Accounting Policies of Uniworth Ltd. Company

Mar 31, 2024

1.3 SIGNIFICANT ACCOUNTING POLICIES:

a) Recognition of Income &Expenditure:

Income and Expenditure are recognised on accrual basis.

b) Property, Plant and Equipment:

Property, plant and equipment are stated at acquisition cost net of accumulated depreciation and
accumulated impairment losses, if any. Subsequent costs are included in the asset’s carrying
amount or recognized as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Company and the cost of the item
can be measured reliably. All other repairs and maintenance are charged to the Statement of
Profit and Loss during the period in which they are incurred.

Gains or losses arising on retirement or disposal of property, plant and equipment are recognised
in the Statement of Profit and Loss.

Property, plant and equipment which are not ready for intended use as on the date of Balance
Sheet are disclosed as “Capital work-in-progress”.

Depreciation is provided on a pro-rata basis on the straight line method based on estimated
useful life prescribed under Schedule II to the Companies Act, 2013.

• Assets costing '' 5,000 or less are fully depreciated in the year of purchase.

Freehold land is not depreciated.

Leasehold land: Cost of Leasehold Land and installation and other expenses incurred on
Machineries taken on lease are amortized over the period of the respective lease.

The residual values, useful lives and method of depreciation of property, plant and equipment
is reviewed at each financial year end and adjusted prospectively, if appropriate.

c) Intangible Assets:

Separately purchased intangible assets are initially measured at cost. Intangible assets acquired
in a business combination are recognized at fair value at the acquisition date. Subsequently,
intangible assets are carried at cost less any accumulated amortization and accumulated
impairment losses, if any.

The useful lives of intangible assets are assessed as either finite orindefinite. Finite-life
intangible assets are amortized on a straight-linebasis over the period of their expected useful
lives. Estimated useful livesby major class of finite-life intangible assets are as follows:

Computer software - 3 years

The amortization period and the amortization method for finite-lifeintangible assets is reviewed at each
financial year end and adjustedprospectively, if appropriate.

Indefinite life intangibles mainly consist of patents. Theassessment of indefinite life is reviewed annually
to determine whetherthe indefinite life continues, if not, it is impaired or changed prospectivelybasis
revised estimates

d) Inventories:

Inventories are stated at ''cost or net realisable value, whichever is lower''. Cost comprises all
cost of purchase, cost of conversion and other costs incurred in bringing the inventories to
their present location and condition. Cost formulae used are ''Weighted Average Cost''.

e) Financial Instruments:

Financial Assets:

Financial assets are recognised when the Company becomes a party to thecontractual
provisions of the instrument. On initial recognition, a financial asset is recognised at fair value,
in case offinancial assets which are recognised at fair value through profit and loss(FVTPL), its
transaction costs are recognised in the statement of profit andloss. In other cases, the
transaction cost is attributed to the acquisitionvalue of the financial asset.

Financial assets are subsequently classified as measured at

• amortized cost

• fair value through profit and loss (FVTPL)

• fair value through other comprehensive income (FVOCI).

Financial assets are not reclassified subsequent to their recognition, except if and in the period
the Company changes its business model formanaging financial assets.

Cash and Cash Equivalents:

Cash and cash equivalents are short-term (twelve months or less from thedate of acquisition),
highly liquid investments that are readily convertibleinto cash and which are subject to an
insignificant risk of changes in value.

Investments:

Long Term Investments are carried at cost and Provision for impairment is made to recognise a
decline, other than temporary, in the value oflong term investments, script wise.

Trade Receivables and Loans:

Trade receivables are initially recognised at fair value. Subsequently, these assets are held at
amortized cost, using the effective interest rate(EIR) method net of any expected credit losses.
The EIR is the rate thatdiscounts estimated future cash income through the expected life
offinancial instrument.

Debt Instruments:

Debt instruments are initially measured at amortized cost, fair valuethrough other
comprehensive income (‘FVOCI’) or fair value through profitor loss (‘FVTPL’) till
derecognition on the basis of (i) the entity’s businessmodel for managing the financial assets
and (ii) the contractual cash flowcharacteristics of the financial asset.

a) Measured at amortized cost:

Financial assets that are held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows that are solely payments of principal and

interest, are subsequently measured at amortized cost using the effective interest rate
(‘EIR’) method less impairment, if any. The amortization of EIR and loss arising from
impairment, if any is recognised in the Statement of Profit and Loss.

b) Measured at fair value through other comprehensive income:

Financial assets that are held within a business model whoseobjective is achieved by both,
selling financial assets and collectingcontractual cash flows that are solely payments of
principal andinterest, are subsequently measured at fair value through othercomprehensive
income. Fair value movements are recognized in theother comprehensive income (OCI).
Interest income measured usingthe EIR method and impairment losses, if any are
recognised in theStatement of Profit and Loss. On derecognition, cumulative gain orloss
previously recognised in OCI is reclassified from the equity toother income’ in the
Statement of Profit and Loss.

c) Measured at fair value through profit or loss:

A financial asset notclassified as either amortized cost or FVOCI, is classified as
FVTPL.Such financial assets are measured at fair value with all changesin fair value,
including interest income and dividend income if any, recognized as ‘other income’ in the
Statement of Profit and Loss.

