Accounting Policies of Mohit Industries Ltd. Company

Mar 31, 2024

3.1 Presentation and disclosure of financial statements

All assets and liabilities have been classified as current and non-current as per Company''s normal operating cycle and
other criteria set out in the division II of Schedule III of the Companies Act, 2013, for a Company whose financial
statements are made in compliance with the Companies (India Accounting Standards) Rules, 2015. Deferred tax
liabilities are classified as non-current liabilities. Based on the nature of business and their realization in cash and cash
equivalents, 12 months has been considered by the Company for the purpose of current / non-current classification of
assets and liabilities.

3.2 Property, plant and equipment

The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if it is probable that
future economic benefits associated with the item will flow to the Group and the cost of the item can be measured
reliably. Items of property, plant and equipment (including capital-work-in progress) are measured at cost, which
includes capitalised borrowing costs, less accumulated depreciation and any accumulated impairment losses. Freehold
land is carried at historical cost less any accumulated impairment losses.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non¬
refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the

item to its working condition for its intended use and estimated costs of dismantling and removing the item and
restoring the site on which it is located. Any gain or loss on disposal of an item of property, plant and equipment is
recognised in profit or loss.

3.3 Depreciation on property, plant and equipment

a) Depreciation on property, plant and equipment (other than freehold land and capital work in progress) is provided
on SLM over the useful life of the relevant assets net of residual value whose life is in consonance with the life
mentioned in Schedule II of the Companies Act, 2013.

b) In the case of assets purchased, sold or discarded during the year, depreciation on such assets is calculated on pro¬
rata basis from the date of such addition or as the case may be, upto the date on which such asset has been sold or
discarded.

c) Depreciation on addition has been provided from the date of putting the assets into use.

3.4 Investment properties

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for
sale in the ordinary course of business, use in the production or supply of goods or service or for administrative
purposes. Upon initial recognition, an investment property is measured at cost, including related transaction costs.
Subsequent to initial recognition, investment property is measured at cost less accumulated depreciation and
accumulated impairment losses, if any.

3.5 Intangible assets

i) Under the previous GAAP, intangible Assets acquired separately are measured on initial recognition at cost.
Following initial recognition intangible assets are carried at cost less any accumulated amortization. On transition to
Ind AS, the Company has availed the optional exemption under Ind AS 101 and accordingly it has used carrying value
as at the date of transition i.e. 1st April 2016 as the deemed cost of intangible assets under Ind AS.

ii) Subsequent to transition date, Intangible Assets acquired separately are measured on initial recognition at cost.
Following initial recognition intangible assets are carried at cost less any accumulated amortization. Intangible assets
are recognised only if it is probable that the future economic benefits attributable to the asset will flow to the
enterprise and the cost of asset can be measured reliably.

3.6 Inventories

Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each product to it''s present location and condition are accounted for as follows:

i) Raw Materials, Packing Materials & Stores & Spares: Costs include cost of purchase and other costs incurred in
bringing the inventories to their present location and condition. Costs is determined based on weighted average basis.

ii) Finished Goods and Work in Progress: Costs include cost of purchase and other costs incurred in bringing the
inventories to their present location and condition. Costs is determined based on weighted average basis.

3.7 Financial instruments
Initial Recognition

All financial instruments are recognized initially at fair value. Transaction costs that are attributable to the acquisition
of the financial asset (other than financial assets recorded at fair value through OCI) are included in the fair value of the
financial assets. Purchase or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trade) are recognised on trade date. While, loans and
borrowings and payables are recognised net of directly attributable transaction costs.

Subsequent Measurement

The classification of financial instruments depends on the objective of the business model for which it is held.
Management determines the classification of its financial instruments at initial recognition.

a) Non-derivative financial assets

(i) Financial assets at amortised cost

A financial asset shall be measured at amortised cost if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows and

(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

They are presented as current assets, except for those maturing later than 12 months after the reporting date which
are presented as non-current assets. Financial assets are measured initially at fair value plus transaction costs and
subsequently carried at amortized cost using the effective interest method, less any impairment loss. Trade
receivables, security deposits, cash and cash equivalents, employee and other advances and eligible current and non¬
current assets are measured at Amortized Cost.

