Accounting Policies of Oswal Yarns Ltd. Company

Mar 31, 2024

Following significant accounting policies are being followed by the company:-

a) Basis of preparation and presentation of financial statements

These financial statements are prepared in accordance with and in compliance, in all
material aspects, with Indian Accounting Standards (Ind AS) under the historical cost
convention on the accrual basis except for certain financial instruments which are measured
at fair values, the provisions of the Companies Act , 2013 ('' Act'') (to the extent notified) and
guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are
prescribed under Section 133 of the Act read alongwith Companies (Indian Accounting
Standards) Rules as amended and other provisions of the Act.

The company has adopted Ind AS with April 1, 2016 as the transition date and the adoption
was carried out in accordance with Ind AS 101 First time adoption of Indian Accounting
Standards. The transition was carried out from Indian Accounting Principles generally
accepted in India as prescribed under Section133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP. Accounting
policies have been consistently applied except where a newly issued accounting standard is
initially adopted or a revision to an existing accounting standard requires a change in the
accounting policy hitherto in use.

The financial statements are presented in Indian Rupees (''''INR'''') and all values are rounded
to the nearest lakhs, except otherwise indicated.

b) Inventories

Raw materials, work-in-progress, finished goods, stores & spares have been valued at
cost or net realizable value whichever is lower. The cost in respect of various items of
inventory is computed as under:

- Raw materials at actual cost-plus direct expenses incurred to bring the stock at its present
position and location excluding any taxes.

- Work-in-progress at raw material cost plus conversion cost depending upon the stage of
completion.

- Finished goods at raw material cost plus conversion cost incurred to bring the goods up
to their present condition and location.

- Stores & spares at actual cost-plus direct expenses incurred to bring the stock at its
present position and location excluding any taxes.

-Waste has been valued at net realizable value.

c) Revenue Recognition

Sale of Products & services: Sales are recognized when all the significant risks and rewards
of ownership are transferred to the buyer and the company retains no effective control of
the goods transferred to a degree associated with ownership and no significant
uncertainty exists regarding the amount of the consideration that will be derived from the
sale of goods.

d) Property, Plant & Equipment

On adoption of Ind AS the company retained the carrying value of all its property plant and
equipment as recognized in financial statement as at the date of transition to Ind AS
measured as per previous GAAP and used that as deemed cost as permitted by Ind AS 101.
Fixed Assets have been stated at cost including any attributable costs relating to acquisition
and installation thereof and duties and taxes less any tax credits, if any, and less depreciation
up to date. Subsequent expenditures related to an item of tangible asset are added to its book
value only if they increase the future benefits from the existing asset beyond its previously
assessed standard of performance. Losses arising from the retirement of, and gains or losses
arising from disposal of tangible assets are recognized in the Statement of Profit and Loss.
Advances paid towards the acquisition of property, plant and equipment outstanding at each
balance sheet date is classified as capital advances under other non-current assets and the
cost of assets not put to use before such date are disclosed under ''Capital work-in- progress''

e) Depreciation

Depreciation on fixed assets has been provided on written down value method on the basis
of useful life and in the manner specified in Schedule - II to the Companies Act, 2013

f) Earnings Per Share

Basic earnings per share is computed by dividing the net profit after tax by the weighted
average number of equity shares outstanding during the period. Diluted earnings per share
is computed by dividing the profit after tax by the weighted average number of equity shares
considered for deriving basic earnings per share and also the weighted average number of
equity shares that could have been issued upon conversion of all dilutive potential equity
shares.

g) Impairment of Assets

The Company has considered all the external sources of information and internal sources
of information indicating whether an individual asset or a cash-generating unit of the
company has impaired. On the basis of those sources of information, no indication of a
potential impairment loss is present, as such no formal estimate of recoverable amount has
been made at the balance sheet date.

h) Employee Benefits

(i) Provident Fund and ESI

Contribution to Provident Fund and ESI is made in accordance with the provisions of their
resepctive acts and is recognised in the statement of profit & loss.

(ii) Leave with Wages

Provision for leaves, if any, is made on the basis of leaves accrued to the employees
during the year.

