Accounting Policies of Super Tex Industries Ltd. Company

Mar 31, 2024

(b) Significant Accounting Policies:

(a) Basis of Preparation of Financial Statements:

These financial statements have been prepared in accordance with the accounting principles generally accepted
in India including 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 as amended and presentation requirement of Division II of Schedule III of the
Companies Act 2013, (Ind AS Compliant Schedule III) as applicable to financial statement.

Accordingly, the Company has prepared these Financial Statements which comprise the Balance Sheet as at 31
March 2024, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in
Equity for the year ended as on that date, and accounting policies and other explanatory information (together
hereinafter referred to as ''Financial Statements'').

The financial statements of the Company for the year ended 31 March 2024 were approved for issue in
accordance with the resolution of the Board of Directors on 30th May 2024.

(ii) The financial statements have been prepared on the historical cost basis except for the following assets and
liabilities which have been measured at fair value:

1. Financial instruments measured at fair value through profit and loss

2. Defined benefit plans - plan asset value through other comprehensive income

(b) Classification of Assets and Liabilities as Current and Non-Current: All the assets and liabilities have been
classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in
Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of
assets for processing and their realization in cash and cash equivalent, the Company has ascertained its
operating cycle to be 12 months for the purpose of current/ non-current classification of assets and liabilities.

(c ) Basis of measurement: The financial statements have been prepared on the historical cost basis except for
certain financial instruments which are measured at fair values.

(i) Measurement of Fair Values: The Company''s accounting policies and disclosures require the measurement of
fair values, for both financial assets and liabilities. Fair Value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Fair
value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes
place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the assets or liability.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
within the fair value hierarchy that categorizes into three levels, described as follows, the inputs to valuation
techniques used to measure value. The fair value hierarchy gives the highest priority to quoted prices in active
markets for identical assets or liabilities (Level 1 inputs) and lowest priority to unobservable inputs (Level 3 inputs).

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or
liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

The Company has consistently applied the following accounting policies to all periods presented in these financial
statements.

The fair value of financial instruments that are not traded in an active market is determined by using valuation
techniques. This involves significant judgments in selection of a method in making assumptions that are mainly
based on market conditions existing at the Balance Sheet date and in identifying the most appropriate estimate of
fair value when a wide range of fair value measurements are possible.

(ii) Use of estimates and judgments: The preparation of financial statements in conformity with Ind AS requires
management to make judgments, estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities, income, expenses etc. at the date of these financial statements and
the reported amounts of revenues and expenses for the years presented. Actual results may differ from these
estimates.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting

estimates are recognized in the period in which the estimate is revised and future periods affected.

Key sources of estimation of uncertainty at the date of financial statements, which may cause a material
adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of useful
lives of property, plant and equipment and fair value of financial assets/liabilities.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are discussed below:

(iii) Useful lives of property, plant and equipment: The Company reviews the useful life of property, plant and
equipment at the end of each reporting period. This re-assessment may result in change in depreciation expense
in future periods.

(d) Revenue Recognition:

(i) Sales revenue is recognized on transfer of the significant risks and rewards of ownership of the goods to the
buyer. Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as
Revenue are net of GST, trade discounts and rebates.

(ii) Interest income is recognized using effective interest rate method and on time proportion basis taking into
account the amount outstanding and the interest rate applicable.

(e) Borrowing Costs: Borrowing costs directly attributable to the acquisition or construction of qualifying assets are
capitalised as part of the cost of the assets upto the date the asset is ready for their intended use. All other
borrowing costs are recognised in the Profit and Loss in the year in which they are incurred.

(f) Inventories : Raw material is valued at weighted average cost, stock in process at manufacturing cost based on
weighted average cost of raw material and overheads upto relevant stage of completion, stores and spares at cost
and finished goods at lower of cost of production and net realisable value. Purchased finished goods are valued at
cost and by-products and waste are valued at net realisable value. Obsolete, defective, slow moving and
unserviceable inventories, if any, are duly provided for.

