ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Sueryaa Knitwear Ltd.

Mar 31, 2026

1. GENERAL INFORMATION

Sueryaa Knitwear Limited company is engaged in the business of Manufacturing of Hosiery Goods,cloth for own and on job work basis and trading of cloth.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESA. Basis of Preparation:

These financial statements have been prepared in accordance with Indian Accounting Standards (referred to as "Ind AS") as prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time.

These financial statements have been prepared on the historical cost basis, except for certain financial instruments which are measured at fair values at the end of each reporting period as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

B. Use of Estimates and judgments

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the year.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are recognised in the period in which the estimate is revised and future periods affected.

C. Classification of Assets and Liabilities as Current and Non-Current

All Assets and Liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of product & activities of the Company and their realization in cash and cash equivalent, the Company has determined its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

D. Revenue Recognition

Revenue from contracts with customers is recognized on transfer of control of promised goods or services to a customer at an amount that reflects the consideration to which the Company is expected to be entitled to in exchange for those goods or services.Interest income is recognised on time proportion basis.

Sale of Goods

Revenue from sale of products is recognized when the control on the goods have been transferred to the customer. The performance obligation in case of sale of product is satisfied at a point in time i.e., when the material is shipped to the customer or on delivery to the customer, as may be specified in the contract.

Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the effective interest rate method. Interest income is included under the head "Other Income" in statement of profit and loss.

E. Property, Plant & Equipment:

Property, plant and equipment are stated at cost comprising of purchase price and any initial directly attributable cost of bringing the asset to its working condition for its intended use, less accumulated depreciation and impairment loss, if any.

Depreciation is provided for property, plant and equipment on a straight line method so as to expenses the cost less residual value over their useful lives assets as prescribed in Schedule II of the Companies Act, 2013. The estimated useful lives and residual value are reviewed at the end of each reporting period, with the effect of any change in estimate accounted for on a prospective basis. Depreciation is not recorded on capital work-in progress until construction and installation is completed and the asset is for intended use

F. Inventory Valuation

Inventories consists of Raw Material, Work In Progress, Finished Goods, Stores & Spares and packing materials.

Inventories are valued at the lower of cost or net realisable value. Cost is determined on weighted average basis.

Raw materials, Stores & Spares & Packing material: Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition on the weighted average basis.

Finished goods and work in progress: Cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity on a weighted average basis. Cost of finished goods includes other costs incurred in bringing the inventories to their present location and condition.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

G. Taxes on Income

Tax expense is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current Tax

Current tax is the amount of income taxes payable in respect of taxable profit for a period. Taxable profit differs from ''profit before tax'' as reported in the Statement of Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible under the Income Tax Act, 1961.

Current tax is measured using tax rates that have been enacted by the end of reporting period for the amounts expected to be recovered from or paid to the taxation authorities.

Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit under Income tax Act, 1961.

Deferred tax liabilities are generally recognized for all taxable temporary differences. However, in case of temporary differences that arise from initial recognition of assets or liabilities in a transaction (other than business combination) that affect neither the taxable profit nor the accounting profit, deferred tax liabilities are not recognized. Also, for temporary differences if any that may arise from initial recognition of goodwill, deferred tax liabilities are not recognized.

Deferred tax assets are generally recognized for all deductible temporary differences to the extent it is probable that taxable profits will be available against which those deductible temporary difference can be utilized. In case of temporary differences that arise from initial recognition of assets or liabilities in a transaction (other than business combination) that affect neither the taxable profit nor the accounting profit, deferred tax assets are not recognized.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the benefits of part or all of such deferred tax assets to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the balance sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

H. Impairment of Assets

The carrying amount of non- financial assets other than inventories are assessed at each reporting date to ascertain whether there is any indication of impairment. If any such indication exists then the asset''s recoverable amount is estimated. An impairment loss is

recognised as an expenses in the Statement of Profit and Loss, for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less cost to sell and value in use. Value in use is ascertained through discounting of estimated future cash flows using a discount rate that reflects the current market assessments of the time value of money and the risk specific to the assets. For the purpose of assessing impairment, assets are grouped at the lowest levels into cash generating units for which there are separately identifiable cash flows.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment had been recognised.

I. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result so past event and it is probable that there will be outflow of resources. Contingent liability, which are considered significant and material by the company, are disclosed in the Notes to Accounts. Contingent Assets are neither recognised nor disclosed in financial statements.

J. Classification of Financial Assets

(i) Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest rate method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

(v) Equity instrument

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

K. Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset, until such time as the assets are substantially ready for the intended use or sale. Interest income earned on temporary investment of specific borrowings pending their expenditure on qualifying assets

is deducted from the borrowing costs eligible for capitalisation. The borrowing costs other than attributable to qualifying assets are recognised in the profit or loss in the period in which they incurred.

