Super Fine Knitters Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2024

C) Significant Accounting Policies:

i) Fixed Assets

Fixed Assets are stated at cost of acquisition and subsequent improvement thereto including taxes, duties,
freight and other incidental expenses related to acquisition and installation. Appreciation for acquisition of fixed
assets, if any is added to the respective asset.

ii) Depreciation

Depreciation is provided on Straight -Line Method at the rate and in the manner prescribed in schedule II of
the Companies Act, 2013.

iii) Inventories

The method of determining inventories is on FIFO basis. The basis of determining cost for various categories
of inventories is as follows:

1) Raw Material At Cost

2) Finished Goods At cost or Net realizable value whichever is lower

3) Work in Progress At cost or Net realizable value whichever is lower

4) Store & Spares At Cost

iv) Revenue Recognition

a) Sale of Goods on Mercantile Basis.

b) Job Work/ Labour Earned is charged only when the finished goods are dispatched to the customers.

c) Foreign Currency fluctuations are recognized to revenue at the time of actual realization subject to AS -11

d) VAT/GST refunds/ Liabilities are accounted for on the basis of VAT/GST returns filed by the company.

Additional liability/Refund if any arises at time of assessment or filing the claim with respective
Departments.

v) Retirement Benefits

Retirement benefits in the form of Provident Fund, Family Pension Scheme and Contribution to ESIC are
accounted for on accrual basis and charged to Profit & Loss Account and Provision for Gratuity is not provided
in the books as required by AS- 15.

vi) Foreign Exchange Transactions

The export sales transactions are accounted for at the rates prevailing at the time of execution of documents
with the bank and Import of stores & spares and capital goods are accounted for on the basis of actual
payments made by bank. Foreign currency liabilities are being accounted for on the basis of the date of
transactions.

vii) Insurance claims are being accounted for on receipt basis.

Other Notes

a) In the opinion of the Board of Directors, Current Assets Loans & Advances have the value at which these are
stated in the Balance Sheet, if realized in the ordinary course of business.

b) Debit and Credit Balances are subject to confirmation & reconciliation, if any.

c) The provision of the Income Tax has been made as per the Income Tax Act 1961.

d) During the year company has identified the status of suppliers under the Micro, Small and Medium Enterprises
Development Act, 2006, company has not provided interest on delayed/ overdue amount payable to MSME
suppliers as per MSME development act, 2006.

e) Consequent to the issuance of AS-22 “ Accounting for Taxes on Income” by the Institute of Chartered
Accountants of India, the Company has recognized Deferred tax, Subject to the Consideration of prudence, on
timing differences, being the difference between taxable incomes and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.

k) The provision for Bonus amounting to Rs. 207788/- has been recognized on mercantile basis for the years
ending 2024.

l) Figures of the previous year have been reworked, regrouped, rearranged and reclassified wherever
necessary, to make them comparable with the current year figure.

m) As the Company operates only in one segment i.e. Knitted Cloth and Garment , as primary business segment,
the disclosure requirement of Accounting Standard ( AS-17) on “Segment Reporting” issued by The Institute of
Chartered Accountants of India are not Applicable

n) Related Party Disclosure ( AS-18)

a. Related parties where control exists or with whom transactions have taken place during the year, as informed
by the Managing Director of the Company.

As per our report of even date
FOR R.K. Deepak & Co.

Firm Reg. No.003145N For and on Beh alf of Board

Chartered Accountants

(CA Sanjiv Khurana)

Partner ( Ajit Kumar Lakra ) ( Vivek Lakra )

M.No. 082873 Managing Director Whole Time Director

DIN 01067195 DIN 01067219

Date: 04-09-2024

Place: Ludhiana (Davinder Pal Singh) ( Samridhi Seth )

Chief Financial Officer Company Secretary