Accounting Policies of Mid India Industries Ltd. Company

Mar 31, 2024

2 Significant Accounting Policies

A summary of the significant accounting policies applied in the preparation of the financial statements are given below. These accounting
policies have been applied consistently to all the periods presented in the financial statements 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.

(A) Property Plant and Equipment:

i) Property, plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and
impairment losses, if any. Such cost includes purchase price, borrowing cost and any cost directly attributable to bringing the assets to its
working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations
attributable to the assets.

ii) Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably. In the carrying amount
of an item of PPE, the cost of replacing the part of such an item is recognized when that cost is incurred if the recognition criteria are met.

The carrying amount of those parts that are replaced is derecognized in accordance with the de-recognition principles.

iii) Depreciation on property, plant and equipment is provided using straight line method so as to expense the cost less residual value over
their estimated useful lives (as prescribed in Schedule II to the Companies Act, 2013). Each part of an item of Property, Plant & Equipment
with a cost that is significant in relation to total cost of the Machine is depreciated separately, if its useful life is different than the life of the
Machine.

iv) An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from
the continued use of the asset.

v) The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end
and adjusted accordingly.

vi) Gains or losses arising from de-recognition of a property, plant and equipment are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the asset is derecognised.

vii) Assets under lease are be separately specified under each class of assets.

(B) Intangible Assets:

i) Intangible Assets that are acquired by the company are stated at cost of acquisition net of recoverable taxes, trade discount and rebates
less accumulated amortization /depletion and impairment loss, if any. Such cost includes purchase price, borrowing costs, and any cost
directly attributable to bringing the asset to its working condition for the intended use, net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the intangible assets.

ii) Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.

iii) The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand,
competition, and other economic factors (such as the stability of the industry, and known technological advances ), and the level of
maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and useful lives are
reviewed periodically including at each financial year end. Said assets are depreciated on straight line basis based on expected life span of
assets which is in accordance with Schedule II of the Act at the rates representing estimated useful life of up to 5 years.

iv) Amortization of Intangible Assets is provided using straight line method so as to expense the cost less residual value over their estimated
useful lives (as prescribed in Schedule II to the Companies Act, 2013). Each part of an item of Intangible Assets with a cost that is significant
in relation to total cost of the Machine is Amortized separately, if its useful life is different than the life of the Machine.

v) The amortisation period and the amortisation method for intangible asset with a finite useful life are reviewed at each financial year end.
If the expected useful of such asset is different from the previous estimates, the changes are accounted for as change in an accounting
estimate.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee.
Amounts due from lessees under finance leases are recorded as receivables at the Company''s net investment in the leases. Finance lease
income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of
the lease.

(D) Inventories:

Inventories of Stock-in-trade are measured at cost.

(E) Government Grant:

Grants and subsidies from the government are recognized when there is reasonable assurance that the grant/subsidy will be received and
all attached conditions will be complied with. When the grant or subsidy relates to an expense item, it is netted off with the relevant
expense. Where the grant or subsidy relates to an asset, its value is deducted in arriving at the carrying amount of the related asset. However
there was no grant received during the year.

(F) Nature and Purpose of Capital Reserve:

The Company has a Capital Subsidy Reserve of Rs. 500,000.00 which was granted by Central Government of India during the Financial Year
1993-94 under Export Oriented Unit Scheme. The purpose of the scheme was basically to boost export by creating additional production
capacity.

(G) Borrowing Cost:

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of
time to get ready for its intended use or sale are capitalised as part of the cost of the asset. Borrowing cost also includes exchange differences
to the extent regarded as an adjustment to the borrowing costs. However, there were no borrowing costs incurred during the year.

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Mar 31, 2014

(a) Basis of preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles and provisions of the CompaniesAct, 1956, subject to what is stated herein below, as adopted consistently by the company.

(b) Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known/ materialised.

(c) Fixed Assets:

All fixed assets are stated at cost less accumulated depreciation.

(d) Depreciation:

Depreciation on Fixed Assets has been provided on straight line method in accordance with the provisions of Section 205(2)(b) ofthe Companies Act, 195 6 at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

(e) Inventories:

Inventories of raw materials, stores and spares, packing material and trading goods are valued at cost ofthe last purchase made, finished goods produced or purchased by the company are carried at cost, work-in-progress at estimated cost and waste at realizable value.

(f) Sales:

Sales of goods are recognized at the point of dispatch of finished goods to customers. Sales are exclusive of duty & taxes.

(g) Foreign Exchange Transactions:

Export sale in foreign currency are accounted for at the Exchange Rate prevailing on the Shipping Bills date, where such sales are not covered by forward contract. The fluctuation in exchange rates are accounted for as and when the payment is received in the year of realization.

(h) Employee Retirement Benefits:

Company's contribution to Provident Fund and Superannuation Fund are charged to Profit & Loss Account. Provision has not been made for gratuity as the same is accounted for on cash basis.

