Accounting Policies of Filatex Fashions Ltd. Company

Mar 31, 2023

Significant accounting policies

2.1. Statement of Compliance

These financial statements are prepared in accordance with Indian Accounting Standard (Ind AS), and the provisions of
the Companies Act, 2013 (''the Act¹) (to the extent notified) The Ind AS are prescribed under Section 133 of the Act read
with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

2.2. Basis of preparation

These financial statements have been prepared under the historical cost basis and on the accrual basis except for certain
financial instruments that are measured at fair value in accordance with Ind AS and certain items of property plant and
equipment that were revalued in earlier years in accordance with the previous GAAP principles and the provisions of the
Companies Act, 2013 (''Act'') (to the extent notified). The Ind AS are prescribed under Section 133 of the Act read with
Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards)
Amendment Rules, 2016. Historical cost is generally based on the fair value of the consideration given in exchange for
goods and services

2.3. Presentation of financial statements

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the
Schedule III to the Companies Act, 2013 (“the Act”). The statement of cash flows has been prepared and presented as per
the requirements of Ind AS 7 “Statement of Cash flows”. The disclosure requirements with respect to items in the
Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of
notes fonning part of the financial statements along with the other notes required to be disclosed under the notified
Indian Accounting Standards.

2.4. Cash flow statement:

Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow
from operating activities is reported using indirect method under the indirect method, the net profit/(loss) is adjusted for
the effects of:

2.4.1. Changes during the period in inventories and operating receivables and payables and transactions of a non -Cash
nature.

2.4.2. Non-cash items such as depreciation, provisions, unrealized foreign currency gains and losses, and undistributed
profits of associates; and

2.4.3. All other items for which the cash effects are investing or financing cash flows.

2.4.4. The cash flows from operating, investing and financing activities of the Company is segregated based on the
available information. Cash and cash equivalents (including bank balances) are reflected as such in the Cash Flow
Statement.

2.5. Use of Accounting Estimates:

The preparation of the financial statements requires that the management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements
and the results of operation during the reported period. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ from these estimates which are recognised in the
period in which they are determined.

2.6. Property, Plant and Equipment:

Property, Plant and Equipment are stated at cost of acquisition including applicable duties and taxes, any directly
attributable expenditure on making the asset ready for its intended use, attributable interest and finance costs, if any, till
the date of acquisition/ installation of the assets less accumulated depreciation and impairment losses, if any. Subsequent
expenditure relating to Property, Plant and Equipment is capitalized 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. An item of property,
plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the
continued use of the asset.

2.7. Intangible Assets:

Identifiable intangible assets are recognised when the Comp any controls the asset, it is probable that future economic
benefits attributed to the asset will flow to the Company and the cost of the asset can be reliably measured. Intangible
assets are stated at cost, less accumulated amortization and accumulated impairment losses, if any. The estimated useful
life and amortization method reviewed at the end of each reporting period, with the effect of any changes in estimate
being accounted for on a prospective basis.

2.8. Depreciation/ Amortization:

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost less its estimated residual value.
Depreciation on Property, Plant and equipment has been provided on Straight -Line method in accordance with the
Schedule II of the Companies Act, 2013, based on the useful life estimated on the technical assessment as in force and
proportionate depreciation are charged for additions/deletions during the year. In respect of additions / deletions to the
fixed assets / leasehold improvements, depreciation is charged from the date the asset is ready to use / up to the date of
deletion. The asset''s useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period.

2.9. Financial instruments:

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions
of file instrument. Financial assets and financial liabilities are initially measured at transaction values and where such
values are different from the fair value, at fair value. Transaction costs that are directly attributable to the acquisition or
issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through
profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on
initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately in profit or loss.

2.9.1. Financial Assets

Financial assets are recognised when the Company becomes a party to the contractual provisions of file instruments.
Financial assets other than trade receivables are initially recognised at fair value plus transaction costs for all financial
assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss is initially
recognised at fair value, and transaction costs are expensed in the Statement of Profit and Loss.

Subsequent Measurement

For purposes of subsequent measurement, financial assets are classified in following categories.

2.9.1.1. Financial Assets at Amortized Cost

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to
hold the asset in order to collect contractual cash flows and 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.

2.9.1.2. Financial Assets Measured at Fair Value

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a
business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and 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. Further, in case where the company has made an irrevocable selection
based on its business model, for its investments which are classified as equity instruments, the subsequent changes in
fair value are recognized in other comprehensive income. In any other case, financial asset is fair valued through profit
and loss.

2.9.1.3. Impairment of Financial Assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are
not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is
measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an
amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in
which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to
adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognized as an
impairment gain or loss in statement of profit or loss.

2.9.1.4 De-recognition of Financial Assets

The Company de-recognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or
it transfers the financial asset and substantially all risks and rewards of ownership of the asset to another entity. If the
Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the
transferred asset, the Company recognizes its retained interest in the assets and an associated liability for amounts it may
have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset,
the Company continues to recognise the financial asset and also recognizes a collateralized borrowing for the proceeds
received.

