Accounting Policies of Satyam Silk Mills Ltd. Company

Mar 31, 2024

B MATERIAL ACCOUNTING POLICIES

(a) Basis of Preparation of Financial Statements

These financial statements have been prepared in accordance with the generally accepted accounting principles in India
under the historical cost convention (except for certain financial instruments that are measured at fair values and defined
benefit employee plans) on accrual basis to comply in all material aspects with the Indian Accounting Standards
(hereinafter referred to as the ‘Ind AS'') as notified by Ministry of Corporate Affairs pursuant to Section 133 of the
Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies
(Indian Accounting Standards) Amendment Rules, 2016. The financial statements have been prepared on accrual and
going concern basis. The accounting policies are applied consistently to all the periods presented in the financial
statements. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating
cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of
products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets
and liabilities.

(b) Revenue

(i) Interest Income

Interest income from a financial asset is recognised 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 a time basis, by reference to the
principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future
cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.

(ii) Dividend Income

Dividend Income is recognised when the right to receive the payment is established.

(c) Income taxes

The income tax expense or credit for the year is the tax payable on the current period''s taxable income based on the
applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences
and to unused tax losses.Deferred income tax is provided in full, using the balance sheet approach, on temporary
differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of
the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred
income tax liability is settled. Deferred tax assets are recognised for all deductible temporary differences and unused tax
losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are
offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the
asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity, respectively.

(d) Impairment of non-financial assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on
internal/external factors. An asset is treated as impaired when the carrying amount exceeds its recoverable value. The
recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated
future cash flows are discounted to the present value using a pre-tax discount rate that reflects current market assessment
of the time value of money and risks specific to the assets. An impairment loss is charged to the Statement of Profit and
Loss in the year in which an asset is identified as impaired. After impairment, depreciation is provided on the revised
carrying amount of the asset over its remaining useful life. The impairment loss recognized in prior accounting periods is
reversed if there has been a change in the estimate of recoverable amount.

(e) Investments and financial assets
Classification

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 profit or 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. The company reclassifies debt investments when and only when its business model for managing
those assets changes.

Measurement

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are
solely payment of principal and interest.

Measurement of debt instruments

• Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently
measured at amortised cost, is recognised in profit or loss when the asset is derecognised or impaired. Interest income
from these financial assets is included in finance income using the effective interest rate method.

• Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and
for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are
measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken
through Other Comprehensive Income, except for the recognition of impairment gains or losses, interest revenue and
foreign exchange gains and losses which are recognised in profit and loss. When the financial asset is derecognised, the
cumulative gain or loss previously recognised in Other Comprehensive Income is reclassified from equity to profit

or loss and recognised in other gains/ (losses). Interest income from these financial assets is included
in other income using the effective interest rate method.

• Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair
value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or
loss, is recognised in profit or loss and presented net in the statement of profit and loss within other gains/(losses) n the
year in which it arises. Interest income from these financial assets is included in other income.

Measurement of equity instruments

Changes in the fair value of financial assets at fair value through profit or loss are recognised in other gain/(losses) in the
statement of profit and loss. Impairment losses (and reversal of impairment losses) on equity investments measured at
FVOCI are not reported separately from other changes in fair value. Impairment of financial assets

For trade receivables only, the company applies the simplified approach permitted by Ind AS 109 Financial Instruments,
which requires expected lifetime losses to be recognised from initial recognition of the receivables.

De-recognition of financial assets 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
derecognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset,
the financial asset is not derecognised. 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 derecognised 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
recognised to the extent of continuing involvement in the financial asset.

(f) Property, plant and equipment

The carrying value (Gross Block less accumulated depreciation and amortisation) as on 1st April, 2015 of the Property,
plant and equipment is considered as a deemed cost on the date of transition. Property, plant and equipment are carried at
cost, net of recoverable taxes, trade discounts and rebates, less accumulated depreciation, amortisation and impairment
loss, if any. Cost comprises of purchase price, borrowing cost if capitalisation criteria are met, and directly attributable cost
of bringing the asset to its working conditions for the intended use.

