Accounting Policies of Maris Spinners Ltd. Company

Mar 31, 2025

8. Material accounting policies:

This note provides a list of the significant accounting policies adopted in the preparation of these financial
statements. These policies have been consistently applied to all the years presented, unless otherwise stated.

i. Property Plant & Equipment

a. Initial recognition and measurement

An item of property, plant and equipment recognized as an asset if and only if 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.
Items of Property, Plant and Equipment are measured at cost less accumulated depreciation/amortization and
accumulated impairment losses.

Cost includes expenditure that is directly attributable to bringing the asset, inclusive of non-refundable taxes &
duties, to the location and condition necessary for it to be capable of operating in the manner intended by
management. When parts of an item of property, plant and equipment have different useful lives, they are recognized
separately. Items of spare parts, stand-by equipment and servicing equipment which meet the definition of Property,
Plant and Equipment are capitalized.

b. Subsequent costs

Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is probable that
future economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can
be measured reliably. The cost of replacing part of an item of property, plant and equipment is recognized in the
carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow
to the Company and its cost can be measured reliably. The carrying amount of the replaced part is derecognized.
The costs of the day-to-day servicing of Property, Plant and Equipment are recognized in Statement of Profit or
Loss A/c as incurred.

c. De recognition

Property, Plant and Equipment are derecognized when no future economic benefits are expected from their use
or upon their disposal. Gains and losses on disposal of an item of property, plant and equipment are determined
by comparing the proceeds from disposal with the carrying amount of Property, Plant and Equipment, and are
recognized in the statement of profit and loss.

d. Depreciation

Assets are depreciated using straight line method over the estimated useful life of the asset as specified in Part
"C" of Schedule II of Companies Act, 2013. Assets residual values and useful lives are reviewed at each financial
year end considering the physical condition of the assets. Depreciation on additions to/deductions from fixed assets
during the year is charged on pro-rata basis from/up to the date on which the asset is available for use/disposed.
Where it is probable that future economic benefits deriving from the cost incurred will flow to the enterprise and
the cost of the item can be measured reliably, subsequent expenditure on a PPE along-with its unamortized
depreciable amount is charged off prospectively over the revised useful life determined by technical assessment.
In circumstance, where a property is abandoned, the cumulative capitalized costs relating to the property are written
off in the same period.

ii. Capital work-in-progress

The cost of self-constructed assets includes the cost of materials & direct labour, any other costs directly attributable
to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended
by management and borrowing costs. Expenses directly attributable to construction of Property, Plant and Equipment
incurred till they are ready for their intended use are identified and allocated on a systematic basis on the cost
of related assets.

iii. Borrowing Cost

Borrowing costs that are directly attributable to the acquisition, construction, exploration, development or erection
of qualifying assets are capitalized as part of cost of such asset until such time the assets are substantially ready
for their intended use. Qualifying assets are assets which take a substantial period of time to get ready for their
intended use or sale. Capitalization of borrowing costs ceases when substantially all the activities necessary to
prepare the qualifying assets for their intended uses are complete. Borrowing costs consist of:

(a) Interest expense calculated using the effective interest method as described in Ind AS 109 - ''Financial
Instruments'',

(b) Finance charges in respect of finance leases recognized in accordance with Ind AS 116 - ''Leases'',

(c) Exchange differences arising from foreign currency borrowings to the extent that they are regarded as an
adjustment to interest costs and,

(d) Other costs that an entity incurs in connection with the borrowing of funds.

Income earned on temporary investment of the borrowings pending their expenditure on the qualifying assets is
deducted from the borrowing costs eligible for capitalization. All other borrowing costs are charged to revenue
as and when incurred.

iv. Government Grants

The Company recognizes government grants only when there is reasonable assurance that the conditions attached
to them will be complied with, and the grants will be received.

Government grants related to assets are treated as deferred income and are recognized in the net profit in the
Statement of Profit and Loss on a systematic and rational basis over the useful life of the asset.

Government grants related to revenue are recognized on a systematic basis in the net profit in the Statement of
Profit and Loss over the periods necessary to match them with the related costs which they intend to compensate.

v. Cash and Cash Equivalent

Cash and cash equivalent in the balance sheet comprises cash at banks, cash on hand and short-term deposits with
an original maturity of three months or less and Balances with banks in Unpaid Dividend Accounts which are
subject to insignificant risk of change in value.

vi. Foreign currency transactions and translation

Transactions in foreign currencies are initially recorded at the functional currency rates at the date the transaction
first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at
the functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement
or translation of monetary items are recognized in Statement of Profit and Loss A/c in the year in which it arises.
Non-monetary items are measured in terms of historical cost in a foreign currency are translated using the exchange
rate at the date of the transaction.

vii. Impairment of Assets:

a. Impairment of financial instruments

"The Company recognizes loss allowances for expected credit losses on financial assets are measured at amortized
cost;"

At each reporting date, the Company assesses whether financial assets carried at amortized cost and debt investments
at FVCOI are credit-impaired. A financial asset is ''credit-impaired'' when one or more events that have a detrimental
impact on the estimated future cash flows of the financial asset have occurred.

"Evidence that a financial asset is credit - impaired includes the following observable data:

- Significant financial difficulty of the borrower or issuer;

- a breach of contract such as a default or being past due for 365 days or more;

- The restructuring of a loan or advance by the Company on terms that the Company would not consider

otherwise;

- It is probable that the borrower will enter bankruptcy or the other financial reorganization; or

- the disappearance of an active market for a security because of financial difficulties"

"The Company measures loss allowances at an amount equal to lifetime expected credit losses, except for the
following, which are measured as 12 month expected credit losses:

- Debt securities that are determined to have low credit risk at the reporting date; and

- other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the

expected life of the financial instrument) has not increased significantly since initial recognition."

"Loss allowances for trade receivables are always measured at an amount equal to lifetime expected credit losses.

Lifetime expected credit losses are the expected credit losses that result from all possible default events over the
expected life of a financial instrument.

12-months expected credit losses are the portion of expected credit loss that result from default events that are
possible within 12 months after the reporting date (or a shorter period if the expected life of the instrument is
less than 12 months).

In all cases, the maximum period considered when estimating expected credit losses is the maximum contractual
period over which the Company is exposed to credit risk."

When determining whether the credit risk of a financial asset has increased significantly since initial recognition
and when estimating expected credit losses, the Company considers reasonable and supportable information that
is relevant and available without undue cost or effort. This includes both quantitative and qualitative information
and analysis, based on the Company''s historical experience and informed credit assessment and including forward¬
looking information.

"The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 180
days past due.

The Company considers a financial asset to be in default when:

- The borrower is unlikely to pay its credit obligations to the Company in full, without recourse by the Company
to actions such as realising security (if any is held); or

- the financial asset is 365 days or past due."