Equity Instruments:

All investments in equity instruments classified under financial assets areinitially measured at
fair value; the Company may, on initial recognition, irrevocably elect to measure the same
either at FVOCI or FVTPL.The Company makes such election on an instrument-by¬
instrument basis. Fair value changes on an equity instrument are recognised as other incomein
the Statement of Profit and Loss unless the Company has electedto measure such instrument at
FVOCI. Fair value changes excludingdividends, on an equity instrument measured at FVOCI
are recognized in OCI. Amounts recognised in OCI are not subsequently reclassified tothe
Statement of Profit and Loss. Dividend income on the investments inequity instruments are
recognised as ‘other income’ in the Statement of Profit and Loss.

Derecognition:

The Company derecognises a financial asset when the contractual rightsto the cash flows from
the financial asset expire, or it transfers the contractual rights to receive the cash flows from the
asset.

Impairment of Financial Asset:

Expected credit losses are recognized for all financial assets subsequentto initial recognition
other than financials assets in FVTPL category.For financial assets other than trade
receivables, as per Ind AS 109, theCompany recognises 12 month expected credit losses for all
originatedor acquired financial assets if at the reporting date the credit risk of thefinancial asset
has not increased significantly since its initial recognition.The expected credit losses are
measured as lifetime expected credit lossesif the credit risk on financial asset increases
significantly since its initialrecognition. The Company’s trade receivables do not contain
significantfinancing component and loss allowance on trade receivables is measuredat an
amount equal to life time expected losses i.e. expected cash shortfall. The impairment losses
and reversals are recognised in Statement of Profitand Loss.

Financial Liabilities:

Initial recognition and measurement

Financial liabilities are recognised when the Company becomes a partyto the contractual
provisions of the instrument. Financial liabilities areinitially measured at the amortized cost
unless at initial recognition, they are classified as fair value through profit and loss. In case of
tradepayables, they are initially recognised at fair value and subsequently, theseliabilities are
held at amortized cost, using the effective interest method.

Subsequent measurement

Financial liabilities are subsequently measured at amortized cost usingthe EIR method.
Financial liabilities carried at fair value through profit orloss and are measured at fair value
with all changes in fair value recognised inthe Statement of Profit and L

Derecognition

A financial liability is derecognised when the obligation specified in thecontract is discharged,
cancelled or expires.

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Mar 31, 2015

A. BASIS OF PREPARATION :

The Financial Statements have been prepared to comply in material respects with the Accounting Principles generally accepted in India, including mandatory Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 under the historical cost convention and on accrual basis. The Accounting Policies in all material respect, have been consistently applied by the Company and are consistent with those used in previous year.

B. TANGIBLE ASSETS :

Tangible Assets are stated at cost including pre-operative expenses & borrowing cost allocated to qualifying assets in proportion to costs thereof.

C. IMPAIREMENT OF ASSETS :

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairement loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairement loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

D. CAPITAL WORK IN PROGRESS :

Stated at Cost.

E. DEPRECIATION :

a. The full value of Leasehold land is amortized over the period of lease.

b. Depreciation on Tangible Assets continues to be provided on straight-line method at the rates prescribed in erstwhile Schedule - XIV of the Companies Act, 1956. This is a non-compliance of mandatory Accounting Policy required to be followed by the Company for Depreciation on Tangible Assets in terms of Accounting Standard (AS) 6 : Depreciation Accounting.

F. INVENTORIES :

Basis of Valuation

Raw Material : At Cost

Stores & Spare Parts : At Weighted Average Cost

Work in Process and Finished Goods : At Cost or Market Value whichever is lower. Cost for this purpose is determined with reference to cost of materials, labour and appropriate overheads.

Waste Stock : At estimated realizable value except waste of Silk Division used for recycling which is valued at Cost as per past practice.

G. INVESTMENTS :

Long Term Investments are stated at cost less provision and write off in cost wherever the management considers the fall in value to be of permanent in nature.

