Accounting Policies of Swaraj Suiting Ltd. Company

Mar 31, 2025

1. ACCOUNTING CONVENTIONS

The financial statements are prepared on historical cost convention and on the accounting principles of going concern, in accordance with
Generally Accepted Accounting Principles (''GAAP''), comprising of the mandatory Accounting Standards, Guidance Notes, etc. issued by
the Institute of Chartered Accountants of India and the provisions of the Companies Act, 2013, on accrual basis, as adopted consistently
by the company.

2. USE OF ESTIMATE

In preparation of the financial statement in confirmatory with Generally Accepted Accounting Principle in India, management is required
to make estimate & assumptions that affect the reported amount of assets & liability and the disclosure of contingent liabilities as at the
financial reporting date. The amount of revenue & expenditure during the reported period and that of actual result could be different
from those estimates. Any revision to such estimate is recognized in the period in which the same is determined.

3. REVENUE RECOGNITION

(A) Sales revenue is recognized when property in the goods with all significant risk and rewards as well as the effective control of
goods usually associated with ownership are transferred to the buyer.

(B) Promotional benefits, export incentives and export growth incentives are accounted for on accrual basis when virtual certainty and
their probable use within reasonable time in the normal course of business, is established.

(C) Claims and refunds due from government authorities and parties, though receivable refundable are not recognized in the accounts,
if the amount thereof is not ascertainable. These are accounted for as and when ascertained or admitted by the concerned
authorities / parties in favor of the company.

4. PROPERTY, PLANT AND EQUIPMENT

(A) Property, Plant And Equipment are stated at their original cost of acquisition including freight, incidental expenses and other
nonrefundable taxes or levies related to acquisition and installation of the concerned assets, interest on borrowed funds attributable
to acquisition/construction of fixed assets and related pre-operative expenses up to the date of commencement of commercial
production are also capitalized wherever appropriate. GST Input Claim has been deducted from the cost of respective assets. Any
subsidy receivables from government are deducted from cost of capital asset at the time of capitalization of the asset.

(B) Expenditure incurred on acquisition of intangibles is accounted for as intangible assets on completion, being identifiable non¬
monetary assets without physical substance, at the acquisition cost, in accordance with AS-26 on intangible assets.

5. DEPRECIATION & AMORTISATION

(A) Depreciation has been provided on the Straight-line-method over the useful lives of assets estimated by the management.
Depreciation for assets purchased/ Sold during a period is proportionately charged. In most of the casesUseful lives of assets
are taken as prescribed by the schedule II of the companies act except where certificate of any technical expert regarding higher
useful life is taken by the management. In current year Life of newly installed Machines are taken as 12.5 Years based on technical
evaluation and certificate of technical expert.

(B) Depreciation on plant & Machinery is charged considering the same ''Continuous Process Plant'' based on technical expert’s advice.

(C) Residual value of the assets is determined at the rate of 5% of original cost.

6. PRE-OPERATIVE EXPENSES

Trial run costs and other pre-operative expenses incurred during construction / implementation period, including interest on borrowings
(Net of subsidy) to finance qualifying assets as per AS-16, are capitalized up to the date of commissioning of the respective asset.

7. TAXATION

(A) . Current Tax: Provision for taxation is ascertained after considering Section 115BAA , The section 115BAA was introduced by the

Government of India through the Taxation (Amendment) Ordinance 2019 on the 20th of September 2019

(B) . Deferred Tax: Deferred tax is recognized, as the tax effect of timing difference between the taxable income and accounting income

computed for the current accounting years'' timing differences, subject to the consideration of prudence. Deferred tax assets are
recognized and carried forward to the extent that there is a reasonable certainty, except arising from unabsorbed depreciation
and carry forward losses which are recognized to the extent that there is deferred tax liabilities or there is virtual certainty, that
sufficient future taxable income will be available against which such deferred tax assets can be realized.

8. INVESTMENT

Investments are stated at cost.

9. VALUATION OF INVENTORY

(A) Inventories are valued at cost and net realizable value whichever is lower.

(B) Cost is determined on FIFO/Weighted average method.

(C) The cost of inventories comprises all cost of purchase, cost of conversion, and other costs incurred in bringing the inventories to
their present location and condition.

