Trident Texofab Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

1. CORPORATE INFORMATION

1.1 Trident Texofab Limited is a Public Limited Company
incorporated in the year 2008. The Company is listed
on BSE LTD and is primarily engaged in the business of
manufacturing & Wholesale Trading of Textile Fabric
Cloth.

2. BASIS OF PREPARATION

2.1 Statement of Compliance

The financial statements as at and for year ended 31^st
March,2025 are prepared in accordance with Indian
Accounting Standards (Ind-AS) notified under section
133 of the companies Act, 2013 read with Rule 3 of the
Companies (Indian Accounting Standards) Rules, 2015 as
amended from time to time.

2.2 Basis of Measurement

The Financial Statements are prepared on a going
concern basis using historical cost convention and on an
accrual method of accounting,except in case of significant
uncertainities.

The standalone financial statements are presented in
Indian Rupees (INR) and all values are rounded to the
nearest lakhs, unless otherwise indicated.

2.3 Operating Cycle

An operating cycle is the time between the acquisition of
assets for processing and their realisation in cash or cash
equivalents. The Company has ascertained the operating
cycle as twelve months for the purpose of current or non¬
current classification of assets and liabilities.

2.4 Use of Estimates and Judgements

The preparation of the financial statements in conformity
with the Ind AS requires management to make judgments,
estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets,
liabilities and disclosures as at date of the financial
statements and the reported amounts of the revenues
and expenses for the year presented. The estimates
and associated assumptions are based on historical
experience and other factors that are considered to be
relevant. Actual results may differ from these estimates
under different assumptions and conditions. The estimates
and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision
and future periods if the revision affects both current and
future periods.

2.5 Property, Plant and Equipments

All items of property, plant and equipment are stated at
cost less depreciation and impairment, if any. Historical
cost includes expenditure that is directly attributable to
the acquisition of the items.

Subsequent costs are included in the asset’s carrying
amount or recognised as a separate asset, as appropriate,
only when 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. The carrying
amount of any component accounted for as a separate
asset is derecognised when replaced. All other repairs
and maintenance are charged to the Statement of Profit
and Loss during the reporting period in which they are
incurred.

Depreciation methods, estimated useful lives and
residual value

Depreciation is charged on the basis of Straight line
method.

The Company depreciates its property, plant and
equipment over the useful life in the manner prescribed
in Schedule II to the Act, and management believe that
useful life of assets are same as those prescribed in
Schedule II to the Act.

The residual values are not more than 5% of the original
cost of the asset. The assets residual values and useful
lives are reviewed, and adjusted if appropriate, at the end
of each reporting period.

Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These are
included in the Statement of Profit and Loss.

Capital work in progress and Capital advances

Cost of assets not ready for intended use, as on the
Balance Sheet date, is shown as capital work in progress.
Advances given towards acquisition of property, plant
and equipment outstanding at each Balance Sheet date
are disclosed in Other Non-Financial Assets.

2.6 Investment Properties

Property that is held for long-term rental yields or for
capital appreciation or both, and that is not occupied
by the Company, is classified as investment property.
Investment property is measured at its cost, including
related transaction costs and where applicable borrowing
costs less depreciation and impairment if any.

2.7 Lease

The Company has lease contracts for buildings or Land
which are used in its operations. The Company assesses
at contract inception whether a contract is, or contains, a
lease. That is, if the contract conveys the right to control
the use of an identified asset for a period of time in
exchange for consideration.

Company as lessor - Nil

Company as lessee

The Company applies a single recognition and
measurement approach for all leases, except for short¬
term leases and leases of low-value assets. The Company
recognises lease liabilities to make lease payments and
right-of-use assets representing the right to use the
underlying assets. Lease liability and ROU asset have
been separately presented in the Balance Sheet and
lease payments (including interest) have been classified
as financing cash flows.

Right-of-use assets

The Company recognises right-of-use assets at
commencement date taking into consideration the
remaining term of the lease period. Right-of-use assets are
measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any remeasurement
of lease liabilities.. Right-of-use assets are depreciated on
a straight-line basis over the lease term period. The right-
of-use assets are also subject to impairment.

Lease liabilities

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the Discount Rate
(Weighted Average Cost of Capital) in the lease or the
incremental borrowing rate, if that rate cannot be readily
available at the commencement date of the lease for the
estimated term of the obligation.