(g) Property, Plant and Equipment: Items of property, plant and equipment are stated in balance sheet at cost less
accumulated depreciation and accumulated impairment losses, if any.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items (major components) of property, plant and equipment.

(ii) De-recognition : An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the
disposal or retirement of an item of property, plant and equipment is determined as the difference between the
sales proceeds and the carrying amount of property, plant and equipment and is recognised in profit or loss.
Depreciation is recognised so as to write off the cost of assets (other than freehold land and Capital work-in¬
progress) less their residual values on straight-line method over their useful lives as indicated in Part C of
Schedule II of the Companies Act, 2013. Depreciation methods, useful lives and residual values are reviewed at
the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

(h) Intangible assets: Identifiable intangible assets are recognized when the Company controls the asset, it is
probable that future economic benefits attributed to the asset will flow to the Company and the cost of the asset
can be measured reliably.

The intangible assets are initially recognised at cost. These assets having finite useful life are carried at cost less
accumulated amortization and any impairment losses. Amortisation is computed using the straight-line method
over the expected useful life of intangible assets.

The Company has established has estimated of useful lives of different categories of Intangible assets as follows:
i) Softwares: : are amortized over the period of license, generally not exceeding five years.

(i) Financial instruments: A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.

(j) Investment and other financial assets:*

a) Initial recognition and measurement: All financial assets are recognised initially at fair value plus, in the case of

financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset.

Financial assets are classified, at initial recognition, as financial assets measured at fair value or as financial
assets measured at amortized cost.

b) Subsequent measurement: For purposes of subsequent measurement, financial assets are classified in Three
categories:

i. Financial assets measured at amortised cost

ii. Financial assets measured at fair value through other comprehensive income (FVTOCI)

iii. Financial assets measured at fair value through profit or loss (FVTPL)

i. A financial asset that meets the following two conditions is measured at amortized cost.

• Business Model test: The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and

• Cash flow characteristics test: Contractual terms of the asset give rise on specified dates to cash flows that are
solely payments of principal and interest (SPPI) on the principal amount outstanding.

ii. A financial asset that meets the following two conditions is measured at fair value through OCI:-

• Business Model test: The objective of the business model is achieved both by collecting contractual cash flows
and selling the financial assets, and

• Cash flow characteristics test: The contractual terms of the instrument give rise on specified dates to cash flows
that are SPPI on the principal amount outstanding.

iii. All other financial assets are measured at fair value through profit and loss.

C ) Equity Instruments: All equity instruments in scope of Ind AS 109 are measured at fair value. Equity instruments
which are held for trading are classified as at FVTPL. For all other equity instruments, the Company may make an
irrevocable election to present subsequent changes in the fair value in OCI. The Company makes such election on
an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the
instrument, including foreign exchange gain or loss and excluding dividends, are recognised in the OCI. There is
no recycling of the amounts from OCI to profit or loss, even on sale of investment. However, the Company may
transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in
the profit or loss.

d) Derecognition: A financial asset is primarily derecognised (i.e. removed from the Company''s balance sheet)
when:

a) The contractual rights to receive cash flows from the asset have expired, or

b) The Company has transferred substantially all the risks and rewards of the asset, or

c) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the
sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in OCI
and accumulated in equity is recognised in profit or loss if such gain or loss would have otherwise been recognised
in profit or loss on disposal of that financial asset.

(ii) Financial liabilities:

a) Initial recognition and measurement: All financial liabilities are recognised initially at fair value and, in the case
of loans and borrowings and payables, net of directly attributable transaction costs.

b) Subsequent measurement: All financial liabilities are subsequently measured at amortised cost using the
effective interest method or at FVTPL.

c) Financial liabilities at fair value through profit or loss: Financial liabilities are classified as at FVTPL when the
financial liability is held for trading or is designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred principally for the purpose of repurchasing
in the near term or on initial recognition it is part of a portfolio of identified financial instruments that the Company
manages together and has a recent actual pattern of short-term profit-taking. This category also includes
derivative entered into by the Company that are not designated and effective as hedging instruments in hedge
relationships as defined by Ind AS 109. Gains or losses on liabilities held for trading are recognised in the profit or
loss.