H. BORROWING COSTS :

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalized as part of cost of that asset. Other borrowing costs are recognised as expense in the period in which they are incurred.

I. EMPLOYMENT BENEFITS :

i) Short Term Employees Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee rendered the service. This benefit includes salary, wages, short-term compensatory absences and bonus.

ii) Long Term Employees Benefits

a) Defined contribution Short Term Employees Benefits to ESIC (employees State Insurance Corporation) and Provident Fund Schemes. This contribution is recognized during the period in which employee renders service.

b) Defined Benefit Scheme: For defined benefit scheme the cost of providing benefit is determined using the projected unit credit method with actuarial valuation being carried out at each balance sheet date. The retirement benefit obligation recognized in the balance sheet represents the value of defined benefit obligation as reduced by fair value of planned assets. Actuarial gain and losses are recognized obligation in full during the period in which they occur.

c) Leave encashment is determined on accrual basis.

J. RECOGNITION OF INCOME AND EXPENDITURE :

Items of Income and Expenditure are recognised on accrual basis.

K. SALES :

Sales are inclusive of Job Processing charges and exclude Inter Unit transfer, claims etc.

L. FOREIGN EXCHANGE TRANSACTIONS :

a) Assets and Liabilities relating to Foreign Currency outstanding at the year-end are translated at the year-end rates.

b) Purchases and Sales are accounted for at average rates of exchange prevailing in the month immediately preceding the month of transactions and the difference on account of foreign exchange fluctuation on the date of actual payment/realization are treated as foreign exchange gain/loss.

M. SEGMENT REPORTING :

The accounting policies adopted for Segment Reporting are in line with the accounting policies of the company.

Revenue and Expenses have been identified to Segments on the basis of their relationship to the operating activities of the segment. Revenue and Expenses that relate to the enterprise as a whole and are not allocable to segment on a reasonable basis have been included under "Others".

N. TAXATION :

Current Tax is determined on the basis of the amount of tax payable under the Income Tax Act, 1961, if any. Deferred Tax Liabilities/Assets subject to consideration of prudence are recognized and carried forward only when there is reasonable certainty that sufficient taxable Income will be available against which such Deferred Tax Liabilities/ Assets can be adjusted.

O. PROVISIONS AND CONTINGENT LIABILITIES :

The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made. Contingent liabilities are generally not provided for in the accounts and are disclosed separately in Notes on Accounts.

P. EARNING PER SHARE :

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for the events, such as bonus share, other than conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating, diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2014

A. BASIS OF PREPARATION

The Financial Statements have been prepared to comply in material respects with the Accounting Principal generally accepted in India. Including mandatory Accounting Standard notified under the Companies (Accounting Standard) Rules, 2006 (as amended) under the historical cost convention and on accrual basis. The Accounting Policies in all material respects, have been consistently applied by the company and are consistent with those used in previous year.

B. TANGIBLE ASSETS :

Tangible Assets are stated at cost including pre-operative expenses & borrowing cost allocated to qualifying assets in proportion to costs thereof.

C. IMPAIREMENT OF ASSETS :

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairement loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairement loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

D. CAPITAL WORK IN PROGRESS :

Stated at Cost.

E. DEPRECIATION :

a. The full value of Leasehold land is amortized over the period of lease.

b. Depreciation on Tangible Assets has been provided on straight-line method on prorata basis at the rates prescribed in Schedule XIV to the Companies Act, 1956 (As amended).

F. INVENTORIES :

Basis of Valuation

Raw Material :At Cost

Stores & Spare Parts : At Weighted Average Cost

Work in Process andFinished Goods : At Cost or Market Value whichever is lower. Cost for this purpose is determined with reference to cost of materials, labour and appropriate overheads.

Waste Stock : At estimated realizable value except waste of Silk Division used for recycling which is valued at Cost as per past practice.

G. INVESTMENTS :

Long Term Investments are stated at cost less provision and write off in cost wherever the management considers the fall in value to be of permanent in nature.

H. BORROWING COSTS:

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalized as part of cost of that asset. Other borrowing costs are recognised as expense in the period in which they are incurred.

I. EMPLOYMENT BENEFITS:

i) Short Term Employees Benefits :

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee rendered the service. This benefit includes salary, wages, short-term compensatory absences and bonus.

ii) Long Term Employees Benefits :

a) Defined contribution Short Term Employees Benefits to ESIC (employees State Insurance Corporation) and Provident Fund Schemes. This contribution is recognized during the period in which employee renders service.

b) Defined Benefit Scheme : For defined benefit scheme the cost of providing benefit is determined using the projected unit credit method with actuarial valuation being carried out at each balance sheet date. The retirement benefit obligation recognized in the balance sheet represents the value of defined benefit obligation as reduced by fair value of planned assets. Actuarial gain and losses are recognized obligation in full during the period in which they occur.

c) Leave encashment is determined on accrual basis.

