Accounting Policies of Omnitex Industries (India) Ltd. Company

Mar 31, 2025

1. Corporate Information

Omnitex Industries (India) Limited (“the Company”) is a listed public limited company incorporated on 30^th January,
1987 under CIN L17100MH1987PLC042391 under the provisions of the Companies Act, 1956. Company''s shares are
listed on Bombay Stock Exchange. The Company is presently engaged in trading of fabrics and yarn.

The financial statements were approved by the Board of Directors and authorized for issue on 17^th April, 2025.

2. Basis of Preparation and Measurement

A) Basis of Preparation

The financial statements are prepared in accordance with and in compliance, in all material aspects, with Indian
Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the “Act”) read along with
Companies (Indian Accounting Standards) Rules, as amended and other provisions of the Act. The presentation of
the Financial Statements is based on Ind AS Schedule III to the Companies Act, 2013.

B) Basis of Measurement

The financial statements have been prepared on an accrual basis and in accordance with the historical cost
convention, unless otherwise stated. All assets and liabilities are classified into current and non-current generally
based on the nature of product/ activities of the Company and the normal time between acquisition of assets/
liabilities and their realisation / settlement in cash or cash equivalent. The Company has determined its operating
cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

3. Valuation of Inventories:

Inventories are valued at Lower of Cost and Net Realisable Value. Cost comprises all cost of purchase, conversion and
other costs incurred in bringing the inventories to their present location and condition. The cost is arrived at on First In
First Out (FIFO) basis. Due allowance is estimated and made for defective and obsolete items, wherever considered
necessary.

4. Property, Plant and Equipment:

• Property, plant and equipment are stated at historical cost less depreciation and impairment loss, if any.

• Historical cost includes expenditure that is directly attributable to the acquisition of the items.

• Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate,

only when it is probable that future economic benefits associated with the item will flow to the Company and the

cost of the item can be measured reliably.

• All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in
which they are incurred

5. Investment Property:

• Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the
Company, is classified as investment property.

• Investment property is measured initially at its cost, including related transaction costs and borrowing costs where
applicable.

• Subsequent expenditure is capitalized to the asset''s carrying amount only when it is probable that future economic
benefits associated with the expenditure will flow to the Company and the cost of the item can be measured
reliably.

• All other repairs and maintenance costs are expensed when incurred.

• Investment properties are depreciated using the straight line method over their estimated useful lives which is 60
years.

6. Impairment of assets:

• At each balance sheet date, the Company reviews the carrying value of assets for any possible impairment.

• An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

• The recoverable amount is determined as higher of the asset''s fair value less costs of disposal and value in use.

• For the purpose of assessing impairment, assets are grouped at the levels for which there are separately identifiable

cash flows (cash generating unit). Assessment is done at each Balance Sheet date as to whether there is any

indication that an impairment loss recognized for an asset in prior accounting period may no longer exist or may

have decreased, and in such cases the impairment loss is reversed to that extent.

7. Financial Assets / Liabilities:

A. Financial Assets

Initial recognition and measurement

• All financial assets are recognized initially at fair value plus transaction costs that are attributable to the
acquisition of the financial asset, except in the case of financial assets not recorded at fair value through profit
or loss.

• Transaction costs of financial assets carried at fair value through profit or loss are expensed through the
Statement of Profit and Loss.

Subsequent measurement

• For purposes of subsequent measurement, the Company classifies its financial assets in the following
measurement categories:

0 those to be measured subsequently at fair value (either through other comprehensive income, or through
profit or loss), and

0 those measured at amortized cost.

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

• For assets measured at fair value, gains and losses will either be recorded in Statement of Profit and Loss or
other comprehensive income.

• For investments in debt instruments, this will depend on the business model in which the investment is held.

• For investments in equity instruments, this will depend on whether the Company has made an irrevocable
election at the time of initial recognition to account for the equity investment at fair value through other
comprehensive income. Fair value of the unquoted shares is determined based on the income approach or
the comparable market approach. For these unquoted investments categorized under Level 3, their respective
cost is considered as an appropriate estimate of fair value if wide range of possible fair value measurement
exists and cost represents the best estimate of fair value within that range.

Derecognition

• A financial asset is derecognized only when the rights to receive cash flows from the financial asset have
expired, or the Company has transferred its rights to receive cash flows from the financial asset or has
assumed an obligation to pay the received cash flows to one or more recipient.

• Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all
risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognized.

• Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the
financial asset is not derecognized.

• Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of
ownership of the financial asset, the financial asset is derecognized if the company has not retained control
of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be
recognized to the extent of continuing involvement in the financial asset.

B. Financial Liabilities

• Classification as liability or equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of
the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

• Initial recognition and measurement

Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the
instrument. Financial liabilities are initially measured at the amortized cost unless at initial recognition, they
are classified at fair value through profit or loss.

