Accounting Policies of Binny Mills Ltd. Company

Mar 31, 2025

1. Corporate Information

Binny Mills Ltd (“the Company”) was incorporated as a Public Limited Company on December 20, 2007. The company was issued a Certificate for Commencement of Business on February 6, 2008. The Company is engaged in the business of providing renting services and trading of goods. The company derives rental income by letting out, its warehouse situated in Perambur, Chennai. Apart from this, the Company is indulged in retail sales of textiles, from its textile division at Chennai and the showrooms in Bangalore.

2. Basis of preparation of financial statements

(i) Statement of compliance

These financial statements are prepared in accordance with Indian Accounting Standards (“Ind AS”) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values or amortised cost at the end of each reporting period, the provisions of the Companies Act, 2013 (''the Act'') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI).

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.

(ii) Use of estimates and judgements

The preparation of financial statements in conformity with Ind AS requires the management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses and the disclosure of contingent liabilities on the date of the financial statements.The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in Note 2A. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which the changes are made and, if material, their effects are disclosed in the notes to the financial statements.

(iii) Functional and presentation currency

These financial statements are presented in Indian Rupees (INR), which is the Company''s functional currency. All financial information presented in INR has been rounded to the nearest lakhs (up to two decimals). The financial statements are approved for issue by the Company''s Board of Directors on 30.05.2024.

2A. Critical accounting estimates and management judgments

In application of the accounting policies, which are described in note 2, the management of the Company is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Information about significant areas of estimation, uncertainty and critical judgements used inapplying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes:

Property, Plant and Equipment (PPE)

The residual values and estimated useful life of PPEs are assessed by the technical team at each reporting date by taking into account the nature of asset, the estimated usage of the asset,the operating condition of the asset, past history of replacement and maintenance support. Upon review, the management accepts the assigned useful life and residual value for computation of depreciation/ amortisation. Also, management judgement is exercised for classifying the assetas investment properties or vice versa.

Current tax

Calculations of income taxes for the current period are done based on applicable tax laws and management''s judgement by evaluating positions taken in tax returns and interpretations of relevant provisions of law.

Deferred Tax Assets

Significant management judgement is exercised by reviewing the deferred tax assets at each reporting date to determine the amount of deferred tax assets that can be retained / recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Fair value

Management uses valuation techniques in measuring the fair value of financial instruments where active market quotes are not available. In applying the valuation techniques, management makes maximum use of market inputs and uses estimates and assumptions that are, as far as possible, consistent with observable data that market participants would use in pricing the instrument. Where applicable data is not observable, management uses its best estimate about the assumptions that market participants would make. These estimates may vary from the actual that would be achieved in an arm''s length transaction at the reporting date.

Impairment of Trade Receivables

The impairment for trade receivables is done based on assumptions about risk of default and expected loss rates. The assumptions, selection of inputs for calculation of impairment are based on management judgement considering the past history, market conditions and forward-looking estimates at the end of each reporting date.

Impairment of Non-financial assets (PPE)

The impairment of non-financial assets is determined based on estimation of recoverable amount of such assets. The assumptions used in computing the recoverable amount are based on management''s judgement considering the timing of future cash flows, discount rates and the risks specific to the asset.

Defined Benefit Plans and Other long-term benefits

The cost of the defined benefit plan and other long-term benefits, and the present value of such obligation are determined by the independent actuarial valuer. An actuarial valuation involves making various assumptions that may differ from actual developments in future. Management believes that the assumptions used by the actuary in determination of the discount rate, future salary increases, mortality rates and attrition rates are reasonable. Due to the complexities involved in the valuation and its long-term nature, this obligation is highly sensitive tochanges in these assumptions. All assumptions are reviewed at each reporting date.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities could not be measured based on quoted prices in active markets, management uses valuation techniques including the Discounted Cash Flow (DCF) model, to determine its fair value The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is exercised in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.

Provisions and contingencies

The recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources, and on past experience and circumstances known at the reporting date. The actual outflow of resources at a future date may therefore vary from the figure estimated at end of each reporting period.

3. MaterialAccounting Policies

a) Current versus non-current classification

Based on the time involved between the acquisition of assets for processing and their realization in cash and cash equivalents, the group has identified twelve months as its operating cycle for determining current and non-current classification of assets and liabilities in the balance sheet.

b) Fair value measurement

The Company applies fair value measurement where necessary, defined as the price to sell an asset or transfer a liability in an orderly transaction between market participants on the measurement date. Fair value is determined in either the principal market or, if absent, the most advantageous market accessible by the Company.

Assumptions used in fair value measurement of an asset/liability reflect market participants'' economic interests. For non-financial assets, the highest and best use is considered, whether by use or sale.

Valuation techniques maximize observable inputs and minimize unobservable ones, categorized within the fair value hierarchy:

Level 1: Quoted prices in active markets for identical items.

Level 2: Techniques using observable inputs.

Level 3: Techniques using unobservable inputs.

Recurring fair value measurements are reassessed each reporting period for proper categorization. Team leads set policies for fair value measurements, with external valuers involved as approved by the board, based on market knowledge, reputation, and independence.

For disclosures, assets and liabilities are categorized by nature, risk, and fair value hierarchy level, detailed in the notes to the Financial Statements.

c) Revenue Recognition Sale of goods

Revenue is recognized when it is probable that economic benefits will flow to the company and the revenue can be reliably measured, regardless of payment timing. For goods, revenue is recognized when risks and rewards of ownership is transferred to the buyer, usually upon dispatch or as per the termsagreed with the customer.

Revenue is measured at the fair value of consideration received or receivable, including invoice value after deducting discounts, volume rebates, and applicable taxes, and excluding selfconsumption.

Rental income

Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease, if the escalation is not a compensation for increase in cost inflation index.

Revenues in respect of rental income and hire charges received are recognized in accordance with the terms of the agreement.

d) Property, plant and equipment

Deemed cost option for first time adopter of Ind AS

Under the previous GAAP (Indian GAAP), the property, plant and equipment were carried in the balance sheet at cost less accumulated depreciation. The company has elected to continue the carrying amount of PPE in the existing financials as the deemed cost as at the date of transition,viz.,1 April 2016.

Presentation

Property, plant, and equipment are recorded at cost minus accumulated depreciation and impairment losses. Costs include replacements and borrowing costs for qualifying assets.

Significant parts with different useful lives are depreciated separately, while repair and maintenance costs are expensed immediately.