(iii) Gratuity

Liability for gratuity is provided through a policy taken from Life Insurance Corporation
of India (LIC) by a trust formed for the purpose. The liability is provided on the basis of
actuarial valuation made by LIC as at the close of the year to cover the year''s liability and
such liability is charged to the profit and loss account.

i) Borrowing Costs

General and specific borrowing costs directly attributable to the acquisition, construction or
production of qualifying assets, which are assets that necessarily take a substantial period
of time to get ready for their intended use or sale, are added to the cost of those assets, until
such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in Statement of Profit and Loss in the period in
which they are incurred.

j) Accounting for Taxes on Income

Tax Expense comprise current and deferred tax. Provision for current tax is made in
accordance with the provisions of Income Tax Act,1961. Deferred Tax resulting from
timing differences between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods is accounted for using
the tax rates and laws that are enacted or substantively enacted as on the balance sheet date.
Deferred tax assets are recognized only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such deferred tax assets can
be realized. However, deferred tax assets arising on account of brought forward losses and
unabsorbed depreciation are recognized only when there is virtual certainty by convincing
evidence that sufficient future taxable income will be available against which such deferred
tax can be realised.

k) Accounting policies not specifically referred to are consistant with generally accepted
accounting practices

For and on behalf of the Board of
OSWAL YARNS LIMITED

(TEJ PAUL OSWAL) (BHARATT OSWALL)

(MANAGING DIRECTOR) (WHOLE TIME DIRECTOR)

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Mar 31, 2014

A) Basis of preparation and presentation of financial statements

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) of the Companies Act, 1956 read with Companies (Accounting Standards) Rules, 2006 and other relevant provisions of the said Act.

b) Inventories

Raw materials, work-in-progress, finished goods, consumables have been valued at cost and net realizable value. The cost in respect of various items of inventory is computed as under :

- Raw materials at actual cost plus direct expenses incurred to bring the stock at its present position and location excluding VAT.

- Work-in-progress at raw material cost plus conversion cost depending upon the stage of completion.

- Finished goods at raw material cost plus conversion cost incurred to bring the goods up to their present condition and location.

- Consumables at actual cost plus direct expenses incurred to bring the stock at its present position and location excluding VAT.

- Waste has been valued at net realizable value.

c) Revenue Recognition

Sale of Products & services: Sales are recognised when all the significant risks and rewards of ownership are transferred to the buyer and the company retains no effective control of the goods transferred to a degree associated with ownership.

d) Fixed Assets

Fixed Assets have been stated at original cost including any attributable costs relating to acquisition and installation thereof and duties and taxes less modvat/cenvat credit and value added tax credit, if any, and less depreciation up to date.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Losses arising from the retirement of, and gains or losses arising from disposal of tangible assets are recognised in the Statement of Profit and Loss.

e) Depreciation

Depreciation on fixed assets has been provided on pro-rata basis at the rates and in the manner specified in Schedule - XIV to the Companies Act, 1956 as under:-

i. In respect of shoddy section: on written down value method basis

ii. In respect of lambs wool section : on straight line method basis

f) Earnings Per Share

"Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shades. The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

"The number of shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors."

g) Impairment of Assets

The Company has considered all the external sources of information and internal sources of information indicating whether an individual asset or a cash-generating unit of the company has impaired. On the basis of those sources of information, no indication of a potential impairment loss is present, as such no formal estimate of recoverable amount has been made at the balance sheet date.

h) Employee Benefits

i. Contribution to Provident Fund and ESI is made in accordance with the provisions of their respective acts and is recognised in the statement of profit & loss.

ii. Leave with Wages

Provision for leaves, if any, is made on the basis of leaves accrued to the employees during the year.

iii. Gratuity

Liability for gratuity is provided through a policy taken from Life Insurance Corporation of India (LIC) by a trust formed for the purpose. The liability is provided on the basis of actuarial valuation made by LIC as at the close of the year to cover the year''s liability and such liability is charged to the profit and loss account.

i) Borrowing Costs

General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

j) Accounting for Taxes on Income

Tax Expense comprise current and deferred tax. Provision for current tax is made in accordance with the provisions of Income Tax Act,1961. Deferred Tax resulting from timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. However, deferred tax assets arising on account of brought forward losses and unabsorbed depreciation are recognized only when there is virtual certainty by convincing evidence that sufficient future taxable income will be available against which such deferred tax.

k) Provisions and Contingent Liabilities

Provisions are recognised for present obligations of uncertain timing or amount arising as a result of a past event where a reliable estimate can be made and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Where it is not probable that an outflow of resources embodying economic benefits will be required or the amount can not be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of resources embodying economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain events are also disclosed as contingent liabilities unless the probability of outflow of resources embodying economic benefits is remote.

l) Accounting policies not specifically referred to are consistent with generally accepted accounting practices.