• Subsequent measurement

Financial liabilities are subsequently measured at amortized cost using the effective interest rate method.
Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair
value recognized in the Statement of Profit and Loss.

• Derecognition

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or
expires.

8. Borrowing Costs:

• General and Specific Borrowing Costs that are directly attributable to the acquisition, construction or production of
a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its
intended use.

• Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use.

• All other borrowing costs are expensed in the period in which they are incurred.

9. Depreciation:

• Depreciation is calculated using the Straight Line Method to allocate cost, net of estimated residual value over its
estimated useful life.

• The useful lives and residual values are as prescribed under Schedule II to the Companies Act, 2013.

• Gains and Losses on disposals are determined by comparing proceeds with carrying amount. These are included
in the Statement of Profit and Loss.

10. Foreign Currency Transactions:

• Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of
the transactions.

• Realized gains and losses on settlement of foreign currency transactions are recognized in the Statement of Profit
and Loss.

• Foreign currency denominated monetary assets and liabilities at the year end are translated at the year-end
exchange rates, and the resultant exchange difference is recognized in the Statement of Profit and Loss.

• Non-monetary foreign currency items are carried at cost.

11. Revenue Recognition:

• Revenue from sale of goods is recognized when all significant risk and rewards in the ownership of the goods are
transferred to the buyer and it is probable that the future economic benefit will flow to the entity as per the terms of
the contract, which usually co-inside with the delivery of the goods.

• Revenue from sale of goods is recognized in the Statement of Profit and Loss, net of returns, Trade Discounts,
Goods and Services Tax and other taxes as may be applicable.

• Rental income from operating leases is recognized in income on a straight-line basis over the lease term unless
the receipts are structured to increase in line with expected general inflation to compensate for the expected
inflationary cost increases. In such cases the revenue is recognized as per the terms of the Agreement. The
respective leased assets are included in the balance sheet based on their nature.

• Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to
the company and the amount of income can be measured reliably. Interest income is accrued on time basis, by
reference to the principal outstanding and at the effective interest rate applicable.

• Dividend income from investments is recognized when the right to receive dividend has been established.

12. Employee Benefits:

Short Term Employee Benefits

Liabilities for salaries, wages and other benefits including non-monetary benefits that are expected to be settled wholly
within twelve months after the end of the period in which the employees render the related service are recognized in
respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be
paid when the liabilities are settled. The liabilities are presented as current employee benefits obligations in the Balance
Sheet.

Long Term Employee Benefits

Defined Contribution Plans

Contribution to defined contribution plans such as Provident Fund, are charged to the Statement of Profit and Loss as

incurred, as the Company has no further obligation beyond making these contributions.

13. Taxation:

• Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net
profit or loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in
accordance with prevailing income tax law.

• Deferred tax is recognized for all the temporary differences by using the liability method, only to the extent that
there is a reasonable certainty that sufficient future taxable income will be available against which such deferred
tax assets can be realized.

• Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or
substantively enacted by the Balance Sheet date.

• At each Balance Sheet date, the Company reassesses unrecognized deferred tax assets, if any.

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Mar 31, 2024

1. Corporate Information

Omnitex Industries (India) Limited (“the Company”) is a listed public limited company incorporated on 30^th January, 1987 under CIN L17100MH1987PLC042391 under the provisions of the Companies Act, 1956. Company''s shares are listed on Bombay Stock Exchange. The Company is presently engaged in trading of fabrics and yarn.

The financial statements were approved by the Board of Directors and authorized for issue on 30th May, 2024.

2. Basis of Preparation and Measurement

A) Basis of Preparation

The financial statements are prepared in accordance with and in compliance, in all material aspects, with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the “Act”) read along with Companies (Indian Accounting Standards) Rules, as amended and other provisions of the Act. The presentation of the Financial Statements is based on Ind AS Schedule III to the Companies Act, 2013.

B) Basis of Measurement

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, unless otherwise stated. All assets and liabilities are classified into current and non-current generally based on the nature of product/ activities of the Company and the normal time between acquisition of assets/ liabilities and their realisation / settlement in cash or cash equivalent. The Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

3. Valuation of Inventories:

Inventories are valued at Lower of Cost and Net Realisable Value. Cost comprises all cost of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition. The cost is arrived at on First In First Out (FIFO) basis. Due allowance is estimated and made for defective and obsolete items, wherever considered necessary.

4. Property, Plant and Equipment:

• Property, plant and equipment are stated at historical cost less depreciation and impairment loss, if any.

• Historical cost includes expenditure that is directly attributable to the acquisition of the items.

• Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate,

only when it is probable that future economic benefits associated with the item will flow to the Company and the

cost of the item can be measured reliably.