(I) Claims:

Insurance, C.S.T. reimbursement and other claims, to the extent considered recoverable are accounted for in the year of claim. C.S.T. Reimbursement recoverable is deducted from the respective head under which it was charged.

(j) Segment Reporting:

A. PRIMARY SEGMENTS: As the company's business activity falls with in a single primary business i.e. "Manufacturing of Cotton/Polyester Cotton blended yarn." The disclosure requirement of Accounting Standard (AS) -17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

B. SECONDARY SEGMENTS: The Company earned net income of Rs. (12.26) Lacs from overseas activities during the year against Rs. 49.94 Lacs against previous year ended 31 /03/2014.

(k) Related Party Disclosures:

Related Party disclosures as required under Accounting Standard (AS) - 18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India are given below:

"There were no Material transactions of the company with its promoters, directors and management on their relatives that may have conflict with the interest of Company at large."

(l) Deferred Tax Liability:

Deferred tax liability as required under Accounting Standards (AS) -22, the company has not provided any deferred tax liability due to carry forward of un-observed depreciation of previous years.

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Mar 31, 2013

(a) Basis of preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles and provisions of the Companies Act, 1956, subject to what is stated herein below, as adopted consistently by the company.

(b) Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known/ materialised.

(c) Fixed Assets:

All fixed assets are stated at cost less accumulated depreciation.

(d) Depreciation:

Depreciation on Fixed Assets has been provided on straight line method in accordance with the provisions of Section 205(2)(b) of the Companies Act, 1956 at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

(e) Inventories:

Inventories of raw materials, stores and spares, packing material and trading goods are valued at cost of the last purchase made, finished goods produced or purchased by the company are carried at cost, work-in-progress at estimated cost and waste at realizable value.

(f) Sales:

Sales of goods are recognized at the point of dispatch of finished goods to customers. Sales are exclusive of duty & taxes.

(g) Foreign Exchange Transactions:

Export sale in foreign currency are accounted for at the Exchange Rate prevailing on the Shipping Bills date, where such sales are not covered by forward contract. The fluctuation in exchange rates are accounted for as and when the payment is received in the year of realization.

(h) Employee Retirement Benefits:

Company''s contribution to Provident Fund and Superannuation Fund are charged to Profit & Loss Account. Provision has not been made for gratuity as the same is accounted for on cash basis.

(i) Claims:

Insurance, C.S.T. reimbursement and other claims, to the extent considered recoverable are accounted for in the year of claim. C.S.T. Reimbursement recoverable is deducted from the respective head under which it was charged.

(j) Segment Reporting:

A. PRIMARY SEGMENTS: As the company''s business activity falls with in a single primary business i.e. "Manufacturing of Cotton/Polyester Cotton blended yarn." The disclosure requirement of Accounting Standard (AS) -17 "Segment Reporting" issued by

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Mar 31, 2010

1. Basis of preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles and provisions of the Companies Act, 1956, subject to what is stated herein below, as adopted consistently by the company.

2. Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known/ materialised.

3. Fixed Assets:

All fixed assets are stated at cost less accumulated depreciation.

4. Depreciation:

Depreciation on Fixed Assets has been provided on straight line method in accordance with the provisions of Section 205(2)(b) of the Companies Act, 1956 at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

5. Inventories:

Inventories of raw materials, stores and spares, packing material and trading goods are valued at cost of the last purchase made, finished goods produced or purchased by the company are carried at cost, work-in-progress at estimated cost and waste at realizable value.

6. Sales:

Sales of goods are recognized at the point of dispatch of finished goods to customers. Sales are exclusive of duty & taxes.

7. Foreign Exchange Transactions:

Export sale in foreign currency are accounted for at the Exchange Rate prevailing on the Shipping Bills date, where such sales are not covered by forward contract. The fluctuation in exchange rates are accounted for as and when the payment is received in the year of realization.

8. Employee Retirement Benefits:

Companys contribution to Provident Fund and Superannuation Fund are charged to Profit & Loss Account. Provision has not been made for gratuity as the same is accounted for on cash basis.

9. Claims:

Insurance, C.S.T. reimbursement and other claims, to the extent considered recoverable are accounted for in the year of claim. C.S.T. Reimbursement recoverable is deducted from the respective head under which it was charged.

10. Segment Reporting:

A. PRIMARY SEGMENTS: As the companys business activity falls with in a single primary business i.e. "Manufacturing of Cotton/Polyester Cotton blended yarn." The disclosure requirement of Accounting Standard (AS) -17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable. B. SECONDARY SEGMENTS: The Company earned net income of Rs. 16.50 Lacs from overseas trading activities during the year against Rs. 63.55 Lacs against previous year ended 31/03/2009.

12. Deferred Tax Liability:

Deferred tax liability as required under Accounting Standards (AS) -22, the company has not provided any deferred tax liability due to carry forward accumulated losses of previous years.