J. RECOGNITION OF INCOME AND EXPENDITURE :

Items of Income and Expenditure are recognised on accrual basis.

K. SALES :

Sales are inclusive of Job Processing charges and exclude Inter Unit transfer, claims etc.

L. FOREIGN EXCHANGE TRANSACTIONS :

a) Assets and Liabilities relating to Foreign Currency outstanding at the year-end are translated at the year-end rates.

b) Purchases and Sales are accounted for at average rates of exchange prevailing in the month immediately preceding the month of transactions and the difference on account of foreign exchange fluctuation on the date of actual payment/realization are treated as foreign exchange gain/loss.

M. SEGMENT REPORTING :

The accounting policies adopted for Segment Reporting are in line with the accounting policies of the company.

Revenue and Expenses have been identified to Segments on the basis of their relationship to the operating activities of the segment. Revenue and Expenses that relate to the enterprise as a whole and are not allocable to segment on a reasonable basis have been included under "Others".

N. TAXATION :

Current Tax is determined on the basis of the amount of tax payable under the Income Tax Act, 1961, if any. Deferred Tax Liabilities/Assets subject to consideration of prudence are recognized and carried forward only when there is reasonable certainty that sufficient taxable Income will be available against which such Deferred Tax Liabilities/ Assets can be adjusted.

O. PROVISIONS AND CONTINGENT LIABILITIES :

The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made. Contingent liabilities are generally not provided for in the accounts and are disclosed separately in Notes on Accounts.

P. EARNING PER SHARE

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for the events, such as bonus share, other than conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating, diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

f) Rights, Preferances and Restrictions attached to Shares Issued :

Each Equity Shareholder holding shares of Rs. 10/- each is eligible for one vote per share held and is entitled to dividend when proposed by the Board of Directors subject to the approval of the sharesholders in the Annual General Meeting. Each Equity Shares holders is entitled to participate in repayament of Capital on liqudation after all secured creditors have been paid.

Note :

13% Non Convertible Cumulative Redeemable Preference Shares have already matured for redemption completely by 12th December'' 2002 as per terms of redemtion. However, no part of this Share Capital amount could be redeemed by the aforesaid date. The Company has received during the year 2010-11 a letter from IDBI, The holders demanding forthwith the payament of the entire amount due on redemption togathet with the dividends due thereon. However, the matter is pending restructuring of loans due to banks and financial institutions.

Notes :

1) The company, being a sick industrial undertaking could not redeem debentures & interest thereof as per the terms of issue, which will be dealt properly in the restructuring scheme. Accordingly no transfer has been made to the Account of Investor & Protection fund.

2) Following the declaration of the Company as a Sick Industrial undertaking by the Board for Industrial and Financial Reconstruction (BIFR) vides its Order dated 30.01.2006 in terms of Section 3 (1) (A) of the Sick Industrial Companies (Special Provisions) Act, 1985 and also athe appointment of Industrial Development Bank of India as scheme for the Operating Agency for preparation of a viability study report and revised the Company, Appeals against the said order were preferred by some of the secured lenders as well as the Company before the AppellateAuthority for Industrial & Financial Reconstruction (AAIFR). The said appeals were taken up and adjudicated and vide its order dated 05.12.2007, AAIFR has remanded back to BIFR with a direction to reconsider the earlier references of the company on the basis of its earlier Balance Sheets also. During the year 2010-11 in one of the appeals pending before AAIFR and in pursuance of ARCIL application to AAIFR has opined that in veiw of the actions taken by ARCIL under Section 13 (4) of SARFAESI Act, the reference filed by the Company stood abated under in one of the appeals pendingbefore AAIFR and inpursuance of ARCIL application to AAIFR has opined that in veiw of the actions taken by ARCIL under Section 13 (4) of SARFAESI Act, the reference filed by the Company stood abated under the proviso to Section 15(1) of SICA.

3) Under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act ), ARCIL has taken over possession of the secured assets of the Company''s plants during the Financial Year 2008-09 and has appointed Indoworth India Ltd as the Custodian of such assets. The Company''s business continued since the aforesaid take over as usual. However, the matter is subjudice in a suit before the Calcutta High Court and necessary adjustments in the financial statements, if required, would be made upon final adjudication of the proceedings. However, these Accounts have been prepared on a Going Concern basis as the Management is of the view that the Going Concern assumption is not vitiated for the reason as stated above.