Lease payments included in the measurement of the lease
liability comprise the amounts expected to be payable
over the period of lease.

The lease liability is measured at amortised cost using
effective interest rate method. It is remeasured when
there is a change in future lease payments arising from
change in the index or rate.

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition
exemption to its short-term leases of Building (i.e., those
leases that have a lease term of 12 months or less from
the commencement date and do not contain a purchase
option). It also applies the lease of low-value assets
recognition exemption to leases of Godown, Shop etc that
are considered to be low value. Lease payments on short¬
term leases and leases of low-value assets are recognised
as expense in the Financial Statements.

2.8 Cash & Cash Equivalents

Cash and cash equivalent in the Balance sheet comprise
of cash at bank, cash in hand, other short term deposits
with banks with an original maturity of 12 months or less
and highly liquid investments, that are readily convertible
to known amount of cash and which are subject to
insignificant risk of changes in value and Bank overdraft.

For the purpose of statement of cash flow, cash and cash
equivalents consist of cash and short term bank deposits
etc., as defined above, net of outstanding bank overdrafts
since they are considered integral part of the Company’s
cash management.

2.9 Inventory

Inventories of Raw Materials, Work-in-Progress, Stores
and spares, Finished Goods and Stock-in-trade are stated
‘at cost or net realisable value, whichever is lower’. Goods-
in-Transit are stated ‘at cost’. Cost comprise all cost of
purchase, cost of conversion and other costs incurred
in bringing the inventories to their present location and
condition. Cost formulae used are ‘First-in-First-out’,
‘Weighted Average cost’ or ‘Specific identification’, as
applicable.

2.10 Provisions, Contingent Liabilty &
Contingent Assets

Provision is recognised when:

- The Company has a present obligation as a result of
a past event,

- A probable outflow of resources is expected to settle
the obligation and

- A reliable estimate of the amount of the obligation
can be made.

Reimbursement of the expenditure required to settle a
provision is recognised as per contract provisions or when
it is virtually certain that reimbursement will be received.

A contract in which the unavoidable costs of meeting
the obligations under the contract exceed the economic
benefits expected to be received under it are termed as
onerous contract and the present obligation under such
contracts is recognized and measured as a provision.

Provisions are reviewed at each Balance Sheet date.

Discounting of Provision

Provision recognised above which are expected to be
settled beyond 12 months are measured at the present
value by using pre-tax discount rate that reflects the risks
specific to the liability. The increase in the provision due
to the passage of time is recognised as interest expenses.

Contingent Liabilities and Contingent assets

Contingent liabilities are not recognised in the standalone
financial statements. Contingent liabilities are disclosed
when there is a possible obligation arising from past

events, the existence of which will be confirmed only
by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of
the Company or a present obligation that arises from
past events where it is either not probable that an outflow
of resources will be required to settle the obligation or a
reliable estimate of the amount cannot be made.

2.11 Taxation
Income Tax

Income tax comprises current and deferred tax. It is
recognised in Statement of Profit and 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.

Current Tax

Current tax comprises the expected tax payable on the
taxable income 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 after considering the
uncertainty, if any, related to income taxes. It is measured
using tax rates under the applicable tax laws.

Deferred Tax

Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes.

Deferred tax assets are recognised to the extent that it
is probable that future taxable profits will be available
against which they can be used.

2.12 Segment Reporting

The Company is primarily engaged in the business of
manufacturing of textile cloth. As such the Company’s
standalone financial statements are largely reflective of
the textile business and there is no separate reportable
segment. Pursuant to IND AS 108 - Operating Segments,
no segment disclosure has been made in these standalone
financial statements, as the Company has only one
geographical segment and no other separate reportable
business segment.

2.13 Earning Per Share

The Company presents basic and diluted earnings per
share (“EPS”) data for its equity shares. Basic EPS is
calculated by dividing the profit and loss attributable to
equity shareholders of the Company by the weighted
average number of paid up equity shares outstanding
during the period. Diluted EPS is determined by adjusting
the profit and loss attributable to equity shareholders
and the weighted average number of equity shares
outstanding for the effects of all dilutive potential equity
shares.