• All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are incurred

5. Investment Property:

• Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property.

• Investment property is measured initially at its cost, including related transaction costs and borrowing costs where applicable.

• Subsequent expenditure is capitalized to the asset''s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably.

• All other repairs and maintenance costs are expensed when incurred.

• Investment properties are depreciated using the straight line method over their estimated useful lives which is 60 years.

6. Impairment of assets:

• At each balance sheet date, the Company reviews the carrying value of assets for any possible impairment.

• An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

• The recoverable amount is determined as higher of the asset''s fair value less costs of disposal and value in use.

• For the purpose of assessing impairment, assets are grouped at the levels for which there are separately identifiable

cash flows (cash generating unit). Assessment is done at each Balance Sheet date as to whether there is any

indication that an impairment loss recognized for an asset in prior accounting period may no longer exist or may

have decreased, and in such cases the impairment loss is reversed to that extent.

7. Financial Assets / Liabilities:

A. Financial Assets

Initial recognition and measurement

• All financial assets are recognized initially at fair value plus transaction costs that are attributable to the acquisition of the financial asset, except in the case of financial assets not recorded at fair value through profit or loss.

• Transaction costs of financial assets carried at fair value through profit or loss are expensed through the Statement of Profit and Loss.

Subsequent measurement

• For purposes of subsequent measurement, the Company classifies its financial assets in the following measurement categories:

F Those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

F Those measured at amortized cost.

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

• For assets measured at fair value, gains and losses will either be recorded in Statement of Profit and Loss or other comprehensive income.

• For investments in debt instruments, this will depend on the business model in which the investment is held.

• For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. Fair value of the unquoted shares is determined based on the income approach or the comparable market approach. For these unquoted investments categorized under Level 3, their respective cost is considered as an appropriate estimate of fair value if wide range of possible fair value measurement exists and cost represents the best estimate of fair value within that range.

Derecognition

• A financial asset is derecognized only when the rights to receive cash flows from the financial asset have expired, or the Company has transferred its rights to receive cash flows from the financial asset or has assumed an obligation to pay the received cash flows to one or more recipient.

• Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognized.

• Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognized.

• Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognized if the company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognized to the extent of continuing involvement in the financial asset.

B. Financial Liabilities

• Classification as liability or equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

• Initial recognition and measurement

Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at the amortized cost unless at initial recognition, they are classified at fair value through profit or loss.

• Subsequent measurement

Financial liabilities are subsequently measured at amortized cost using the effective interest rate method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognized in the Statement of Profit and Loss.

• Derecognition

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expires.

8. Borrowing Costs:

• General and Specific Borrowing Costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use.

• Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use.

• All other borrowing costs are expensed in the period in which they are incurred.

9. Depreciation:

• Depreciation is calculated using the Straight Line Method to allocate cost, net of estimated residual value over its estimated useful life.

• The useful lives and residual values are as prescribed under Schedule II to the Companies Act, 2013.

• Gains and Losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

10. Foreign Currency Transactions:

• Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions.

• Realized gains and losses on settlement of foreign currency transactions are recognized in the Statement of Profit and Loss.

• Foreign currency denominated monetary assets and liabilities at the year end are translated at the year-end exchange rates, and the resultant exchange difference is recognized in the Statement of Profit and Loss.

• Non-monetary foreign currency items are carried at cost.

11. Revenue Recognition:

• Revenue from sale of goods is recognized when all significant risk and rewards in the ownership of the goods are transferred to the buyer and it is probable that the future economic benefit will flow to the entity as per the terms of the contract, which usually co-inside with the delivery of the goods.

• Revenue from sale of goods is recognized in the Statement of Profit and Loss, net of returns, Trade Discounts, Goods and Services Tax and other taxes as may be applicable.

• Rental income from operating leases is recognized in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. In such cases the revenue is recognized as per the terms of the Agreement. The respective leased assets are included in the balance sheet based on their nature.

• Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably. Interest income is accrued on time basis, by reference to the principal outstanding and at the effective interest rate applicable.

• Dividend income from investments is recognized when the right to receive dividend has been established.

12. Employee Benefits:

Short Term Employee Benefits

• Liabilities for salaries, wages and other benefits including non-monetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are recognized in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefits obligations in the Balance Sheet.

Long Term Employee Benefits Defined Contribution Plans

• Contribution to defined contribution plans such as Provident Fund, are charged to the Statement of Profit and Loss as incurred, as the Company has no further obligation beyond making these contributions.

13. Taxation:

• Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with prevailing income tax law.

• Deferred tax is recognized for all the temporary differences by using the liability method, only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

• Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

• At each Balance Sheet date, the Company reassesses unrecognized deferred tax assets, if any.

14. Provisions

• The Company recognizes a provision when there is a present legal or constructive obligation as result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

• Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period.