d) Derecognition: A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original liability and the recognition of a new liability. The
difference between the carrying amount of the financial liability derecognised and the consideration paid and

payable is recognised in profit or loss.

e) Derivative financial instruments:

Initial recognition and subsequent measurement: The Company uses derivative financial instruments, such
as forward currency contracts, full currency swap, options and interest rate swaps to hedge its foreign currency
risks and interest rate risks respectively. Such derivative financial instruments are initially recognised at fair value
on the date on which a derivative contract is entered into and are subsequently re-measured at fair value at the end
of each reporting period. Derivatives are carried as financial assets when the fair value is positive and as financial
liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives
are taken directly to profit or loss

(k) Leases:

As a lessee: Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor
are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit
and Loss on a straight-line basis over the period of the lease or other systematic basis more representative of the
time pattern of the user''s benefits.

(l ) Income tax:

a) Current Income Tax: Income tax expense consists of current and deferred tax. Income tax expense is recognised
in profit or loss except to the extent that it relates to items recognised in OCI or directly in equity, in which case it is
recognised in OCI or directly in equity respectively. Current tax is the expected tax payable on the taxable profit for
the year, using tax rates enacted or substantively enacted by the end of the reporting period, and any adjustment
to tax payable in respect of previous years. Current tax assets and tax liabilities are offset where the Company 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.

b) Deferred Tax: Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they
reverse, based on the laws that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to set off corresponding current tax
assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes
levied by the same tax authority on the Company.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against
which the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are
reduced to the extent that it is no longer probable that the related tax benefit will be realised. Withholding tax
arising out of payment of dividends to shareholders under the Indian Income tax regulations is not considered as
tax expense for the Company and all such taxes are recognised in the statement of changes in equity as part of the
associated dividend payment.

Minimum Alternate Tax (''MAT'') credit is recognised as deferred tax asset only when and to the extent there is
convincing evidence that the Company will pay normal income tax during the period for which the MAT credit can
be carried forward for set-off against the normal tax liability. MAT credit recognised as an asset is reviewed at each
Balance Sheet date and written down to the extent the aforesaid convincing evidence no longer exists.

(m) Foreign currency transactions: Transactions in foreign currencies are translated to the respective functional
currencies of entities within the Company at exchange rates at the dates of the transactions. Monetary assets and
liabilities denominated in foreign currencies at the reporting date are translated into the functional currency at the
exchange rate at that date. Exchange differences arising on the settlement of monetary items or on translating
monetary items at rates different from those at which they were translated on initial recognition during the period or
in previous financial statements are recognized in the consolidated income statement in the period in which they
arise.

When several exchange rates are available, the rate used is that at which the future cash flows represented by the
transaction or balance could have been settled if those cash flows had occurred at the measurement date.

(n) Cash and cash equivalents: Cash and cash equivalent in the balance sheet comprise cash at banks and on
hand and Fixed deposits. For the purpose of the statement of cash flows, cash and cash equivalents consist of
cash and fixed deposits, as defined above.

(o) 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 net profit after tax by the weighted average number of equity shares as above and also the weighted
average number of equity shares upon conversion of all dilutive potential equity shares.

(p) Employees benefits:

(i) Defined benefit plans: The liability in respect of defined benefit plans is calculated using the projected unit credit
method with actuarial valuations being carried out at the end of each annual reporting period. The present value of
the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to
market yields at the end of the reporting period on government bonds. The currency and term of the government
bonds shall be consistent with the currency and estimated term of the post-employment benefit obligations. The
current service cost of the defined benefit plan, recognised in the profit or loss as employee benefits expense,
reflects the increase in the defined benefit obligation resulting from employee service in the current year, benefit
changes, curtailments and settlements. Past service costs are recognised in profit or loss in the period of a plan
amendment. The net interest cost is calculated by applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in profit or
loss. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are
charged or credited to OCI in the period in which they arise and is reflected immediately in retained earnings and is
not reclassified to profit or loss.