Advances for acquiring property, plant and equipment are listed as capital advances under noncurrent assets. Costs of assets not yet ready for intended use are listed as capital work in progress.

Component Cost

All significant components of the plant are identified and accounted for separately. Each component''s useful life is analyzed independently, and depreciation is calculated based on these specific useful lives.

The cost of replacing a part of property, plant, and equipment is added to the carrying amount if future economic benefits are probable and the cost is measurable. Repair and maintenance costs are expensed as incurred.

Machinery spares/ insurance spares that can be issued only in connection with an item of fixed assets and their issue is expected to be irregular are capitalised. Replacement of such spares ischarged to revenue. Other spares are charged as revenue expenditure as and when consumed

Derecognition

Gains or losses from derecognition of property, plant, and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset. These gains or losses are recognized in the statement of profit and loss when the asset is derecognized.

e) Depreciation on property, plant and equipment

Depreciation is the systematic allocation of depreciable amount of an asset over its useful life. The depreciable amount is the cost of an asset less 5% residual value. Depreciation is calculated using the straight-line method over the useful lives specified in Schedule II to the Companies Act, 2013.

For new additions, depreciation is calculated on a pro-rata basis from the addition date. For deletion/ disposals, it''s calculated up to the date of sale or discard. Assets costing Rs. 5,000 or less are fully depreciated, retaining their residual value.

The residual values, estimated useful lives, and depreciation methods are reviewed annually and adjusted prospectively if needed.

f) Investment property

Investment properties are held to earn rentals and/or for capital appreciation, including properties under construction for such purposes. They are initially measured at cost, including transaction costs. Subsequently, they follow the cost model as per Ind AS 16, including costs for replacing parts and borrowing costs for long-term projects if recognition criteria are met. Significant parts are depreciated separately based on their useful lives, while repair and maintenance costs are expensed as incurred.

Depreciation for investment properties follows the useful life prescribed in Schedule II of the Companies Act, 2013. Investment properties are derecognized upon disposal or when permanently withdrawn from use with no expected future economic benefits. Gains or losses on derecognition (difference between net disposal proceeds and carrying amount) are recognized in the profit and loss statement in the period of derecognition.

g) Inventories

Inventories are carried at the lower of cost and net realisable value. Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Costs are determined based on weighted average basis.

h) Financial Instruments Financial assets

Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.

Initial recognition and measurement

All financial assets are initially recognized at fair value. For financial assets not recorded at fair value through profit or loss, transaction costs attributable to the acquisition are added. Purchases or sales of financial assets requiring delivery within a regulated time frame (regular way trades) are recognized on the trade date, i.e. the date that the Company commits to the transaction.

Subsequent measurement

For subsequent measurement, financial assets are classified based on their contractual cash flow characteristics and the company''s business model for managing them. The classifications are:

l Financial instruments (other than equity instruments) at amortized cost

l Financial instruments (other than equity instruments) at fair value through other comprehensive income (FVTOCI)

l Other financial instruments, derivatives, and equity instruments at fair value through profit or loss (FVTPL)

l Equity instruments measured at fair value through other comprehensive income (FVTOCI) Derecognition

A financial asset is derecognised when: l The rights to receive cash flows have expired, or

l The Company has transferred its rights to receive cash flows or assumed an obligation to pass them to a third party, and either:

a) Transferred substantially all risks and rewards of the asset, or

b) Neither transferred nor retained substantially all risks and rewards, but transferred control of the asset.

If the Company has neither transferred nor retained substantially all risks and rewards nor transferred control, it continues to recognise the asset to the extent of its continuing involvement, along with an associated liability. This is measured based on retained rights and obligations.

Continuing involvement, like a guarantee, is measured at the lower of the original carrying amount or the maximum amount the Company might repay.

Impairment of financial assets

In accordance with Ind AS 109, the Company uses ''Expected Credit Loss''(ECL) model, for evaluating impairment ofFinancial Assets other than those measured at Fair Value Through Profit and Loss(FVTPL).

Expected Credit Losses are measured through a loss allowance at an amount equal to:

l The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or

l Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).

For Trade Receivables the Company follows ''simplified approach'' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward-looking estimates are analysed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase incredit risk. If there is significant increase incredit risk full lifetime ECL is used.

Financial liabilities

Initial recognition and measurement

All Financial Liabilities are recognised atfair value and in case of borrowings, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

The Company''s financial liabilities include trade and other payables, loans and borrowings(including bank overdrafts), financial guarantee contracts and derivative financial instruments.

Subsequent Measurement

Financial Liabilities are carried at amortised cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or 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 statement of profit or loss.

i) Borrowing Costs

Borrowing costs include interest using the Effective Interest Rate method, ancillary costs amortisation, and relevant foreign exchange differences.

Borrowing costs directly attributable to a qualifying asset acquisition, construction, or production are capitalized, based on a weighted average borrowing cost rate. This excludes specific borrowings for asset purchase. The amount of borrowing cost capitalised during the period does not exceed the amount of borrowing cost incurred during that period. Other borrowing costs are expensed when incurred.

Interest income from temporarily invested borrowings for qualifying assets is deducted from capitalizable borrowing costs. All other borrowing costs are expensed as incurred.

j) Taxes

Current income tax

Current tax assets and liabilities aremeasured at the amount expected to be recovered from or paid to the Income Tax authorities, based on tax rates and laws that are enacted at the Balance sheet date.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amountsof assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax assets are recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax losses can be utilised.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.

k) Retirement and other employee benefits Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services.

Defined contribution plans

The Company recognizes provident fund contributions as expenses when employees render the related services.Excess contributions due but unpaid are recognized as liabilities.Excess contributions already paid are recognized as assets if they lead to future payment reduction or a cash refund.

Defined benefit plans

The Company runs a defined benefit gratuity plan in India, contributing to a separate fund. Benefits are calculated using the projected unit credit method.

Remeasurements, comprising of actuarial gains and losses and the effect of the asset ceiling (excluding amounts included in net interest on the net defined benefit liability and return on plan assets), are recognized in the balance sheet. This is done with a corresponding debit or credit to retained earnings through OCI in the period. Remeasurements are not reclassified to profit or loss in later periods.