15. Contingent Liabilities and Contingent Assets

• A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

• Contingent Assets are neither recognized nor disclosed in the financial statements.

16. Earnings Per share Basic Earnings per Share

Basic earnings per share is calculated by dividing:

The profit attributable to owners of the Company by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year.

Diluted Earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

17. New Standards / Amendments Notified but not yet effective:

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31^st March 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

18. Rounding of Amounts

All amounts disclosed in the financial statements and notes have been disclosed in Rupees in Lakhs rounded off to two decimals as per the requirement of Schedule III, unless otherwise stated.

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Mar 31, 2015

1. Basis of Accounting:

The financial statements have been prepared on the basis of historical costs under the accrual system of accounting and applicable Accounting Standards notified by the Companies (Accounts) Rules 2014 and the relevant provisions of the Companies Act, 2013

2. Valuation of Inventories:

Inventories are valued at Lower of Cost and Net Realisable Value. Cost comprises all cost of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition. The cost is arrived at on First In First Out (FIFO) basis. Due allowance is estimated and made for defective and obsolete items, wherever considered necessary.

3. Investments:

Long Term Investments are stated at cost; where there is a decline, other than temporary, the resultant reduction in carrying amount is charged to the Profit and Loss Statement.

4. Fixed Assets:

a. Fixed Assets are capitalised at cost (Net of refundable duties) inclusive of all expenses relating to the acquisition and installation of fixed assets and include borrowing costs attributable to such assets, upto the date the asset is put to use.

b. Fixed Assets except Freehold Land are valued at cost less depreciation. Freehold Land is shown at its Original Cost.

c. Impairment Loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of an asset in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal.

5. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the Profit and Loss Account in the year in which they are incurred.

6. Depreciation:

a. Except for items on which 100% depreciation rates are applicable, depreciation is provided on Straight Line Method on pro-rata basis as under:

i. In respect of Fixed Assets existing as at 1st April 2014 hereinafter referred to as "effective date" being date on which Schedule II of the Companies Act 2013 came into force:

The useful life of the asset is considered as provided in Schedule II to the Companies Act 2013. From the life of the asset as computed above, the number of years (part of the year is considered full for this purpose) for which the asset was in existence prior to the effective date was reduced and balance life in years ascertained. The net asset value as on the effective date after adjusting for residual value was divided by the balance useful life in years of the asset and depreciation per year is arrived at.

In respect of office unit, the useful life is considered from the year in which the occupation certificate was issued by the relevant authorities and not from the year of purchase.

ii. In respect of Fixed Assets acquired/constructed after 1st April 2014:

Depreciation is provided after taking into account useful lives of such assets in accordance with Schedule II of the Companies Act 2013

7. Foreign Currency Transactions:

a. Foreign currency transactions are recorded at the conversion rates prevailing on the date of transactions.

b. The exchange differences arising on the settlement of transactions are recognised as the gains or losses in the period in which they arise.

c. Monetary assets and liabilities in foreign currency, which are outstanding at the year end, are translated at the year end closing exchange rate and the resultant exchange differences are recognized in the Profit and Loss Statement.

8. Revenue Recognition:

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of goods are passed to the buyer. Dividends are recorded when the right to receive payment is established. Interest Income is recognized on time proportion basis. Rent and service receipts are accounted for on accrual basis in term of agreement with parties except in cases where ultimate collection is considered doubtful.

9. Employee Benefits:

a. The Company's Contribution in respect of Provident Fund is charged to the Profit and Loss Statement;

b. Provision for Gratuity to employees and Leave Encashment are charged to the Profit and Loss Statement on the basis of actuarial valuation.

10. Leases:

a. Assets Leased out are charged to depreciation as per Accounting Standard 6 issued by the Institute of Chartered Accountants of India.

b. Lease Income is recognized in Profit and Loss Statement on accrual basis.

11. Taxation:

a. In accordance with Accounting Standard 22 - Accounting for Taxes on Income (AS-22), notified by the Companies (Accounts) Rules, 2014, the deferred tax for timing differences is accounted for using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

b. Deferred tax assets arising from timing differences are recognised only on consideration of prudence.

12. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the Company has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits would be required to settle the obligation, and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimates required to settle the obligation at the balance sheet date. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimates. A contingent liability is disclosed if the possibility of an outflow of resources embodying the economic benefits is remote or a reliable estimate of the amount of obligation cannot be made. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2014

1. Basis of Accounting:

The financial statements have been prepared on the basis of historical costs under the accrual system of accounting and applicable Accounting Standards notifed by the Companies (Accounting Standards) Rules, 2006 and are in accordance with the requirements of the Companies Act, 1956.