(ii) Short-term and Other long-term employee benefits: A liability is recognised for benefits accruing to employees
in respect of wages and salaries, and casual leave in the period the related service is rendered at the undiscounted
amount of the benefits expected to be paid in exchange for that service.

The Company''s net obligation in respect of other long term employee benefits is the amount of future benefit that
employees have earned in return for their service in the current and previous periods. That benefit is discounted to
determine its present value.

(iii) Defined contribution plans: The Company''s contributions to defined contribution plans are recognised as an
expense as and when the services are received from the employees entitling them to the contributions.

(q) Impairment of Assets:

(i) Impairment of financial assets : The Company applies the Expected Credit Loss (ECL) model for recognizing

Impairment Loss on financial Assets. An asset is treated as impaired when the carrying cost of the asset exceeds
its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an
asset is identified as impaired. The impairment loss recognized in a prior accounting period is reversed if there has
been a change in the estimate of the recoverable amount.

(ii) Impairment of non-financial assets : The carrying amounts of the Company''s PPE and intangible assets are
reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication
exists, then the asset''s recoverable amount is estimated in order to determine the extent of the impairment loss, if
any.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less
costs to sell.

An impairment loss is recognised in the profit or loss if the estimated recoverable amount of an asset or its cash
generating unit is lower than its carrying amount. Impairment losses recognised in respect of cash-generating
units are allocated to reduce the carrying amount of the other assets in the unit on a pro-rata basis.

In respect of other asset, impairment losses recognised in prior periods are assessed at each reporting date for
any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a
change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the
extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined,
net of depreciation or amortisation, if no impairment loss had been recognised.

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Mar 31, 2015

(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 on accrual basis. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

All the assets and liabilities have been classified as current or non current as per the Company's normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent, the Company has ascertained its operating cycle to be 12 months for the purpose of current/ non current classification of assets and liabilities.

(b) Use of estimates: The preparation of financial statements requires estimates and assumptions to be made that affect the reported balances of assets and liabilities as at the date of the financial statements and the reported amounts of income and expenses during the year. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

(c) Revenue Recognition: Sales are recognized as soon as goods are dispatched to customers and are net of returns, discounts and sales tax but includes freight in case of CIF export contracts. Other Income and Expenditure are recognized and accounted on accrual basis.

(d) Borrowing Costs: Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of the assets, upto the date the asset is ready for their intended use. All other borrowing costs are recognised in the of Profit and Loss in the year in which they are incurred.

(e) Inventories : Raw material is valued at weighted average cost, stock in process at manufacturing cost based on weighted average cost of raw material and overhead upto relevant stage of completion, stores and spares at cost and finished goods at lower of cost of production and net realisable value. Purchased finished goods are valued at cost and by-products and waste are valued at net realisable value.

(f) Fixed Assets: Fixed Assets are stated at cost, less accumulated depreciation. Costs include all expenses incurred to bring the assets to its present location and condition. Exchange differences on translation of foreign currency loans obtained to purchase fixed assets are included in the cost of such assets.

(g) Method of Depreciation and Amortisation:

(i) Depreciation on Factory Building, Plant and Machinery, Electrical Installations and Equipment is provided on a Straight Line Method and in case of other assets on Written Down Value Method, over the estimated useful life of assets.

(ii) Effective 1st April, 2014, the Company depreciates its fixed assets over the useful life in the manner prescribed in Schedule II of the Act, as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the Companies Act, 1956.

(iii) Cost of Software capitalized is amortised over a period of three years.

(iv) Depreciation on additions to assets or on sale/discardment of assets is calculated pro rata from the month of such addition or upto the month of such sale / discardment, as the case may be.

(h) Leases:

As a lessee :

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss on a straight-line basis over the period of the lease or other systematic basis more representative of the time pattern of the user's benefits.

As a lessor:

The Company has leased certain tangible assets and such leases where the Company has substantially retained all the risks and rewards of ownership are classified as operating leases. Lease income on such operating leases are recognized in the Statement of Profit and Loss on a straight line basis over the lease term or other systematic basis over the lease term which is more representative of the time pattern in which benefit derived from the use of the leased asset is diminished. Initial direct costs are recognized as an expense in the Statement of Profit and Loss in the period in which they are incurred.