Measurement of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the present
value of all cash shortfalls (i.e., the difference between the cash flows due to the Company in accordance with
the contract and the cash flows that the Company expects to receive).

Presentation of allowance for expected credit losses in the balance sheet.

Loss allowances for the financial assets measured at amortized cost are deducted from the gross carrying amount
of assets.

Write-off

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there
is no realistic prospect of recovery. This is generally the case when the Company determines that the debtor does
not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to
the write-off. However, financial assets that are written off could still be subject to enforcement activities in order
to comply with the Company''s procedures for recovery of the amounts due.

b. Impairment of non-financial assets

The Company''s non-financial assets and deferred tax asset, are reviewed at each reporting date to determine whethei
there is any indication of impairment. If any such indication exists, then the asset''s recoverable amount is estimated.
For impairment testing, assets that do not generate independent cash inflows are grouped together into cash¬
generating units (CGUs). Each CGU represents smallest group of assets that generates cash inflows that are largely
independent of the cash inflows or other assets or CGUs.

The recoverable amount of a CGU (or an individual asset) is the higher of its value in use or its fair value less
costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the CGU (or the asset).

"The Company''s corporate assets do not generate independent cash inflows. To determine impairment of a corporate
asset, recoverable amount is determined for the CGUs to which the corporate asset belongs.

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable
amount. Impairment losses are recognised in the statement of profit and loss. Impairment losses recognised in
respect of a CGU is allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then
to reduce the carrying amounts of the other assets of the CGU (or group of CGUs) on a pro rata basis.

In respect of assets for which impairment loss has been recognised in prior periods, the Company reviews at each
reporting date whether there is any indication 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. Such a reversal
is made 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 has been recognised.

viii. Revenue recognition

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net oi
variable consideration) allocated to that performance obligation. The transaction price of goods sold and services
rendered is net of variable consideration on account of various discounts and schemes offered by the Company
as part of the contract.

a) Sale of Products:

Revenue from sale of products is recognised when significant risk and rewards of ownership pass to the customers,
as per the terms of the contract and it is probable that the economic benefits associated with the transaction will
flow to the Company.

b) Revenue from Services:

Revenue from Services is recognised in the accounting period in which the services are rendered and when invoices
are raised.

c) Dividend income:

Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established
and it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount
of dividend can be reliably measured.

d) Other Income

Other income is recognized in the Statement of Profit and Loss when an increase in future economic benefits related
to an increase in an asset or a decrease of a liability has arisen that can be measured reliably.

ix. Financial Instruments

I. Recognition and initial measurement

Trade receivables and debt securities issued are initially recognised when they are originated. All other financial
assets and financial liabilities are initially recognised when the Company becomes a party to the contractual
provisions of the instrument.

A financial assets or financial liability is initially measured at fair value plus, for an item not at fair value through
profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

II. Classification and subsequent measurement
Financial assets

On initial recognition, a financial asset is classified as measured at,

- amortised cost

- Fair value through other comprehensive income (FVOCI) - debt investment;

- Fair value through other comprehensive income (FVOCI) - equity investment; or

- Fair value through profit & loss - (FVTPL)

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

A financial asset is measured at amortised cost if it meets both the following conditions and is not designated
as at FVTPL:

- the asset is held within a business model whose objective is to hold assets to collect contractual cash flows;
and

- the contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding

A debt instrument is measured at FVOCI if it meets both of the following conditions and is not designated as
at FVTPL:

- the asset is held in a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets; and

- the contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may irrecoverably elect
to present subsequent changes in investment''s fair value in OCI (designated as FVOCI - equity investment). The
election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at
FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate
a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL
if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial assets: Business model assessment

The Company makes an assessment of the objective of the business model in which a financial asset is held at
a portfolio level because this best reflects the way the business is managed and information is provided to the
management.

The information considered includes:

- the stated policies and objectives for the portfolio and the operation of those policies in practice. These
include whether management''s strategy focuses on earning contractual interest income, maintaining a
particular interest rate profile, matching the duration of the financial asset to the duration of any related
liabilities or expected cash outflows or realising cash flows through the sale of the assets;

- how the performance of the portfolio is evaluated and reported to the Company''s management;

- The risk that effects the performance of the business model (and the financial asset held within that business
model) and how those risks are managed;

- how managers of the business are compensated - e.g. whether compensation is based on the fair value of
the assets managed or the contractual cash flows collected; and

- the frequency, volume and timing of sales of the financial assets in prior periods, the reasons for such sales
and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for de-recognition are not considered
sales for this purpose, consistent with the Company''s continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on fair value basis
are measured at FVTPL.

Financial assets: Assessment whether contractual cash flows are solely payments of principal and interest.

For the purpose of this assessment, ''principal'' is defined as the fair value of the financial asset on initial recognition.
''Interest'' is defined as consideration for the time value of money and for credit risk associated with the principal
amount outstanding during a particular period of time and for other basic lending risks and costs (e.g., liquidity
risk and administrative costs), as well as profit margin.

To assess whether the contractual cash flows are solely payments of principal and interest, the Company considers
the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual
term that could change the timing or amount of contractual cash flows such that it would not meet this condition.
In making this assessment, the Company considers:

- Contingent events that would change the amount or timing of cash flows;

- Terms that may adjust the contractual coupon rate, including variable interest rate futures;

- Prepayments and extension features; and

- Terms that limits the Company''s claim to cash flows from specified assets (e.g. non-recourse feature)

A prepayment feature is consistent with the solely payment of principal and interest criterion if the prepayment
amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding,
which may include reasonable additional compensation for early termination of the contract. Additionally, for a
financial asset acquired at a significant discount or premium to it contractual par amount, a feature that permits
or requires prepayment at an amount that substantially represents the contractual par amount plus accrued (but
unpaid) contractual interest (which may also include reasonable additional compensation for early termination)
is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial
recognition.

Financial assets: Subsequent measurement and gains and losses
"Financial assets at FVTPL:

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend
income, are recognised in profit or loss."

"Financial assets at amortised cost:

These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost

is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised
in profit or loss. Any gain or loss on de-recognition is recognised in profit or loss."

Financial liabilities: Classification, subsequent measurement and gains and losses.

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as
at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense,
are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the
effective interest method. Interest expense and foreign exchange gains or losses are recognised in profit or loss.
Any gain or loss on de-recognition is also recognised in profit and loss.

III. De-recognition
Financial Assets

The Company de-recognises a financial asset when the contractual rights to the cash flows from the financial asset
expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all
risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers
nor retains substantially all of the risks and rewards of the ownership and does not retain control of the financial
asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains
either all or substantially all the risks and rewards of the transferred assets, the transferred assets are not de¬
recognised.

Financial Liabilities

The Company de-recognises a financial liability when the contractual obligations are discharged or cancelled, or
expire.