(ii) Debt instruments at FVTOCI

A debt instrument shall be measured at fair value through other comprehensive income if both of the following
conditions are met:

(a) the objective of the business model is achieved by both collecting contractual cash flows and selling financial assets
and

(b) the asset''s contractual cash flow represent SPPI Debt instruments included within FVTOCI category are
measured initially as well as at each reporting period at fair value plus transaction costs. Fair value movements are
recognised in other comprehensive income (OCI). However, the Company recognises interest income, impairment
losses & reversals and foreign exchange gain loss in statement of profit and loss. On derecognition of the asset,
cumulative gain or loss previously recognised in OCI is reclassified from equity to profit and loss. Interest earned is
recognised under the effective interest rate (EIR) model.

(iii) Equity instruments at FVTOCI

All equity instruments are measured at fair value. Equity instruments held for trading is classified as FVTPL. For all
other equity instruments, the Company may make an irrevocable election to present subsequent changes in the fair
value in OCI. The Company makes such election on an instrument-by-instrument basis. If the Company decides to
classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividend are
recognised in OCI which is not subsequently recycled to statement of profit and loss.

(iv) Financial assets at FVTPL

FVTPL is a residual category for financial assets. Any financial asset which does not meet the criteria for categorization
as at amortised cost or as FVTOCI, is classified as FVTPL.

In addition, the Company may elect to designate the financial asset, which otherwise meets amortised cost or FVOCI
criteria, as FVTPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency. The
Company has not designated any financial asset as FVTPL. Financial assets included within the FVTPL category are
measured at fair values with all changes in the statement of profit and loss.

b) Non-derivative financial liabilities

(i) Financial liabilities at amortised cost

Financial liabilities at amortised cost represented by borrowings, trade and other payables are initially recognized at
fair value, and subsequently carried at amortized cost using the effective interest rate method.

.8 Revenue recognition

Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue
can be reliably measured.

A. Sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the
buyer and are recorded at the fair value of the consideration received or receivable, net of returns and allowances,
trade and volume discounts.

B. Interest income in respect to all the Debt Instruments and deposits which are measured at cost or at fair value
through other comprehensive income, is recorded using effective interest rate (EIR). EIR is the rate that exactly
discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying amount of the financial asset or to the amortized cost of a financial
liability. Interest Income is included in Other Income in the statement of profit and loss.

C. Export Benefits are recognized in the year of export

D. Revenue from rendering of services is recognised when the performance of agreed contractual task has been
completed.

E. Revenue from Operations is measured at the fair value of consideration received / receivable, taking into account
contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

3.9 Foreign currency transactions

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of the
transaction. As at the Balance Sheet date, foreign currency monetary assets and liabilities are translated at closing
exchange rate. The gains or losses resulting from such translations are included in net profit in the Statement of Profit
and Loss.

Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are
translated at the exchange rate prevalent at the date when the fair value was determined.

Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost
are translated at the exchange rate prevalent at the date of the transaction.

Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net
profit for the period in which the transaction is settled. Revenue, expense and cash flow items denominated in foreign
currencies are translated into the relevant functional currencies using the exchange rate in effect on the date of the
transaction.

3.10 Employee Benefits

(a) All the Short-Term Employee Benefits are accounted for on the basis of services rendered by the employees of the
company.

(b) Company contributes towards Provident Fund which is Defined Contribution schemes. Liability in in respect
thereof is determined on basis of contribution required to be made as per statutes/ rules.

(c) No provision has been made for Long Term Employee Benefits such as Gratuity and Leave Encashment as the same
are recognized as and when they become due for payment.

3.11 Borrowing Cost

Borrowing Costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized
as part of Cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready
for its intended use. All other borrowing costs are charged the Statement of Profit & Loss.

3.12 Taxes on income

Tax expenses for the year comprises of current tax, deferred tax charge or credit and adjustments of taxes for earlier
years. In respect of amounts adjusted outside profit or loss (i.e. in other comprehensive income or equity), the
corresponding tax effect, if any, is also adjusted outside profit or loss.

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are
recognised for all taxable temporary differences, and deferred tax assets are recognised for all deductible temporary
differences, carry forward tax losses and allowances to the extent that it is probable that future taxable profits will be
available against which those deductible temporary differences, carry forward tax losses and allowances can be
utilised. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the
asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right
exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxation
authority.

3.13 Goods & Services tax (GST)

GST credit received on purchases is reduced from respective item of purchases. GST on Sales is credited to Payable
account and differential amount, if any, is paid. Thus, the company has followed exclusive method of accounting
whereby purchases, sales and stock is shown exclusive of GST and accounted for in separate account.