Compensated absences

The Company''s policy covers both accumulating and non-accumulating compensated absences.The expected cost of accumulating absences is determined by an independent actuary using the projected unit credit method at each balance sheet date. Expenses for non-accumulating absences are recognized when they occur.

l) Impairment of non-financial assets

At each reporting date, the Company assesses for indicators of asset impairment. If any indication exists, or during annual impairment testing, the Company estimates the recoverable amount, which is the higher of fair value less costs of disposal or value in use. Recoverable amount is determined for individual assets unless cash flows are not largely independent. If carrying amount exceeds recoverable amount, the asset is impaired and written down.

m) Provisions, contingent liabilities and contingent asset Provisions

Provisions are recognized when the Company has a present obligation from a past event, and it''s likely that resources will be needed to settle it, with a reliable estimate.

If time value of money is material, provisions are discounted using pre-tax rates reflecting risks. The increase due to time passage is recognized as finance cost. Provisions are reviewed at each balance sheet date and adjusted.

Provision for doubtful debts, claims, etc., is made if realization is doubtful per management judgment.

Contingent liability

A contingent liability is a possible obligation arising from past events, confirmed by uncertain future events. It''s not recognized if unlikely to require resource outflow to settle the obligation or if the measurement is unreliable. They are disclosed separately. Show Cause notices are considered contingent liabilities only upon conversion to demands.

Contingent assets

Where an inflow of economic benefits is probable, the Company discloses a brief description of the nature of the contingent assets at the end of the reporting period, and, where practicable, an estimate of their financial effect. Contingent assets are disclosed but not recognised in the financial statements.

n) Cash and cash equivalents

Cash comprises cash in hand and demand deposits with banks. Cash equivalents are short term balances with original maturity of less than 3 months, highly liquid investments that are readily convertible into cash, which are subject to insignificant risk of changes in value.

o) Cash Flow Statement

Cash flows are presented using indirect method, whereby profit / (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.

Bank borrowings are generally considered to be financing activities. However, where bank overdrafts which are repayable on demand form an integral part of an entity''s cash management, bank overdrafts are included as a component of cash and cash equivalents for the purpose of Cash flow statement.

p) Earnings per share

Basic earnings per share is calculated by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year adjusted for bonus element in equity share. Diluted earnings per share adjusts the figures used in determination of basic earnings per share to consider the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as at the beginning of the period unless issued at a later date.

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Mar 31, 2024

3. MaterialAccounting Policies

a) Current versus non-current classification

Based on the time involved between the acquisition of assets for processing and their realization
in cash and cash equivalents, the group has identified twelve months as its operating cycle for
determining current and non-current classification of assets and liabilities in the balance sheet.

b) Fair value measurement

The Company applies fair value measurement where necessary, defined as the price to sell an
asset or transfer a liability in an orderly transaction between market participants on the
measurement date. Fair value is determined in either the principal market or, if absent, the most
advantageous market accessible by the Company.

Assumptions used in fair value measurement of an asset/liability reflect market participants''
economic interests. For non-financial assets, the highest and best use is considered, whether
by use or sale.

Valuation techniques maximize observable inputs and minimize unobservable ones, categorized
within the fair value hierarchy:

Level 1: Quoted prices in active markets for identical items.

Level 2: Techniques using observable inputs.

Level 3: Techniques using unobservable inputs.

Recurring fair value measurements are reassessed each reporting period for proper
categorization. Team leads set policies for fair value measurements, with external valuers involved
as approved by the board, based on market knowledge, reputation, and independence.

For disclosures, assets and liabilities are categorized by nature, risk, and fair value hierarchy
level, detailed in the notes to the Financial Statements.

c) Revenue Recognition
Sale of goods

Revenue is recognized when it is probable that economic benefits will flow to the company and
the revenue can be reliably measured, regardless of payment timing. For goods, revenue is
recognized when risks and rewards of ownership is transferred to the buyer, usually upon dispatch
or as per the termsagreed with the customer.

Revenue is measured at the fair value of consideration received or receivable, including invoice
value after deducting discounts, volume rebates, and applicable taxes, and excluding self¬
consumption.

Rental income

Rental income from operating lease is recognised on a straight-line basis over the term of the
relevant lease, if the escalation is not a compensation for increase in cost inflation index.

Revenues in respect of rental income and hire charges received are recognized in accordance
with the terms of the agreement.

d) Property, plant and equipment

Deemed cost option for first time adopter of Ind AS

Under the previous GAAP (Indian GAAP), the property, plant and equipment were carried in the
balance sheet at cost less accumulated depreciation. The company has elected to continue the
carrying amount of PPE in the existing financials as the deemed cost as at the date of
transition,viz.,1 April 2016.

Presentation

Property, plant, and equipment are recorded at cost minus accumulated depreciation and
impairment losses. Costs include replacements and borrowing costs for qualifying assets.
Significant parts with different useful lives are depreciated separately, while repair and
maintenance costs are expensed immediately.

Advances for acquiring property, plant and equipment are listed as capital advances under non¬
current assets. Costs of assets not yet ready for intended use are listed as capital work in progress.

Component Cost

All significant components of the plant are identified and accounted for separately. Each
component''s useful life is analyzed independently, and depreciation is calculated based on
these specific useful lives.

The cost of replacing a part of property, plant, and equipment is added to the carrying amount if
future economic benefits are probable and the cost is measurable. Repair and maintenance
costs are expensed as incurred.

Machinery spares/ insurance spares that can be issued only in connection with an item of fixed
assets and their issue is expected to be irregular are capitalised. Replacement of such spares
ischarged to revenue. Other spares are charged as revenue expenditure as and when consumed

Derecognition

Gains or losses from derecognition of property, plant, and equipment are measured as the
difference between the net disposal proceeds and the carrying amount of the asset. These
gains or losses are recognized in the statement of profit and loss when the asset is derecognized.

e) Depreciation on property, plant and equipment

Depreciation is the systematic allocation of depreciable amount of an asset over its useful life.
The depreciable amount is the cost of an asset less 5% residual value. Depreciation is calculated
using the straight-line method over the useful lives specified in Schedule II to the Companies
Act, 2013.

For new additions, depreciation is calculated on a pro-rata basis from the addition date. For
deletion/ disposals, it''s calculated up to the date of sale or discard. Assets costing Rs. 5,000 or
less are fully depreciated, retaining their residual value.

The residual values, estimated useful lives, and depreciation methods are reviewed annually
and adjusted prospectively if needed.

f) Investment property

Investment properties are held to earn rentals and/or for capital appreciation, including properties
under construction for such purposes. They are initially measured at cost, including transaction
costs. Subsequently, they follow the cost model as per Ind AS 16, including costs for replacing
parts and borrowing costs for long-term projects if recognition criteria are met. Significant parts
are depreciated separately based on their useful lives, while repair and maintenance costs are
expensed as incurred.