The Company de-recognises a financial liability when its terms are modified and the cash flows under the modified
terms are substantially different. In this case a new financial liability based on the modified terms is recognised
at fair value. The difference between the carrying amount of the extinguished liability and the new financial liability
with modified terms is recognised in profit and loss.

IV. Offsetting

Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only when,
the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them
on a net basis or to realise the asset and settle the liability simultaneously.

:. Employee Benefits

a. Short Term Benefit

Short term obligations are those that are expected to be settled fully within 12 months after the end of the reporting
period. Short-term employee benefit obligations are measured on an undiscounted basis and are booked as an
expense as the related service is provided. A liability is recognized for the amount expected to be paid under
performance related pay if the Company has a present legal or constructive obligation to pay this amount as a
result of past service provided by the employee and the obligation can be estimated reliably.

b. Post-Employment benefits

Employee benefit that are payable after the completion of employment are Post Employment Benefit (other than
termination benefit). These are of two types:

1. Defined contribution plans

Defined contribution plans are those plans in which an entity pays fixed contribution into separate entities
and will have no legal or constructive obligation to pay further amounts. Provident Fund and Family Pension
Funds are Defined Contribution Plans in which Company pays a fixed contribution and will have no further
obligation.

A defined benefit plan is a post employment benefit plan other than a defined contribution plan. Company
pays Gratuity as per provisions of the Gratuity Act, 1972. The Company''s net obligation in respect of defined
benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees
have earned in return for their service in the current and prior periods; that benefit is discounted to determine
its present value. Any unrecognized past service costs and the fair value of any plan assets are deducted.

The discount rate is based on the prevailing market yields of Indian government securities as at the reporting
date that have maturity dates approximating the terms of the Company''s obligations and that are denominated
in the same currency in which the benefits are expected to be paid. The calculation is performed annually
by a qualified actuary using the projected unit credit method. When the calculation results in a liability to
the Company, the present value of liability is recognized as provision for employee benefit. Any actuarial
gains or losses in respect of gratuity are recognized in OCI in the period in which they arise.

c. Other long-term employee benefits

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period
in which the employees render the related service. Benefits under the Company’s leave encashment scheme
constitute other long term employee benefits. The Company’s net obligation in respect of leave encashment is
the amount of future benefit that employees have earned in return for their service in the current and prior periods;
that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The
discount rate is based on the prevailing market yields of Indian government securities as at the reporting date
that have maturity dates approximating the terms of the Company’s obligations. The calculation is performed using
the projected unit credit method. Any actuarial gains or losses are recognized in profit or loss in the period in
which they arise.

:i. Taxes

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates
to a business combination or to an item recognised directly in equity or in other comprehensive income.

1. Current tax

"Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the
best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related
to income taxes. It is measured using tax rates (and tax laws) enacted or substantially enacted by the reporting
date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously."

2. Minimum Alternate Tax (MAT)

MAT paid in a year is charged to the statement of profit and loss as current tax. The Company recognizes MAT
credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal
income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward.
In the year in which the Company recognises MAT credit as an asset in accordance with the Guidance Note on
Accounting for Credit Available in respect of Minimum Alternative Tax under the Income tax Act, 1961, the said
asset is created by way of credit to the statement of profit and loss and shown as ''MAT Credit Entitlement''. The
Company reviews the ''MAT credit entitlement'' asset at each reporting date and writes down the asset to the extent
the Company does not have convincing evidence that it will pay normal tax during the specified period.

Deferred tax is recognized using the balance sheet method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when
they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets
and liabilities will be realized simultaneously. Deferred tax is recognized in Statement of Profit and Loss A/c except
to the extent that it relates to items recognized directly in OCI or equity, in which case it is recognized in OCI
or equity. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be
available against which the temporary difference can be utilized. 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 realized. Minimum
Alternate Tax credit is recognized as deferred tax asset only when and to the extent there is convincing evidence
that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance
Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a
convincing evidence to the effect that the Company will pay normal income tax during the specified period.

xii. Leases:

a. Recognition:

At inception of an arrangement, the Company determines whether such an arrangement is or contains a lease. A
specific asset is subject of a lease if fulfillment of the arrangement is dependent on the use of that specified asset.
An arrangement conveys the right to use the asset if the arrangement conveys to the customer the right to control
the use of the underlying asset. Arrangements that do not take the legal form of a lease but convey rights to
customers/suppliers to use an asset in return for a payment or a series of payments are identified as either finance
leases or operating leases.

b. Accounting for Operating Leases

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company
as lessee are classified as operating lease. Payments made under operating leases are recognized as an expense
over the lease term.

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Mar 31, 2024

Note - 1: Material Accounting Policies

1. Corporate Information

Maris Spinners Limited is a Company which is registered under the Companies Act, 2013 and is domiciled in
India. The Registered Office of the Company is situated at No. 11, Cathedral Road, Chennai - 600086. The
Company is engaged in the business of manufacture and sale of 100% Cotton Yarn. The Company''s factories are
situated at Kattemalalavadi Village, Hunsur Taluk, Mysore Dt, Karnataka and Mannaparai, Trichy District,
Tamilnadu.

2. Accounting Convention:

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per
the Companies (Indian Accounting Standards) Rules, 2015 notified under section 133 of the Companies Act, 2013,
(the "Act") and other relevant provisions of the Act.

The financial statements for the year ended 31st March 2024 were prepared in accordance with the Companies
(Accounting Standards) Rules 2015, notified under section 133 of the Act and other provisions of the Act.

3. Statement of Compliance

The Financial Statements comprising Balance Sheet, Statement of Profit and Loss, Statement of changes in Equity,
Cash Flow statement, together with notes for the year ended 31st March 2024 have been prepared in accordance
with Ind AS notified.

4. Functional and presentation currency:

These financial statements are presented in Indian Rupees (In Lakhs), which is also the Company''s functional
currency. All the amounts have been rounded- off to the nearest rupees, unless otherwise indicated.

5. Basis of measurement

The financial statements have been prepared on the historical cost basis except for certain financial assets and
financial liabilities to the extent applicable are measured at fair values.

6. Measurement of Fair Values:

A number of Company''s accounting policies and disclosures require a measurement of their fair value, for both
financial and non-financial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair values. This includes
periodic review of all significant fair value measurement, including level 3 fair values.

The management regularly reviews significant unobservable inputs and valuation adjustments.

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible.
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value
hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy
as the lowest level input that is significant to the entire measurement.

The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period
during which the changes has occurred.

7. Use of estimates and judgements:

"In preparing these financial statements, management has made judgments, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized prospectively."

a) Judgements

Information about judgements in applying accounting policies that have the most significant effect on the
amounts recognized in the financial statements are disclosed in financial statement wherever necessary:

b) Assumptions and estimations uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a
material adjustment in the financial year ending 31st March 2024 are disclosed in financial statement
wherever necessary.

