materials purchased and sold and Rebate & Discount etc. which are accounted on cash basis.

1.8 IMPAIRMENT OF ASSETS (AS-28) :

An assets is treated as impairment when the carrying cost of the assets exceeds its recoverable amount. An impairment loss is charged to the Profit & Loss Account in the year in which an assets is identified as impaired.

1.9 RETIREMENT BENEFIT (AS-15):

All the Retirement Benefits to the employees are being made on the payment basis.

1.10 INCOME TAX (AS-22):

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. Tax Expenses for the year, comprising Current Tax and Deferred Tax is-- included in determining the Net Profit for the year. Deferred Tax Assets and Liabilities are recognised for the Future Tax consequences of temporary difference between the carrying value of assets and liabilities in their , respective tax base, and operating loss carry forward. The Deferred Tax Assets are recognised subject to '' managements judgements that realisation is more likely than not. Deferred Tax Assets and Liabilities are measured using the enacted tax rates expected to apply to taxable income in the year in which the temporary difference are expected to be reviewed or settled.

1.11 BORROWING COSTS :

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with thejsorrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / > development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

i. The Company has Two class of shares referred to as equity shares having face value of Rs. 10/- each and Non- Convertible Redeemable Preferance Shares having face value of Rs. 10/- each. Each holder of equity share is entitled to one vote per share

ii. The holder of equity shares are entitled to dividends, if any proposed by the Board of Directors and approved by share holder at the Annual General Meeting.

iii. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive ap/''of the remaining assets of the Company, after distribution of all preferential amounts,. However. No such~preferential amounts exists currently. The distribution will be in proportion to the numbers of equity shares held by the Share holders.

iv. Non-convertible Redeemable Pref. shares does not carried any votting rights

(a) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period: Provision for Deferred Tax Liabilities/ Assets (net) amounting to Rs. 4,41,719/- is based on accounting standard for deferred tax (AS-22) being "Timing differences" between books and taxable profit which will be adjusted/reversed in future when these expenditure would be accounted for on accrual basis or allowed for tax purposes. The major component of deferred tax assets and liability arising out timing difference as above.

The details of status of suppliers whether MSME or Otherwise are not available to the company, hence due/ payable to creditors are not separately given as required under the Companies Act. The information regarding the suppliers, whether they are registered with the authority specified under the Micro, Small & Medium Enterprises Development Act, 2006 is not available with the auditee. Hence we are unable to calculate the amount of interest paid or payable to them U/s.23 of that Act.

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Mar 31, 2011

1 GENERAL:

I) The Financial statements have generally, been prepared on the historical cost Convention.

II) Accounting Policies, not specifically referred to otherwise, are in consonance with generally accepted accounting policies.

2 BASIC OF ACCOUNTING (AS-1) :

The Company generally follows mercantile system of accounting except otherwise herein stated.

3 FIXED ASSETS (AS-10) :

Fixed Asset are stated at cost of acquisition or Construction less accumulated depreciation. Cost Comprises of Purchase price and all other Cost attributable to bringing the Assets to its working Condition for its intended Use.

4 DEPRECIATION (AS-6):

Depreciation has been provided at the rates and in accordance with the provisions of schedule XIV of the Companies Act., 1956, on Straight Line Method, Except the WINDMILL UNIT, on which Depreciation has been provided as per Written Down Value Method of Companies Act, 1956.

5 INVESTMENTS (AS-13)

Investments are stated at cost. Investment in share & securities are considered as long term and valued at cost. No provision for shortfall in value at the end of the year is provided for.

6 REVENUE AND EXPENDITURE RECOGNITION (AS-9) :

Expenses and incomes, not specifically referred to otherwise consider payable and receivable respectively accounted for on accrual basis except claims, Claims in respect of materials purchased and sold and Rebate & Discount etc which are accounted on cash basis.

7 IMPAIRMENT OF ASSETS

An assets is treated as impairment when the carrying cost of the assets exceeds its recoverable amount. An impairment loss is charged to the Profit & Loss Account in the year in which an assets is identified as impaired.

8 RETIREMENT BENEFIT (AS-15):

All the Retirement Benefits to the employees are being made on the payment basis. The Company is member of Recognised Provident Fund scheme established by Govt. of Gujarat. The Company is contributing the eligible amount under the scheme every month.

9 INCOME TAX (AS -22):

Tax Expenses for the year, comprising Current Tax and Deferred Tax is included in determining the Net Profit for the year. Deferred Tax Assets and Liabilities are recognised for the Future tax consequences of temporary difference between the carrying value of assets and Liabilities in their respective Tax Base, and operating Loss Carry Forward. The Deferred Tax Assets are recognised subject to managements judgment that realisation is more likely than not. Deferred Tax Assets and Liabilities are measured using the enacted Tax Rates expected to apply to Taxable income in the year in which the temporary difference are expected to be reviewed. or settled.

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Mar 31, 2010

1 GENERAL:

I) The Financial statements have generally, been prepared on the historical cost Convention.

II) Accounting Policies, not specifically referred to otherwise, are In consonnance with generally accepted accounting policies.

2 BASIC OF ACCOUNTING :

The Company generally follows mercantile system of accounting except otherwise herein stated.

3 FIXED ASSETS :

Fixed asset are stated at cost of acquisition less accumulated depreciatlon.Depreciatton has been provided at the rates and in accordance with the provisions of schedule XIV of the Companies Act., 1956, on straight line method, except the WINDMILL UNIT, on which Depreciation has been provided as per Written Down Value Method of Companies Act, 1956.

4 INVESTMENTS Investments are stated at cost.

5 INVENTORIES :

Inventories are stated on Cost or Market Value which ever is lower. Power Unit kept as deposit with G.E.B. are valued at cost or Market Value whichever is lower.

6 REVENUE AND EXPENDITURE RECOGNITION :

Revenue are recognised and expenditure is accounted for on accrual basis except claims, Claims In respect of materials purchased and sold and Rebate & Discount etc which are accounted on cash basis.

7 RETIREMENT BENEFIT

All the retirement benefits to the employees are being made on the payment basis.

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Mar 31, 2009

1 GENERAL:

I) The Financial statements have generally, been prepared on the historical cost Convention.

II) Accounting Policies, not specifically referred to otherwise, are in consonnance with generally accepted accounting policies.

2 BASIC OF ACCOUNTING :

The Company generally follows mercantile system of accounting except otherwise herein stated.

3 FIXED ASSETS :

Fixed asset are stated at cost of acquisition less accumulated depreciation.Depreciation has been provided at the rates and in accordance with the provisions of schedule XIV of the Companies Act., 1956, on straight line method, except the WINDMILL UNIT, on which Depreciation has been provided as per Written Down Value Method of Companies Act, 1956.

4 INVESTMENTS Investments are stated at cost.

5 INVENTORIES :

Inventories are stated on Cost or Market Value which ever is lower. Power Unit kept as deposit with G.E.B. are valued at cost or Market Value whichever is lower.

6 REVENUE AND EXPENDITURE RECOGNITION :

Revenue are recognised and expenditure is accounted for on accrual basis except claims, Claims in respect of materials purchased and sold and Rebate & Discount etc which are accounted on cash basis.

7 RETIREMENT BENEFIT

All the retirement benefits to the employees are being made on the payment basis.