Depreciation for investment properties follows the useful life prescribed in Schedule II of the
Companies Act, 2013. Investment properties are derecognized upon disposal or when
permanently withdrawn from use with no expected future economic benefits. Gains or losses on
derecognition (difference between net disposal proceeds and carrying amount) are recognized
in the profit and loss statement in the period of derecognition.

g) Inventories

Inventories are carried at the lower of cost and net realisable value. Cost includes cost of purchase
and other costs incurred in bringing the inventories to their present location and condition. Costs
are determined based on weighted average basis.

h) Financial Instruments
Financial assets

Financial assets and financial liabilities are recognised when an entity becomes a party to the
contractual provisions of the instruments.

Initial recognition and measurement

All financial assets are initially recognized at fair value. For financial assets not recorded at fair
value through profit or loss, transaction costs attributable to the acquisition are added. Purchases

or sales of financial assets requiring delivery within a regulated time frame (regular way trades)
are recognized on the trade date, i.e. the date that the Company commits to the transaction.

Subsequent measurement

For subsequent measurement, financial assets are classified based on their contractual cash flow
characteristics and the company''s business model for managing them. The classifications are:

l Financial instruments (other than equity instruments) at amortized cost

l Financial instruments (other than equity instruments) at fair value through other
comprehensive income (FVTOCI)

l Other financial instruments, derivatives, and equity instruments at fair value through profit
or loss (FVTPL)

l Equity instruments measured at fair value through other comprehensive income (FVTOCI)
Derecognition

A financial asset is derecognised when:
l The rights to receive cash flows have expired, or

l The Company has transferred its rights to receive cash flows or assumed an obligation to
pass them to a third party, and either:

a) Transferred substantially all risks and rewards of the asset, or

b) Neither transferred nor retained substantially all risks and rewards, but transferred
control of the asset.

If the Company has neither transferred nor retained substantially all risks and rewards nor
transferred control, it continues to recognise the asset to the extent of its continuing involvement,
along with an associated liability. This is measured based on retained rights and obligations.

Continuing involvement, like a guarantee, is measured at the lower of the original carrying
amount or the maximum amount the Company might repay

Impairment of financial assets

In accordance with Ind AS 109, the Company uses ''Expected Credit Loss''(ECL) model, for
evaluating impairment ofFinancial Assets other than those measured at Fair Value Through
Profit and Loss(FVTPL).

Expected Credit Losses are measured through a loss allowance at an amount equal to:

l The 12-months expected credit losses (expected credit losses that result from those default
events on the financial instrument that are possible within 12 months after the reporting
date); or

l Full lifetime expected credit losses (expected credit losses that result from all possible
default events over the life of the financial instrument).

For Trade Receivables the Company follows ''simplified approach'' which requires expected lifetime
losses to be recognised from initial recognition of the receivables. The Company uses historical

default rates to determine impairment loss on the portfolio of trade receivables. At every reporting
date these historical default rates are reviewed and changes in the forward-looking estimates
are analysed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no
significant increase incredit risk. If there is significant increase incredit risk full lifetime ECL is used.

Financial liabilities

Initial recognition and measurement

All Financial Liabilities are recognised atfair value and in case of borrowings, net of directly
attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and
Loss as finance cost.

The Company''s financial liabilities include trade and other payables, loans and borrowings(including
bank overdrafts), financial guarantee contracts and derivative financial instruments.

Subsequent Measurement

Financial Liabilities are carried at amortised cost using the effective interest method. For trade
and other payables maturing within one year from the balance sheet date, the carrying amounts
approximate fair value due to the short maturity of these instruments.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or 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 statement of profit or loss.

i) Borrowing Costs

Borrowing costs include interest using the Effective Interest Rate method, ancillary costs
amortisation, and relevant foreign exchange differences.

Borrowing costs directly attributable to a qualifying asset acquisition, construction, or production
are capitalized, based on a weighted average borrowing cost rate. This excludes specific
borrowings for asset purchase. The amount of borrowing cost capitalised during the period does
not exceed the amount of borrowing cost incurred during that period. Other borrowing costs are
expensed when incurred.

Interest income from temporarily invested borrowings for qualifying assets is deducted from
capitalizable borrowing costs. All other borrowing costs are expensed as incurred.

j) Taxes

Current income tax

Current tax assets and liabilities aremeasured at the amount expected to be recovered from or
paid to the Income Tax authorities, based on tax rates and laws that are enacted at the Balance
sheet date.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amountsof assets
and liabilities in the Financial Statements and the corresponding tax bases used in the computation
of taxable profit.

Deferred tax assets are recognised to the extent it is probable that taxable profit will be available
against which the deductible temporary differences, and the carry forward of unused tax losses
can be utilised.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that
have been enacted or substantively enacted by the end of the reporting period. The carrying
amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.

k) Retirement and other employee benefits
Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for
the services rendered by employees are recognised as an expense during the period when the
employees render the services.

Defined contribution plans

The Company recognizes provident fund contributions as expenses when employees render
the related services.Excess contributions due but unpaid are recognized as liabilities.Excess
contributions already paid are recognized as assets if they lead to future payment reduction or a
cash refund.

Defined benefit plans

The Company runs a defined benefit gratuity plan in India, contributing to a separate fund.
Benefits are calculated using the projected unit credit method.

Remeasurements, comprising of actuarial gains and losses and the effect of the asset ceiling
(excluding amounts included in net interest on the net defined benefit liability and return on plan
assets), are recognized in the balance sheet. This is done with a corresponding debit or credit to
retained earnings through OCI in the period. Remeasurements are not reclassified to profit or
loss in later periods.

Compensated absences

The Company''s policy covers both accumulating and non-accumulating compensated
absences.The expected cost of accumulating absences is determined by an independent actuary
using the projected unit credit method at each balance sheet date. Expenses for non-accumulating
absences are recognized when they occur.

l) Impairment of non-financial assets

At each reporting date, the Company assesses for indicators of asset impairment. If any indication
exists, or during annual impairment testing, the Company estimates the recoverable amount,
which is the higher of fair value less costs of disposal or value in use. Recoverable amount is

determined for individual assets unless cash flows are not largely independent. If carrying amount
exceeds recoverable amount, the asset is impaired and written down.

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Mar 31, 2016

1. Corporate Information

Binny Mills Ltd was incorporated as a Public Limited Company on 20^th December, 2007. The company was issued Certificate for Commencement of Business on 6^th February 2008. The CIN of the Company is L17120TN2007PLC065807.