8. Material accounting policies:

This note provides a list of the material accounting policies adopted in the preparation of these financial statements.
These policies have been consistently applied to all the years presented, unless otherwise stated.

i. Property Plant & Equipment

a. Initial recognition and measurement

An item of property, plant and equipment recognized as an asset if and only if 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.
Items of Property, Plant and Equipment are measured at cost less accumulated depreciation/amortization and
accumulated impairment losses.

Cost includes expenditure that is directly attributable to bringing the asset, inclusive of non-refundable taxes &
duties, to the location and condition necessary for it to be capable of operating in the manner intended by
management. When parts of an item of property, plant and equipment have different useful lives, they are recognized
separately. Items of spare parts, stand-by equipment and servicing equipment which meet the definition of Property,
Plant and Equipment are capitalized.

b. Subsequent costs

Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is probable that
future economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can
be measured reliably. The cost of replacing part of an item of property, plant and equipment is recognized in the
carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow
to the Company and its cost can be measured reliably. The carrying amount of the replaced part is derecognized.
The costs of the day-to-day servicing of Property, Plant and Equipment are recognized in Statement of Profit or
Loss A/c as incurred.

c. De recognition

Property, Plant and Equipment are derecognized when no future economic benefits are expected from their use
or upon their disposal. Gains and losses on disposal of an item of property, plant and equipment are determined
by comparing the proceeds from disposal with the carrying amount of Property, Plant and Equipment, and are
recognized in the statement of profit and loss.

d. Depreciation

Assets are depreciated using straight line method over the estimated useful life of the asset as specified in Part
"C" of Schedule II of Companies Act, 2013. Assets residual values and useful lives are reviewed at each financial
year end considering the physical condition of the assets. Depreciation on additions to/deductions from fixed assets
during the year is charged on pro-rata basis from/up to the date on which the asset is available for use/disposed.
Where it is probable that future economic benefits deriving from the cost incurred will flow to the enterprise and
the cost of the item can be measured reliably, subsequent expenditure on a PPE along-with its unamortized
depreciable amount is charged off prospectively over the revised useful life determined by technical assessment.
In circumstance, where a property is abandoned, the cumulative capitalized costs relating to the property are written
off in the same period.

ii. Capital work-in-progress

The cost of self-constructed assets includes the cost of materials & direct labour, any other costs directly attributable
to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended
by management and borrowing costs. Expenses directly attributable to construction of Property, Plant and Equipment
incurred till they are ready for their intended use are identified and allocated on a systematic basis on the cost
of related assets.

iii. Borrowing Cost

Borrowing costs that are directly attributable to the acquisition, construction, exploration, development or erection
of qualifying assets are capitalized as part of cost of such asset until such time the assets are substantially ready
for their intended use. Qualifying assets are assets which take a substantial period of time to get ready for their
intended use or sale. Capitalization of borrowing costs ceases when substantially all the activities necessary to
prepare the qualifying assets for their intended uses are complete. Borrowing costs consist of:

(a) Interest expense calculated using the effective interest method as described in Ind AS 109 - ''Financial
Instruments'',

(b) Finance charges in respect of finance leases recognized in accordance with Ind AS 116 - ''Leases'',

(c) Exchange differences arising from foreign currency borrowings to the extent that they are regarded as an
adjustment to interest costs and,

(d) Other costs that an entity incurs in connection with the borrowing of funds.

Income earned on temporary investment of the borrowings pending their expenditure on the qualifying assets is
deducted from the borrowing costs eligible for capitalization. All other borrowing costs are charged to revenue
as and when incurred.

iv. Cash and Cash Equivalent

Cash and cash equivalent in the balance sheet comprises cash at banks, cash on hand and short-term deposits with
an original maturity of three months or less and Balances with banks in Unpaid Dividend Accounts which are
subject to insignificant risk of change in value.

v. Foreign currency transactions and translation

Transactions in foreign currencies are initially recorded at the functional currency rates at the date the transaction
first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at
the functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement
or translation of monetary items are recognized in Statement of Profit and Loss A/c in the year in which it arises.
Non-monetary items are measured in terms of historical cost in a foreign currency are translated using the exchange
rate at the date of the transaction.

vi. Impairment of Assets:

a. Impairment of financial instruments

"The Company recognizes loss allowances for expected credit losses on financial assets are measured at amortized
cost;"

At each reporting date, the Company assesses whether financial assets carried at amortized cost and debt investments
at FVCOI are credit-impaired. A financial asset is ''credit-impaired'' when one or more events that have a detrimental
impact on the estimated future cash flows of the financial asset have occurred.

"Evidence that a financial asset is credit - impaired includes the following observable data:

- Significant financial difficulty of the borrower or issuer;

- a breach of contract such as a default or being past due for 365 days or more;

- The restructuring of a loan or advance by the Company on terms that the Company would not consider
otherwise;

- It is probable that the borrower will enter bankruptcy or the other financial reorganization; or

- the disappearance of an active market for a security because of financial difficulties"

"The Company measures loss allowances at an amount equal to lifetime expected credit losses, except for the
following, which are measured as 12 month expected credit losses:

- Debt securities that are determined to have low credit risk at the reporting date; and

- other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the
expected life of the financial instrument) has not increased significantly since initial recognition."

"Loss allowances for trade receivables are always measured at an amount equal to lifetime expected credit losses.

Lifetime expected credit losses are the expected credit losses that result from all possible default events over the
expected life of a financial instrument.

12-months expected credit losses are the portion of expected credit loss that result from default events that are
possible within 12 months after the reporting date (or a shorter period if the expected life of the instrument is
less than 12 months).

In all cases, the maximum period considered when estimating expected credit losses is the maximum contractual
period over which the Company is exposed to credit risk."

When determining whether the credit risk of a financial asset has increased significantly since initial recognition
and when estimating expected credit losses, the Company considers reasonable and supportable information that
is relevant and available without undue cost or effort. This includes both quantitative and qualitative information
and analysis, based on the Company''s historical experience and informed credit assessment and including forward¬
looking information.

"The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 180
days past due.

The Company considers a financial asset to be in default when:

- The borrower is unlikely to pay its credit obligations to the Company in full, without recourse by the Company
to actions such as realising security (if any is held); or

- the financial asset is 365 days or past due."

Measurement of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the present
value of all cash shortfalls (i.e., the difference between the cash flows due to the Company in accordance with
the contract and the cash flows that the Company expects to receive).

Presentation of allowance for expected credit losses in the balance sheet.

Loss allowances for the financial assets measured at amortized cost are deducted from the gross carrying amount
of assets.

Write-off

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there
is no realistic prospect of recovery. This is generally the case when the Company determines that the debtor does
not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to
the write-off. However, financial assets that are written off could still be subject to enforcement activities in order
to comply with the Company''s procedures for recovery of the amounts due.

b. Impairment of non-financial assets

The Company''s non-financial assets and deferred tax asset, 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.