2.14 Fair Value Measurement

"Company measures financial instruments at fair value at
each reporting date. Fair value is the price that would be

received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the
measurement date. The fair value measurement is based
on the presumption that the transaction to sell the asset
or transfer the liability takes place either:

• in the principal market for the asset or liability, or

• In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must be
accessible to the Company. The fair value of an asset or
a liability is measured using the assumptions that market
participants would use when pricing the asset or liability,
assuming that market participants act in their economic
best interest. The Company uses valuation techniques
that are appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.

Assets and liabilities for which fair value is measured or
disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value
measurement as a whole:

Level 1: Quoted (unadjusted) market prices in active
markets for identical assets or liabilities

Level 2: Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is directly or indirectly observable

Level 3: Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is unobservable

For assets and liabilities that are recognized in the
financial statements on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorization
(based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each
reporting period.

At the reporting date, the Company analyses the
movements in the values of assets and liabilities which
are required to be re-measured or re-assessed as per
the accounting policies. For this analysis, the Company
verifies the major inputs applied in the latest valuation by
agreeing the information in the valuation computation to
contracts and other relevant documents.

The Company also compares the change in the fair value
of each asset and liability with relevant external sources
to determine whether the change is reasonable.

For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset
or liability and the level of the fair value hierarchy as
explained above.

2.15 Financial Instruments
1) Financial assets

A. Initial recognition and measurement

Financial assets are classified, at initial recognition, as
subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair
value through profit or loss.

The classification of financial assets at initial recognition
depends on the financial asset’s contractual cash flow
characteristics and the Company’s business model for
managing them. With the exception of trade receivables
that do not contain a significant financing component or
for which the Company has applied the practical expedient,
the Company initially measures a financial asset at its fair
value plus, in the case of a financial asset not at fair value
through profit or loss, transaction costs. Trade receivables
that do not contain a significant financing component or
for which the Company has applied the practical expedient
are measured at the transaction price determined under
Ind AS - 115.

In order for a financial asset to be classified and
measured at amortised cost or fair value through other
comprehensive income (OCI), it needs to give rise to
cash flows that are ‘solely payments of principal and
interest (SPPI)’ on the principal amount outstanding. This
assessment is referred to as the SPPI test and is performed
at an instrument level. Financial assets with cash flows
that are not SPPI are classified and measured at fair value
through profit or loss, irrespective of the business model.

The Company’s business model for managing financial
assets refers to how it manages its financial assets
in order to generate cash flows. The business model
determines whether cash flows will result from collecting
contractual cash flows, selling the financial assets, or both.
Financial assets classified and measured at amortised
cost are held within a business model with the objective to
hold financial assets in order to collect contractual cash
flows while financial assets classified and measured at
fair value through other comprehensive income are held
within a business model with the objective of both holding
to collect contractual cash flows and selling.

B. Subsequent measurement Financial Assets

Financial assets are classified in following categories:

i) At Amortised Cost

A financial asset shall be measured at amortised cost if
both of the following conditions are met:

a) The financial asset is held within a business model
whose objective is to hold financial assets in order to
collect contractual cash flows and

b) The contractual terms of the financial asset give
rise on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.

Financial assets measured at amortised cost using
effective interest rate method less impairment, if any.
The EIR amortisation is included in finance income in the
statement of profit and loss.

ii) At fair value through other comprehensive income
(FVTOCI)

A ‘debt instrument’ is classified as at the Fair value through
other comprehensive income if both of the following
criteria are met:

• The objective of the business model is achieved both
by collecting contractual cash flows and selling the
financial assets, and

• The asset’s contractual cash flows represent solely
payment of principal and interest (SPPI).

Debt instruments included within the FVTOCI category are
measured initially as well as at each reporting date at fair
value. Fair value movements are recognized in the other
comprehensive income (OCI). However, the Company
recognizes interest income, impairment losses & reversals
and foreign exchange gain or loss in the P&L. On de¬
recognition of the asset, cumulative gain or loss previously
recognised in OCI is reclassified from the equity to P&L.
Interest earned is recognised using the EIR method.

iii) At Fair value through Profit & Loss (FVTPL)

FVTPL is a residual category for financial Assets. Any
financial assets, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is
classified as at FVTPL.