The Company is engaged in the business activities of providing services and trading of goods. The company derives rental income by letting out on rent, its warehouses situated in Perambur, Chennai, to various tenants. Apart from this the Company buys and sells textile materials (trading in textile) including retail sales to customers, from its textile division at Chennai and from the showrooms in Bangalore and Kolkata.

2. Summary of Accounting Policies

The significant accounting policies followed by the company are as stated below:

I. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in conformity with The Generally Accepted Accounting Principles (GAAP) to comply in all material respects with the notified Accounting Standards (‘AS’) under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI).The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those adopted in the previous year.

Current / Non-current classification of assets / liabilities

The Company has classified all its assets / liabilities into current / non-current portion based on the time frame of 12 months from the date of financial statements. Accordingly, assets / liabilities expected to be realized / settled within 12 months from the date of financial statements are classified as current and other assets / liabilities are classified as non-current.

Presentation and disclosures in financial statements:

The presentation and disclosures in the Financial Statements are made in accordance with the Schedule III of the Companies Act, 2013.

II. USE OF ESTIMATES

In the preparation of the financial statements, conforming to the GAAP requirements, certain estimates and assumptions are essentially required to be made with respect to items such as future obligations under employee retirement benefit plans, income taxes and the useful life period of Fixed Assets. Due care and diligence have been exercised by the Management in arriving at such estimates and assumptions since they may directly affect the reported amounts of income and expenses during the period as well as the balances of Assets and Liabilities including those which are contingent in nature as at the date of reporting of the financial statements.

III. REVENUE RECOGNITION

Revenues in respect of revenue from trading of goods are recognized when the significant risks and rewards of ownership of the goods have passed to the Buyer.

Revenues in respect of rental income and hire charges received are recognized in accordance with the terms of the agreement.

IV. FIXED ASSETS Tangible Fixed Assets

Fixed assets are stated at the cost of acquisition or construction less accumulated depreciation and impairment losses, if any. All costs directly attributable to bring the fixed assets to its working condition for its intended use is included in the cost of acquisition. Fixed Assets which does not have useful life in accordance with the useful life specified in Schedule II of the Companies Act, 2013 is stated at its Residual Value of 5% of the cost of the asset as provided in Schedule II of the Companies Act, 2013.

Intangible Assets

Intangible Assets are amortized over their useful life based on the provisions of AS 26.

V. DEPRECIATION ON FIXED ASSETS

Depreciation is provided on Straight line method basis over the useful lives of the assets as provided in Schedule II of the Companies Act, 2013.

VI. INVESTMENTS

There are no Investments made by the company.

VII. INVENTORIES

Stock-in-trade comprises of traded goods which are valued at lower of cost and net realizable value. Cost is determined on weighted average cost. In the case of obsolete stock / damaged stock, it has been valued at cost.

VIII. FOREIGN CURRENCY TRANSACTIONS

There are no foreign currency transactions during the year.

IX. PROVISION FOR TAXATION

Provision for Current Income Tax is made in accordance with the provisions of Income Tax Act, 1961.

Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. Provision for Deferred Tax is provided on timing differences. The effect of deferred tax assets and liabilities of a change in tax rates is recognized in the Profit and Loss statement.

X. LEASES

Lease rental in respect of operating lease agreements are charged to revenue on a straight line basis over the term of the related lease agreement.

XI. RETIREMENT BENEFITS

Provident Fund & Employee State Insurance:

Contribution to Provident Fund and Employee State Insurance is made as per the respective laws.

Gratuity:

Provision for gratuity is made in accordance with AS -15 (revised) as per Actuarial Valuation using Projected Unit Credit Method and not funded.

Leave encashment:

The leave encashment benefit to the employees is provided in accordance with AS -15 (revised) as per Actuarial Valuation using Projected Unit Credit Method.

XII. BORROWING COSTS

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of the cost of such assets up-to the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which they are incurred. In the current year the Company does not have any borrowing costs.

XIII. CASH FLOW STATEMENT

The Cash flow statement is prepared under the indirect method as per Accounting Standard 3 “Cash Flow Statements”.

XIV. EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with the Accounting Standards - 20-‘Earnings per Share’.

XV. SEGMENT REPORTING

The Company operates in only one segment.

XVI. IMPAIRMENT OF ASSETS

All assets, other than inventories and deferred tax asset, are reviewed for impairment, wherever events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets, whose carrying value exceeds their recoverable amount, are written down to their recoverable amount.

XVII. PROVISION AND CONTINGENCIES

The company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

XVIII. RELATED PARTY DISCLOSURE

Information on transactions with related parties has been provided in the format specified by ASI -13. Disclosure is made, party wise in respect of material related party transactions as specified by ASI -13.

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Mar 31, 2015

The significant accounting policies followed by the company are as stated below:

I. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in conformity with Generally Accepted Accounting Principles (GAAP) to comply in all material respects with the notified Accounting Standards ('AS') under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act and guidelines issued by the Securities and Exchange Board of India (SEBI).The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year, except for the change in accounting policy explained below.

Current / Non-current classification of assets / liabilities

The Company has classified all its assets / liabilities into current / non-current portion based on the time frame of 12 months from the date of financial statements. Accordingly, assets / liabilities expected to be realized / settled within 12 months from the date of financial statements are classified as current and other assets / liabilities are classified as non-current.

II. USE OF ESTIMATES

In preparation of financial statements conforming to GAAP requirements certain estimates and assumptions are essentially required to be made with respect to items such as future obligations under employee retirement benefit plans, income taxes and the useful life period of Fixed Assets. Due care and diligence have been exercised by the Management in arriving at such estimates and assumptions since they may directly affect the reported amounts of income and expenses during the period as well as the balances of Assets and Liabilities including those which are contingent in nature as at the date of reporting of the financial statements.

Presentation and disclosure in financial statements:

For the year ended 31st March, 2015, schedule III of the Companies Act, 2013, is applicable to the company, for presentation and disclosures in financial statements. The company has reclassified the previous year's figures in accordance with the Schedule III as applicable in the current year.

III. REVENUE RECOGNITION

Revenues in respect of revenue from trading of goods are recognized when the significant risks and rewards of ownership of the goods have passed to the Buyer.

Revenues in respect of rental income and hire charges received are recognized in accordance with the terms of the agreement.

IV. FIXED ASSETS Tangible Fixed Assets

Fixed assets are stated at the cost of acquisition or construction less accumulated depreciation and impairment losses, if any. All costs directly attributable to bring the fixed assets to its working condition for its intended use and borrowing costs on specified borrowings relating to the acquisition of fixed assets up to the date of commercial production are included in the cost of acquisition.