2.9.2. Equity Instruments and Financial Liabilities

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

2.9.2.1 Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after
deducting all of its liabilities. Equity instruments which are issued for cash are recorded at the proceeds
received, net of direct issue costs. Equity instruments which are issued for consideration other than cash are
recorded at fair value of the equity instrument.

2.9.2.2. Financial Liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at FVPL, loans and borrowings and
payables as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs.

292.2.31.Subsequent Measurement

Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other
payables maturing within one year from the balance sheet date, the carrying amounts approximate Hie fair value due to
the short maturity of these instruments.

2.9.2.4.De-recognition of Financial Liabilities

Financial liabilities are de -recognised when the obligation specified in the contract is discharged, cancelled or expired.
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 de-recognition of
the original liability and recognition of a new liability. The difference in the respective carrying amounts is recognized in
the Statement of Profit and Loss.

2.10. Investment property

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under
construction for such purposes). Investment properties are measured initially at cost, including transaction costs.
Subsequent to initial recognition, investment properties are measured in accordance with the Ind AS16''s requirement for
cost model.

An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from
use and no further economic benefits expected from disposal. Any gain or loss arising on de-recognition of the property
is included in profit or loss in the period in which the property is derecognized.

The company does not have any Investment properties.

2.11. Inventories:

2.11.1. Raw Materials:

Raw Materials, construction materials and stores & spares are valued at weighted average cost or under. Cost includes all
charges in bringing the materials to the place of usage, excluding refundable duties and taxes.

2.11.2. Work in Progress:

Work-in-Progress is valued at the contracted rates less profit margin/estimates.

2.12. Cash and cash equivalent:

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and demand deposits with an original
maturity of three months or less and highly liquid investments that are readily convertible into known amounts of cash
and which are subject to an insignificant risk of changes in value net of outstanding bank overdrafts as they are
considered an integral part of the company''s cash management.

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Mar 31, 2015

3.1 Ues of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialised.

3.2 Inventories

Raw Materials & Work-In-Progress are valued at cost and Finished Goods are valued at lower of the cost or net realisable value.

3.3 Depreciation and amortisation

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule 11, except in respect of certain assets.

3.4 Revenue recognition

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer. This coincides with the passing of possession to the buyer.

3.5 Expenditure

Expenses are accounted on accrual basis and provision is made for all known and liabilities.

3.6 Tangible fixed assets .

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date.. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase inthe future benefits from such asset beyond its previously assessed standard of performance. Fixed assets acquired and put to use for project purpose are capitalised and depreciation thereon is included in the project cost till commissioning of the project.

Fixed assets acquired in full or part exchange for another asset are recorded at the fair market value or the net book value of the asset given up, adjusted for any balancing cash consideration. Fair market value is determined either for the assets acquired or asset given up, whichever is more clearly evident. Fixed assets acquired in exchange for securities of the Company are recorded at the fair market value of the assets or the fair market value of the securities issued, whichever is more clearly evident.

Capital work-in-progress:

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and interest.

3.7 Foreign Exchange Transaction:

All the Foreign Exchange transactions entered into during the current financial year are accounted at the exchange rate prevailing on the date of documentation/invoicing. Foreign Exchange Fluctuation on transactions entered into during the current financial year and receivedlpaid during the year are accounted in the current financial year. ,The outstanding foreign currency debtors are restated at the Foreign Currency Rate; prevailing at the end of the year and thk Foreign Exchange Fluctuation on the same is also recognised at the enc of the year in conformity with the revised Accounting Standard 11 and foreign currency debtors which arc doubtful at the end of the year are not restated at the foreign currency rates prevailing at the end of the year.

3.8 Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to constructidn / development of the qualifying asset upto the date o capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspende. and charged to the Statement of Profit and Loss during extended periods when active development activity oi the qualifying assets is interrupted.

3.9 Earnings per share

Basic earnings per suare is computed by dividing the profit / (Loss) after tax (Intuiting the post tax effect or extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per Share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at-a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and

3.10 Taxes on income

Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and Loss.

3.11 Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the geater of thenet selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present vaiue based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and toss, except in case of revalued assets.

3.12 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events 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. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the'best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

3.13 Dividends

Provision shall b& made in the accounts for the dividends payable by the company as and when recommended by the Board of Directors, pending approval of the share holders at the Annual General Meeting.

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Mar 31, 2010

1. BASIS OF ACCOUNTING:

The Financial statements are prepared under Historical costs convention on actual method of accounting and are in accordance with the requirements of the Companies Act, 1956.

2. FIXED ASSETS:

To state Fixed Assets at cost of acquisition inclusive of inward freight duties, taxes and incidental expenses related to acquisition.

3 VALUATION OF INVENTORY:

Raw Material at cost, Finished Goods are valued at Cost or Market value which ever is lower.

4. DEPRECIATION:

The Depreciation is calculated on SLM method under Schedule xiv of the Companies Act, 1956

5. RECOGNITION OF INCOME & EXPENDITURE:

Revenues/Incomes and Costs/Expenditures are generally accounted on the basis of as they are earned or incurred.

6. EMPLOYEE BENEFITS:

The company is covering PF & ESI and they are regular in Deposting into respective Accounts. The gratuity is no providing in the accounts.

7. CONTINGENT LIABILITY:

During the year the company is not having any contingent Liabilities.