1. Basis of Preparation of Financial Statements:
 
 These financial statements have been prepared to comply in all material
 respects with the Accounting Standards notified by Companies(Accounting
 Standards)Rules, 2006,(as amended) and the relevant provisions of the
 Companies Act,1956 and guidelines issued by the Securities and Exchange
 Board of India (SEBI) .The financial statements have been prepared
 under the historical cost convention on an accrual basis. Accounting
 policies have been consistently applied by the Company and are
 consistent with those used in the previous year.
 
 The Company has prepared its financial statements in accordance with
 Schedule-VI as inserted by Notification-S.O.  447(E) dated 28.02.2011
 (As amended by notification No.F.No.2/6/2008-CL-V-dated 30.03.2011).The
 schedule does not impact recognition and measurement principle followed
 for the preparation of financial statements. However, it has necessitated
 significant changes in the presentation of and disclosures in financial
 statements. The Company has re-classified its previous year figures to
 conform to the classification as per the aforesaid Schedule.
 
 2 Use of Estimates:
 
 The preparation of financial statements, in conformity with the
 generally accepted accounting principles, require estimates and
 assumption to be made that affect the reported amount of assets and
 liabilities as of the date of financial statements and the reported
 amount of revenues and expenses during the reported period. Differences
 between the actual results and estimates are recognized in the period
 in which the results materialize.
 
 3 Revenue Recognition :
 
 a) Sales are recognized as and when goods are dispatched from bonded
 premises.
 
 b) Job charges are recognized as income when processed fabric cleared
 from bonded premises.
 
 c) Export Benefits under DEPB / Duty Draw Back Scheme are recognized on
 accrual basis.
 
 4. Fixed Assets:
 
 Fixed assets are stated at historical cost less accumulated
 depreciation. Historical cost comprises direct expenses & any interest
 attributable to bring in its intended use.
 
 5 Accounting for Government Grants:
 
 Government grants are recognized when there is a reasonable assurance
 as to its receipt and that the conditions attached there to shall be
 complied with. Government grants related to capital investments are
 reduced from the gross value of fixed assets and such grants relating
 to expenses are reduced from the respective expense head.
 
 6 Depreciation:
 
 Depreciation on fixed assets is provided on written down value method
 at the rates and in the manner provided in Schedule XIV (as amended) to
 the Companies Act, 1956.Plant & Machinery of the Company have been
 considered as continuous process plant & depreciation is provided
 accordingly.
 
 7. Inventories:
 
 Raw Material : At cost or realizable value whichever is lower
 
 Store : At cost or realizable value whichever is lower.
 
 Stock in process : At direct cost
 
 Finished Goods : At cost or market value whichever is lower Waste : At
 estimated realizable value
 
 The cost is determined on historical basis on relevant lot/ category of
 inventory. The cost of inventories comprise all cost of purchase,
 conversion cost and other costs incurred in bringing the inventories to
 their present condition.
 
 8 Claims:
 
 Claims are accounted for on merit basis.
 
 9 Foreign Exchange:
 
 (a) Transactions denominated in Foreign Currency are normally recorded
 at the exchange rates Prevailing at the time of transaction.
 
 b) Foreign Exchange Fluctuation on Export / Import is accounted for in
 the year in which such fluctuation arose.
 
 10 Retirement Benefits:
 
 Contribution to provident and other funds are accounted for on accrual
 basis. Gratuity and Leave Encashment is accounted for in the Accounts
 on the basis of Actuarial valuation.
 
 11. Borrowing Costs:
 
 Borrowing costs that are attributable to the acquisition of qualifying
 assets are capitalized as part of the cost of such assets. A qualifying
 asset is one that necessarily takes substantial period of time to get
 ready for intended use. All other borrowing costs are charged to
 revenue.
 
 12. Taxation:
 
 Income Tax expense comprises current tax and deferred tax charge or
 credit. The deferred tax asset and deferred tax liability is calculated
 by applying tax rate and tax laws that have been enacted or
 substantially enacted by the Balance Sheet date. Deferred tax assets
 arising mainly on account of brought forward losses and unabsorbed
 depreciation under tax laws are recognized, only if there is a virtual
 certainty of its realization, supported by convincing evidence.
 Deferred tax assets on account of other timing differences are
 recognized only to the extent there is a reasonable certainty of its
 date, the realization. At each Balance Sheet date, the carrying amounts
 of deferred tax assets are reviewed to reassure realization.
 
 13. Impairment of Assets:
 
 If internal/external indication suggests that an asset of the Company
 may be impaired, the recoverable amount of asset/ cash generating asset
 is determined on the Balance Sheet date and if it is less than its
 carrying amount, the carrying amount of the asset / cash generating
 unit is reduced to the said recoverable amount. The recoverable amount
 is measured as the higher of Net selling price and value in use o such
 assets/cash generating unit, which is determined by the present value
 of the estimated future Cash flows.
 
 14. Provisions, Contingent Liabilities & Contingent Assets:
 
 (a) The Company recognize as Provision, the liabilities being Present
 obligation arising out of past events, the
 
 settlement of which is expected to result in an outflow of resources
 and which can be measured only by using a substantial degree of
 estimation.
 
 (b) Contingent Liabilities is disclosed, unless the possibility of an
 outflow of resource is remote.
 
 (c) Contingent Assets are neither recognized nor disclosed.
 
 15. Cash and Cash Equivalents
 
 For the purpose of cash Flow Statement, cash and cash equivalents
 includes cash in hand, demand deposits with banks, other short term
 highly liquid investments with original maturities of three months or
 less.
 
 16. Earnings Per Share (EPS)
 
 The earnings considered in ascertaining the companys EPS comprise the
 Net Profit or Loss for the period after tax and extra ordinary items.
 The basic EPS is computed on the basis of weighted average number of
 equity shares outstanding during the year. The number of shares of
 computation of diluted EPS comprises of weighted average number of
 equity shares considered for deriving basic EPS and also the weighted
 average number of equity shares which could be issued on the conversion
 of all dilutive potential equity shares.
 
 As per records of the Company, including Its register of shareholders /
 members and other declarations received from shareholders regarding
 beneficial interest, the above shareholding represents both legal and
 beneficial ownership of shares.