(D) Merchandise received under consignment and concessionaire arrangements belong to the consignors/concessionaires and are
therefore excluded from the Company''s inventories

(E) All other inventories of stores, consumables are valued at cost

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Mar 31, 2024

NOTE 28: SIGNIFICANT ACCOUNTING POLICIES

1. ACCOUNTING CONVENTIONS

The financial statements are prepared on historical cost convention and on the accounting principles of going concern, in accordance with Generally Accepted Accounting Principles (‘GAAP’), comprising of the mandatory Accounting Standards, Guidance Notes, etc. issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 2013, on accrual basis, as adopted consistently by the company.

2. USE OF ESTIMATE

In preparation of the financial statement in confirmatory with Generally Accepted Accounting Principle in India, management is required to make estimate & assumptions that affect the reported amount of assets & liability and the disclosure of contingent liabilities as at the financial reporting date. The amount of revenue & expenditure during the reported period and that of actual result could be different from those estimates. Any revision to such estimate is recognized in the period in which the same is determined.

3. REVENUE RECOGNITION

(A) Sales revenue is recognized when property in the goods with all significant risk and rewards as well as the effective control of goods usually associated with ownership are transferred to the buyer.

(B) Promotional benefits, export incentives and export growth incentives are accounted for on accrual basis when virtual certainty and their probable use within reasonable time in the normal course of business, is established.

(C) Claims and refunds due from government authorities and parties, though receivable refundable are not recognized in the accounts, if the amount thereof is not ascertainable. These are accounted for as and when ascertained or admitted by the concerned authorities / parties in favor of the company.

4. PROPERTY, PLANT AND EQUIPMENT

(A) Property, Plant And Equipment are stated at their original cost of acquisition including freight, incidental expenses and other nonrefundable taxes or levies related to acquisition and installation of the concerned assets, interest on borrowed funds attributable to acquisition/construction of fixed assets and related pre-operative expenses up to the date of commencement of commercial production are also capitalized wherever appropriate. GST Input Claim has been deducted from the cost of respective assets. Any subsidy receivables from government are deducted from cost of capital asset at the time of capitalization of the asset.

(B) Expenditure incurred on acquisition of intangibles is accounted for as intangible assets on completion, being identifiable non-monetary assets without physical substance, at the acquisition cost, in accordance with AS-26 on intangible assets.

5. DEPRECIATION & AMORTISATION

(A) Depreciation has been provided on the Straight-line-method over the useful lives of assets estimated by the management. Depreciation for assets purchased/ Sold during a period is proportionately charged. In most of the cases Useful lives of assets are taken as prescribed by the schedule II of the companies act except where certificate of any technical expert regarding higher useful life is taken by the management. In current year Life of newly installed Machines are taken as 12.5 Years based on technical evaluation and certificate of technical expert.

(B) Depreciation on plant & Machinery is charged considering the same ‘Continuous Process Plant’ based on technical expert’s advice.

(C) Residual value of the assets is determined at the rate of 5% of original cost

6. PRE-OPERATIVE EXPENSES

Trial run costs and other pre-operative expenses incurred during construction / implementation period, including interest on borrowings (Net of subsidy) to finance qualifying assets as per AS-16, are capitalized up to the date of commissioning of the respective asset.

7. TAXATION

(A) . Current Tax: Provision for taxation is ascertained after

considering Section 115BAA , The section 115BAA was introduced by the Government of India through the Taxation (Amendment) Ordinance 2019 on the 20th of September 2019

(B) . Deferred Tax: Deferred tax is recognized, as the tax

effect of timing difference between the taxable income and accounting income computed for the current accounting years’ timing differences, subject to the consideration of prudence. Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty, except arising from unabsorbed depreciation and carry forward losses which are recognized to the extent that there is deferred tax liabilities or there is virtual certainty, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

8. INVESTMENT

Investments are stated at cost.

9. VALUATION OF INVENTORY

(A) Inventories are valued at cost and net realizable value whichever is lower.

(B) Cost is determined on FIFO/Weighted average method.

(C) The cost of inventories comprises all cost of purchase, cost of conversion, and other costs incurred in bringing the inventories to their present location and condition.