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Mar 31, 2017

1 CORPORATE INFORMATION

Mohit Industries Limited (''the company) is a public limited company domiciled in India and incorporated under the provisions of the Company Law. Its shares are listed on BSE and NSE. The company is having its head quarters in Surat and plants at Kim. The company is primarily engaged in manufacture of Texturized Yarn from POY and weaving of the Yarn to Grey Cloth.

2 SIGNIFICANT ACCOUNTING POLICIES

A. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the Historical Cost Convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 2013.

B. USE OF ESTIMATES

The preparation of financial statements in confirmation with GAAP requires the management to make estimates and assumptions considered in reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The management believes that estimates used in preparation of financial statements are prudent and reasonable. Future results could differ due to these estimates and the difference between actual results and the estimates are recognized in the periods in which these gets materialized.

C. INVENTORIES

Closing stocks are valued at lower of cost or estimated realizable value. Cost of inventories comprise Cost of Purchase, Cost of Conversion and other costs incurred in bringing them to their respective present location and condition. The cost has been worked out on FIFO basis.

D. INVESTMENTS

Non-Current Investments are stated at cost less provision for diminution, other than temporary, in value of such investments. Current Investments are carried at lower of Cost or Net realizable Value. Provision for diminution in value of non-current investments, other than of temporary nature, is charged to Profit & Loss Account.

E. DEPRECIATION & AMORTIZATION

I) Depreciation on fixed assets has been charged on straight line method (SLM) on useful life of assets as prescribed in Schedule II of the Companies Act, 2013 except for intangible assets.

II) Depreciation on all assets are charged at rates of Single Shift except for Plant & Machinery in which depreciation is charged at rates of Triple Shift.

III) Depreciation on addition has been provided from the date of putting the assets into use.

IV) Cost of Software capitalized is amortized over period of five years.

F. EMPOLYEE BENEFITS

(a) All the Short Term Employee Benefits are accounted for on the basis of services rendered by the employees of the company.

(b) Company contributes towards Provident Fund which is Defined Contribution schemes. Liability in in respect thereof is determined on basis of contribution required to be made as per statutes/ rules.

(c) No provision has been made for Long Term Employee Benefits such as Gratuity and Leave Encashment as the same are recognized as and when they become due for payment.

G. FIXED ASSETS

Fixed Assets are stated at Cost, Less Accumulated Depreciation. All Costs, including Financing Cost are included in Total cost and accordingly capitalized in Fixed Assets. Capital Work In Progress includes Capital Items not installed or Building construction not completed.

H. REVENUE RECOGNITION

Sale of Goods

Sales of goods are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer which generally coincides with the delivery of goods.

Sales of Services (Job Charges)

Job Charges are recognized on delivery of the goods to the customers after completing the job work on the same.

Export Benefits

Export Benefits are recognized in the year of export

I. BORROWING COST

Borrowing Costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of Cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged the Statement of Profit & Loss.

J. CENVAT and VALUE ADDED TAX (VAT)

CENVAT and VAT credit received on purchases is reduced from respective item of purchases. Excise Duty & VAT on Sales is credited to Payable account and differential amount, if any, is paid. Thus, the company has followed exclusive method of accounting whereby purchases, sales and stock is shown exclusive of Cenvat & VAT and accounted for in separate Account.

K. FOREIGN CURRENCY TRANSACTION

The Foreign Currency Transaction of the company includes Purchases of Fixed Assets and Sales of Texturized Yarn which are valued at the Rate prevailing at the time of the transaction.

Monetary assets & liabilities in foreign currency, outstanding at the close of year, are converted into Indian currency at appropriate exchange rate prevailing on date of Balance Sheet. The resultant gain or loss, except to the extent of long term monetary items for acquisition of capital assets, is charged to Statement of Profit & Loss.

Gain or Loss relating to Long Term Monetary items for financing acquisition of depreciable capital assets, is adjusted to the acquisition cost of such asset and depreciated over its remaining useful life.

L. TAXES ON INCOME

Tax Expenses comprises of both current and deferred tax at the applicable enacted rates. Current tax represents the amount of income tax payable in respect of taxable income for the reporting period.

Deferred tax represents the effect of timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods. MAT credit available on current tax is recognized as asset. MAT credit is recognized if there is convincing evidence of realization of the same. MAT Credit utilized is recognized as Tax Expense.