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Mar 31, 2013

A) Basis of preparation and presentation of financial statements

These financial statements have been prepared in accordance with the generally accepted accountimg principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) of the Companies Act, 1956 read with Companies (Accounting Standards) Rules, 2006 and other relevant provisions of the said Act.

b) Inventories

Raw materials, work-in-progress, finished goods, consumables have been valued at lower of cost and net realizable value. The cost in respect of various items of inventory is computed as under :

- Raw materials at actual cost plus direct expenses incurred to bring the stock at its present position and location excluding VAT.

- Work-in-progress at raw material cost plus conversion cost depending upon the stage of completion.

- Finished goods at raw material cost plus conversion cost incurred to bring the goods up to their present condition and location.

- Consumables at actual cost plus direct expenses incurred to bring the stock at its present position and location excluding VAT.

- Waste has been valued at net realizable value.

c) Revenue Recognition

Sale of Products & services: Sales are recognised when all the significant risks and rewards of ownership are transferred to the buyer and the company retains no effective control of the goods transferred to a degree associated with ownership.

d) Fixed Assets

Fixed Assets have been stated at original cost including any attributable costs relating to acquisition and installation thereof and duties and taxes less modvat/cenvat credit and value added tax credit, if any, and less depreciation up to date.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Losses arising from the retirement of, and gains or losses arising from disposal of tangible assets are recognised in the Statement of Profit and Loss.

e) Depreciation

Depreciation on fixed assets has been provided on pro-rata basis at the rates and in the manner specified in Schedule - XIV to the Companies Act, 1956 as under. -

i. In respect of shoddy section: on written down value method basis

ii. In respect of lambs wool section : on straight line method basis

f) Earnings Per Share

"Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic ernings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shaes. The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented. "The number of shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors."

g) Impairment of Assets

The Company has considered all the external sources of information and internal sources of information indicating whether an individual asset or a cash-generating unit of the company has impaired. On the basis of those sources of information, no indication of a potential impairment loss is present, as such no formal estimate of recoverable amount has been made at the balance sheet date.

h) Employee Benefits

i. Contribution to Provident Fund and ESI is made in accordance with the provisions of their resepctive acts and is recognised in the statement of profit & loss.

ii Leave with Wages Provision for leaves, if any, is made on the basis of leaves accrued to the employees during the year.

hi Gratuity

Liability for gratuity is provided through a policy taken from Life Insurance Corporation of India (LIC) by a trust formed for the purpose. The liability is provided on the basis of actuarial valuation made by LIC as at the close of the year to cover the year''s liability and such liability is charged to the profit and loss account.

i) Borrowing Costs

General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

j) Accounting for Taxes on Income

Tax Expense comprise current and deferred tax. Provision for current tax is made in accordance with the provisions of Income Tax Act,1961. Deferred Tax resulting from timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. However, deferred tax assets arising on account of brought forward losses and unabsorbed depreciation are recognized only when there is virtual certainty by convincing evidence that sufficient future taxable income will be available against which such deferred tax.

k) Provisions and Contingent Liabilities

Provisions are recognised for present obligations of uncertain timing or amount arising as a result of a past event where a reliable estimate can be made and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Where it is not probable that an outflow of resources embodying economic benefits will be required or the amount can not be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of resources embodying economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain events are also disclosed as contingent liabilities unless the probability of outflow of resources embodying economic benefits is remote.

I) Accounting policies not specifically referred to are consistant with generally accepted accounting practices.

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Mar 31, 2012

A) Basis of preparation and presentation of financial statements

These financial statements have been prepared in accordance with the generally accepted accountimg principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) of the Companies Act, 1956 read with Companies (Accounting Standards) Rules, 2006 and other relevant provisions of the said Act.

b) Inventories 3 Raw materials, work-in-progress, finished goods, consumables have been valued at lower of cost and net realizable value. The cost in respect of various items of inventory is computed as under :

- Raw materials at actual cost plus direct expenses incurred to bring the stock at its present position and location excluding VAT.