For impairment testing, assets that do not generate independent cash inflows are grouped together into cash¬
generating units (CGUs). Each CGU represents smallest group of assets that generates cash inflows that are largely
independent of the cash inflows or other assets or CGUs.

The recoverable amount of a CGU (or an individual asset) is the higher of its value in use or its fair value less
costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the CGU (or the asset).

"The Company''s corporate assets do not generate independent cash inflows. To determine impairment of a corporate
asset, recoverable amount is determined for the CGUs to which the corporate asset belongs.

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable
amount. Impairment losses are recognised in the statement of profit and loss. Impairment losses recognised in
respect of a CGU is allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then
to reduce the carrying amounts of the other assets of the CGU (or group of CGUs) on a pro rata basis.

In respect of assets for which impairment loss has been recognised in prior periods, the Company reviews at each
reporting date whether there is any indication 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. Such a reversal
is made 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 has been recognised.

vii. Revenue recognition

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of
variable consideration) allocated to that performance obligation. The transaction price of goods sold and services
rendered is net of variable consideration on account of various discounts and schemes offered by the Company
as part of the contract.

a) Sale of Products:

Revenue from sale of products is recognised when significant risk and rewards of ownership pass to the customers,
as per the terms of the contract and it is probable that the economic benefits associated with the transaction will
flow to the Company.

b) Revenue from Services:

Revenue from Services is recognised in the accounting period in which the services are rendered and when invoices
are raised.

c) Dividend income:

Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established
and it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount
of dividend can be reliably measured.

d) Other Income

Other income is recognized in the Statement of Profit and Loss when an increase in future economic benefits related
to an increase in an asset or a decrease of a liability has arisen that can be measured reliably.

viii. Financial Instruments

I. Recognition and initial measurement

Trade receivables and debt securities issued are initially recognised when they are originated. All other financial
assets and financial liabilities are initially recognised when the Company becomes a party to the contractual
provisions of the instrument.

A financial assets or financial liability is initially measured at fair value plus, for an item not at fair value through
profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

II. Classification and subsequent measurement
Financial assets

On initial recognition, a financial asset is classified as measured at,

- amortised cost

- Fair value through other comprehensive income (FVOCI) - debt investment;

- Fair value through other comprehensive income (FVOCI) - equity investment; or

- Fair value through profit & loss - (FVTPL)

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

A financial asset is measured at amortised cost if it meets both the following conditions and is not designated
as at FVTPL:

- the asset is held within a business model whose objective is to hold assets to collect contractual cash flows;
and

- the contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding

A debt instrument is measured at FVOCI if it meets both of the following conditions and is not designated as
at FVTPL:

- the asset is held in a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets; and

- the contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may irrecoverably elect
to present subsequent changes in investment''s fair value in OCI (designated as FVOCI - equity investment). The
election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at
FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate
a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL
if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial assets: Business model assessment

The Company makes an assessment of the objective of the business model in which a financial asset is held at
a portfolio level because this best reflects the way the business is managed and information is provided to the
management.

The information considered includes:

- the stated policies and objectives for the portfolio and the operation of those policies in practice. These
include whether management''s strategy focuses on earning contractual interest income, maintaining a particular

interest rate profile, matching the duration of the financial asset to the duration of any related liabilities
or expected cash outflows or realising cash flows through the sale of the assets;

- how the performance of the portfolio is evaluated and reported to the Company''s management;

- The risk that effects the performance of the business model (and the financial asset held within that business
model) and how those risks are managed;

- how managers of the business are compensated - e.g. whether compensation is based on the fair value of
the assets managed or the contractual cash flows collected; and

- the frequency, volume and timing of sales of the financial assets in prior periods, the reasons for such sales
and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for de-recognition are not considered
sales for this purpose, consistent with the Company''s continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on fair value basis
are measured at FVTPL.

Financial assets: Assessment whether contractual cash flows are solely payments of principal and interest.

For the purpose of this assessment, ''principal'' is defined as the fair value of the financial asset on initial recognition.
''Interest'' is defined as consideration for the time value of money and for credit risk associated with the principal
amount outstanding during a particular period of time and for other basic lending risks and costs (e.g., liquidity
risk and administrative costs), as well as profit margin.

To assess whether the contractual cash flows are solely payments of principal and interest, the Company considers
the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual
term that could change the timing or amount of contractual cash flows such that it would not meet this condition.
In making this assessment, the Company considers:

- Contingent events that would change the amount or timing of cash flows;

- Terms that may adjust the contractual coupon rate, including variable interest rate futures;

- Prepayments and extension features; and

- Terms that limits the Company''s claim to cash flows from specified assets (e.g. non-recourse feature)

A prepayment feature is consistent with the solely payment of principal and interest criterion if the prepayment
amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding,
which may include reasonable additional compensation for early termination of the contract. Additionally, for a
financial asset acquired at a significant discount or premium to it contractual par amount, a feature that permits
or requires prepayment at an amount that substantially represents the contractual par amount plus accrued (but
unpaid) contractual interest (which may also include reasonable additional compensation for early termination)
is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial
recognition.

Financial assets: Subsequent measurement and gains and losses
"Financial assets at FVTPL:

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend
income, are recognised in profit or loss."

"Financial assets at amortised cost:

These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost
is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised
in profit or loss. Any gain or loss on de-recognition is recognised in profit or loss."

Financial liabilities: Classification, subsequent measurement and gains and losses.

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as
at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense,
are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the
effective interest method. Interest expense and foreign exchange gains or losses are recognised in profit or loss.
Any gain or loss on de-recognition is also recognised in profit and loss.

III. De-recognition
Financial Assets

The Company de-recognises a financial asset when the contractual rights to the cash flows from the financial asset
expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all
risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers
nor retains substantially all of the risks and rewards of the ownership and does not retain control of the financial
asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains
either all or substantially all the risks and rewards of the transferred assets, the transferred assets are not de¬
recognised.

Financial Liabilities

The Company de-recognises a financial liability when the contractual obligations are discharged or cancelled, or
expire.

The Company de-recognises a financial liability when its terms are modified and the cash flows under the modified
terms are substantially different. In this case a new financial liability based on the modified terms is recognised
at fair value. The difference between the carrying amount of the extinguished liability and the new financial liability
with modified terms is recognised in profit and loss.