M. FINANCIAL DERIVATIVES

In respect of derivative contracts, premiums paid, gains & losses on settlement and losses on restatement are recognized in Profit & Loss Statement.

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Mar 31, 2016

1 CORPORATE INFORMATION

Mohit Industries Limited (''the company) is a public limited company domiciled in India and incorporated under the provisions of the Company Law. Its shares are listed on BSE and NSE. The company is having its head quarters in Surat and plants at Kim. The company is primarily engaged in manufacture of Texturized Yarn from POY and weaving of the Yarn to Grey Cloth.

Scheme of Demerger

During the year the company has transferred its AAC Block Division to Bigbloc Construction Limited in pursuance of Scheme of Arrangement (Demerger) which has been approved by Hon''ble Gujarat High Court on 22 February, 2016 and is effective from 16th March, 2016. According to Scheme of Demerger all the assets & liabilities of AAC Block Division vests with Bigbloc Construction Limited with effect from Appointed dated which is 01st April, 2015. Thus, the financial statements of the company have been prepared considering AAC Block Division being transferred to Bigbloc Construction Limited effectively from 01st April, 2015. Thus, all the income & expenses and assets & liabilities of AAC Block Division is taken in Bigbloc Construction Limited and not considered in these Annual Financial Statements of the company. Due to above reason, figures of previous year are not comparable with the figures of this year.

2 SIGNIFICANT ACCOUNTING POLICIES

A. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the Historical Cost Convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 2013.

B. USE OF ESTIMATES

The preparation of financial statements in confirmation with GAAP requires the management to make estimates and assumptions considered in reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The management believes that estimates used in preparation of financial statements are prudent and reasonable. Future results could differ due to these estimates and the difference between actual results and the estimates are recognized in the periods in which these gets materialized.

C. INVENTORIES

Closing stocks are valued at lower of cost or estimated realizable value. Cost of inventories comprise Cost of Purchase, Cost of Conversion and other costs incurred in bringing them to their respective present location and condition. The cost has been worked out on FIFO basis.

D. INVESTMENTS

Non-Current Investments are stated at cost less provision for diminution, other than temporary, in value of such investments. Current Investments are carried at lower of Cost or Net realizable Value. Provision for diminution in value of non-current investments, other than of temporary nature, is charged to Profit & Loss Account.

E. DEPRECIATION & AMORTIZATION

I) Depreciation on fixed assets has been charged on straight line method (SLM) on useful life of assets as prescribed in Schedule II of the Companies Act, 2013 except for intangible assets.

II) Depreciation on all assets are charged at rates of Single Shift except for Plant & Machinery at Kim Unit in which depreciation is charged at rates of Triple Shift.

III) Depreciation on addition has been provided from the date of putting the assets into use.

IV) Cost of Software capitalized is amortized over period of five years.

F. EMPOLYEE BENEFITS

(a) All the Short Term Employee Benefits are accounted for on the basis of services rendered by the employees of the company.

(b) Company contributes towards Provident Fund which is Defined Contribution schemes. Liability in respect thereof is determined on basis of contribution required to be made as per statutes / rules.

(c) No provision has been made for Long Term Employee Benefits such as Gratuity and Leave Encashment as in the opinion of the management no such liabilities has become due as at the end of year.

G. FIXED ASSETS

Fixed Assets are stated at Cost, Less Accumulated Depreciation. All Costs, including Financing Cost are included in Total cost and accordingly capitalized in Fixed Assets. Capital Work In Progress includes Capital Items not installed or Building construction not completed.

H. REVENUE RECOGNITION Sale of Goods

Sales of goods are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer which generally coincides with the delivery of goods.

Sales of Services (Job Charges)

Job Charges are recognized on delivery of the goods to the customers after completing the job work on the same. Export Benefits

Export Benefits are recognized in the year of export

I. BORROWING COST

Borrowing Costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of Cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged the Statement of Profit & Loss.

J. CENVAT and VALUE ADDED TAX (VAT):-

CENVAT and VAT credit received on purchases is reduced from respective item of purchases. Excise Duty & VAT on Sales is credited to Payable account and differential amount, if any, is paid. Thus, the company has followed exclusive method of accounting whereby purchases, sales and stock is shown exclusive of Cenvat &VAT and accounted for in separate Account.