(D) Merchandise received under consignment and concessionaire arrangements belong to the consignors/concessionaires and are therefore excluded from the Company’s inventories

(E) All other inventories of stores, consumables are valued at cost

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Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

1. ACCOUNTING CONVENTIONS

The financial statements are prepared on historical cost convention and on the accounting principles of going concern,
in accordance with Generally Accepted Accounting Principles (‘GAAP’), comprising of the mandatory Accounting
Standards, Guidance Notes, etc. issued by the Institute of Chartered Accountants of India and the provisions of the
Companies Act, 2013, on accrual basis, as adopted consistently by the company.

2. USE OF ESTIMATE

In preparation of the financial statement in confirmatory with Generally Accepted Accounting Principle in India,
management is required to make estimate & assumptions that affect the reported amount of assets & liability and
the disclosure of contingent liabilities as at the financial reporting date. The amount of revenue & expenditure during
the reported period and that of actual result could be different from those estimates. Any revision to such estimate is
recognized in the period in which the same is determined.

3. REVENUE RECOGNITION

(A) Sales revenue is recognized when property in the goods with all significant risk and rewards as well as the
effective control of goods usually associated with ownership are transferred to the buyer.

(B) Promotional benefits, export incentives and export growth incentives are accounted for on accrual basis when
virtual certainty and their probable use within reasonable time in the normal course of business, is established.

(C) Claims and refunds due from government authorities and parties, though receivable/refundable are not
recognized in the accounts, if the amount thereof is not ascertainable. These are accounted for as and when
ascertained or admitted by the concerned authorities / parties in favour of the company.

4. PROPERTY, PLANT AND EQUIPMENT

(A) Property, Plant And Equipment are stated at their original cost of acquisition including freight, incidental
expenses and other nonrefundable taxes or levies related to acquisition and installation of the concerned
assets, interest on borrowed funds attributable to acquisition/construction of fixed assets and related pre¬
operative expenses up to the date of commencement of commercial production are also capitalized wherever
appropriate. GST Input Claim has been deducted from the cost of respective assets. Any subsidy receivables
from government are deducted from cost of capital asset at the time of capitalization of the asset.

(B) Expenditure incurred on acquisition of intangibles is accounted for as intangible assets on completion, being

identifiable non-monetary assets without physical substance, at the acquisition cost, in accordance with AS-26
on intangible assets.

5. DEPRECIATION & AMORTISATION

(A) Depreciation has been provided on the Straight-line-method over the useful lives of assets estimated by the
management. Depreciation for assets purchased/ Sold during a period is proportionately charged. In most of
the cases Useful lives of assets are taken as prescribed by the schedule II of the companies act except where
certificate of any technical expert regarding higher useful life is taken by the management. In current year Life of
newly installed Machines are taken as 12.5 Years based on technical evaluation and certificate of technical expert.

(B) Depreciation on plant & Machinery is charged considering the same ''Continuous Process Plant’ based on
technical expert''s advice.

(C) Residual value of the assets is determined at the rate of 5% of original cost.

6. PRE-OPERATIVE EXPENSES

Trial run costs and other pre-operative expenses incurred during construction / implementation period, including
interest on borrowings (Net of subsidy) to finance qualifying assets as per AS-16, are capitalized up to the date of
commissioning of the respective asset.

7. TAXATION

(A) . Current Tax: Provision for taxation is ascertained after considering Section 115BAA , The section 115BAA was

introduced by the Government of India through the Taxation (Amendment) Ordinance 2019 on the 20th of
September 2019

(B) . Deferred Tax: Deferred tax is recognized, as the tax effect of timing difference between the taxable income and

accounting income computed for the current accounting years’ timing differences, subject to the consideration
of prudence. Deferred tax assets are recognized and carried forward to the extent that there is a reasonable
certainty, except arising from unabsorbed depreciation and carry forward losses which are recognized to the
extent that there is deferred tax liabilities or there is virtual certainty, that sufficient future taxable income will
be available against which such deferred tax assets can be realized.

8. INVESTMENT

Investments are stated at cost.

9. VALUATION OF INVENTORY

(A) Inventories are valued at cost and net realizable value whichever is lower.

(B) Cost is determined on FIFO/Weighted average method.

(C) The cost of inventories comprises all cost of purchase, cost of conversion, and other costs incurred in bringing
the inventories to their present location and condition.

(D) Merchandise received under consignment and concessionaire arrangements belong to the consignors/
concessionaires and are therefore excluded from the Company’s inventories

(E) All other inventories of stores, consumables are valued at cost