Intangible Assets

Intangible Assets are amortized over their useful life based on the provisions of AS 26

V. DEPRECIATION ON FIXED ASSETS

Depreciation is provided over the useful lives of the assets as prescribed in SCHEDULE II to the Companies Act, 2013.

VI. INVESTMENTS

There are no Investments made by the company

VII. INVENTORIES

Stock-in-trade comprises of traded goods which are valued at lower of cost and net realizable value. Cost is determined on weighted average cost.

VIII. FOREIGN CURRENCY TRANSACTIONS

There are no Foreign currency transactions during the year.

IX. PROVISION FOR TAXATION

Provision for Current Income Tax is made in accordance with the provisions of Income Tax Act, 1961.

Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. Provision for Deferred Tax is provided on timing differences. The effect of deferred tax assets and liabilities of a change in tax rates is recognized in the income statement.

X. LEASES

Lease rental in respect of operating lease arrangements are charged to revenue on a straight line basis over the term of the related lease agreement.

XI. RETIREMENT BENEFITS

Provident Fund & Employee State Insurance :

Contribution to Provident Fund and Employee State Insurance is as per the Rules of the respective Acts.

Gratuity:

Provision for gratuity is made in accordance with AS -15 (revised) as per Actuarial Valuation using Projected Unit Credit Method and not funded.

Leave encashment:

The leave encashment benefit to the employees are provided in accordance with AS -15 (revised) as per Actuarial Valuation using Projected Unit Credit Method .

XII BORROWING COSTS

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of the cost of such assets up-to the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which they are incurred.

XIII CASH FLOW STATEMENT

The Cash flow statement is prepared under the indirect method as per Accounting Standard 3 "Cash Flow Statements".

XIV EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with the Accounting Standards - 20-'Earnings per Share'.

XV SEGMENT REPORTING

The Company operates in only one segment.

XVI IMPAIRMENT OF ASSETS

All assets other than inventories and deferred tax asset, are reviewed for impairment, wherever events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount.

XVII PROVISION AND CONTINGENCIES

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. Disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

XVIII RELATED PARTY DISCLOSURE

Information on transactions with related parties has been provided in the format specified by ASI -13. Disclosure is made, party wise in respect of material related party transactions as specified by ASI -13.

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Mar 31, 2014

I. SYSTEM OF ACCOUNTING

The financial statements are prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAP), and all income and expenditure having a material bearing on the financial statements are recognized on accrual basis. The financial statements comply with the applicable mandatory Accounting Standards.

II. REVENUE RECOGNITION

Revenues in respect of revenue from trading of goods are recognized when the significant risks and rewards of ownership of the goods have passed to the Buyer.

Revenues in respect of rental income and hire charges received are recognized in accordance with the terms of the agreement.

III. USE OF ESTIMATES

In preparation of financial statements conforming to GAAP requirements certain estimates and assumptions are essentially required to be made with respect to items such as future obligations under employee retirement benefit plans, income taxes and the useful life period of Fixed Assets. Due care and diligence have been exercised by the Management in arriving at such estimates and assumptions since they may directly affect the reported amounts of income and expenses during the period as well as the balances of Assets and Liabilities including those which are contingent in nature as at the date of reporting of the financial statements.

To comply with GAAP requirements relating to impairment of assets, if any, the Management periodically determines such impairment using external and internal resources for such assessment. Loss, if any, arising out of such impairment is expensed as stipulated under the GAAP requirements. Contingencies are recorded when a liability is likely to be incurred and the amount can be reasonably estimated. To this extent the results may differ from such estimates.

IV. FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation.

V. DEPRECIATION

Depreciation is provided on straight-line method at the rates specified in SCHEDULE XIV to the Companies Act, 1956.

VI. INVESTMENTS

There are no Investments.

VII. INVENTORIES

Stock-in-trade comprises of traded goods are valued at lower of cost and net realizable value. Cost is determined on weighted average cost.

VIII. FOREIGN CURRENCY TRANSACTIONS

There are no Foreign currency transactions during the year.

IX. PROVISION FOR TAXATION

Provision for Current Income Tax is made in accordance with the provisions of Income Tax Act, 1961.

Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. Provision for Deferred Tax is provided on timing differences. The effect of deferred tax assets and liabilities of a change in tax rates is recognized in the income state- ment.

X. LEASES

Lease rental in respect of operating lease arrangements are charged to revenue on a straight line basis over the term of the related lease agreement.

XI. RETIREMENT BENEFITS

Provident Fund & Employee State Insurance :

Contribution to Provident Fund and Employee State Insurance is as per the respective Rules. Gratuity:

Provision for gratuity is made in accordance with AS -15 (revised) as per Actuarial Valuation using Projected Unit Credit Method and not funded.

Leave encashment:

The leave encashment benefit to the employees are provided in accordance with AS -15 (revised) as per Actuarial Valuation using Projected Unit Credit Method .

XII BORROWING COSTS

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of the cost of such assets up-to the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which they are incurred.

XIII CASH FLOW STATEMENT

The Cash flow statement is prepared under the indirect method as per Accounting Standard 3 "Cash Flow Statements".

XIV EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with the Accounting Standards - 20-''Earnings per Share''.

XV SEGMENT REPORTING

The Company operates in only one segment.

XVI IMPAIRMENT OF ASSETS

All assets other than inventories and deferred tax asset, are reviewed for impairment, wherever events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount.

XVII PROVISION AND CONTINGENCIES

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

XVIII RELATED PARTY DISCLOSURE

Information on transactions with related parties has been provided in the format specified by ASI -13. Disclosure is made, party wise in respect of material related party transactions as specified by ASI -13.

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Mar 31, 2013

I. SYSTEM OF ACCOUNTING

The financial statements are prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAP), and all income and expenditure having a material bearing on the financial statements are recognized on accrual basis. The financial statements comply with the applicable mandatory Accounting Standards.

II. REVENUE RECOGNITION

Revenues in respect of revenue from trading of goods are recognized when the significant risks and rewards of ownership of the goods have passed to the Buyer.

Revenues in respect of rental income and hire charges received are recognized in accordance with the terms of the agreement.

