The company is engaged in the business of providing consultation relating to textile industry and wholesale trading in Agricultural Pumping Seles and Implements during the year. The company Is having its Registered Office at 196,1st Floor. G.T. Road, Opp Road Cross Market, Karnal- 132001 & Corporate Office At C-5/2A, Rana Pratap Bagh, Opp Colony, New Delhi

2.1 Accounting Standards

The Company is non-SMC as defined In the General Instructions in respect of Accounting Standard notified under the companies (Accounting Standards) Rules, 2006 (as amended) 4 under section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules. 2014 Accordingly, the Company compiled with accounting Standards as applicable to a non Small and Medium Sited Company.

2.2 Basis of Accounting and Preparation of financial Statements

The financial statements of the Company have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP) Including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The financial statements are prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for adjustments required to compute financial accounts in accordance with the revised schedule VI.

2.3 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates, judgments and assumptions to be made that affect the reporting amounts of assets and liabilities (including contingent liabilities) on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are knot/materialised. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future 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 / materialise.

2.4 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts Of payments. The cash flows from operating, Investing and financing activities of the Company are segregated based on the available Information.

2.5 Inventor1es

Items of Inventories are valued at the lower of Cost and net realisable value after providing for. obsolescence. If any, except In case of by product which arc valued at net realizable value (on FIFO basis). Cost of inventories comprises or cost of purchase, cost of conversion and other cost is Including manufacturing overheads Incurred In bringing them to their respective present location and condition,

2.6 Depreciation and amortisation

Depreciation or. Fixed Assets provided to the Control or depreciable amount on the wrists down value (WDV) method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II of the Companies Act, 2013.

2.7 Revenue Recognition

Sale of Goods

Revenue from operations including Sales of goods, services, service tax, excise duty and sales art recognised, adjusted net of returns and trade discounts, and gains on corresponding hedge contracts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery or goods to customers. Sales excludes Central sales. value added tax and TCS

2.8 Tangible fixed asset

Fixed assets, are carried at cost net of recoverable taxes, trade discounts and rebates and less accumulated depreciation and Impairment losses, I f any. The cost of Ta table fixed asset com praised Its purchase price, borrowing cost a any cost directly attributed We to bringing the asset to Is working conditions for is intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variation attributable to the assets. Subsequent expenditure related to an item of Tangible Asset are added to Is book value only If they Increase the future benefits from the existing assets beyond is previously asset behind is previously assessed standard or performance. Projects under which assets are not ready or their Intended use are disclosed under Capital Work-in Progress.

2.9 Intangible fixed assets

Intangible assets are stated at cost of acquisition net of recoverable taxed less accumulated amortisation/option and impairment loss, If any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to is working condition for is intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variation attributed to the Intangible assets.

2.11 Employee Benefits

Defined Contribution Plans,

The Company's contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made. These benefits Include performance incentive and compensated absences.

2.12 Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.Deferred tax k recognised on timing differences, being the differences between the taxable Income and the accounting income that originate In one period and are capable of reversal In one or more subsequent periods. Deferred tax is measured using the rates and the lax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets In respect of unabsorbed depredation and carry forward of losses are recognised only It there Is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred lax assets are recognised for timing differences of other Items only to the extent that reasonable certainty exists that sufficient future taxable Income will be available against which these can be realised. Deferred assets and liabilities are offset if such Items relate to taxes on Income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their rachis ability 2.1) Impairment of Assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for Impairment. If any indication or 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.

2.14 Other Issues

The Company'* unit tor manufacturing of cotton yam, was destroyed in fire on 13/06/2001. The Insurance claim of the company was repudiated by the Insurance Company. The Hon' We National Consumer has decided the case of issuance of Insurance calm In favour of the company against which the Insurance company ha, filed an appeal before Hon'ble Supreme Court. The Company was allowed 50% clam by the Supreme Court against security, the same Is shown as new current liabilities as the matter is contingent and is tub Jud iced. The same has not been adjusted against the insurance claim receivable account, due to is contingent nature as a matter of abundant precaution and sheer uncertainly of the verdict of Hon' We Supreme court.