Depreciation on property, plant and equipment

Depreciation on proprty, plant and equipment is provided to the extent of depreciable amount on straight-line method over
the useful life of asset as assessed by the management and the same is similar to the useful lives as prescribed in Part-C
of Schedule II to the Companies Act, 2013. Residual values, useful lives and method of depreciation of Property Plant and
Equipments are reviewed at each financial year end and are adjusted prospectively, if appropriate. The effects of any
revision are included in the statement of profit and loss when
the changes arises.

Gains or losses arising from derecognition of an tangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the asset is
derecognised.

(g) Borrowings and other financial liabilities

Borrowings and other financial liabilities are initially recognised at fair value (net of transaction costs incurred). Difference
between the fair value and the transaction proceeds on initial is recognised as an asset / liability based on the underlying
reason for the difference. Subsequently all financial liabilities are measured at amortised cost using the effective interest
rate method Preference shares which are mandatorily redeemable on a specific date are classified as a financial liability.

Dividends on preference shares are recognised in statement of profit and loss. Borrowings are removed from the balance
sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying
amount of a financial liability that has been extinguished or transferred to another party and the consideration paid,
including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss. The gain / loss is recognised
in other equity in case of transaction with shareholders.

(h) 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 statement of profit and loss as finance costs.

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Mar 31, 2014

(a) Use of Estimates - The presentation of financial statements is in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual and the estimates are recognized in the period in which the results are known / materialized.

(b) Fixed Assets - Fixed assets are stated at cost of aquisition or construction including incidental expenses related to the acquisition or construction of the asset and the same are shown net of accumulated depreciation.

(c) Depreciation - Depreciation on fixed assets used for the purpose of business is provided on written down value basis as per the provisions of the Income Tax Act, 1961.

(d) Investments - Long Term Investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of investments.

(e) Impairment of Assets - An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. The impairement loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

(f) Revenue & Expenditure - All income and expenditure having a material bearing on the financial statements are recognised on accrual basis.

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Mar 31, 2013

(a) Use of Estimates - The presentation of financial statements is in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual and the estimates are recognized in the period in which the results are known / materialized.

(b) Fixed Assets - Fixed assets are stated at cost of aquisition or construction including incidental expenses related to the acquisition or constFuction of the asset and the same are shown net of accumulated depreciation.

(c) Depreciation - Depreciation on fixed assets used for the purpose of business is provided on written down value basis as per the provisions of the Income Tax Act, 1961.

(d) Investments - Long Term Investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of investments.

(e) Impairment of Assets - An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. The impairement loss recognized In prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

(f) Revenue & Expenditure - All income and expenditure having a material on me financial statements are recognised on accrual basis.

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Mar 31, 2012

(a) Use of Estimates - The presentation of financial statements is in conformity with the generally ; accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual and the estimates are recognized in the period in which the results are known / materialized.

(b) Fixed Assets - Fixed assets are stated at cost of acquisition or construction including ; incidental expenses related to the acquisition or construction of the asset and the same are shown net of accumulated depreciation.

(c) Depreciation - Depreciation on fixed assets used for the purpose of business is provided on written down value basis as per the provisions of the Income Tax Act, 1961.

(d) Investments - Long Term Investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of investments.

(e) Impairment of Assets - An asset is treated as impaired when the carrying cost of asset exceeds ; its recoverable value. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

(f) Revenue & Expenditure - All income and expenditure having a material bearing on the financial ; statements are recognized on accrual basis.

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Mar 31, 2010

(a) Basis of Preparation of Financial Statements - The financial statements have been prepared under the historical cost convention, in accordance with the Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956 as adopted consistently by the company.

(b) Fixed Assets - Fixed assets are stated at cost of aquisition or construction including incidental expenses related to the acquisition or construction of the asset and the same are shown net of accumulated depreciation.

(c) Depreciation - Depreciation on fixed assets used for the purpose of business is provided on written down value basis as per the provisions of the Income Tax Act, 1961.

(d) Investments - Long Term Investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of investments.

(e) Revenue & Expenditure - All income and expenditure having a material bearing on the financial statements are recognised on accrual basis.