Note :

1) Amount dues to suppliers, which are subject to cnfirmation of the parties.

2) There are certain cases pending in appropriate court regarding goods supplied by various creditors which are being disputed by the company. Advance given to them will be adjusted once the cases are disposed off and settled

3) The Company has amounts due to suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) as at 31st March, 2014 as under :

Note : 1. Mode of valuation - Refer Accounting Policy Note-1(f) 2. Finished Goods

i) Value of Rs.351.27 Lacs lying with thrid party.

ii) Value of Rs.115.51 Lacs under seizer of the Excise Department for a storage of Stock with a third party without obtaining permission of the Excise Department.

Note :

1) Trade Recievable includes Rs.1453.62 Lacs due from a Company which has become sick and registered with BIFR under the Sick Industrial Companies ( Special Provisions ) Act, 1985. Quantum of amount considered doubtful is not ascertainable at this Stage. Accordingly no provision has been made in the account in this regards.

2) In respect of Sundry Debtors (including Domestic sales Debtors ) adjustments are pending against supplies and other liabilities, etc due to the buyers Managent is confident of recovering the balance after such adjustments pending approval from concerned regulatory authority.

3) Certain Debtors are subject to Confirmation.

4) Trade Recievable includes :- i) Rs. 3697.89 Lacs representing overdue Export Bills outstanding for long against which the acompany has obtained a decree for realizing the outstanding debts over a period of time ranging up to twenty years. The company has also filed an appeal for reduction/variation of the period of time.

ii) Rs. 27097.12 lacs representing overdue Export Bills outstanding for long that will be set off against import liabilities, claims, and commission etc. of the respective parties.

iii) Rs. 992.30 lacs representing overdue Export Bills outstanding for long against which the management has taken appropriate steps for its recovery.

Note :

1) Balances with the Bank in Current Account include certain Debit balances in Current Account which are subject to receipt of confirmation because of restructuring being in progress.

2) Fixed Deposit lodged with Bank as margin for Guarantee Rs. 5.19 Lacs and with Sales Tax Authorities Rs 0.40 Lacs.

Note :

1) Claim receivable of Rs. 689.36 lacs due from various banks on account of excess interest charged by them in earlier years are subject to confirmation. No provision has been made there against.

2) Short Term Loans and Advances includes Rs.1387.19 Lacs which have become sick and referred to BIFR under the Sick Industrial Companies ( Special Provisions ) Act, 1985. Quantum of amount considered doubtful is not ascertainable at this Stage. Accordingly no provision has been made in the account in this regards.

3) Advance includes Rs 2827.47 Lacs due from a party which in opinion of the Management is considered t be fully recoverable.

4) Advance includes Rs 4.30 Lacs due from a director ( Max Amount at any time during the year Rs 4.30 Lacs )

5) Certain Advances are subject to Confirmation.

Note :

The adjustment of Rs. 5948.37 lacs pertaining to transfer of Fixed Assets of the company in earlier years under scheme of demerger is still pending and will be dealt in restructuring Scheme.

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Mar 31, 2013

A. BASIS OF PREPARATION

The Financial Statements have been prepared to comply in material respects with the Accounting Principal generally accepted in India, including mandatory Accounting Standard notified under the Companies (Accounting Standard) Rules, 2006 (as amended) under the historical cost convention and on accrual basis. The Accounting Policies in all material respects, have been consistently applied by the company and are consistent with those used in previous year.

B. TANGIBLE ASSETS :

Tangible Assets are stated at cost including pre-operative expenses & borrowing cost allocated to qualifying assets in proportion to costs thereof.

C. IMPAIREMENT OF ASSETS :

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairement loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairement loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

D. CAPITAL WORK IN PROGRESS :

Stated at Cost.

E. DEPRECIATION :

a. The full value of Leasehold land is amortized over the period of lease.

b. Depreciation on Tangible Assets has been provided on straight-line method on prorata basis at the rates prescribed in Schedule XIV to the Companies Act, 1956 (As amended).

F. INVENTORIES :

Basis of Valuation

Raw Material : At Cost

Stores & Spare Parts : At Weighted Average Cost

Work in Process andFinished Goods : At Cost or Market Value whichever is lower. Cost for this purpose is determined with reference to cost of materials, labour and appropriate overheads. Waste Stock : At estimated realizable value except waste of Silk

Division used for recycling which is valued at Cost as per past practice.

