Accounting Policies of N R Vandana Tex Industries Ltd. Company

Mar 31, 2025

A. Corporate Information:

N R VANDANA TEX INDUSTRIES LIMITED (the Company) is a Public Limited
Company (CIN - U17299WB1992PLC055341) incorporated under the provision of the
Companies Act, 1956 having its registered office at 220, M.G. Road ,Kolkata -700007 ,
West Bengal India . The company is a Manufacturing Company engaged in
manufacturing and trading of textile goods under the Brand Name - "Vandana"

B. BASIS OF PREPARATION OF FINANCIAL STATEMENT:

(i) The financial statements have been prepared in accordance with Historical Cost
convention on Going Concern Concept and on accrual basis except Rates and Taxes,
Insurance claims & Dividend.

(ii) The Company has prepared these financial statements to comply in all material
respects with the Accounting Standards as prescribed by the Companies
(Accounting Standards) Rules 2006, the provisions of the Companies Act, 2013 and
the Companies Act, 1956 (to the extent applicable);

(iii) The financial statements are presented in accordance with generally accepted
accounting principles in India. All the assets & liabilities have been classified as
current or non current as per Company''s normal operating cycle and other criteria
set out in revised Schedule III to Companies Act, 2013. Based on the nature of the
product and the time between Revised Acquisition of the assets for processing and
their realization in cash and cash equivalent, the Company has ascertained its
operating cycle as 12 months for the purpose of current, non- current classification
of assets and liabilities. The reporting currency of the Company is the Indian Rupee.

C. Current and Non-Current classification

All assets and liabilities are classified into current and non-current generally based on
the criteria of realisation/ settlement within a twelve month period from the balance
sheet date. An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating
cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle
a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities. The
operating cycle is the time between the acquisition of assets for processing and their
realisation in cash and cash equivalents. The Company has identified twelve months as
its operating cycle.

D. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the
management to make judgments, estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent liabilities on the date of the
financial statements and reported amounts of revenues and expenses for the year.

Accounting estimates could change from period to period. Actual results could differ
from those estimates. Appropriate changes in estimates are made as Management
becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in which changes are
made and if material, their effects are disclosed in the notes to the financial statements.

E. Property, Plant & Equipment:

Property, Plant & Equipment represent a significant proportion of the assets of the
Company. Property, Plant & Equipment are stated at their original cost less accumulated
depreciation/amortization. The Cost includes the purchase cost including import duties
and non-refundable taxes and any directly attributable costs of bringing a Property,
Plant & Equipment to the Location and Conditions of its intended use. Cost comprises of
expenditure incurred in respect of the asset under development and includes any
attributable/allowable cost and other incidental expenses.

F. Depreciation:

All fixed assets, are depreciated on WDV Method. Depreciation is provided based on
useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
Depreciation on additions to / deletions from fixed assets made during the period is
provided on pro-rata basis from / up to the date of such addition / deletion as the case
may be. In respect of an assets for which impairment loss is recognized, depreciation is
provided on the revised carrying amount of the assets over its remaining useful life. The
amortization period and the amortization method are reviewed at each reporting date. If
the expected useful life of the asset is significantly different from previous estimates, the
amortisation method is changed accordingly.

G. GOVERNMENT GRANT:

Grants of capital nature and related to specific Fixed Assets are deducted from gross
value of assets. Other grants of capital nature are credited to Capital Reserve. Grants
related to revenue are recognized in the statement of profit and loss on a systematic basis
to match them with related costs.

H. EMPLOYEE BENEFIT:

(i) Contributions to Provident Fund are accounted for on accrual basis.

(ii) Liability in respect of Gratuity is being provided on accrual basis.

(iii) Liability in respect to Leave encasement is being provided on cash basis.

I. FOREIGN CURRENCY TRANSACTION

Transactions in foreign currency are accounted for at the exchange rates prevailing on
the date of transaction. Monetary assets and liabilities related to foreign currency
transaction remaining unsettled at the end of the year are translated at year end
exchange rates Gains/Losses arising out of fluctuation in the exchange rates are
recognized in statement of Profit and Loss in the period in which they arise.

J. INVENTORIES:

As per AS-2, The inventories are physically verified at regular intervals by the
management. Raw materials and packing materials are valued at the lower of cost and
net realizable value. Finished goods, Stock-in-Trade and Work-in-Progress are valued at
lower of cost and net realizable value. Cost of inventories comprises of cost of purchase,
cost of conversion and other costs including manufacturing overheads net of recoverable
taxes.