2. Valuation of Inventories:

Inventories are valued at Lower of Cost and Net Realisable Value. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. The cost is arrived at on First In First Out (FIFO) basis. Due allowance is estimated and made for defective and obsolete items, wherever considered necessary.

3. Investments:

Investments, being long term, are stated at cost; where there is a decline, other than temporary, the resultant reduction in carrying amount is charged to the profit and Loss Statement.

4. Valuation of Fixed Assets:

a. All the Fixed Assets are capitalised at cost (Net of refundable duties) inclusive of all expenses relating to the acquisition and installation of fixed assets and include borrowing costs attributable to such assets, upto the date the asset is put to use.

b. Fixed Assets except Freehold Land are valued at cost less depreciation. Freehold Land is shown at its Original Cost.

c. Impairment Loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of an asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal.

5. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the profit and Loss Account in the year in which they are incurred.

6. Depreciation:

a. Except for items on which 100% depreciation rates are applicable, depreciation is provided on Straight Line Method on pro-rata basis as under:

i. In respect of the items of Fixed Assets existing on the date on which the amended Schedule XIV came into force:

The specified period of the life of the asset is recomputed by applying to the original cost, the revised rate of depreciation as prescribed in Schedule XIV of the Companies Act, 1956. Thereafter, depreciation charge is calculated by allocating the unamortized value of the asset over the remaining part of the recomputed specified period. For calculating remaining part of the recomputed specified period, only completed years of useful life of the existing assets have been taken into account and fraction of the useful life already expired has been ignored.

ii. In respect of other items of Fixed Assets:

Depreciation is provided at the rates as prescribed in Schedule XIV of the Companies Act, 1956.

b. While applying the revised rates as per Schedule XIV of the Companies Act, 1956, continuous process plants as Defined therein have been taken on technical assessment and depreciation is provided accordingly.

7. Foreign Currency Transactions:

a. Foreign currency transactions are recorded at the conversion rates prevailing on the date of transactions.

b. The exchange differences arising on the settlement of transactions are recognised as the gains or losses in the period in which they arise.

c. Monetary assets and liabilities in foreign currency, which are outstanding at the year-end, are translated at the year-end closing exchange rate and the resultant exchange differences are recognized in the profit and Loss Statement.

8. Revenue Recognition:

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of goods are passed to the buyer. Dividends are recorded when the right to receive payment is established. Interest Income is recognized on time proportion basis. Rent and service receipts are accounted for on accrual basis in term of agreement with parties except in cases where ultimate collection is considered doubtful.

9. Employee benefits:

a. The Company''s Contribution in respect of Provident Fund is charged to the profit and Loss Statement;

b. Provision for Gratuity to employees and Leave Encashment are charged to the profit and Loss Statement on the basis of actuarial valuation.

10. Leases:

a. Assets Leased out are charged to depreciation as per Accounting Standard 6 issued by the Institute of Chartered Accountants of India.

b. Lease Income is recognized in profit and Loss Statement on accrual basis.

11. Taxation:

a. In accordance with Accounting Standard 22 – Accounting for Taxes on Income (AS-22), notifed by the Companies (Accounting Standards) Rules, 2006, the deferred tax for timing differences is accounted for using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

b. Deferred tax assets arising from timing differences are recognised only on consideration of prudence.

12. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the Company has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits would be required to settle the obligation, and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimates required to settle the obligation at the balance sheet date. Provisions are reviewed at each balance sheet date and are adjusted to refect the current best estimation. A contingent liability is disclosed if the possibility of an outflow of resources embodying the economic benefits is remote or a reliable estimate of the amount of obligation cannot be made.

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Mar 31, 2013

1. Basis of Accounting:

The financial statements have been prepared on the basis of historical costs under the accrual system of accounting and applicable Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and are in accordance with the requirements of the Companies Act, 1956.

2. Valuation of Inventories:

Inventories are valued at Lower of Cost and Net Realisable Value. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. The cost is arrived at on First In First Out (FIFO) basis. Due allowance is estimated and made for defective and obsolete items, wherever considered necessary.

3. Investments:

Investments, being long term, are stated at cost; where there is a decline, other than temporary, the resultant reduction in carrying amount is charged to the Profit and Loss statement.

4. Valuation of Fixed Assets:

a. All the Fixed Assets are capitalised at cost (Net of refundable duties) inclusive of all expenses relating to the acquisition and installation of fixed assets and include borrowing costs attributable to such assets, upto the date the asset is put to use.

b. Fixed Assets except Freehold Land are valued at cost less depreciation. Freehold Land is shown at its Original Cost.

c. Impairment Loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of an asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal.

5. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the Profit and Loss Account in the year in which they are incurred.