The Company has designated the financial asset as
at FVTPL except certain assets which is taken at either
amortisation cost or at Transaction cost where sufficient
information are not availavle for measurement and cost
represent the best estimate of fair value.Financial assets
included within the FVTPL category are measured at fair
value with all changes recognized in the Statement of P&L.

Equity Investments: All equity investments in scope of Ind
AS - 109 are measured at fair value except some investment
which are made in other body corporate(LLP) is taken
at cost as sufficient more information is not available to
measure fair value and cost represents the best estimate
of fair value. The Company makes such election on an
instrument-by-instrument basis. The classification is
made on initial recognition and is irrevocable.

C. De-recognition
Financial Asset

A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is derecognized only when the contractual rights
to the cash flows from the asset expires or it transfers the
financial assets and substantially all risks and rewards of
the ownership of the asset.

D. Impairment of financial assets:

Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss. The
Company follows ‘simplified approach'' for recognition
of impairment loss allowance on trade receivable or
loans. Company assesses on a forward looking basis the
expected credit losses associated with its assets carried at
amortised cost and FVTPL. The impairment methodology
applies on whether there has been significant increase in
credit risk.

ECL impairment loss allowance (or reversal) recognised
during the period is recognised as income/expense in the
statement of profit and loss.

2) Finacial Liabilities

A. Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as
financial liabilities at fair value through profit or loss, loans
and borrowings, or as payables, as appropriate.

All financial liabilities are recognised initially at fair value
and, in the case of financial liability not recognised
at FVTPL, transaction cost that are attributable to
the acquisition of financial liability. The subsequent
measurement of financial liabilities depends on their
classification, which is described below

B. Subsequent measurement Financial Assets

i) Financial liabilities at Amortised Cost

Financial liabilities at amortised cost represented by
trade and other payables, security deposits and Loans
etc are initially recognized at fair value, and subsequently
carried at amortized cost using the effective interest
rate method. Under the effective interest method, the
future cash payments are exactly discounted to the
initial recognition value using the effective interest rate.
The cumulative amortization using the effective interest
method of the difference between the initial recognition
amount and the maturity amount is added to the
initial recognition value (net of principal repayments,
if any) of the financial liability over the relevant period
of the financial liability to arrive at the amortized cost
at each reporting date. The corresponding effect of
the amortization under effective interest method is
recognized as interest expense over the relevant period
of the financial liability. The same is included under
finance cost in the Statement of Profit and Loss.

ii) Financial liabilities at FVTPL

The Company has not designated any financial liabilities
at FVTPL.

C. De-recognition

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms,
or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as
a derecognition of the original liability and the recognition

of a new liability, and the difference in the respective
carrying amounts is recognised in the statement of Profit
& Loss.

2.16 Material events occurring after the Balance Sheet
date are taken into cognizance.

2.17 Critical estimates and judgements in
applying accounting policies

The management believes that the estimates used in
preparation of the financial statements are prudent and
reasonable. Information about estimates and judgements
made in applying accounting policies that have the
most significant effect on the amounts recognized in the
financial statements are as follows:

(i) Fair valuation measurement and valuation
process

The fair values of financial assets and financial liabilities
are measured using the valuation techniques including DCF
model, Market Approach. The inputs to these methods are
taken from observable markets where possible, but where
this it is not feasible, a degree of judgement is required in
arriving at fair values. Judgements include considerations
of inputs such as liquidity risk, credit risk and volatility.
Changes in assumptions about these factors could affect
the reported fair value of financial instruments.

---

Mar 31, 2024

Significant Accounting Polices

1. CORPORATE INFORMATION

1.1 Trident Texofab Limited is a Public Limited Company incorporated in the year 2008. The Company is listed on BSE LTD and is primarily engaged in the business of manufacturing & Wholesale Trading of Textile Fabric Cloth.

2. BASIS OF PREPARATION

2.1 Statement of Compliance

The financial statements as at and for year ended 31^st March, 2024 are prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time.

2.2 Basis of Measurement

The Financial Statements are prepared on a going concern basis using historical cost convention and on an accrual method of accounting,except in case of significant uncertainities

The standalone financial statements are presented in Indian Rupees (INR) and all values are rounded to the nearest lakhs, unless otherwise indicated

2.3 Operating Cycle

An operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The Company has ascertained the operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities.