IV. Offsetting

Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only when,
the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them
on a net basis or to realise the asset and settle the liability simultaneously.

ix. Employee Benefits

a. Short Term Benefit

Short term obligations are those that are expected to be settled fully within 12 months after the end of the reporting
period. Short-term employee benefit obligations are measured on an undiscounted basis and are booked as an
expense as the related service is provided. A liability is recognized for the amount expected to be paid under
performance related pay if the Company has a present legal or constructive obligation to pay this amount as a
result of past service provided by the employee and the obligation can be estimated reliably.

b. Post-Employment benefits

Employee benefit that are payable after the completion of employment are Post Employment Benefit (other than
termination benefit). These are of two types:

1. Defined contribution plans

Defined contribution plans are those plans in which an entity pays fixed contribution into separate entities
and will have no legal or constructive obligation to pay further amounts. Provident Fund and Family Pension
Funds are Defined Contribution Plans in which Company pays a fixed contribution and will have no further
obligation.

2. Defined benefit plans

A defined benefit plan is a post employment benefit plan other than a defined contribution plan. Company
pays Gratuity as per provisions of the Gratuity Act, 1972. The Company''s net obligation in respect of defined

benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees
have earned in return for their service in the current and prior periods; that benefit is discounted to determine
its present value. Any unrecognized past service costs and the fair value of any plan assets are deducted.

The discount rate is based on the prevailing market yields of Indian government securities as at the reporting
date that have maturity dates approximating the terms of the Company''s obligations and that are denominated
in the same currency in which the benefits are expected to be paid. The calculation is performed annually
by a qualified actuary using the projected unit credit method. When the calculation results in a liability to
the Company, the present value of liability is recognized as provision for employee benefit. Any actuarial
gains or losses in respect of gratuity are recognized in OCI in the period in which they arise.

c. Other long-term employee benefits

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period
in which the employees render the related service. Benefits under the Company’s leave encashment scheme
constitute other long term employee benefits. The Company’s net obligation in respect of leave encashment is
the amount of future benefit that employees have earned in return for their service in the current and prior periods;
that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The
discount rate is based on the prevailing market yields of Indian government securities as at the reporting date
that have maturity dates approximating the terms of the Company’s obligations. The calculation is performed using
the projected unit credit method. Any actuarial gains or losses are recognized in profit or loss in the period in
which they arise.

x. Taxes

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates
to a business combination or to an item recognised directly in equity or in other comprehensive income.

1. Current tax

"Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the
best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related
to income taxes. It is measured using tax rates (and tax laws) enacted or substantially enacted by the reporting
date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously."

2. Minimum Alternate Tax (MAT)

MAT paid in a year is charged to the statement of profit and loss as current tax. The Company recognizes MAT
credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal
income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward.
In the year in which the Company recognises MAT credit as an asset in accordance with the Guidance Note on
Accounting for Credit Available in respect of Minimum Alternative Tax under the Income tax Act, 1961, the said
asset is created by way of credit to the statement of profit and loss and shown as ''MAT Credit Entitlement''. The
Company reviews the ''MAT credit entitlement'' asset at each reporting date and writes down the asset to the extent
the Company does not have convincing evidence that it will pay normal tax during the specified period.

3. Deferred tax

Deferred tax is recognized using the balance sheet method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when
they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets
and liabilities will be realized simultaneously. Deferred tax is recognized in Statement of Profit and Loss A/c except
to the extent that it relates to items recognized directly in OCI or equity, in which case it is recognized in OCI
or equity. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be
available against which the temporary difference can be utilized. 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 realized. Minimum
Alternate Tax credit is recognized as deferred tax asset only when and to the extent there is convincing evidence
that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance
Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a
convincing evidence to the effect that the Company will pay normal income tax during the specified period.

xi. Leases:

a. Recognition:

At inception of an arrangement, the Company determines whether such an arrangement is or contains a lease. A
specific asset is subject of a lease if fulfillment of the arrangement is dependent on the use of that specified asset.
An arrangement conveys the right to use the asset if the arrangement conveys to the customer the right to control
the use of the underlying asset. Arrangements that do not take the legal form of a lease but convey rights to
customers/suppliers to use an asset in return for a payment or a series of payments are identified as either finance
leases or operating leases.

b. Accounting for Operating Leases

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company
as lessee are classified as operating lease. Payments made under operating leases are recognized as an expense
over the lease term.

---

Mar 31, 2016

Note - 1: Significant Accounting Policies

a) Basis of preparation and Accounting Assumptions:

These financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, historical cost convention, on the assumption of going concern, the applicable accounting standards prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 with Companies (Accounts) Rules, 2014, the provision of the Act (to the extent notified) and other accounting principles generally accepted in India, to the extent applicable. These financial statements are presented in Indian rupees.

b) Revenue Recognition:

Revenues are recognized to the extent that is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenues recognized and expenses accounted are on accrual basis and the amounts determined as payable or receivable during the year except those with significant uncertainties are in accordance with the Generally Accepted Accounting Principles (GAAP) applicable in India and the provisions of the Companies Act, 2013 in India. The sales revenue is recognized net of taxes in the financial statements.

c) Use of Estimates

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses and the disclosure relating to contingent liabilities on the date of the financial statements. Actual results may differ from those estimates. Estimates and underlying assumptions are reviewed at each balance sheet date. Any revision to accounting estimates are recognized in the period in which the estimate is revised and future periods affected.

d) Fixed Assets:

All expenses including cost of fixed asset and expenses incurred directly or indirectly for bringing the asset to its present location and condition have been capitalized in the books of the company.

e) Depreciation:

Depreciation on fixed assets have been provided based on straight line method on the basis of useful life prescribed as per Schedule-II of the Companies Act, 2013.

f) Foreign Currency Transactions:

Transactions in foreign currency are accounted for at the exchange rates prevailing on the date of transaction. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rate at the date of transaction. Monetary assets and liabilities denominated in foreign currency as at the balance sheet date are translated at the closing exchange rates on that date. Exchange differences arising on settlement of transactions and translation of monitory items are recognized as Income or Expense in the year in which they arise.

g) Impairment of Assets:

At the end of each year, the company determines whether a provision should be made for impairment loss on Fixed Assets by considering the indications that an impairment loss may have occurred in accordance with AS-28 "Impairment of Assets" issued by the ICAI, where the recoverable amount of any fixed asset is lower than its carrying amount, a provision for impairment loss on fixed Assets is made for the difference.

h) Employee Benefits:

A. Short Term Employee Benefits:

i) The employee benefits payable only within 12 months of rendering services are classified as short-term employee benefits. Benefits such as Salaries, leave travel allowance, short term compensated absences etc. and the expected cost of bonus are recognized in the period in which the employee renders the related services.

ii) The Company has made a provision towards leave encashment and the same has been treated as period cost and charged to Statement of Profit and Loss accordingly.