K. FOREIGN CURRENCY TRANSACTION

The Foreign Currency Transaction of the company includes Purchases of Fixed Assets and Sales of Texturized Yarn which are valued at the Rate prevailing at the time of the transaction.

Monetary assets & laities in foreign currency, outstanding at the close of year, are converted into Indian currency at appropriate exchange rate prevailing on date of Balance Sheet. The resultant gain or loss, except to the extent of long term monetary items for acquisition of capital assets, is charged to Statement of Profit & Loss.

Gain or Loss relating to Long Term Monetary items for financing acquisition of depreciable capital assets, is adjusted to the acquisition cost of such asset and depreciated over its remaining useful life.

L. TAXES ON INCOME

Tax Expenses comprises of both current and deferred tax at the applicable enacted rates. Current tax represents the amount of income tax payable in respect of taxable income for the reporting period. Deferred tax represents the effect of timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods. MAT credit available on current tax is recognized as asset. MAT credit is recognized there is convincing evidence of realization of the same. MAT Credit utilized is recognized as Tax Expense.

M. FINANCIAL DERIVATIVES

In respect of derivative contracts, premiums paid, gains & losses on settlement and losses on restatement are recognized in Profit & Loss Statement.

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Mar 31, 2013

A. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

The finacial statements have been prepared under the Historical Cost Convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

B. USE OF ESTIMATES

The preparation of financial statements in confirmation with GAAP requires the management to make estimates and assumptions considered in reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The management believes that estimates used in preparation of financial statements are prudent and reasonable. Future results could differ due to these estimates and the difference between actual results and the estimates are recongnised in the periods in which these gets materialized.

C. INVENTORIES

Closing stocks are valued at lower of cost or estimated realisable value. Cost of inventories comprise Cost of Purchase, Cost of Conversion and other costs incurred in bringing them to their respective present location and condition.

D. INVESTMENTS

Non-Current Investments are stated at cost less provision for dimunition, other than temporary, in value of such investments. Current Investments are carried at lower of Cost or Net realisable Value. Provision for dimunition in value of non-current investments, other than of temporary nature, is charged to Profit & Loss Account.

E. DEPRECIATION & AMORTIZATION

I) Depreciation on fixed assets has been charged on straight line method (SLM) at the rates specified in Schedule XIV of the Companies Act, 1956.

II) Depreciation on all assets are charged at rates of Single Shift except for Plant & Machinery at Kim Unit in which depreciation is charged at rates of Triple Shift.

III) Depreciation on addition has been provided from the date of putting the assets into use.

IV) Intangible assets have been amortized over period of five years.

F. EMPOLYEE BENEFITS

All the Short Term Employee Benefits are accounted for on the basis of services rendered by the employees of the company. Contribution to Provident Fund are charged to Profit & Loss Account as and when the contribution is made. No provision has been made for Long Term Employee Benefits and Defined Benefit Plans as in opinion of the management no such liabilities has accrued as at the end of the accounting year.

G. FIXED ASSETS

Fixed Assets are stated at Cost, Less Accumulated Depreciation. All Costs, including Financing Cost are included in Total cost and accordingly capitalised in Fixed Assets. Capital Work In Progress includes Capital Items not installed or Building construction not completed.

H. REVENUE RECOGNITION

SALE OF GOODS

Sales of goods are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer which generally coincides with the delivery of goods. Sales include excise duty but excludes value added tax.

SALES OF SERVICE (JOB CHARGES)

Job Charges are recognised on delivery of the goods to the customers after completing the job work on the same.

I. BORROWING COST

Borrowing Costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of Cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

J. VALUE ADDED TAX (VAT):-

VAT credit received on purchases is reduced from respective item of purchases. VAT on Sales is credited to Vat Credit Account and differential amount is paid. Thus, the company has followed exclusive method of accounting whereby purchases, sales and stock is shown exclusive of VAT and accounted for in separate VAT Account.

K. FOREIGN CURRENCY TRANSACTION

The Foreign Currency Transaction of the company includes Purchases of Fixed Assets and Sales of Texturized Yarn which are valued at the Rate prevailing at the time of the transaction. The gain/loss between foreign currency at time of transaction and at time of payment/receipts is charged to P&L account. Also, the amount outstanding of monetary items in Foreign Currency has been converted in INR at Closing Rate on 31-03-2013 and any gain/loss on same has also been charged to Profit & Loss Account.