- Work-in-progress at raw material cost plus conversion cost depending upon the stage of completion.

- Finished goods at raw material cost plus conversion cost incurred to bring the goods up to their present condition and location.

- Consumables at actual cost plus direct expenses incurred to bring the stock at its present position and location excluding VAT.

- Waste has been valued at net realizable value.

c) Revenue Recognition

Sale of Products & services: Sales are recognised when all the significant risks and rewards of ownership are transferred to the buyer and the company retains no effective control of the goods transferred to a degree associated with ownership.

d) Fixed Assets

Fixed Assets have been stated at original cost including any attributable costs relating to acquisition and installation thereof and duties and taxes less modvat/cenvat credit and value added tax credit, if any, and less depreciation up to date.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Losses arising from the retirement of, and gains or losses arising from disposal of tangible assets are recognised in the Statement of Profit and Loss.

e) Depreciation

Depreciation on fixed assets has been provided on pro-rata basis at the rates and in the manner specified in Schedule - XIV to the Companies Act, 1956 as under:- i. In respect of shoddy section: on written down value method basis ii. In respect of lambs wool section : on straight line method basis

f) Earnings Per Share

"Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic ernings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shaes. The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

The number of shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented. For any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors."

g) Impairment of Assets

The Company has considered all the external sources of information and internal sources of information indicating whether an individual asset or a cash-generating unit of the company has impaired. On the basis of those sources of information, no indication of a potential impairment loss is present, as such no formal stimate of recoverable amount has been made at the balance sheet date.

h) Employee Benefits

i. Contribution to Provident Fund and ESI is made in accordance with the provisions of their resepctive acts and is recognised in the statement of profit & loss.

ii. Leave with Wages Provision for leaves, if any, is made on the basis of leaves accrued to the employees during the year.

iii. Gratuity Liability for gratuity is provided through a policy taken from Life Insurance Corporation of India (LIC) by a trust formed for the purpose. The liability is provided on the basis of actuarial valuation made by LIC as at the close of the year to cover the year's liability and such liability is charged to the profit and loss account.

i) Borrowing Costs

General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

j) Accounting for Taxes on Income

Tax Expense comprise current and deferred tax. Provision for current tax is made in accordance with the provisions of Income Tax Act,1961. Deferred Tax resulting from timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. However, deferred tax assets arising on account of brought forward losses and unabsorbed depreciation are recognized only when there is virtual certainty by convincing evidence that sufficient future taxable income will be available against which such deferred tax

k) Provisions and Contingent Liabilities

Provisions are recognised for present obligations of uncertain timing or amount arising as a result of a past event where a reliable estimate can be made and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Where it is not probable that an outflow of resources embodying economic benefits will be required or the amount can not be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of resources embodying economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain events are also disclosed as contingent liabilities unless the probability of outflow of resources embodying economic benefits is remote.

l) Accounting policies not specifically referred to are consistant with generally accepted accounting practices.

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Mar 31, 2010

The accounts are prepared on the historical cost convention on accrual basis and on a going concern concept and significant accounting policies followed by the company are stated hereunder :

1. Fixed Assets : All fixed assets are stated at historical cost less depreciation.

2. Depreciation : Depreciation on fixed assets has been provided on pro-rate basis at the rates prescribed in schedule (XIV) of the companies Act, 1956 as under :

a) In respect of Shoddy Section : on written down value method basis.

b) In respect of Lambs Wool Section : on straight line method basis.

3. Inventories are valued at cost or net realisable value whichever is lower. The cost formula used in valuation of different categories are as under :

i) For Raw Material, Stores & Spares - FIFO Method

ii) For Finished/Traded Goods - Weighted average conversion cost.

4. Sales : Sale of goods is recognised at the point of despatch to the customers, sale excludes Vat.

5. Provision for gratuity has been made on the basis of calculation done by LIC of India.

6. BORROWING COSTS :

Specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of the asset. Other browning costs are recognised as an expense in the period in which they are incurred.

7. ACCOUNTING FOR TAXES ON INCOME :

The accounting treatment followed for taxes on income is to provide for current tax and deferred tax. Current tax is the amount of income tax determined to be payable in respect of taxable income for a period. Deferred tax is the tax effect of timing differences.

8. Accounting policies not specifically referred to are consistant with generally accepted accounting practices.