B. Post Employment Benefits:

i) Defined Contribution plans: The Company''s contribution towards Provident fund scheme, Employee State Insurance scheme and Employee pension scheme are recognized during the period in which employee renders the related service.

ii) Provision for Gratuity to employees: The Company has made a provision for the same as per the valuation done by Life Insurance Corporation and the same has been treated as period cost and charged to Statement of Profit and loss accordingly.

i) Provision for Taxation:

Current income tax expense comprises taxes on income from operations in India. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized, subject to the consideration of prudence, in respect of deferred tax assets or liabilities, on prudence, in respect of deferred tax assets or liabilities, on timing differences, being the difference between taxable incomes and accounting incomes that originate in one period, and are reversible in one or more subsequent periods.

j) Earnings per Share:

Basic Earnings per Share is computed by dividing net profit for the year attributable to the equity holders of the Company by the weighted average number of common stock outstanding during the period.

k) Current / Non-current classification:

The Schedule III of the Companies Act, 2013 requires assets and liabilities to be classified as Current or Noncurrent.

An asset is classified as current when it satisfies any of the following criteria:

a) It is expected to be realized in, or is intended for sale or consumption in, the entity''s normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is expected to be realized within twelve months after the Balance Sheet date; or

d) It is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the balance sheet date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

a) It is expected to be settled in, the entity''s normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is due to be settled within twelve months after the Balance Sheet date; or

d) The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date.

All other liabilities are classified as non-current.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out above which are in accordance with the revised Schedule III of the Companies Act, 2013.

l) Operating cycle:

Operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. Based on this, the Company has ascertained less than 12 months as its operating cycle and hence 12 months has been considered for the purpose of current - non-current classification of assets and liabilities.

m) Provisions and Contingent liability:

i. Provisions :

Provision is recognized when an enterprise has a present obligation as a result of past event and is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on Management estimates required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimate.

ii. Contingent liability:

Contingent liability includes a possible obligation or a present obligation which cannot be measured accurately or does not involve outflow of resources immediately. These are not accounted for as liability in the Financial Statements and disclosed by way of notes.

---

Mar 31, 2014

A) Accounting Assumptions:

These accounts have been prepared under the historical cost convention on the basis of a going concern and comply with applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956 as applied constantly by the company.

b) Revenue Recognition:

Revenues are recognized to the extent that is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenues recognized and expenses accounted are on accrual basis and the amounts determined as payable or receivable during the year except those with significant uncertainties are in accordance with the Generally Accepted Accounting Principles (GAAP) applicable in India and the provisions of the Indian Companies Act, 1956. The sales revenue is recognized net of taxes in the financial statements.

c) Use of Estimates

The preparation of financial statements requires the management of the company to make the estimates and assumptions that affect the reported balance of the assets & liabilities and reported amount of income and expenses during the year. Examples of these estimates include provision for doubtful debts, provision for tax, etc.

d) Fixed Assets:

Fixed Assets are stated at cost of acquisition less depreciation. Cost of acquisition is inclusive of freight, duties, levies and all incidentals attributable to bringing the asset to its present location and working condition including the cost of finance specifically borrowed for acquisition or construction of the asset.

e) Depreciation:

Depreciation on Fixed Assets existing as on 31st March 1993 have been provided on the reducing balance method as per the rates and method prescribed under Schedule XIV of Companies Act, 1956.

Depreciation has been provided on the straight-line method for all additions made to the Fixed Assets subsequent to 31st March 1993 as per the rates and method prescribed under Schedule XIV of the Companies Act, 1956.

Depreciation on assets whose individual cost does not exceed Rs. 5,000/- has been provided at a rate of one hundred percent as prescribed under Schedule XIV of the Companies Act, 1956.

f) Foreign Currency Transactions:

Transactions in foreign currency are accounted for at the exchange rates prevailing at the time of transaction. However, in case of transactions taking place through bank accounts maintained in foreign currency, the same are recorded at notional rates. Balances in such foreign currency accounts at the year end are converted at the prevailing exchange rates. Current assets and liabilities at the year end are restated at the prevailing exchange rates and the difference between the year end and the actual/notional rates is recognised as income or expense in the Accounts.

g) Impairment of Assets:

At the end of each year, the company determines whether a provision should be made for impairment loss on Fixed Assets by considering the indications that an impairment loss may have occurred in accordance with AS- 28 "Impairment of Assets" issued by the ICAI, where the recoverable amount of any fixed asset is lower than its carrying amount, a provision for impairment loss on fixed Assets is made for the difference.

h) Employee Benefits:

A. Employee Benefits:

i) The employee benefits payable only within 12 months of rendering services are classified as short-term employee benefits. Benefits such as Salaries, leave travel allowance, short term compensated absences etc. and the expected cost of bonus are recognized in the period in which the employee renders the related services.

ii) The Company has made a provision towards leave encashment and the same has been treated as period cost and charged to Statement of Profit and Loss accordingly.

B. Post Employment Benefits:

i) Defined Contribution plans: The Company''s contribution towards Provident fund scheme, Employee State Insurance scheme and Employee pension scheme are recognized during the period in which employee renders the related service.

ii) Provision for Gratuity to employees: The Company has made a provision for the same as per the actuarial valuation done by Life Insurance Corporation and the same has been treated as period cost and charged to Profit and loss account accordingly.

i) Provision for Taxation:

Current income tax expense comprises taxes on income from operations in India. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized, subject to the consideration of prudence, in respect of deferred tax assets or liabilities, on prudence, in respect of deferred tax assets or liabilities, on timing differences, being the difference between taxable incomes and accounting incomes that originate in one period, and are reversible in one or more subsequent periods.

j) Earnings per Share:

Earning per Share is computed by dividing net profit for the year attributable to the equity holders of the Company by the weighted average number of common stock outstanding during the period.

k) Provision for liabilities:

Provision is recognized when an enterprise has a present obligation as a result of past event and is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on Management estimates required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimate.

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Mar 31, 2012

I. Accounting Assumptions:

These accounts have been prepared under the historical cost convention on the basis of a going concern.

ii. Revenue Recognition:

Revenues are recognized and expenses except for encashment of leave salary are accounted on their accrual and amounts determined as payable or receivable during the year except those with significant uncertainties and are accounted in accordance with the Generally Accepted Accounting Principles (GAAP) applicable in India and the provisions of the Indian Companies Act, 1956.

iii. Use of Estimates

The preparation of financial statements requires the management of the company to make the estimates and assumptions that affect the reported balance of the assets & liabilities and reported amount of income and expenses during the year. Examples of these estimates include provision for doubtful debts, provision for tax etc.

iv. Fixed Assets:

Fixed Assets include all expenditure of Capital nature and are stated at cost of acquisition, installation and commissioning expenses, less Depreciation. Fixed Assets values are stated at historical cost. v. Depreciation:

Depreciation on Fixed Assets existing as on 31st March 1993 has been provided on the reducing balance method as per the rates and method prescribed under Schedule XIV of Companies Act, 1956.

Depreciation has been provided on the straight-line method for all additions made to the Fixed Assets subsequent to 31st March 1993 as per the rates and method prescribed under Schedule XIV of the Companies Act, 1956.