(i) Investments: Investments that are readily realisable and are intended to be held for not more than one year from the date of investment are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at cost or fair value, whichever is lower. Long-term investments are carried at cost. However, provision for diminution is made to recognise a decline, other than temporary, in the value of the investments,such reduction being determined and made for each investment individually.

(j) Accounting for taxes: Provision for tax is made and retained in the accounts considering the taxable income for the relevant years, assessment orders and decisions of appellate authorities in the Company's case. Deferred tax is recognized on timing differences, being the difference between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods.

(k) Foreign currency transactions:

(i) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction, except transactions covered by forward contracts, which are recorded at the forward contract rates.

(ii) Monetary assets and liabilities, if any, at the year end are restated at the year end rates and exchange rate gains and losses are recognised in the Statement of Profit and Loss.

(l) 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 net profit after tax by the weighted average number of equity shares as above and also the weighted average number of equity shares upon conversion of all dilutive potential equity shares.

(m) Employees benefits:

(i) Short term employee benefits are recognized as an expense at the undiscounted amount in the Profit and loss account of the year in which the related service is rendered. These benefits include compensated absences such as paid annual leave and performance incentives.

(ii) Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using acturial valuation techniques. Acturial gains and losses are recognized in full in the Profit and Loss account for the period In which they occur. Liability in respect of gratuity to employees is covered under the group gratuity scheme with the Life Insurance Corporation of India and premium paid is debited to the Profit and Loss Account.

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

(o) Provisions, Contingent Liabilities and Contingent Assets: Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

(p) Segment Reporting: The Company deals in only one segment i.e."Textiles". However, as per Accounting Standard (AS) 17 on Segment Reporting the Company has identified and reported "Domestic" and "International" as primary business segments.

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Mar 31, 2014

(a) Basis of Preparation of Financial Statements : The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles, the Accounting Standards and the relevant provisions of the Companies Act, 1956.

(b) Use of estimates : The preparation of finanial statements requires estimates and assumptions to be made that affect the reported balances of assets and liabilities as at the date of the financial statements and the reported amounts of income and expenses during the year. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

(c) Revenue Recognition : Sales are recognized on despatch to customers and are net of returns, discounts and sales tax but includes freight in case of CIF export contracts. Other Income and Expenditure are recognized and accounted on accrual basis.

(d) Borrowing Costs : Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of the assets, upto the date the asset is ready for their intended use. All other borowing costs are recognised in the Statement of Profit and Loss in the year in which they are incurred.

(e) Inventories : Raw material is valued at weighted average cost, stock in process at manufacturing cost based on weighted average cost of raw material and overhead upto relevant stage of completion, stores and spares at cost and finished goods at lower of cost of production and net realisable value. Purchased finished goods are valued at cost and by-products and waste are valued at net realisable value.

(f) Fixed Assets : Fixed Assets are stated at cost, less accumulated depreciation. Costs include all expenses incurred to bring the assets to its present location and condition. Exchange differences on translation of foreign currency loans obtained to purchase fixed assets are included in the cost of such assets.

(g) Leases : In respect of assets taken on lease by the Company, where the Company has substantially all the risks and rewards of ownership, are classified as finance lease. Such a lease is capitalised at the lower of the fair value or the present value of the minimum lease payments and a liability is recognised for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year. Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognised as operating leases. Lease rentals under operating leases are recognised as revenue expenses.

(h) Depreciation : Depreciation on fixed assets other than freehold land and capital work-in-progress is being provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(i) Investments : Investments that are readily realisable and are intended to be held for not more than one year from the date of investment are classified as current investments. All the other investments are classified as long-term investments. Current investments are carried at cost or fair value, whichever is lower. Long-term investments are carried at cost. However, provision for diminution is made to recognise a decline, other than temperory, in the value of the investments, such reduction being determined and made for each investment individually.