G. INVESTMENTS :

Long Term Investments are stated at cost less provision and write off in cost wherever the management considers the fall in value to be of permanent in nature.

H. BORROWING COSTS:

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalized as part of cost of that asset. Other borrowing costs are recognised as expense in the period in which they are incurred.

I. EMPLOYMENT BENEFITS:

i) Short Term Employees Benefits :

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee rendered the service. This benefit includes salary, wages, short-term compensatory absences and bonus.

ii) Long Term Employees Benefits :

a) Defined contribution Short Term Employees Benefits to ESIC (employees State Insurance Corporation) and Provident Fund Schemes. This contribution is recognized during the period in which employee renders service.

b) Defined Benefit Scheme : For defined benefit scheme the cost of providing benefit is determined using the projected unit credit method with actuarial valuation being carried out at each balance sheet date. The retirement benefit obligation recognized in the balance sheet represents the value of defined benefit obligation as reduced by fair value of planned assets. Actuarial gain and losses are recognized obligation in full during the period in which they occur.

c) Leave encashment is determined on accrual basis.

J. RECOGNITION OF INCOME AND EXPENDITURE :

Items of Income and Expenditure are recognised on accrual basis.

K. SALES :

Sales are inclusive of Job Processing charges and exclude Inter Unit transfer, claims etc.

L. FOREIGN EXCHANGE TRANSACTIONS :

a) Assets and Liabilities relating to Foreign Currency outstanding at the year-end are translated at the year-end rates.

b) Purchases and Sales are accounted for at average rates of exchange prevailing in the month immediately preceding the month of transactions and the difference on account of foreign exchange fluctuation on the date of actual payment/realization are treated as foreign exchange gain/loss.

M. SEGMENT REPORTING :

The accounting policies adopted for Segment Reporting are in line with the accounting policies of the company.

Revenue and Expenses have been identified to Segments on the basis of their relationship to the operating activities of the segment. Revenue and Expenses that relate to the enterprise as a whole and are not allocable to segment on a reasonable basis have been included under "fOthers"f.

N. TAXATION :

Current Tax is determined on the basis of the amount of tax payable under the Income Tax Act, 1961, if any. Deferred Tax Liabilities/Assets subject to consideration of prudence are recognized and carried forward only when there is reasonable certainty that sufficient taxable Income will be available against which such Deferred Tax Liabilities/ Assets can be adjusted.

O. PROVISIONS AND CONTINGENT LIABILITIES :

The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made. Contingent liabilities are generally not provided for in the accounts and are disclosed separately in Notes on Accounts.

P. EARNING PER SHARE

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for the events, such as bonus share, other than conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating, diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2012

1. SIGNICANT ACCOUNTING POLICIES

A. BASIS OF PREPARATION

The Financial Statements have been prepared to comply in material respects with the Accounting Principal generally accepted in India. Including mandatory Accounting Standard notified under the Companies (Accounting Standard) Rules, 2006 (as amended) under the historical cost convention and on accrual basis. The Accounting Policies in all material respects, have been consistently applied by the company and are consistent with those used in previous year, except for changes in the presentation and disclosure of the financial statement as described in Notes below.

B. TANGIBLE ASSETS :

Tangible Assets are stated at cost including pre-operative expenses & borrowing cost allocated to qualifying assets in proportion to costs thereof.

C. IMPAIREMENT OF ASSETS :

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairement loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairement loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

D. CAPITAL WORK IN PROGRESS :

Stated at Cost.

E. DEPRECIATION :

a. The full value of Leasehold land is amortized over the period of lease.

b. Depreciation on Tangible Assets has been provided on straight-line method on prorata basis at the rates prescribed in Schedule XIV to the Companies Act, 1956 (As amended).

F. INVENTORIES :

Basis of Valuation

Raw Material : At Cost

Stores & Spare Parts : At Weighted Average Cost

Work in Process andFinished Goods : At Cost or Market Value whichever is lower. Cost for

this purpose is determined with reference to cost of materials, labour and appropriate overheads.

Waste Stock : At estimated realizable value except waste of Silk

Division used for recycling which is valued at Cost as per past practice.

G. INVESTMENTS :

Long Term Investments are stated at cost less provision and write off in cost wherever the management considers the fall in value to be of permanent in nature.

H. BORROWING COSTS:

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalized as part of cost of that asset. Other borrowing costs are recognised as expense in the period in which they are incurred.