Depreciation on assets whose individual cost does not exceed Rs.5,000/- has been provided at a rate of one hundred percent as prescribed under Schedule XIV of the Companies Act, 1956. vi. Foreign Currency Transactions:

Transactions in foreign currency are accounted for at the exchange rates prevailing at the time of transaction. However, in case of transactions taking place through bank accounts maintained in foreign currency, the same are recorded at notional rates. Balances in such foreign currency accounts at the year end are converted at the prevailing exchange rates. Current assets and liabilities at the year end are restated at the prevailing exchange rates and the difference between the year end and the actual/notional rates is recognized as income or expense in the Accounts.

vii. Impairment of Assets:

At the end of each year, the company determines whether a provision should be made for impairment loss on Fixed Assets by considering the indications that an impairment loss may have occurred in accordance with AS-28 "Impairment of Assets" issued by the ICAI, where the recoverable amount of any fixed asset is lower than its carrying amount, a provision for impairment loss on fixed Assets is made for the difference.

viii. Employee Benefits:

A. Employee Benefits: The employee benefits payable only within 12 months of rendering services are classified as short-term employee benefits. Benefits such as Salaries, leave travel allowance, short term compensated absences etc. and the expected cost of bonus are recognized in the period in which the employee renders the related services.

B. Post Employment Benefits:

i) Defined Contribution plans: The Company's contribution towards Provident fund scheme, Employee State Insurance scheme and Employee pension scheme are recognized during the period in which employee renders the related service.

ii) Provision for Gratuity to employees: The Company has made a provision for the same as per the actuarial valuation done by Life Insurance Corporation and the same has been treated as period cost and charged to Profit and loss account accordingly.

iii) Liability in respect of leave encashment is provided for on cash basis and based on the management policy.

ix. Provision for Taxation:

Deferred tax is recognized, subject to the consideration of prudence, in respect of deferred tax assets or liabilities, on prudence, in respect of deferred tax assets or liabilities, on timing differences, being the difference between taxable incomes and accounting incomes that originate in one period, and are reversible in one or more subsequent periods.

x. Earnings per Share:

Earning per Share is computed by dividing net income by the weighted average number of common stock outstanding during the period.

xi. Current Assets:

Inventories are as certified by the Managing Director and are valued as under:

Raw Cotton & Process Stock At cost.

Yarn Stock At cost or Net Realizable Value Whichever is Less.

Waste Cotton Net Realizable Value

xii. The company has opted for exemption from Excise Duty vide notification No. 30/2004-Central Excise dated 9th July, 2004 effective from 7th July, 2004 whereby the company is not liable to charge Excise Duty on sales made. The company has also accounted its purchases of excisable goods at gross (including duty) from the above said date whereby the company is not eligible to claim any credit of duty paid on inputs.

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Mar 31, 2010

I Accounting Assumptions:

These accounts have been prepared under the historical cost convention on the basis of a going concern

ii. Revenue Recognition:

Revenues recognized and expenses except for encashment of leave salary accounted on their accrual and amounts determined as payable or receivable during the year except those with significant uncertainties and in accordance with the Generally Accepted Accounting Principles (GAAP) applicable in India and the provisions of the Indian Companies Act, 1956.

iii. Fixed Assets:

Fixed Assets include all expenditure of Capital nature and are stated at cost of acquisition, installation and commissioning expenses, less Depreciation. Fixed Assets values are stated at historical cost.

iv Depreciation:

Depreciation on Fixed Assets existing as on 31st March 1993 has been provided on the reducing balance method as per the rates and method prescribed under Schedule XIV of Companies Act, 1956. Depreciation has been provided on the straight-line method for all additions made to the Fixed Assets subsequent to 31st March 1993 as per the rates and method prescribed under Schedule XIV of the Companies Act, 1956.

Depreciation on assets whose individual cost does not exceed Rs.5,000/- has been provided at a rate of One Hundred percent as prescribed under Schedule XIV of the Companies Act, 1956.

v. Investments

Investments classified as "current" are carried at the lower of cost and fair value. Investments classified as "long term" shall be carried at cost adjusted for permanent diminution in value.

vi. Foreign Currency Transactions:

Transactions in foreign currency are accounted for at the exchange rates prevailing at the time of transaction. However, in case of transactions taking place through bank accounts maintained in foreign currency, the same are recorded at notional rates. Balances in such foreign currency accounts at the year end are converted at the prevailing exchange rates. Current assets and liabilities at the year end are restated at the prevailing exchange rates and the difference between the year end and the actual/ notional rates is recognised as income or expense in the Accounts.

vii. Impairment of Assets:

At the end of each year, the company determines whether a provision should be made for impairment loss on Fixed Assets by considering the indications that an impairment loss may have occurred in accordance with AS-28 "Impairment of Assets" issued by the ICAI, where the recoverable amount of any fixed asset is lower than its carrying amount, a provision for impairment loss on fixed Assets is made for the difference.

viii. Employee Benefits:

A. Short Term Employee Benefits: The employee benefits payable only within 12 months of rendering services are classified as short-term employee benefits. Benefits such as Salaries, leave travel allowance, short term compensated absences etc. and the expected cost of bonus are recognized in the period in which the employee renders the related services.

B. Post Employment Benefits:

i) Defined Contribution plans: The Companys contribution towards Provident fund scheme, Employee State Insurance scheme and Employee pension scheme are recognized during the period in which employee renders the related service.

ii) Provision for Gratuity to employees, No provision for the same has been made as the amount paid as Gratuity Premium to LIC has been charged to Profit and loss account.

iii) Liability in respect of leave encashment is provided for on cash basis and based on the management policy.

ix. Provision for Taxation:

Deferred tax is recognized, subject to the consideration of prudence, in respect of deferred tax assets or liabilities, on prudence, in respect of deferred tax assets or liabilities, on timing differences, being the difference between taxable incomes and accounting incomes that originate in one period, and are reversible in one or more subsequent periods

x. Earnings per Share:

Earning per Share is computed by dividing net income by the weighted average number of common stock outstanding during the period.

xi. Provisions and Contingent Liabilities:

Provision is recognized when an enterprise has a present obligation as a result of past event and is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on Management estimates required to settle the obligation at the Balance sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimate.

xii Current Assets:

Inventories are as certified by the Managing Director and are valued as under:

Raw Cotton & Process Stock At cost,

Yarn Stock At cost or Net Realizable Value Whichever is Less.

Waste Cotton Net Realizable Value

xiii. The company has opted for exemption from Excise Duty vide notification No. 30/2004-Central Excise dated 9th July, 2004 effective from 7th July, 2004 whereby the company is not liable to charge Excise Duty on sales made. The company has also accounted its purchases of excisable goods at gross (including duty) from the above said date whereby the company is not eligible to claim any credit of duty paid on inputs.