III. USE OF ESTIMATES

In preparation of financial statements conforming to GAAP requirements certain estimates and assumptions are essentially required to be made with respect to items such as future obligations under employee retirement benefit plans, income taxes and the useful life period of Fixed Assets. Due care and diligence have been exercised by the Management in arriving at such estimates and assumptions since they may directly affect the reported amounts of income and expenses during the period as well as the balances of Assets and Liabilities including those which are contingent in nature as at the date of reporting of the financial statements.

To comply with GAAP requirements relating to impairment of assets, if any, the Management periodically determines such impairment using external and internal resources for such assessment. Loss, if any, arising out of such impairment is expensed as stipulated under the GAAP requirements. Contingencies are recorded when a liability is likely to be incurred and the amount can be reasonably estimated. To this extent the results may differ from such estimates.

IV. FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation.

V. DEPRECIATION

Depreciation is provided on straight-line method at the rates specified in SCHEDULE XIV to the Companies Act, 1956.

VI. INVESTMENTS

There are no Investments.

VII. INVENTORIES

Stock-in-trade comprises of traded goods are valued at lower of cost and net realizable value. Cost is determined on weighted average cost.

VIII. FOREIGN CURRENCY TRANSACTIONS

There are no Foreign currency transactions during the year.

IX. PROVISION FOR TAXATION

Provision for Current Income Tax is made in accordance with the provisions of Income Tax Act, 1961.

Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. Provision for Deferred Tax is provided on timing differences. The effect of deferred tax assets and liabilities of a change in tax rates is recognized in the income statement.

X. LEASES

Lease rental in respect of operating lease arrangements are charged to revenue on a straight line basis over the term of the related lease agreement.

XI. RETIREMENT BENEFITS

Provident Fund & Employee State Insurance :

Contribution to Provident Fund and Employee State Insurance is as per the Rules of the respective acts.

Gratuity:

Provision for gratuity is made in accordance with AS -15 (revised) as per Actuarial Valuation using Projected Unit Credit Method and not funded.

Leave encashment:

The leave encashment benefit to the employees are provided in accordance with AS -15 (revised) as per Actuarial Valuation using Projected Unit Credit Method .

XII BORROWING COSTS

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of the cost of such assets up-to the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which they are incurred.

XIII CASH FLOW STATEMENT

The Cash flow statement is prepared under the indirect method as per Accounting Standard 3 "Cash Flow Statements".

XIV EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with the Accounting Standards - 20-''Earnings per Share''.

XV SEGMENT REPORTING

The Company operates in only one segment.

XVI IMPAIRMENT OF ASSETS

All assets other than inventories and deferred tax asset, are reviewed for impairment, wherever events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount.

XVII PROVISION AND CONTINGENCIES

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

XVIII RELATED PARTY DISCLOSURE

Information on transactions with related parties has been provided in the format specified by ASI -13. Disclosure is made, party wise in respect of material related party transactions as specified by ASI -13.

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Mar 31, 2012

I. SYSTEM OF ACCOUNTING

The financial statements are prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAP), and all income and expenditure having a material bearing on the financial statements are recognized on accrual basis. The financial statements comply with the applicable mandatory Accounting Standards.

II. REVENUE RECOGNITION

Revenues in respect of revenue from trading of goods are recognized when the significant risks and rewards of ownership of the goods have passed to the Buyer.

Revenues in respect of rental income and hire charges received are recognized in accordance with the terms of the agreement.

III. USE OF ESTIMATES

In preparation of financial statements conforming to GAAP requirements certain estimates and assumptions are essentially required to be made with respect to items such as future obligations under employee retirement benefit plans, income taxes and the useful life period of Fixed Assets. Due care and diligence have been exercised by the Management in arriving at such estimates and assumptions since they may directly affect the reported amounts of income and expenses during the period as well as the balances of Assets and Liabilities including those which are contingent in nature as at the date of reporting of the financial statements.

To comply with GAAP requirements relating to impairment of assets, if any, the Management periodically determines such impairment using external and internal resources for such assessment. Loss, if any, arising out of such impairment is expensed as stipulated under the GAAP requirements. Contingencies are recorded when a liability is likely to be incurred and the amount can be reasonably estimated. To this extent the results may differ from such estimates.

IV. FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation.

V. DEPRECIATION

Depreciation is provided on straight-line method at the rates specified in SCHEDULE XIV to the Companies Act, 1956.

VI. INVESTMENTS

There are no Investments.

VII. INVENTORIES

Stock-in-trade comprises of traded goods are valued at lower of cost and'' net realizable value. Cost is determined on weighted average cost.

VIII. FOREIGN CURRENCY TRANSACTIONS

There are no Foreign currency transactions during the year.

IX. PROVISION FOR TAXATION

Provision for Current Income Tax is made in accordance with the provisions of Income Tax Act, 1961.

Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. Provision for Deferred Tax is provided on timing differences. The effect of deferred tax assets and liabilities of a change in tax rates is recognized in the income statement.

X. LEASES

Lease rental in respect of operating lease arrangements are charged to revenue on a straight line basis over the term of the related lease agreement.

XI. RETIREMENT BENEFITS

Provident Fund & Employee State Insurance :

Contribution to Provident Fund and Employee State Insurance is as per the Rules of the respective acts.

Gratuity:

Provision for gratuity is made in accordance with AS -15 (revised) as per Actuarial Valuation using Projected Unit Credit Method and not funded.

Leave encashment:

The leave encashment benefit to the employees are provided in accordance with AS -15 (revised) as per Actuarial Valuation using Projected Unit Credit Method.

XII. BORROWING COSTS

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of the cost of such assets up-to the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which they are incurred.

XIII. CASH FLOW STATEMENT

Cash flow statement is prepared under the indirect method as per Accounting Standard 3 "Cash Flow Statements".

XIV. EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with the Accounting Standards - 20-''Earnings per Share''.

XV. SEGMENT REPORTING

The Company operates in only one segment.

XVI. IMPAIRMENT OF ASSETS

All assets other than inventories and deferred tax asset, are reviewed for impairment, wherever events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount.

XVII. PROVISION AND CONTINGENCIES

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

XVIII. RELATED PARTY DISCLOSURE

Information on transactions with related parties has been provided in the format specified by ASI -13. Disclosure is made, party wise in respect of material related party transactions as specified byASI-13.

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Mar 31, 2011

1. SYSTEM OF ACCOUNTING

The financial statements are prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAP), and ail income and expenditure having a material bearing on the financial statements are recognized on accrual basis. The financial statements comply with the applicable mandatory Accounting Standards.