I. EMPLOYMENT BENEFITS:

i) Short Term Employees Benefits :

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee rendered the service. This benefit includes salary, wages, short-term compensatory absences and bonus.

ii) Long Term Employees Benefits :

a) Defined contribution Short Term Employees Benefits to ESIC (employees State Insurance Corporation) and Provident Fund Schemes. This contribution is recognized during the period in which employee renders service.

b) Defined Benefit Scheme : For defined benefit scheme the cost of providing benefit is determined using the projected unit credit method with actuarial valuation being carried out at each balance sheet date. The retirement benefit obligation recognized in the balance sheet represents the value of defined benefit obligation as reduced by fair value of planned assets. Actuarial gain and losses are recognized obligation in full during the period in which they occur.

c) Leave encashment is determined on accrual basis.

J. RECOGNITION OF INCOME AND EXPENDITURE :

Items of Income and Expenditure are recognised on accrual basis.

K. SALES :

Sales are inclusive of Job Processing charges and exclude Inter Unit transfer, claims etc.

L FOREIGN EXCHANGE TRANSACTIONS :

a) Assets and Liabilities relating to Foreign Currency outstanding at the year-end are translated at the year-end rates.

b) Purchases and Sales are accounted for at average rates of exchange prevailing in the month immediately preceding the month of transactions and the difference on account of foreign exchange fluctuation on the date of actual payment/realization are treated as foreign exchange gain/loss.

M SEGMENT REPORTING :

The accounting policies adopted for Segment Reporting are in line with the accounting policies of the company.

Revenue and Expenses have been identified to Segments on the basis of their relationship to the operating activities of the segment. Revenue and Expenses that relate to the enterprise as a whole and are not allocable to segment on a reasonable basis have been included under "Others".

N TAXATION :

Current Tax is determined on the basis of the amount of tax payable under the Income Tax Act, 1961, if any. Deferred Tax Liabilities/Assets subject to consideration of prudence are recognized and carried forward only when there is reasonable certainty that sufficient taxable Income will be available against which such Deferred Tax Liabilities/ Assets can be adjusted.

O PROVISIONS AND CONTINGENT LIABILITIES :

The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made. Contingent liabilities are generally not provided for in the accounts and are disclosed separately in Notes on Accounts.

P EARNING PER SHARE

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for the events, such as bonus share, other than conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating, diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2011

1. FIXED ASSETS

Stated at Cost including pre-operative expenses & borrowing cost allocated to qualifying assets in proportion to costs thereof.

2. IMPAIREMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets 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 recognised in prior accounting period is reversed if there has 'been a change in the estimate of recoverable amount.

3. CAPITAL WORK IN PROGRESS

Stated at Cost.

4. DEPRECIATION

a. The full value of Leasehold land is amortized over the period of lease.

b. Depreciation on Fixed Assets has been provided on straight-line method on prorata basis at the rates prescribed in Schedule XIV to the Companies Act, 1956 (As amended).

5. INVENTORIES Basis of Valuation

Raw Material : At Cost

Stores & Spare Parts : At Weighted Average Cost

Work in Process and

Finished Goods : At Cost or Market Value whichever is lower. Cost for this purpose is determined with reference to cost of materials, labour and appropriate overheads.

Waste Stock : At estimated realizable value except waste of Silk Division used for recycling which is valued at Cost as per past practice.

6. INVESTMENTS

Long Term Investments are stated at cost less provision and write off in cost wherever the management considers the fall in value to be of permanent in nature.

7. BORROWING COSTS

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalized as part of cost of that asset. Other borrowing costs are recognised as expense in the period in which they are incurred.

8. EMPLOYMENT BENEFITS

i) Short Term Employees Benefits:

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee rendered the service. This benefit includes salary, wages, short-term compensatory absences and bonus.

ii) Long Term Employees Benefits:

a) Defined contribution Short Term Employees Benefits to ESIC (Employees State Insurance Corporation) and Provident Fund Schemes. This contribution is recognized during the period in which employee renders service.

b) Defined Benefit Scheme: For defined benefit scheme the cost of providing benefit is determined using the projected unit credit method with actuarial valuation being carried out at each balance sheet date. The retirement benefit obligation recognized in the balance sheet represents the value of defined benefit obligation as reduced by fair value of planned assets. Actuarial gain and losses are recognized obligation in full

- during the period in which they occur.

c) Leave encashment is determined on accrual basis.

9. RECOGNITION OF INCOME AND EXPENDITURE

Items of Income and Expenditure are recognised on accrual basis.

10. SALES

Sales are inclusive of Job Processing charges and exclude Inter Unit transfer, claims etc. 1t. FOREIGN EXCHANGE TRANSACTIONS

a) Assets and Liabilities relating to Foreign Currency outstanding at the year-end are translated at the year-end rates.

b) Purchases and Sales are accounted for at average rates of exchange prevailing in the month immediately preceding the month of transactions and the difference on account of foreign exchange fluctuation on the date of actual payment/realization are treated as foreign exchange gain/loss.

