1.  Accounting Convention:
 
 The financial statements are prepared under the historical cost
 convention using the accrual method of accounting, in accordance with
 generally accepted accounting principles in India, the Accounting
 Standards prescribed in the Companies (Accounting Standards) Rules,
 2006 and the provisions of the Companies Act, 1956
 
 2.  Use of Estimates:
 
 The presentation of the financial statements in conformity with the
 generally accepted accounting principles requires the management to
 make estimates and assumptions that affect the reported amount of
 assets and liabilities, revenues and expenses and disclosure of
 contingent liabilities. Such estimates and assumptions are based on
 management''s evaluation of relevant fact and circumstances as on the
 date of financial statements. The actual outcome may diverge from the
 estimates.
 
 3.  Fixed Assets and Depreciation / Amortisation:
 
 Fixed Assets are stated at cost or as revalued as the case may be, less
 accumulated depreciation. Cost includes expenses related to acquisition
 and installation of the concerned assets. Exchange differences arising
 on account of repayment and year end translation of foreign currency
 liabilities relating to acquisition of fixed assets from a country
 outside India is charged to profit and loss account.
 
 Cost of leasehold land and building thereon are amortised over the
 period of lease.
 
 Depreciation is provided on pro-rata basis on the straight line method
 at the rates specified in Schedule XIV to the Companies Act, 1956,
 except for
 
 vehicle which is depreciated on written down value method. Items
 costing less than and up to Rs.5,000 are fully depreciated in the year
 of purchase.
 
 4.  Borrowing Cost:
 
 Borrowing costs that are directly attributable to the acquisition or
 construction of qualifying assets are capitalised for the period until
 the asset is ready for its intended use. A qualifying asset is an asset
 that necessarily takes substantial period of time to get ready for its
 intended use. Other borrowing costs are recognised as an expense in the
 period in which they are incurred.
 
 5.  Investments:
 
 Investments are classified into long-term and current investments.
 Long-term investments are carried at cost. Provision for diminution, if
 any, in the value of each long-term investment is made to recognise a
 decline, other than of a temporary nature. The fair value of a
 long-term investment is ascertained with reference to its market value,
 the investee''s assets and results and the expected cash flows from the
 investment.  Current investments are stated at lower of cost and fair
 value.
 
 6.  Inventories:
 
 Inventories are valued at lower of cost and net realisable value. Cost
 is determined as follows:
 
 Sr. 
 No. Particulars         Method of determining cost
 
 1.  Stores, Spare and 
 Loose Tools             Weighted average
 
 2.  Raw Materials:
 
 (i) Cotton & other 
 fibers                  Specific identification for Mills unit and
                         FIFO basis for Knitwear unit.
 
 (ii) Others             Weighted average
 
 3.  Stock-in-Process    Aggregate of material cost and production
                         overheads and other attributable
                         expenses upto the stage of completion.
 
 4.  Finished Goods:
 
 (a) Produced            Aggregate of material cost, production 
                         overheads and excise duty paid/payable thereon.
 
 (b) Traded Goods
 
 (i) Yarn                First-In-First-Out
 
 (ii) Textile            Weighted average
 
 Provision is made for the cost of obsolescence and other anticipated
 losses, wherever considered necessary.
 
 7.  Revenue Recognition:
 
 Sales are accounted for on dispatch of goods to the customers and are
 net of sales tax, excise duty and sales returns.
 
 Income from processing operations is recognised on completion of
 production/dispatch of the goods, as per the terms of contract.
 
 Dividend income is recognised when the right to receive the same is
 established.
 
 Interest income is recognised on a time proportion basis.
 
 8.  Foreign Currency Transactions:
 
 a.  Foreign currency transactions are recorded at the exchange rate
 prevailing at the date of transaction. Monetary assets and liabilities
 related to foreign currency transactions remaining unsettled are
 translated at the year-end rate and difference in translation and
 realised gains and losses on foreign exchange transactions are
 recognised in the profit and loss account.
 
 b.  Gains or losses arising in respect of forward foreign exchange
 contracts or on cancellation thereof are recognised as income or
 expense
 
 9.  Research and development expenses:
 
 No intangible asset arising from revenue expenditure pertaining to the
 research is recognised. Expenditure on research is charged to the
 revenue when incurred. Intangible assets arising from development are
 recognised if and only if expenditure attributable to the intangible
 assets are reliably measurable as under and all of the following are
 demonstrated.
 
 a.  Technical feasibility of completing the asset for use or sale;
 
 b.  Intention and ability to use or sell it;
 
 c.  Utility of the asset if intended for internal use or the market for
 the asset for sale; and
 
 d.  Availability of resources to complete the development.
 