6. Depreciation:

a. Except for items on which 100% depreciation rates are applicable, depreciation is provided on Straight Line Method on pro-rata basis as under:

i. In respect of the items of Fixed Assets existing on the date on which the amended Schedule XIV came into force:

The specified period of the life of the asset is recomputed by applying to the original cost, the revised rate of depreciation as prescribed in Schedule XIV of the Companies Act, 1956. Thereafter, depreciation charge is calculated by allocating the unamortized value of the asset over the remaining part of the recomputed specified period. For calculating remaining part of the recomputed specified period, only completed years of useful life of the existing assets have been taken into account and fraction of the useful life already expired has been ignored.

ii. In respect of other items of Fixed Assets:

Depreciation is provided at the rates as prescribed in Schedule XIV of the Companies Act, 1956.

b. While applying the revised rates as per Schedule XIV of the Companies Act, 1956, continuous process plants as defined therein have been taken on technical assessment and depreciation is provided accordingly.

7. Foreign Currency Transactions :

a. Foreign currency transactions are recorded at the conversion rates prevailing on the date of transactions.

b. The exchange differences arising on the settlement of transactions are recognised as the gains or losses in the period in which they arise.

c. Monetary items i.e. items to be received or paid in Foreign Currencies, are translated at the exchange rates prevailing at the Balance Sheet date or at the Forward Contract rates, wherever such contracts have been entered into and resultant gains / losses are recognised in the Profit and Loss statement.

8. Revenue Recognition:

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of goods are passed to the buyer. Dividends are recorded when the right to receive payment is established. Interest Income is recognized on time proportion basis. Rent and service receipts are accounted for on accrual basis in term of agreement with parties except in cases where ultimate collection is considered doubtful.

9. Employee Benefits:

a. The Company''s Contribution in respect of Provident Fund is charged to the Profit and Loss statement;

b. Provision for Gratuity to employees and Leave Encashment are charged to the Profit and Loss statement on the basis of actuarial valuation.

10. Leases:

a. Assets Leased out are charged to depreciation as per Accounting Standard 6 issued by the institute of Chartered Accountants of India.

b. Lease Income is recognized in Profit and Loss Account on accrual basis.

11. Taxation:

a. In accordance with Accounting Standard 22 - Accounting for Taxes on Income (AS-22), notified by the Companies (Accounting Standards) Rules, 2006, the deferred tax for timing differences is accounted for using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

b. Deferred tax assets arising from timing differences are recognised only on consideration of prudence.

12. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the Company has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits would be required to settle the obligation, and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimates required to settle the obligation at the balance sheet date. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimation. A contingent liability is disclosed unless the possibility of an outflow of resources embodying the economic benefits is remote or a reliable estimate of the amount of obligation cannot be made.

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Mar 31, 2012

1. Basis of Accounting:

The financial statements have been prepared on the basis of historical costs under the accrual system of accounting and applicable Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and are in accordance with the requirements of the Companies Act, 1956.

2. Valuation of Inventories:

Inventories are valued at Lower of Cost and Net Realisable Value. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. The cost is arrived at on First In First Out (FIFO) basis. Due allowance is estimated and made for defective and obsolete items, wherever considered necessary.

3. Investments:

Investments, being long term, are stated at cost; where there is a decline, other than temporary, the resultant reduction in carrying amount is charged to the Profit and Loss Account.

4. Valuation of Fixed Assets:

a. All the Fixed Assets are capitalised at cost (Net of refundable duties) inclusive of all expenses relating to the acquisition and installation of fixed assets and include borrowing costs attributable to such assets, upto the date the asset is put to use.

b. Fixed Assets except Freehold Land are valued at cost less depreciation. Freehold Land is shown at its Original Cost.

c. Impairment Loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of an asset in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal.

5. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the Profit and Loss Account in the year in which they are incurred.

6. Depreciation:

a. Except for items on which 100% depreciation rates are applicable, depreciation is provided on Straight Line Method on pro-rata basis as under:

i. In respect of the items of Fixed Assets existing on the date on which the amended Schedule XIV came into force:

The specified period of the life of the asset is recomputed by applying to the original cost, the revised rate of depreciation as prescribed in Schedule XIV of the Companies Act, 1956. Thereafter, depreciation charge is calculated by allocating the unamortized value of the asset over the remaining part of the recomputed specified period. For calculating remaining part of the recomputed specified period, only completed years of useful life of the existing assets have been taken into account and fraction of the useful life already expired has been ignored.

ii. In respect of other items of Fixed Assets:

Depreciation is provided at the rates as prescribed in Schedule XIV of the Companies Act, 1956.

b. While applying the revised rates as per Schedule XIV of the Companies Act, 1956, continuous process plants as defined therein have been taken on technical assessment and depreciation is provided accordingly.

