Accounting Policies of Veena Textiles Ltd. Company

Mar 31, 2015

1 .BASIS OF ACCOUNTING:

The financial statements are prepared under historical cost convention and generally in accordance with the applicable accounting standards and are based on accrual basis of accounting except those mentioned elsewhere in the report.

2. FIXED ASSETS: Fixed Assets are stated at cost inclusive of all direct expenditure.

3. DEPRECIATION: Depreciation on fixed assets is charged over the estimated useful life of the fixed assets at the rates and in the manner prescribed Schedule II of the Companies Act 2013.

4. INVESTMENTS: Investments are stated at cost.

5. Inventories: The bought out items have been valued at cost adopting weighted average cost.

6.Impairment of Assets: The Company recognizes impairment of all assets other than assets which are specifically excluded under Accounting standard 28 on impairment of assets after comparing the asset's recoverable value with its carrying amount in the books.

7. Revenue Recognition: Sales are accounted net of trade discount.

8. Gratuity provision are made in the books based on actuarial valuation.

9. Bonus has been paid on calendar year basis.

10. Foreign Currency Transaction: All payments made in foreign currency are translated into rupee at the rates at which it is debited by the Bank. Exports sales are translated at the rate prevailing on the date of sale. Balances in form of Current Assets and Current Liabilities outstanding at the close of the year are converted in Indian currency at the appropriate rates of exchanger prevailing at the date of Balance sheet.

11. Contingent Liabilities and Provisions: All known liabilities of material nature have been provided for in the accounts except liabilities of contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard 29. As regard provisions it is only those obligations arising from past events existing independently of an enterprise's future action that are recognized as provisions.

12. Taxation: Deferred tax asset and liability is calculated by applying tax rate and tax law that have been enacted or substantially enacted by the Balance sheet date. Deferred tax asset arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognized only if there is a virtual certainty of its realization supported by convincing evidence.

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Mar 31, 2014

1. The Accounts are prepared on Historical Cost and on accrual basis except those mentioned elsewhere in the report.

2. FIXED ASSETS.

Fixed Assets are stated at cost inclusive of all direct expenditure.

3. DEPRECIATION

Depreciation has been provided as under :

a. For the assets purchased on or before 31.03.1993 written down value method and

b. For the assets purchased on or after 1.04.1993 straight line method : - at the rates specified in the schedule XIV of the Companies Act, 1956.

4. INVESTMENTS : Investment are stated at cost.

5. INVENTORIES :

The bought out items such as basic cloth for embroidery, dyes and chemicals, packing materials, stores, and yarn have been valued at cost adopting FIFO method. Semifinished and production excluding basic cloth portion have been valued at average cost.

6. SALES : Sales include trading and jobwork activities.

7. GRATUITY

Gratuity provision has been made in the books in respect of gratuity payable to employees based on actuarial valuation. Reconcilation of opening and closing balances of the present value of the defined benefit obligation.

Rs.

Obligation at period beginning 56,224

Service Cost -----

Interest on Defined benefit obligation -----

Benefits settled (expected) -----

Actuarial (gain) / Loss -----

Past Service Cost -----

Obligation at period end 56,224

8. BONUS

Bonus has been paid on calendar year basis.

9. FOREIGN CURRENCY TRANSLATION

All payments made in foreign currency are translated into rupees at the rate at which it is debited by the bank. Export sales are transtated at the rate prevalling on the date of sale. Balances in the form of Current Assets and Current Liabilities outstanding at the close of the year, are converted in Indian currency at the appropriate rates of exchange prevalling at the date of the Balance Sheet.

10. PUBLIC ISSUE AND RIGHTS ISSUE EXPENSES

This expenses is amortised over a period of Ten Years.

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Mar 31, 2013

1. The Accounts are prepared on Historical Cost and on accrual basis except those mentioned elsewhere in the report.

2. FIXED ASSETS.

Fixed Assets are stated at cost inclusive of all direct expenditure.

3. DEPRECIATION

Depreciation has been provided as under :

a. For the assets purchased on or before 31.03.1993 written down value method and

b. For the assets purchased on or after 1.04.1993 straight line method : - at the rates specified in the schedule XIV of the Companies Act, 1956.

4. INVESTMENTS : Investment are stated at cost.

5. INVENTORIES :

The bought out items such as basic cloth for embroidery, dyes and chemicals, packing materials, stores, and yarn have been valued at cost adopting FIFO method. Semifinished and production excluding basic cloth portion have been valued at average cost.

6. SALES : Sales include trading and jobwork activities.

7. GRATUITY

Gratuity provision has been made in the books in respect of gratuity payable to employees based on actuarial

valuation. Reconcilation of opening and closing balances of the present value of the defined benefit obligation.

- Obligation at period beginning 56,224

Service Cost Interest on Defined benefit obligation Benefits settled (expected) Actuarial (gain) / Loss Past Service Cost- Obligation at period end 56,224

8. BONUS

Bonus has been paid on calendar year basis.

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Mar 31, 2010

1. The Accounts are prepared on Historical Cost and on , accrual basis except those mentioned elsewhere in the report.

2. FIXED ASSETS.

fixed Assets are stated at cost inclusive of ali direct expenditure.

3. DEPRECIATION

Depreciation has been provided as under:

a. For the assets purchased on or before 31.03.1993 written down value method and

b. For the assets purchased on or after 1.0.4.1993 straight line method: at the fates-specified in the schedule XIV of the Companies Act, 1956.

&. INVESTMENTS: investment are stated at cost.

5. INVENTORIES :

The bought out Items such as basic cloth for embroidery. dyes and chemicals, packing materials, stores, and yarn have been valued at cost adopting FIFO method. Semifinished and production excluding basic cloth portion have been valued at average cost.

6. SALES: Sales include trading and lopwork activities.

7. GRATUITY

Gratuity provision has been made in the books in respect of gratuity payable to employees based on actuarial valuation. Reconcilation of opening and closing balances of the present value of the defined benefit obligation.

Rs.. Obligation at period beginning 33,329 Service Cost 8,032

Interest on Defined benefit obSgaiion 2,646 Benefits settled (expected --

Actuarial (gain) / Loss 12,197

Past Service Cost

Obligaiion at period end 56,224

8. BONUS

Bonus has been paid on calender year basis.

9 FOREIGN CURRENCY TRANSLATION

All payments made in foreign currency are translated into rupees at the rale at which it is debited by the bank. Export sates are translated a! the rate prevailing on the date of sale. Balances in the form of Current Assets and Current Liabilities outstanding at the close of the year, are converted in Indian currency at the appropriate rates of exchange prevailing at the date of the Balance Sheet.

10. PUBLIC ISSUE AND RIGHTS ISSUE EXPENSES

This expenses Is amortised over a period of Ten Years. Notes on accounts 1. Disclosure of related party transactions.

Names of related parties and description of relationship

1. Subsidiaries : none

2. Associates : none

3. Key management personnel (KMP)

ShriK.S. Elavarashen.CioiriTiancuTiMpHglngatiacior -

4. Enterprises with common key management personnel

K.5. Elavarashen (Ind) K.S. Elavarashen (Hut)

5. Enterprises in which key management Personnel and their relatives have Significant Influence

E. Pushpa (Ind) KPE Ravindran (Ind)

S. Mani (Ind)

Superfine Bleaching Company Ltd

6. Relatives of key managernenS personnel. S.Mani, Mother of K.S. Elavarashen

E. Pushpa, Wife of K.S. Elavarashen K.RE. Ravindran Son of K.S. Elavarashen