L. TAXES ON INCOME

Tax Expenses comprises of both current and deferred tax at the applicable enacted rates. Current tax represents the amount of income tax payable in respect of taxable income for the reporting period. Deferred tax represents the effect of timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods. MAT credit available on current tax is recognised as asset. MAT credit is recognised if there is convincing evidence of realization of the same.

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Mar 31, 2012

A. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

The finacial statements have been prepared under the Historical Cost Convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

B. USE OF ESTIMATES t

The preparation of financial statements in confirmation with GAAP requires the management to make estimates and assumptions considered in reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The management believes that estimates used in preparation of financial statements are prudent and reasonable. Future results could differ due to these estimates and the difference between actual results and the estimates are recongnised in the periods in which these gets materialized.

C. INVENTORIES

Closing stocks are valued at lower of cost or estimated realisable value. Cost of inventories comprise Cost of Purchase, Cost of Conversion and other costs incurred in bringing them to their respective present location and condition.

D. INVESTMENTS

IMon-Current Investments are stated at cost less provision for dimunition, other than temporary, in value of such investments. Current Investments are carried at lower of Cost or Net realisable Value. Provision for dimunition in value of non-current investments, other than of temporary nature, is charged to Profit & Loss Account.

E. DEPRECIATION

I) Depreciation on fixed assets has been charged on straight line method (SLM) at the rates specified in Schedule XIV of the Companies Act, 1956.

II) Depreciation on all assets are charged at rates of Single Shift except for Plant &

Machinery at Kim Unit in which depreciation is charged at rates of Triple Shift. Further, the Depreciation on Plant & Machinery of Silvassa Unit & AAC Block Palghar Unit was charged as Triple Shift upto last year which has been changed to Single Shift in the Current Year.

III) Depreciation on addition has been provided from the date of putting the assets into use.

F. EMPOLYEE BENEFITS

All the Short Term Employee Benefits are accounted for on the basis of services rendered by the employees of the company. Contribution to Provident Fund are charged to Profit & Loss Account as and when the contribution is made. No provision has been made for Long Term Employee Benefits and Defined Benefit Plans as in opinion of the management no such liabilities has accrued as at the end of the accounting year.

G. FIXED ASSETS

Fixed Assets are stated at Cost, Less Accumulated Depreciation. All Costs, including Financing Cost are included in Total cost and accordingly capitalised in Fixed Assets. Capital Work In Progress includes Capital Items not installed or Building construction not completed and Advances given to Creditors for Fixed Assets.

H. REVENUE RECOGNITION SALE OF GOODS

Sales of goods are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer which generally coincides with the delivery of goods. Sales include excise duty but excludes value added tax.

SALES OF SERVICE (JOB CHARGES)

Job Charges are recognised on delivery of the goods to the customers after completing the job work on the same.

I. BORROWING COST

Borrowing Costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of Cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

J. VALUE ADDED TAX (VAT)

VAT credit received on purchases is reduced from respective item of purchases. VAT on Sales is credited to Vat Credit Account and differential amount is paid. Thus, the company has followed exclusive method of accounting whereby purchases, sales and stock is shown exclusive of VAT and accounted for in separate VAT Account.

K. FOREIGN CURRENCY TRANSACTION

The Foreign Currency Transaction of the company includes Purchases of Fixed Assets and Sales of Texturized Yarn which are valued at the Rate prevailing at the time of the transaction. The gain/loss between foreign currency at time of transaction and at time of payment/receipts is charged to P&L account. Also, the amount outstanding of monetary items in Foreign Currency has been converted in INR at Closing Rate on 31-03-2012 and any gain/loss on same has also been charged to Profit & Loss Account.

L. TAXES ON INCOME

Tax Expenses comprises of both current and deferred tax at the applicable enacted rates. Current tax represents the amount of income tax payable in respect of taxable income for the reporting period. Deferred tax represents the effect of timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods. MAT credit available on current tax is recognised as asset. MAT credit is recognised if there is convincing evidence of realization of the same.

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Mar 31, 2011

A. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

The finacial statements have been prepared under the Historical Cost Convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

B. INVENTORIES

Closing stocks are valued at lower of cost or estimated realisable value. Cost of inventories comprise Cost of Purchase, Cost of Conversion and other costs incurred in bringing them to their respective present location and condition.