7. Foreign Currency Transactions :

a. Foreign currency transactions are recorded at the conversion rates prevailing on the date of transactions.

b. The exchange differences arising on the settlement of transactions are recognised as the gains or losses in the period in which they arise.

c. Monetary items i.e. items to be received or paid in Foreign Currencies, are translated at the exchange rates prevailing at the Balance Sheet date or at the Forward Contract rates, wherever such contracts have been entered into and resultant gains / losses are recognised in the Profit and Loss Account.

8. Revenue Recognition:

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of goods are passed to the buyer. Dividends are recorded when the right to receive payment is established. Interest Income is recognized on time proportion basis. Rent and service receipts are accounted for on accrual basis in term of agreement with parties except in cases where ultimate collection is considered doubtful.

9. Employee Benefits:

a. The Company's Contribution in respect of Provident Fund is charged to the Profit and Loss Account;

b. Provision for Gratuity to employees and Leave Encashment are charged to the Profit and Loss Account on the basis of actuarial valuation.

10. Leases:

a. Assets Leased out are charged to depreciation as per Accounting Standard 6 issued by the institute of Chartered Accountants of India.

b. Lease Income is recognized in Profit and Loss Account on accrual basis.

11. Taxation:

a. In accordance with Accounting Standard 22 - Accounting for Taxes on Income (AS-22), notified by the Companies (Accounting Standards) Rules, 2006, the deferred tax for timing differences is accounted for using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

b. Deferred tax assets arising from timing differences are recognised only on consideration of prudence.

12. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the Company has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits would be required to settle the obligation, and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimates required to settle the obligation at the balance sheet date. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimation. A contingent liability is disclosed unless the possibility of an outflow of resources embodying the economic benefits is remote or a reliable estimate of the amount of obligation cannot be made.

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Mar 31, 2011

1. Basis of Accounting:

The financial statements have been prepared on the basis of historical costs under the accrual system of accounting and applicable Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and are in accordance with the requirements of the Companies Act, 1956.

2. Valuation of Inventories:

Inventories are valued at lower of Cost and Net Realisable Value. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. The cost is arrived at on First In First Out (FIFO) basis. Due allowance is estimated and made for defective and obsolete items, wherever considered necessary.

3. Investments:

Investments, being long term, are stated at cost; where there is a decline, other than temporary, the resultant reduction in carrying amount is charged to the Profit and Loss Account.

4. Valuation of Fixed Assets:

a. All the Fixed Assets are capitalised at cost (Net of Cenvat) inclusive of all expenses relating to the acquisition and installation of fixed assets and include borrowing costs attributable to such assets, upto the date the asset is put to use.

b. Fixed Assets except Freehold Land are valued at cost less depreciation. Freehold Land is shown at its Original Cost.

c. Impairment Loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of an asset in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal.

5. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the Profit and Loss Account in the year in which they are incurred. There was no such borrowing costs incurred during the year.

6. Depreciation:

a. Except for items on which 100% depreciation rates are applicable, depreciation is provided on Straight Line Method on pro-rata basis as under:

i. In respect of the items of Fixed Assets existing on the date on which the amended Schedule XIV came into force:

The specified period of the life of the asset is recomputed by applying to the original cost, the revised rate of depreciation as prescribed in Schedule XIV of the Companies Act, 1956. Thereafter, depreciation charge is calculated by allocating the unamortized value of the asset over the remaining part of the recomputed specified period. For calculating remaining part of the recomputed specified period, only completed years of useful life of the existing assets have been taken into account and fraction of the useful life already expired has been ignored.

ii. In respect of other items of Fixed Assets:

Depreciation is provided at the rates as prescribed in Schedule XIV of the Companies Act, 1956.

b. While applying the revised rates as per Schedule XIV of the Companies Act, 1956, continuous process plants as defined therein have been taken on technical assessment and depreciation is provided accordingly.

7. Foreign Currency Transactions :

a. Foreign currency transactions are recorded at the conversion rates prevailing on the date of transactions.

b. The exchange differences arising on the settlement of transactions are recognised as the gains or losses in the period in which they arise.

c. Monetary items i.e. items to be received or paid in Foreign Currencies, are translated at the exchange rates prevailing at the Balance Sheet date or at the Forward Contract rates, wherever such contracts have been entered into and resultant gains / losses are recognised in the Profit and Loss Account.

8. Revenue Recognition:

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of goods are passed to the buyer. Dividends are recorded when the right to receive payment is established. Interest Income is recognized on time proportion basis. Rent and service receipts are accounted for on accrual basis in term of agreement with parties except in cases where ultimate collection is considered doubtful.

9. Employee Benefits:

a. The Company's Contribution in respect of Provident Fund is charged to the Profit and Loss Account;

b. Provision for Gratuity to employees and Leave Encashment are charged to the Profit and Loss Account on the basis of actuarial valuation. However, since there were no employees, no provision is required to be made.

