Accounting Policies of Sueryaa Knitwear Ltd. Company

Mar 31, 2025

A. Accounting Conventions:

The company''s financial statements have been prepared in accordance with the historical cost convention on
accural basis of accounting as applicable to going concern in accordance with generally accepted accounting
principle in india, mandatory accounting standards prescribed in the Section 133 of the Companies Act 2013
Read with Rule 7 of the Companies (Accounts) Rules 2014.

All assets and liabilities have been classification as current or non current as per company''s normal operating

cycle and other criteria set out in the Revised Schedule II of Companeis Act, 2013. Based on the nature of

business, the company has ascertained its operating cycle as 12 months for the purpose of current or non
current classification of Assets and liabilities.

B. Revenue Recognition

1 Sales Revenue is recognized on dispatch of goods, net of freight, insurance, Excise and VAT and GST.

2 Interest income is recognised on time proportion basis.

C. Fixed Assets:

Fixed assets are stated at cost of acquisition and inclusive of inward freight, duties & taxes & incidential
expenses related to acquisition net of capital subsidy relating to specific fixed assets.

Capital work in progress/Intangible assets under development includes cost of assets at site, advances made
for acquisition of capital assets and pre operative expenditure pending allocation to fixed assets.

D. Inventory Valuation

Inventories are valued at cost or net realizable price whichever is lower except scrap at net realisable value.
The cost formula used for valuation of inventories are:-

1 In respect of raw material and stores and spares have been valued at cost or market price which ever is lower
on FIFO basis.

2 In respect of work in process is valued at cost of raw material plus conversion cost.

3 Finished goods are valued on retail sale price less GP% method or market price which ever is lower

E. Depreciation

Depreciation has been provided on written down method at the rates specified in schedule II of The Companies
Act, 2013. The fixed assets acquired prior to 1st April 2014 are depreciated over the revised remaining useful
life of the assets based on the indicative usefull life of the assets mandated by schedule II to the Companies
Act, 2013

F. Taxes on Income

Provision for Tax is made for both current and deferred taxes. Provisions for current income tax is made on
the current tax rates based on assessable income. The Company provides for deferred tax based on the tax
effect of timing differences resulting from the recognition of items in the financial statements and in estimating
its current tax provision.

G. Employee Benefits

i) None of the employees is covered under EPF act.

ii) Provision for leave encashment is made on the basis of leave accrued to the employees during the
financial year.

iii) The company has a defined benefit gratuity plan. Provision for gratuity has not been made as company does
not have any employee which “is covered under gratuity Act

H. GST

GST is Levied on dispatch of the goods from the company during year.

I. Foreign Currency Transaction

Transactions in Foreign Currency are recorded at the rate of exchange prevailing at the date of transactions.
All current assets and liabilities are translated “at the relevant rates of exchange prevailing at the year end.
The translation/settlement differences are recognized in the profit & Loss Account.

J. Impairment of Assets

As at Balance Sheet date, an assessment is made whether any indication exists that an asset has been
impaired. If any such indication exists, an impairment loss i.e. the “amount by which the carrying amount of an
asset exceed its recoverable amount is provided in the books of account.

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Mar 31, 2024

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Accounting Conventions:

The company''s financial statements have been prepared in accordance with the historical cost convention on
accural basis of accounting as applicable to going concern in accordance with generally accepted accounting
principle in india, mandatory accounting standards prescribed in the Section 133 of the Companies Act 2013
Read with Rule 7 of the Companies (Accounts) Rules 2014.

All assets and liabilities have been classification as current or non current as per company''s normal operating

cycle and other criteria set out in the Revised Schedule II of Companeis Act, 2013. Based on the nature of

business, the company has ascertained its operating cycle as 12 months for the purpose of current or non
current classification of Assets and liabilities.

B. Revenue Recognition

1 Sales Revenue is recognized on dispatch of goods, net of freight, insurance, Excise and VAT and GST.

2 Interest income is recognised on time proportion basis.

C. Fixed Assets:

Fixed assets are stated at cost of acquisition and inclusive of inward freight, duties & taxes & incidential
expenses related to acquisition net of capital subsidy relating to specific fixed assets.

Capital work in progress/Intangible assets under development includes cost of assets at site, advances made
for acquisition of capital assets and pre operative expenditure pending allocation to fixed assets.

D. Inventory Valuation

Inventories are valued at cost or net realizable price whichever is lower except scrap at net realisable value.
The cost formula used for valuation of inventories are:-

1 In respect of raw material and stores and spares have been valued at cost or market price which ever is lower
on FIFO basis.

2 In respect of work in process is valued at cost of raw material plus conversion cost.

3 Finished goods are valued on retail sale price less GP% method or market price which ever is lower

E. Depreciation

Depreciation has been provided on provided on written down method at the rates specified in schedule II of
The Companies Act, 2013. The fixed assets acquired prior to 1st April 2014 are depreciated over the revised
remaining useful life of the assets based on the indicative usefull life of the assets mandated by schedule II to
the Companies Act, 2013

F. Taxes on Income

Provision for Tax is made for both current and deferred taxes. Provisions for current income tax is made on
the current tax rates based on assessable income. The Company provides for deferred tax based on the tax
effect of timing differences resulting from the recognition of items in the financial statements and in estimating
its current tax provision.

G. Employee Benefits

i) None of the employees is covered under EPF act.

ii) Provision for leave encashment is made on the basis of leave accrued to the employees during the financial
year.

iii) "The company has a defined benefit gratuity plan. Provision for gratuity has not been made as company does
not have any employee which “is covered under gratuity Act"

H. GST

GST is Levied on dispatch of the goods from the company during year.

I. Foreign Currency Transaction

"Transactions in Foreign Currency are recorded at the rate of exchange prevailing at the date of transactions.
All current assets and liabilities are translated “at the relevant rates of exchange prevailing at the year end.
The translation/settlement differences are recognized in the profit & Loss Account."

J. Impairment of Assets

"As at Balance Sheet date, an assessment is made whether any indication exists that an asset has been
impaired. If any such indication exists, an impairment loss i.e. the “amount by which the carrying amount of an
asset exceed its recoverable amount is provided in the books of account."