K. REVENUE RECOGNITION:

Sales revenue is recognized when property in the goods with all significant risk and
rewards as well as the effective control of goods usually associated with ownership are
transferred to the buyer. Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be reliably measured.

Revenue is recognized when it is earned and no significant uncertainty exists as to its
realization or collection. Revenue from sale of goods or services are recognized on
delivery of the products or services, when all significant contractual obligations have
been satisfied, the property in the goods is transferred for price, significant risk and
rewards of ownership are transferred to the customers and no effective ownership is
retained. In the financial statement, revenue from operation does not include Indirect
taxes like Goods & Service Tax.

L. INVESTMENT:

Investment is treated as Non-Current assets & stated at cost. Provision for diminution in
the value of long-term investment is made only if such a decline is other than temporary
nature in the opinion of the management.

M. BORROWING COST:

Borrowing costs relating to the acquisition / construction of qualifying assets are
capitalized when all substantial activities necessary to prepare the qualifying assets for
their intended use are complete. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use. All other costs related to
borrowings are recognised as expense in the period in which they are incurred.

N. TAXATION:

Tax expense comprises current and deferred tax. Tax on income for the current period is
determined on the basis of taxable income and tax computed in accordance with the
provisions of the Income tax is determined in accordance with the provisions of the
Income Tax Act, 1961 and based on expected outcome of assesment/ appeals. Current
income-tax is measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the
respective tax jurisdictions where the Company operates. The tax rates and tax laws
used to compute the amount are those that are enacted or substantively enacted, at the
reporting date.

Deferred income taxes reflect the impact of timing differences between taxable income
and accounting income originating during the current year and reversal of timing
differences for the earlier years. Deferred tax is measured using the tax rates and the tax
laws enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax
assets are recognized for deductible timing differences only to the extent that there is
reasonable certainty that sufficient future taxable income will be available against which
such deferred tax assets can be realized.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right
exists to set-off current tax assets against current tax liabilities and the deferred tax assets
and deferred taxes relate to the same taxable entity and the same taxation authority.

O. Earnings Per Share:

In determining the Earnings Per share, the company considers the net profit after tax
including any post tax effect of any extraordinary / exceptional item. The number of
shares used in computing basic earnings per share is the weighted average number of
shares outstanding during the period. The number of shares used in computing Diluted
earnings per share comprises the weighted average number of shares considered for
computing Basic Earnings per share and also the weighted number of equity shares that
would have been issued on conversion of all potentially dilutive shares.

P. Impairment of Assets:

As at each Balance Sheet date, the carrying amount of assets are assessed for any
indication of impairment, so as to determine the provision for impairment loss, if any,
required or the reversal, if any, required of impairment loss recognized in previous
periods. If any such indication exists, the recoverable amount of the asset is estimated in
order to determine the extent of impairment. Impairment loss is recognized when the
carrying amount of an asset exceeds its recoverable amount. Reversal of impairment loss
is recognised as income in the statement of profit and loss.

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Mar 31, 2024

(i) The financial statements have been prepared In accordance with Historical Cost
convention on Going Concern Concept and on accrual basis except Rates and Taxes,
Insurance claims & Dividend.

(ii) The Company has prepared these financial statements to comply in all material
respects with the Accounting Standards as prescribed by the Companies
(Accounting Standards) Rules 2006, the provisions of the Companies Act, 2013 and
the Companies Act, 1956 (to the extent applicable);

(iii) The financial statements are presented in accordance with generally accepted
accounting principles in India. All the assets & liabilities have been classified as
current or non current as per Company''s normal operating cycle and other criteria
set out in revised Schedule III to Companies Act, 2013. Based on the nature of the
product and the time between Revised Acquisition of the assets for processing and
their realization in cash and cash equivalent, the Company has ascertained its
operating cycle as 12 months for the purpose of current, non- current classification
of assets and liabilities.

B. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the
management to make judgments, estimates and assumptions diat affect the reported
amounts of assets and liabilities and disclosure of contingent liabilities on the date of the
financial statements and reported amounts of revenues and expenses for the year.