(j) Accounting for taxes : Provision for tax is made and retained in the accounts considering the taxable income for the relevant years, assessment orders and decisions of appellate authorities in the Company''s case. Deferred tax is recognized on timing differences, being the difference between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods.

(k) Foreign currency transactions : (i) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction, except transactions covered by forward contracts, which are recorded at the forward contract rates. (ii) Monetary assets and liabilities, if any, at the year end are restated at the year end rates and exchange rate gains and losses are recognised in the Statement of Profit and Loss.

(l) 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 net profit after tax by the weighted average number of equity shares as above and also the weighted average number of equity shares upon conversion of all dilutive potential equity shares.

(m) Employees benefits : (i) Short term employee benefits are recognized as an expense at the undiscounted amount in the Profit and loss account of the year in which the related service is rendered. These benefits include compensated absences such as paid annual leave and performance incentives. (ii) Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using acturial valuation techniques. Acturial gains and losses are recognized in full in the Profit and Loss account for the period In which they occur. Liability in respect of gratuity to employees is covered under the group gratuity scheme with the Life Insurance Corporation of India and premium paid is debited to the Profit and Loss Account.

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

(o) Provisions, Contingent Liabilities and Contingent Assets : Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

(p) Segment Reporting : The Company deals in only one segment i.e.''Textiles1''. However, as per Accounting Standard (AS)17 on Segment Reporting the Company has identified and reported "Domestic" and "International" as primary business segments.

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Mar 31, 2013

1. Significant Accounting Policies :

(a) Basis of Preparation of Financial Statements : The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles, the Accounting Standards and the relevant provisions of the Companies Act, 1956.

(b) Use of estimates : The preparation of finanial statements requires estimates and assumptions to be made that affect the reported balances of assets and liabilities as at the date of the financial statements and the reported amounts of income and expenses during the year. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

(c) Revenue Recognition : Sales are recognized on despatch to customers and are net of returns, discounts and sales tax. Other Income and Expenditure are recognized and accounted on accrual basis.

(d) Borrowing Costs : directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of the assets, upto the date the asset is ready for their intended use. All other borowing costs are recognised in the Statement of Profit and Loss in the year in which they are incurred.

(e) Inventories : Raw material is valued at weighted average cost, stock in process at manufacturing cost based on weighted average cost of raw material and overhead upto relevant stage of completion, stores and spares at cost and finished goods at lower of cost of production and net realisable value. Purchased finished goods are valued at cost and by-products and waste are valued at net realisable value.

(f) Fixed Assets : Fixed Assets are stated at cost, less accumulated depreciation. Costs include all expenses incurred to bring the assets to its present location and condition. Exchange differences on translation of foreign currency loans obtained to purchase fixed assets are included in the cost of such assets.

(g) Leased Assets : Finance Leases - The lower of the fair value of the assets and present value of minimum lease rentals is capitalised as fixed assets with corresponding amount shown as lease liability. The principal component in the lease rental is adjusted against the lease liability and the interest component is charged to the Profit and Loss account. Operating Leases - Rentals are expensed with reference to lease terms and other considerations.

(h) Depreciation : Depreciation of fixed assets is being provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(i) Investments : that are readily realisable and are intended to be held for not more than one year from the date on which such investments are made are classified as current investments. All the other investments are classified as long-term investments. Current investments are carried at cost or fair value, whichever is lower. Long-term investments are carried at cost. However, provision for diminution is made to recognise a decline, other than temperory, in the value of the investments,such reduction being determined and made for each investment individually.

(j) Accounting for taxes : Provision for tax is made and retained in the accounts considering the taxable income for the relevant years, assessment orders and decisions of appellate authorities in the Company''s case. Deferred tax is recognized on timing differences, being the difference between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods.

(k) Foreign currency transactions : (if any) are entered as per the exchange rate prevailing on the date of transaction, Foreign currency assets, and liabilities covered by forward contracts, (if any), are stated at the forward contract rates ruling at the year end. Other exchange differences are dealt with in the Profit and Loss Account.