2.4 Use of Estimates and Judgements

The preparation of the financial statements in conformity with the Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and disclosures as at date of the financial statements and the reported amounts of the revenues and expenses for the year presented. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates under different assumptions and conditions. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

2.5 Property, Plant and Equipments

All items of property, plant and equipment are stated at cost less depreciation and impairment, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when 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. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are incurred.

Depreciation methods, estimated useful lives and residual value

Depreciation is charged on the basis of Straight line method.

The Company depreciates its property, plant and equipment over the useful life in the manner prescribed in Schedule II to the Act, and management believe that useful life of assets are same as those prescribed in Schedule II to the Act.

The residual values are not more than 5% of the original cost of the asset. The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

Capital work-in-progress and Capital advances

Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as capital work in progress. Advances given towards acquisition of property, plant and equipment outstanding at each Balance Sheet date are disclosed in Other Non-Financial Assets

2.6 Investment Properties

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured at its cost, including related transaction costs and where applicable borrowing costs less depreciation and impairment if any.

2.7 Lease

The Company has lease contracts for buildings or Land which are used in its operations. The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as lessor: Nil

Company as lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. Lease liability and ROU asset have been separately presented in the Balance Sheet and lease

payments (including interest) have been classified as financing cash flows.

Right-of-use assets

The Company recognises right-of-use assets at commencement date taking into consideration the remaining term of the lease period. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities.. Right-of-use assets are depreciated on a straight-line basis over the lease term period. The right-of-use assets are also subject to impairment.

Lease liabilities

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Discount Rate (Weighted Average Cost of Capital) in the lease or the incremental borrowing rate, if that rate cannot be readily available at the commencement date of the lease for the estimated term of the obligation.

Lease payments included in the measurement of the lease liability comprise the amounts expected to be payable over the period of lease.

The lease liability is measured at amortised cost using effective interest rate method. It is remeasured when there is a change in future lease payments arising from change in the index or rate.

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases of Building (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of Godown, Shop etc that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense in the Financial Statements.

2.8 Cash & Cash Equivalents

Cash and cash equivalent in the Balance sheet comprise of cash at bank, cash in hand, other short term deposits with banks with an original maturity of 12 months or less and highly liquid investments, that are readily convertible to known amount of cash and which are subject to insignificant risk of changes in value and Bank overdraft.

For the purpose of statement of cash flow, cash and cash equivalents consist of cash and short term bank deposits etc., as defined above, net of outstanding bank overdrafts since they are considered integral part of the Company''s cash management.

2.9 Inventory

Inventories of Raw Materials, Work-in-Progress, Stores and spares, Finished Goods and Stock-in-trade are stated ''at cost or net realisable value, whichever is lower'' Goods-in-Transit are stated ''at cost.'' Cost comprise all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost formulae used

are ''First-in-First-out, ''Weighted Average cost'' or ''Specific identification,'' as applicable.

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Mar 31, 2018

TRIDENT TEXOFAB LIMITED

(a) Basis of preparation of Financial Statements:

(i) The financial statements of the Company have been prepared in accordance with the Generally Accepted

Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions thereof. The financial statements have been prepared on accrual basis under historical cost convention and going concern basis. The accounting policies adopted in the preparation of financial statements are consistent with those followed in previous year.

(ii) Due to change in accounting policy from inclusive method as provided in Section MSA of Income Tax Act, 1961 consistently followed by the company, now due to implementation of Goods and Service Tax (GST) provisions and change in accounting policy as recommended and guidance notes for the said issued by the Institute of Chartered Accountants of India, the company has followed exclusive method of accounting. The net effect is increase in profit as per profit and loss account and increase in reserves as per balance sheet is Rs. 5,65,357 of the company.

(iii) The co has accounted for public issue expenses as deferred revenue expenditure to be written off over a period of 5 years.

(b) Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

(c) Fixed assets:

Fixed Assets are stated at cost (or revalued amounts, as the case may be) less accumulated depreciation and impairment losses, if any. Cost comprises of purchase price inclusive of duties (net of Cenvat), taxes, incidental expenses, erection / commissioning expenses, etc. up to the date the asset is ready for its intended use. In case of revaluation of fixed assets, the original cost as written up by the valuer, is considered in the accounts and the differential amount is transferred to revaluation reserve.