Accounting estimates could change from period to period. Actual results could differ
from those estimates. Appropriate changes in estimates are made as Management
becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in which changes are
made and if material, their effects are disclosed in the notes to the financial statements

C. Property, Plant & Equipment:

Property, Plant & Equipment represent a significant proportion of the assets of the
Company. Property, Plant <5* Equipment are stated at their original cost less accumulated
depreciation/amortization. The Cost includes the purchase cost including import duties
and non-refundable taxes and any directly attributable costs of bringing a Property,
Plant & Equipment to the Location and Conditions of its intended use. Cost comprises of
expenditure incurred in respect of the asset under development and includes any
attributable/allowable cost and other incidental expenses.

D. Depreciation:

Depreciation is provided on Written Down Value method over the useful life of the
assets in accordance with Schedule -II of the Companies Act, 2013.

E. GOVERNMENT GRANT:

Grants of capital nature and related to specific Fixed Assets are deducted from gross
value of assets. Other grants of capital nature are credited to Capital Reserve. Grants
related to revenue are recognized in the statement of profit and loss on a systematic basis
to match them with related costs.

F. EMPLOYEE BENEFIT:

(i) Contributions to Provident Fund are accounted for on accrual basis.

(ii) Liability in respect of Gratuity is being provided on accrual basis.

(iii) Liability in respect to leave encasement is being provided on cash basis.

G. FOREIGN CURRENCY TRANSACTION

Transactions in foreign currency are accounted for at the exchange rates prevailing on
the date of transaction. Monetary assets and liabilities related to foreign currency
transaction remaining unsettled at the end of the year are translated at year end
exchange rates Gains/ Losses arising out of fluctuation in the exchange rates are
recognized in statement of Profit and Loss in the period in which they arise.

H. INVENTORIES:

Inventory of the Company has been valued as follows:

(i) Raw Material : At Lower of Cost or Net Realizable value

(ii) Finished Goods : At Lower of Cost or Net Realizable value

I. REVENUE RECOGNITION:

The Revenue is recognized to the extent that it is probable that economic benefit will
flow to the company and the revenue can be reliably measured. Sales Revenue is
recognized at the time of dispatch of goods to customers '' •

J. INVESTMENT:

Investment is treated as Non-Current assets & stated at cost. Provision for diminution in
the value of long-term investment is made only if such a decline is other than temporary
nature in the opinion of the management.

K. BORROWING COST:

Borrowing Cost attributable to the acquisition of a qualifying asset, as defined in AS-16
on Borrowing Cost are capitalized as part of Cost of acquisition. Other borrowing costs
are expended as incurred.

L. TAXES ON INCOME:

Current tax is determined on the basis of the amount of tax payable on taxable income
for the year. Deferred tax is calculated at current statutory income tax rate and is
recognized on timing differences between taxable income & accounting income that
originate in one period and are capable of reversal in one or more subsequent periods.
Deferred tax assets, subject to consideration of prudence, are recognized and carried
forward only to the extent that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be realized.

M. Earnings Per Share:

Basic earnings per share is calculated by dividing the net Profit or Loss for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the year.

N. Impairment of Assets:

I he carrying amounts of assets are reviewed at each balance sheet date if there is any
indication of impairment based on internal/external factors. An impairment loss is
recognized wherever the carrying amount of an asset exceeds its recoverable amount.
The recoverable amount is the higher of the asset''s net selling price and value in use,
which is determined by the present value of the estimated future cash flows.

O. Impairment of Assets:

(a) Provision involving substantial degree of estimation in measurements is recognized
when there is a present obligation as a result of past events and it is probable that there
will be an outflow of resources.

(b) Contingent Liabilities are shown by way of notes to the Accounts in respect of
obligations where, based on the evidence available, their existence at the Balance Sheet
date is considered not probable.

(c) A Contingent Asset is not recognized in the Accounts

P. Segment Reporting:

(a) Business Segments:

Based on the guiding principles given in Accounting Standard 17 (AS - 17) on Segment
Reporting issued by ICAI, the Company has only one reportable Business Segment,
which is Manufacturing of Scree. Accordingly, the figures appearing in these financial
statements relate to the Company’s single Business Segment.

(b) Geographical Segments;

The Company activities / operations are confined to India and as such there is only one
geographical segment. Accordingly, the figures appearing in these financial statements
relate to the Company''s single geographical segment.

Q. Prior Period Items:

Prior Period and Extraordinary items and Changes in Accounting Policies having
material impact on the financial affairs of die Company are disclosed in financial
statements.