(l) 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 net profit after tax by the weighted average number of equity shares as above and also the weighted average number of equity shares upon conversion of all dilutive potential equity shares.

(m) Employees benefits : (i) Short term employee benefits are recognized as an expense at the undiscounted amount in the Profit and loss account of the year in which the related service is rendered. These benefits include compensated absences such as paid annual leave and performance incentives. (ii) Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using acturial valuation techniques. Acturial gains and losses are recognized in full in the Profit and Loss account for the period in which they occur. Liability in respect of gratuity to employees is covered under the group gratuity scheme with the Life Insurance Corporation of India and premium paid is debited to the Profit and Loss Account.

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

(o) Provisions, Contingent Liabilities and Contingent Assets : Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

(p) Segment Reporting : The Company deals in only one segment i.e."Textiles". However, as per Accounting Standard (AS)17 on Segment Reporting the Company has identified and reported "Domestic" and "International" as primary business segments.

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Mar 31, 2012

(a) Basis of Preparation of Financial Statements : The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles, the Accounting Standards and the relevant provisions of the Companies Act, 1956.

(b) Use of estimates : The preparation of financial statements requires estimates and assumptions to be made that affect the reported balances of assets and liabilities as at the date of the financial statements and the reported amounts of income and expenses during the year. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

(c) Revenue Recognition : Sales are recognized on despatch to customers and are net of returns, discounts and sales tax. Other Income and Expenditure are recognized and accounted on accrual basis.

(d) Inventories : Raw material is valued at weighted average cost, stock in process at manufacturing cost based on weighted average cost of raw material and overhead upto relevant stage of completion, stores and spares at cost and finished goods at lower of cost of production and net realisable value. Purchased finished goods are valued at cost and by-products and waste are valued at net realisable value.

(e) Fixed Assets : Fixed Assets are stated at cost, less accumulated depreciation. Costs include all expenses incurred to bring the assets to its present location and condition. Exchange differences on translation of foreign currency loans obtained to purchase fixed assets are included in the cost of such assets.

(f) Leased Assets : Finance Leases- The lower of the fair value of the assets and present value of minimum lease rentals is capitalised as fixed assets with corresponding amount shown as lease liability. The principal component in the lease rental is adjusted against the lease liability and the interest component is charged to the Profit and Loss account.

(g) Depreciation : Depreciation of fixed assets is being provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(h) Accounting for taxes : Provision for tax is made and retained in the accounts considering the taxable income for the relevant years, assessment orders and decisions of appellate authorities in the Company's case. Deferred tax is recognized on timing differences, being the difference between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods.

(i) Foreign currency transactions (if any) are entered as per the exchange rate prevailing on the date of transaction, Foreign currency assets, and liabilities covered by forward contracts, (if any), are stated at the forward contract rates ruling at the year end. Other exchange differences are dealt with in the Profit and Loss Account.

(j) 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 net profit after tax by the weighted average number of equity shares as above and also the weighted average number of equity shares upon conversion of all dilutive potential equity shares.

(k) Employees benefits : (i) Short term employee benefits are recognized as an expense at the undiscounted amount in the Profit and loss account of the year in which the related service is rendered. These benefits include compensated absences such as paid annual leave and performance incentives. (ii) Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses are recognized in full in the Profit and Loss account for the period in which they occur. Liability in respect of gratuity to employees is covered under the group gratuity scheme with the Life Insurance Corporation of India and premium paid is debited to the Profit and Loss Account.

(l) Impairment of Assets : An asset is treated as impaired when the carrying cost of the 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 a prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

(m) Provisions, Contingent Liabilities and Contingent Assets : Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2011

(a) Basis of Preparation of Financial Statements : The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles, the Accounting Standards and the relevant provisions of the Companies Act, 1956.

(b) Use of estimates : The preparation of financial statements requires estimates and assumptions to be made that affect the reported balances of assets and liabilities as at the date of the financial statements and the reported amounts of income and expenses during the year. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

(c) Revenue Recognition : Sales are recognized on despatch to customers and are net of returns, discount and sales tax. Other Income and Expenditure are recognized and accounted on accrual basis.