C. INVESTMENTS

Long Term Investments are stated at cost. Current Investments are carried at lower of Cost or Net realisable Value.

D. DEPRECIATION

I) Depreciation on fixed assets has been charged on straight line method (SLM) at the rates specified in Schedule XIV of the Companies Act, 1956.

II) Depreciation on addition has been provided from the date of putting the assets into use.

E.EMPOLYEE BENEFITS

All the Short Term Employee Benefits are accounted for on the basis of services rendered by the employees of the company. Contribution to Provident Fund are charged to Profit & Loss Account as and when the contribution is made. No provision has been made for Long Term Employee Benefits and Defined Benefit Plans as in opinion of the management no such liabilities has accrued as at the end of the accounting year.

F. FIXED ASSETS

Fixed Assets are stated at Cost, Less Accumulated Depreciation. All Costs, including Financing Cost are included in Total cost and accordingly capitalised in Fixed Assets. Capital Work In Progress includes Capital Items not installed or Building construction not completed and Advances given to Creditors for Fixed Assets.

G. CAPITAL ISSUE EXPENDITURE/PRELIMINARY EXPENSES

a) Expenditure incurred in connection with issue of capital has been capitalised and is amortised over a period of 5 years.

b) Preliminary expenses are amortised over a period of 5 years.

H. VALUE ADDED TAX (VAT):-

VAT credit received on purchases is reduced from respective item of purchases. VAT on Sales is credited to Vat Credit Account and differential amount is paid. Thus, the company has followed exclusive method of accounting whereby purchases, sales and stock is shown exclusive of VAT tpand accounted for in separate VAT Account.

I. FOREIGN CURRENCY TRANSACTION

The Foreign Currency Transaction of the company includes Purchases of Fixed Assets and Sales of Texturized Yarn which are valued at the Rate prevailing at the time of the transaction. Thegain/loss between foreign currency at time of transaction and at time of payment/receipts is charged to P&L account. Also, the amount outstanding of monetary items in Foreign Currencyhas been converted in INR at Closing Rate on 31-03-2011 and any gain/loss on same has also been charged to Profit & Loss Account.

J. DEFERRED TAX LIABILITY

Deferred Tax Liability

Deferred tax resulting from 'timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.

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Mar 31, 2010

A. Basis of presentation of financial statements

The fmacial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in india and the provisions of the companies act, 1956.

B. INVENTORIES

Closing stocks are valued at lower of cost or estimated realisable value. Cost of inventories comprise Cost of Purchase, Cost of Conversion and other costs incurred in bringing them to their respective present location and condition.

C. INVESTMENTS

Long Term Investments are stated at cost. Current Investments are carried at lower of Cost or Net realisable Value.

D. DEPRECIATION

I) Depreciation on fixed assets has been charged on straight line method (SLM) at the rates specified in Schedule XIV of the Companies Act, 1956.

II) Depreciation on addition has been provided from the date of putting the assets into use.

E. EMPOLYEE BENEFITS

All the Short Term Employee Benefits are accounted for on the basis of services rendered by the employees of the company. Contribution to Provident Fund are charged to Profit & Loss Account as and when the contribution is made. No provision has been made for Long Term Employee Benefits and Defined Benefit Plans as in opinion of the management no such liabilities has accrued as at the end of the accounting year.

F. FIXED ASSETS

Fixed Assets are stated at Cost, Less Accumulated Depreciation. All Costs, including Financing Cost are included in Total cost and accordingly capitalised in Fixed Assets. Capital Work In Progress includes Capital Items not installed or Building construction not completed and Advances given to Creditors for Fixed Assets.

G. CAPITAL ISSUE EXPENDITURE/PRELIMINARY EXPENSES

a) Expenditure incurred in connection with issue of capital has been capitalised and is amortised over a period of 5 years.

b) Preliminary expenses are amortised over a period of 5 years.

H. VALUE ADDED TAX (VAT):-

VAT credit received on purchases is reduced from respective item of purchases. VAT on Sales is credited to Vat Credit Account and differential amount is paid. Thus, the company has followed exclusive method of accounting whereby purchases, sales and stock is shown exclusive of VAT and accounted for in separate VAT Account.

I. FOREIGN CURRENCYTRANSACTION

The Foreign Currency Transaction of the company includes purchases of Raw material and Fixed Assets which are valued at the Rate prevailing at the time of the transaction.