i.  The accompanying Financial Statements have been prepared on a going
 concern basis under the historical cost convention on accrual basis of
 accounting in conformity with Generally Accepted Accounting Principles
 in India (Indian GAAP).
 
 ii.  Investments: Investments are accounted at cost and are treated as
 long-term investments. The diminution in the market value of investment
 is recognized when diminution is considered permanent.
 
 iii.  Valuation of Inventory.
 
 Raw materials and stores & spares: At cost determined on First in First
 out basis or net realizable value, whichever is lower.
 
 Finished goods and waste cotton: At cost or net realizable value,
 whichever is lower. The cost has been measured on the weighted average
 cost basis and includes cost of purchase, cost of conversion and other
 costs incurred in bringing the inventory to their present location and
 condition.
 
 Stock in Process: At estimated weighted average cost basis.
 
 iv.  The Fixed Assets are valued at historical cost.  Cost includes
 related taxes, duties, freight, insurance etc.,
 
 attributable to acquisition and installation of assets and borrowing
 cost incurred up to the date of commencing operations, but excludes
 duties and taxes that are recoverable from taxing authorities. The
 Fixed assets shown in the books are not revalued.
 
 v.  The Company has provided depreciation on straight-line basis in
 respect of fixed assets other than Windmill Units at the rates
 prescribed in Schedule XIV to the Companies Act, 1956. In respect of
 Windmill assets, the method of providing for depreciation has been
 changed to written down value basis from straight line method basis as
 adopted in the previous year.
 
 For assets costing Rs.5000/- or less, 100% depreciation has been
 charged in the year of purchase of such assets.  For other assets
 acquired during the year pro-rata charge has been made from the date of
 first use. In the year of disposal of assets, depreciation is charged
 up to the date of disposal.
 
 vi.  The Foreign Currency transactions are recorded at the exchange
 rate prevailing on the date of the transaction. Foreign currency
 monetary items as at the Balance Sheet date are reported at the closing
 rate or at the rate at which it is likely to be realized from or
 required to be disbursed.
 
 vii. Foreign Currency Monetary item Translation difference Account
 has been amortized as per notification G.S.R.225(E) of the Ministry of
 Corporate Affairs, Government of India dated 31.3.2009.
 
 viii. The Company has opted for Life Insurance Corporation Employees
 Group Gratuity Scheme to cover its gratuity liability. Contribution
 paid/payable by the Company to LIC of India is charged to revenue on
 the basis of actuarial valuation towards demand worked out by LIC.
 
 Provident fund/pension fund and gratuity liability are Defined
 Contribution Schemes and contributions are charged to Profit and Loss
 Account of the year in which the contribution to the respective funds
 are due.
 
 Short term employee benefits including compensated absences are
 provided for based on the expected obligation on an undiscounted basis
 as per Accounting Standard 15 (Revised).
 
 ix.  Borrowing costs attributable to the acquisition, construction and
 installation of qualifying capital assets are capitalized till the
 period before they are put into use.
 
 x.  Provisions, Contingent liabilities and Contingent Assets: Provision
 is recognized only when there is a present obligation as a result of
 past event and it is probable that there will be an outflow of
 resources. Contingent liabilities are not recognized but are shown by
 way of notes attached to and forming part of the Balance Sheet.
 Contingent Assets are neither recognized nor disclosed in the financial
 statements.
 
 xi.  Impairment loss of fixed assets is assessed as at the close of
 each financial year and appropriate provision, if required, is
 recognized in the accounts.
 
 xii. Current tax is determined at the current rates of income tax on
 taxable income and tax credits are computed in accordance with the
 provisions of the Income Tax Act,1961.
 
 xiii. Deferred tax is recognized on timing difference between the
 accounting income and the taxable income for the year and quantified
 using the rates and tax laws that prevail as at the balance sheet date.
 The deferred tax assets are recognized and carried forward to the
 extent that there is a reasonable certainty that sufficient future
 taxable income will be available against which such deferred tax asset
 can be realized.
 
 xiv. Government grants have been recognized based on the reasonable
 assurance that the Company will comply with the conditions attached to
 the grants and the grants will be received. Government grants relatable
 to borrowing cost have been reduced from the borrowing cost thereby
 reducing the cost of the asset. Government grants relatable to periods
 after the acquisition, construction and installation of qualifying
 assets are in the nature of revenue grants and have been recognized on
 a systematic basis in the profit and loss account.
 
 xv. The Company has operated only one business segment which is textile
 segment and hence segment report is not furnished.
 
 xvi. The Company''s significant leasing arrangements are operating
 leases and cancelable in nature. The lease rentals paid/received under
 such agreements are accounted in the profit and loss account.