11. SEGMENT REPORTING

The accounting policies adopted for Segment Reporting are in line with the accounting policies of the company.

Revenue and Expenses have been identified to Segments on the basis of their relationship to the operating activities of the segment. Revenue and Expenses that relate to the enterprise as a whole and are not allocable of segment on a reasonable basis have been included under "Others".

12. TAXATION

Current Tax is determined on the basis of the amount of tax payable under the Income Tax Act, 1961, if any. Deferred Tax Liabilities/Assets subject to consideration of prudence are recognized and carried forward only when there is reasonable certainty that sufficient taxable Income will be available against which such Deferred Tax Liabilities/ Assets can be adjusted.

13. PROVISIONS AND CONTINGENT LIABILITIES

The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made. Contingent liabilities are generally not provided for in the accounts and are disclosed separately in Notes on Accounts.

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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 the significant policies followed by the company as stated here under:

1. FIXED ASSETS

Stated at Cost including pre-operative expenses & borrowing cost allocated to qualifying assets in proportion to costs thereof.

2. IMPAIREMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairement loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairement loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

3. CAPITAL WORK IN PROGRESS

Stated at Cost.

4. DEPRECIATION

a. The full value of Leasehold land is amortized over the period of lease.

b. Depreciation on Fixed Assets has been provided on straight-line method on prorata basis at the rates prescribed in Schedule XIV to the Companies Act, 1956 (As amended).

5. INVENTORIES

Basis of Valuation

Raw Material : At Cost

Stores & Spare Parts : At Weighted Average Cost -

Work in Process and

Finished Goods : At Cost or Market Value whichever is lower. Cost for this purpose is determined with reference to cost of materials, labour and appropriate overheads.

Waste Stock : At estimated realizable value except waste of Silk Division used for recycling which is valued at Cost as per past practice.

6. INVESTMENTS

Long Term Investments are stated at cost less provision and write off in cost wherever the management considers the fall in value to be of permanent in nature.

7. BORROWING COSTS

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalized as part of cost of that asset. Other borrowing costs are recognised as expense in the period in which they are incurred.

8. EMPLOYMENT BENEFITS

i) Short Term Employees Benefits :

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee rendered the service. This benefit includes salary, wages, short-term compensatory absences and bonus.

ii) Long Term Employees Benefits :

a) Defined contribution Short Term Employees Benefits to ESIC (Employees State Insurance Corporation) and Provident Fund Schemes..This contribution is recognized during the period in which employee renders service.

b) Defined Benefit Scheme: For defined benefit scheme the cost of providing benefit is determined using the projected unit credit method with actuarial valuation being carried out at each balance sheet date. The retirement benefit obligation recognized in the balance sheet represents the value of defined benefit obligation as reduced by fair value of planned assets. Actuarial gain and losses are recognized obligation in full during the period in which they occur.

c) Leave encashment is determined on accrual basis.

9. RECOGNITION OF INCOME AND EXPENDITURE

Items of Income and Expenditure are recognised on accrual basis.

10. SALES

Sales are inclusive of Job Processing charges and exclude Inter Unit transfer, claims etc.

11. FOREIGN EXCHANGE TRANSACTIONS

a) Assets and Liabilities relating to Foreign Currency outstanding at the year-end are translated at the year-end rates.

b) Purchases and Sales are accounted for at average rates .of exchange prevailing in the month immediately preceding the month of transactions and the difference on account of foreign exchange fluctuation on the date of actual payment/realization are treated as foreign exchange gain/loss.

12. SEGMENT REPORTING

The accounting policies adopted for Segment Reporting are in line with the accounting policies of the company.

Revenue and Expenses have been identified to Segments on the basis of their relationship to the operating activities of the segment. Revenue and Expenses that relate to the enterprise as a whole and are not allocable to segment on a reasonable basis have been included under "Others".

13. TAXATION

Current Tax is determined on the basis of the amount of tax payable under the Income Tax Act, 1961, if any. Deferred Tax Liabilities/Assets subject to consideration of prudence are recognized and carried forward only when there is reasonable certainty that sufficient taxable Income will be available against which such Deferred Tax Liabilities/Assets can be adjusted.

14. PROVISIONS AND CONTINGENT LIABILITIES

The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made. Contingent liabilities are generally not provided for in the accounts and are disclosed separately in Notes on Accounts.