(d) Inventories : Raw material is valued at weighted average cost, Stock in process at manufacturing cost based on weighted average cost of raw material and overhead upto relevant stage of completion, stores and spares at cost and finished goods at lower of cost of production and net realisable value. Purchased finished goods are valued at cost and by-products and waste are valued at net realisable value.

(e) Fixed Assets : Fixed Assets are stated at cost, less accumulated depreciation. Costs include all expenses incurred to bring the assets to its present location and condition. Exchange differences on translation of foreign currency loans obtained to purchase fixed assets are included in the cost of such assets.

(f) Depreciation : Depreciation on fixed assets is being provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(g) Accounting for taxes : Provision for tax is made and retained in the accounts considering the taxable income for the relevant year, assessment orders and decisions of appellate authorities in the Company's case. Deferred tax is recognized on timing differences, being the difference between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods.

(h) Foreign currency transactions (if any) are entered as per the exchange rate prevailing on the date of transaction. Foreign currency assets, and liabilities covered by forward contracts,(if any), are stated at the forward contract rates ruling at the year end. Other exchange differences are dealt with in the Profit and Loss Account.

(i) Employee benefits : (i) Short term employee benefits are recognized as an expense at the undiscounted amount in the Profit and loss account of the year in which the related service is rendered. These benefits include compensated absences such as paid annual leave and performance incentives. (ii) Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using acturial valuation techniques. Acturial gains and losses are recognized in full in the Profit and Loss account for the period in which they occur. Liability in respect of gratuity to employees is covered under the group gratuity scheme with the Life Insurance Corporation of India and premium paid is debited to the Profit and Loss Account.

(j) Impairment of Assets : An asset is treated as impaired when the carrying cost of the 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 a prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

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Mar 31, 2010

(a) Basis of Preparation of Financial Statements : The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles, the Accounting Standards and the relevant provisions of the Companies Act, 1956.

(b) Use of estimates : The preparation of financial statements requires estimates and assumptions to be made that affect the reported balances of assets and liabilities as at the date of the financial statements and the reported amounts of income and expenses during the year. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

(c) Revenue Recognition : Sales are recognized on despatch to customers and are net of returns, discount and sales tax. Other Income and Expenditure are recognized and accounted on accrual basis.

(d) Inventories : Raw material is valued at weighted average cost, Stock in process at manufacturing cost based on weighted average cost of raw material and overhead upto relevant stage of completion, stores and spares at cost and finished goods at lower of cost of production and net realisable value. Purchased finished goods are valued at cost and by-products and waste are valued at net realisable value.

(e) Fixed Assets : Fixed Assets are stated at cost, less accumulated depreciation. Costs include all expenses incurred to bring the assets to its present location and condition. Exchange differences on translation of foreign currency loans obtained to purchase fixed assets are included in the cost of such assets.

(f) Depreciation : Depreciation on fixed assets is being provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(g) Accounting for taxes : Provision for tax is made and retained in the accounts considering the taxable income for the relevant year, assessment orders and decisions of appellate authorities in the Companys case. Deferred tax is recognized on timing differences, being the difference between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods.

(h) Foreign currency transactions (if any) are entered as per the exchange rate prevailing on the date of transaction. Foreign currency assets, and liabilities covered by forward contracts,(if any), are stated at the forward contract rates ruling at the year end. Other exchange differences are dealt with in the Profit and Loss Account.

(i) Employee benefits : (i) Short term employee benefits are recognized as an expense at the undiscounted amount in the Profit and loss account of the year in which the related service is rendered. These benefits include compensated absences such as paid annual leave and performance incentives. (ii) Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using acturial valuation techniques. Acturial gains and losses are recognized in full in the Profit and Loss account for the period in which they occur. Liability in respect of gratuity to employees is covered under the group gratuity scheme with the Life Insurance Corporation of India and premium paid is debited to the Profit and Loss Account.

(j) Impairment of Assets : An asset is treated as impaired when the carrying cost of the 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 a prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.