(d) Depreciation:

(i) Depreciation on Fixed Assets is calculated on Straight Line Method basis presume rates arrived at based on useful life estimated and stipulated on Schedule - II of The Companies Act, 2013.

(ii) Depreciation on Fixed Assets added / disposed off during the year is provide on prorate basis with reference to number of days of addition / usage during the year,

(iii) Depreciation on Fixed Assets naming New InkJet Printer and Digital Printer is not provided as the said asset was not yet ready for put to use as on the balance sheet date,

(iv) Intangible Assets in the form of Software which are an integral part of Computer Systems are amortized at the same rate as that of Computer Systems.

(e) Revenue Recognition:

Sd/-	Sd/-	Sd/-	Sd/-	Sd/-
Bipinchandra J. Modi	Hardik Desai	Chetan Jariwala	Mehul Amareliya	Jenish Jariwala
(Partner)	(Managing Director)	(Whole Time Director)	(Company Secretary)	(Chief Financial Officer)
M. No.031687	DIN: 01358227	DIN: 02780455	M. No. A54306
Place: Surat	Surat	Surat	Surat	Surat
Date: 28/05/2018	Date: 28/05/2018	Date: 28/05/2018	Date: 28/05/2018	Date: 28/05/2018

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

(i) Revenue from Sales is recognized, net of returns and trade discounts, on transfer/passage of title to the customers, in accordance with the Sale of Goods Act, 1930.

(ii) The company collects Goods and Service Tax (GST) on beheld of the Government and therefore, these are not economic benefits flowing to the Company. Hence they are excluded from Revenue.

(f) Inventories:

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition. Cost of trading and other products are determined on cost. Cost is determined based on First in First out (FIFO) basis.

(g) Taxation:

(i) Tax expense comprises of current and deferred tax.

(ii) Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the

Indian Income Tax Act.

(iii) In accordance with the Accounting Standard - 22 - Accounting for Taxes on Income, prescribed under the

Companies Accounting Standards Rules, 2006, the deferred tax for timing differences between the book and tax profits for the year is accounted for by using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty that the assets can be realized in future.

(h) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Statement of Profit and Loss.

(i) Investments:

Investments that are readily realizable and intended to be held for not more than a year, from the date on which such investments are made, are classified as current investments. All other investments are classified as Long-Term Investments. Current Investments are stated at lower of cost or fair value on individual investment basis. Long Term Investments are considered at cost, unless there is other than temporary decline in value thereof, in which case adequate provision is made for diminution in the value of Investments.

(j) Provisions, Contingent Liabilities and Contingent Assets:

(i) A provision is recognized when the Company has a present obligation as a result of past event and it is

probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

(ii) A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non - occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. The Company does not recognize a contingent liability but disclose its existence in the financial statements.

(iii) The Company is contingently liable for Rs. 39,01,996, for suit filed by a supplier against the Company. The Company has received expert legal opinion that the Company will not be liable for the said amount considering the evidences filed by both the parties before the appropriate court.

(k) Retirement and Other Employee Benefits:

None of the employees are entitled to gratuity/ pension or such other benefits, therefore no provision is made. (I) Earnings Per Share:

(i) Earnings per share is calculated by dividing the net profit or loss for the year attributable to equity share

holders by the weighted average number of equity shares outstanding during the period.

(ii) For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(m) Related Party Transactions:

Disclosure of transactions with Related Parties, as required by Accounting Standard 18 "Related Party Disclosures" has been set out in a separate note forming part of this schedule. Related Parties as defined under clause 3 of the Accounting Standard 18 have been indentified on the basis of representation made by key managerial personnel and information available with the company.

(n) Cash and Cash Equivalents:

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances ( with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

(o) Segment Accounting:

In accordance with Accounting Standard 17" Segment Reporting" as prescribed under Companies ( Accounting Standards ) Rules, 2006 (as amended), the company has determined its business segment as Textile Trading and Merchant Manufacturing. Since, there are no other business segments in which the company operates, there are no other primary reportable segments. Therefore, the segment revenue, results, segment assets, segment liabilities, total cost incurred to acquire segment assets, depreciation charge are all as reflected in the financial statements.