2. REVENUE RECOGNITION

Revenues in respect of revenue from trading of goods are recognized when the significant risks and rewards of ownership of the goods have passed to the Buyer

Revenues in respect of rental income and hire charges received are recognized in accordance with the terms of the agreement

3. USE OF ESTIMATES

In preparation of financial statements conforming to GAAP requirements certain estimates and assumptions are essentially required to oe made with respect to items such as future obligations under employee retirement benefit plans, income taxes and the useful life period of Fixed Assets Due care and diligence have been exercised by the Management in arriving at such estimates and assumptions since they may directly affect the reported amounts of income and expenses during the period as well as the balances of Assets and Liabilities including those which are contingent in nature as at the date of reporting of the financial statements.

To comply with GAAP requirements relating to impairment of assets, if any, the Management periodically determines such impairment using external and internal resources for such assessment Loss, if any, arising out of such impairment is expensed as stipulated under the GAAP requirements. Contingencies are recorded when a liability is likely to be incurred and the amount can be reasonably estimated Tc this extent the results may differ from such estimates.

4. FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation

5 DEPRECIATION

Depreciation is provided on straight-line method at the rates speofieo in SCHEDULE XIV to the Companies Act. 1956

6 INVESTMENTS

There are no investments

7. INVENTORIES

Stock-in-trade comprises of traded goods are valued at lower of cost and net realizable value. Cost is determined on weighted average cost.

8. FOREIGN CURRENCY TRANSACTIONS

There are no Foreign currency transactions during the year.

9. PROVISION FOR TAXATION

Provision for Current income Tax is made in accordance with the provisions of Income Tax Act, 1961.

Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. Provision for Deferred Tax Liability is provided on timing differences. -The effect of deferred tax assets and liabilities of a change in tax rates is recognized in the income statement.

10. LEASES

Lease rental in respect of operating lease arrangements are charged to revenue on a straight line basis over the term of the related lease agreement

11. RETIREMENT BENEFITS

Provident Fund & Employee State Insurance:

Contribution to Provident Fund and Employee State Insurance is as per the respective Acts

Gratuity:

Provision for gratuity is made in accordance with AS -15 (revised) as per Actuarial Valuation using Projected Unit Credit Method and not funded.

Leave encashment:

The leave encashment benefit to the employees is provided in accordance with AS -15 (revised) as per Actuarial Valuation using Projected Unit Credit Method.

12. BORROWING COSTS

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of the cost of such assets up-to the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which they are incurred

1.3. CASH FLOW STATEMENT

The Cash flow statement is prepared under the indirect method as per Accounting Standard 3 "Cash Flow Statements",

14. EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with the Accounting Standards - 20-''Earnings per Share''

15. SEGMENT REPORTING

The Company operates in only one segment.

16. IMPAIRMENT OF ASSETS

All assets other than inventories and deferred tax asset, are reviewed for impairment, wherever events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount.

17. PROVISION AND CONTINGENCIES

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

18. RELATED PARTY DISCLOSURE

Information on transactions with related parties has been provided in the format specified by ASI -13. Disclosure is made, party wise in respect of material related party transactions as specified byASI-13.

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Mar 31, 2010

1. SYSTEM OF ACCOUNTING

The financial statements are prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAP), and all income and expenditure having a material bearing on the financial statements are recognized on accrual basis. The financial statements comply with the applicable mandatory Accounting Standards.

2. REVENUE RECOGNITION

Revenues in respect of revenue from trading of goods are recognized when the significant risks and rewards of ownership of the goods have passed to the Buyer.

Revenues in respect of rental income and hire charges received are recognized in accordance with the terms of the agreement.

3. USE OF ESTIMATES

In preparation of financial statements conforming to GAAP requirements certain estimates and assumptions are essentially required to be made with respect to items such as future obligations under''employee retirement benefit plans, income taxes and the useful life period of Fixed Assets. Due care and diligence have been exercised by the Management in arriving at such estimates and assumptions since they may directly affect the reported amounts of income and expenses during the period as well as the balances of Assets and Liabilities including those which are contingent in nature as at the date of reporting of the financial statements.

To comply with GAAP requirements relating to impairment of assets, if any, the Management periodically determines such impairment using external and internal resources for such assessment. Loss, if any, arising out of such impairment is expensed as stipulated under the GAAP requirements. Contingencies are recorded when a liability is likely to be incurred and the amount can be reasonably estimated. To this extent the results may differ from such estimates.

4. FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation.

5. DEPRECIATION

Depreciation is provided on straight-line method at the rates specified in SCHEDULE XIV to the Companies Act, 1956.

6. INVESTMENTS

There are no Investments. -

7. INVENTORIES

Stock-in-trade comprises of traded goods are valued at lower of cost and net realizable value. Cost is determined on weighted average,cost.

8. FOREIGN CURRENCY TRANSACTIONS

There are no Foreign currency transactions during the year.

9. PROVISION FOR TAXATION

Provision for Current Income Tax is made in accordance with the provisions of Income Tax Act, 1961. Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. Provision for Deferred Tax Liability is provided on timing differences. The effect of deferred tax assets and liabilities of a change in tax rates is recognized in the income statement.

10. LEASES

Lease rental in respect of operating lease arrangements are not applicable to the company.

11. RETIREMENT BENEFITS

Provident Fund:

Contribution to Provident Fund is as per the Rules of the own funds.

Gratuity.

Provision for gratuity is made as per the provisions of Payment of Gratuity Act, 1972 and not funded.

Leave encashment:

The leave encashment bpnefit to the employees are provided for on accrual basis and not funded. The provision to be made as per the Actuarial Valuation method in accordance with AS -15 (Revised) is obtained by the company for both gratuity and leave encashment.

12. BORROWING COSTS

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of the cost of such assets up-to the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which they are incurred.

13. CASH FLOW STATEMENT -

The Cash flow statement is prepared under the indirect method as per Accounting Standard 3 ''Cash Flow Statements".

14. EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with the Accounting Standards - 2Q-''Earnings per Share''.

15. SEGMENT REPORTING

By virtue of approved Scheme of the Demerger, by the High Court of Chennai, the Agencies and Services Division of the Binny Limited got demerged and stand transferred to and vested in this'' company on a going concern basis. The entire operation from the date of Appointed Date i.e. with effect from 01-01-2010, the Agencies and Services Division of Binny Limited is the main business of this Company and this is the only reportable segment.

16. IMPAIRMENT OF ASSETS

All assets other than inventories and deferred tax asset, are reviewed for impairment, wherever events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount.

17. PROVISION AND CONTINGENCIES

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.