 Capital expenditure on research and development is capitalised in
 accordance with the policy stated in above
 
 10.  Employee Benefits:
 
 Short-term Employee benefits:
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short term employee benefits.  Benefits
 such as salaries, performance incentives, etc., are recognized as an
 expense at the undiscounted amount in the Profit and Loss Account of
 the year in which the employee renders the related service.
 
 Post Employment Benefits:
 
 Defined Contribution Plans:
 
 Employee benefits in the form of Provident Fund and Superannuation are
 considered as defined contribution plan and the contributions are
 charged to the Profit and Loss of the year when the contributions to
 the respective funds are due.
 
 Defined Benefit Plans:
 
 Retirement benefits in the form of Gratuity for eligible employees
 considered as defined benefit obligations and are provided for on the
 basis of an actuarial valuation, using the projected unit credit
 method, as at the date of the Balance Sheet.
 
 Other long-term benefits
 
 Long-term compensated absence is provided for on the basis of an
 actuarial valuation, using the projected unit credit method, as at the
 date of the Balance Sheet. Actuarial gain/losses, if any, are
 immediately recognised in the Profit and Loss Account.
 
 11.  Government Grants:
 
 Government grants, which relate to specific fixed assets, are treated
 as deferred income and recognised in the Profit and Loss account over
 the useful life of the relevant fixed asset. The amount of Government
 grant allocated to income is netted off against the depreciation charge
 for the year and the amount allocable in subsequent years is shown as
 Deferred Government grants. Government grants / subsidies related to
 revenue are recognised in the Profit and Loss Account over periods
 matching them with the related costs which they intended to compensate.
 
 12.  Impairment:
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that an asset may be impaired. If any such condition exists,
 the company estimates the recoverable amount of the assets. If the
 recoverable amount of such assets or recoverable amount of cash
 generating units to which the assets belongs is less than its carrying
 amount, the carrying amount is reduced to its recoverable amount. The
 reduction is treated as an impairment loss and is recognised in the
 profit and loss account. If at the Balance Sheet date there is an
 indication that if a previously assessed impairment loss no longer
 exists, the recoverable amount is reassessed and the asset is reflected
 at lower of historical cost or recoverable amount.
 
 13.  Provisions, Contingent Liabilities, Contingent Assets:
 
 A provision is recognised when enterprise has present obligation as a
 result of past event; it is probable that an outflow of resources will
 be required to the obligations, in respect of which a reliable estimate
 can be made. Provisions are not discounted to its present value and are
 determined based on best estimates 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. Reimbursement
 against a provision is recognised as a separate asset based on virtual
 certainty. Contingent Assets are not recognised.
 
 14.  Taxation :
 
 Tax expense for the year comprises of current tax and deferred tax.
 Current Income Tax is measured at the amount expected to be paid to the
 tax authorities in accordance with Indian Income Tax Act. Deferred Tax
 Assets and Liabilities are measured using tax rates and tax laws that
 have been enacted / substantively enacted as on the balance sheet date.
 Provision for deferred tax is made for all temporary timing difference
 arising between the taxable income and accounting income at currently
 enacted tax rates. Deferred tax assets, other than un-absorbed tax
 losses and tax depreciation, subject to the consideration of prudence,
 are recognized and carried forward only to the extent that there is a
 reasonable certainty that sufficient future taxable income will be
 available against which such deferred tax assets can be realized.
 Deferred tax assets on un-absorbed tax losses and tax depreciation,
 subject to the consideration of prudence, are recognized and carried
 forward only to the extent that there is a virtual certainty that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realized.  Deferred Tax Assets/Liabilities
 are reviewed for the appropriateness of their respective carrying
 values at each balance sheet date.