10. Taxation:

a. In accordance with Accounting Standard 22 – Accounting for Taxes on Income (AS-22), notified by the Companies (Accounting Standards) Rules, 2006, the deferred tax for timing differences is accounted for using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

b. Deferred tax assets arising from timing differences are recognised only on consideration of prudence.

11. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the Company has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits would be required to settle the obligation, and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimates required to settle the obligation at the balance sheet date. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimation. A contingent liability is disclosed unless the possibility of an outflow of resources embodying the economic benefits is remote or a reliable estimate of the amount of obligation cannot be made.

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Mar 31, 2010

1. Basis of Accounting:

The financial statements have been prepared on the basis of historical costs under the accrual system of accounting and applicable Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and are in accordance with the requirements of the Companies Act, 1956.

2. Valuation of Inventories:

Inventories are valued at Lower of Cost and Net Realisable Value. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. The cost is arrived at on First In First Out (FIFO) basis. Due allowance is estimated and made for defective and obsolete items, wherever considered necessary.

3. Investments:

a. Investments, being long term, are stated at cost; where there is a decline, other than temporary, the resultant reduction in carrying amount is charged to the Profit and Loss Account.

b. Investments are capitalised at cost plus expenses by applying specific identification method.

4. Valuation of Fixed Assets:

a. All the Fixed Assets are capitalised at cost (Net of Modvat/Cenvat) inclusive of all expenses relating to the acquisition and installation of fixed assets and include borrowing costs attributable to such assets, upto the date the asset is put to use.

b. Fixed Assets except Freehold Land are valued at cost less depreciation. Freehold Land is shown at its Original Cost.

c. Impairment Loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtain- able from the sale of an asset in an arms length transaction between knowledgeable, willing par- ties, less the costs of disposal.

5. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capital- ised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the Profit and Loss Account in the year in which they are incurred. There was no such borrowing costs incurred during the year.

6. Depreciation:

a. Except for items on which 100% depreciation rates are applicable, depreciation is provided on Straight Line Method on pro-rata basis as under:

i. In respect of the items of Fixed Assets existing on the date on which the amended Schedule XIV came into force:

The specified period of the life of the asset is recomputed by applying to the original cost, the revised rate of depreciation as prescribed in Schedule XIV of the Companies Act, 1956. There- after, depreciation charge is calculated by allocating the unamortized value of the asset over the remaining part of the recomputed specified period. For calculating remaining part of the recomputed specified period, only completed years of useful life of the existing assets have been taken into account and fraction of the useful life already expired has been ignored.

ii. In respect of other items of Fixed Assets:

Depreciation is provided at the rates as prescribed in Schedule XIV of the Companies Act, 1956.

b. The above approach is in accordance with Circular No. 14/93 dated 20th December, 1993 issued by the Department of Company Affairs.

c. While applying the revised rates as per Schedule XIV of the Companies Act, 1956, continuous process plants as defined therein have been taken on technical assessment and depreciation is provided accordingly.

7. Foreign Currency Transactions:

a. Foreign currency transactions are recorded at the conversion rates prevailing on the date of transac- tions.

b. The exchange differences arising on the settlement of transactions are recognised as the gains or losses in the period in which they arise.

c. Current Assets and Current Liabilities i.e. items to be received or paid in Foreign Currencies, are translated at the exchange rates prevailing at the Balance Sheet date or at the Forward Contract rates, wherever such contracts have been entered into and resultant gains / losses are recognised in the Profit and Loss Account.

8. Revenue Recognition:

Revenues / Incomes and Costs / Expenditures are accounted for on accrual basis. Revenue from sale of goods is recognized when the significant risks and rewards of ownership of goods are passed to the buyer. Dividends are recorded when the right to receive payment is established. Interest Income is rec- ognized on time proportion basis. Rent and service receipts are accounted for on accrual basis in term of agreement with parties except in cases where ultimate collection is considered doubtful.

9. Employee Benefits:

a. The Companys Contribution in respect of Provident Fund is charged to the Profit and Loss Account;

b. Provision for Gratuity to employees and Leave Encashment are charged to the Profit and Loss Account on the basis of actuarial valuation, However, since there were no employees, no provision is required to be made.

10. Taxation:

a. In accordance with Accounting Standard 22 - Accounting for Taxes on Income (AS-22), notified by the Companies (Accounting Standards) Rules, 2006, the deferred tax for timing differences is ac- counted for using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

b. Deferred tax assets arising from timing differences are recognised only on consideration of pru- dence.

11. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the Company has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits would be required to settle the obligation, and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimates required to settle the obligation at the balance sheet date. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimation. A contingent liability is disclosed unless the possibility of an outflow of resources embodying the economic benefits is remote or a reliable estimate of the amount of obligation cannot be made.