L. Cash and Cash Equivalent

For presentation in the Statement of Cash Flows, cash and cash equivalents includes cash on hand, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Additional Disclosures

i) The Company does not hold any immovable property as at the balance sheet date. Accordingly, the reporting requirements relating to title deeds of immovable properties not held in the name of the Company are not applicable.

ii) No Revaluation of assets has been carried out by the company.

iii) The Company has during the year, not made investments in, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties.

iv) The Company does not have any intangible asset under development.

v) The Company does not have any benami property, where any proceedings has been initiated or pending against the company for holding any benami property.

vi) The company has not taken any borrowings from bank. As such this clause is not applicable.

vii) Company is not declared wilful defaulter by any bank or financial institution or other lender

viii) The company does not have any transaction with companies struck off.

ix) The company does not have any charge or satisfaction which is yet to be registered with Registrar of Companies beyond statutory period.

x) The company has complied with clause 87 of Section 2 of the Act read with Companies (Restriction on number of Layers) Rule 2017.

xi) The company does not have any approved scheme of arrangements.

xii) The company has not traded or invested in Crypto Currency or virtual currency during the year ended March 31,2026.

xiii) The company has not advanced or loaned or invested funds to any other person or entities including foreign entities(intermediary) with the understanding that the intermediary shall:-

a) directly on indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company.

b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiary.

xiv) The company has not received any funds to any other person or entities including foreign entities(Funding Party) with the understanding(Whether recorded in writing or otherwise) that the company shall:-

a) directly on indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party(Ultimate Beneficiary) or

b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiary.

xv) The company has no such transaction, not recorded in the books of account which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961)

xvi) The company is not covered under CSR

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Mar 31, 2025

A. Accounting Conventions:

The company''s financial statements have been prepared in accordance with the historical cost convention on
accural basis of accounting as applicable to going concern in accordance with generally accepted accounting
principle in india, mandatory accounting standards prescribed in the Section 133 of the Companies Act 2013
Read with Rule 7 of the Companies (Accounts) Rules 2014.

All assets and liabilities have been classification as current or non current as per company''s normal operating

cycle and other criteria set out in the Revised Schedule II of Companeis Act, 2013. Based on the nature of

business, the company has ascertained its operating cycle as 12 months for the purpose of current or non
current classification of Assets and liabilities.

B. Revenue Recognition

1 Sales Revenue is recognized on dispatch of goods, net of freight, insurance, Excise and VAT and GST.

2 Interest income is recognised on time proportion basis.

C. Fixed Assets:

Fixed assets are stated at cost of acquisition and inclusive of inward freight, duties & taxes & incidential
expenses related to acquisition net of capital subsidy relating to specific fixed assets.

Capital work in progress/Intangible assets under development includes cost of assets at site, advances made
for acquisition of capital assets and pre operative expenditure pending allocation to fixed assets.

D. Inventory Valuation

Inventories are valued at cost or net realizable price whichever is lower except scrap at net realisable value.
The cost formula used for valuation of inventories are:-

1 In respect of raw material and stores and spares have been valued at cost or market price which ever is lower
on FIFO basis.

2 In respect of work in process is valued at cost of raw material plus conversion cost.

3 Finished goods are valued on retail sale price less GP% method or market price which ever is lower

E. Depreciation

Depreciation has been provided on written down method at the rates specified in schedule II of The Companies
Act, 2013. The fixed assets acquired prior to 1st April 2014 are depreciated over the revised remaining useful
life of the assets based on the indicative usefull life of the assets mandated by schedule II to the Companies
Act, 2013

F. Taxes on Income

Provision for Tax is made for both current and deferred taxes. Provisions for current income tax is made on
the current tax rates based on assessable income. The Company provides for deferred tax based on the tax
effect of timing differences resulting from the recognition of items in the financial statements and in estimating
its current tax provision.

G. Employee Benefits

i) None of the employees is covered under EPF act.

ii) Provision for leave encashment is made on the basis of leave accrued to the employees during the
financial year.

iii) The company has a defined benefit gratuity plan. Provision for gratuity has not been made as company does
not have any employee which “is covered under gratuity Act

H. GST

GST is Levied on dispatch of the goods from the company during year.

I. Foreign Currency Transaction

Transactions in Foreign Currency are recorded at the rate of exchange prevailing at the date of transactions.
All current assets and liabilities are translated “at the relevant rates of exchange prevailing at the year end.
The translation/settlement differences are recognized in the profit & Loss Account.

J. Impairment of Assets

As at Balance Sheet date, an assessment is made whether any indication exists that an asset has been
impaired. If any such indication exists, an impairment loss i.e. the “amount by which the carrying amount of an
asset exceed its recoverable amount is provided in the books of account.

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Mar 31, 2024

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Accounting Conventions:

The company''s financial statements have been prepared in accordance with the historical cost convention on
accural basis of accounting as applicable to going concern in accordance with generally accepted accounting
principle in india, mandatory accounting standards prescribed in the Section 133 of the Companies Act 2013
Read with Rule 7 of the Companies (Accounts) Rules 2014.

All assets and liabilities have been classification as current or non current as per company''s normal operating

cycle and other criteria set out in the Revised Schedule II of Companeis Act, 2013. Based on the nature of

business, the company has ascertained its operating cycle as 12 months for the purpose of current or non
current classification of Assets and liabilities.

B. Revenue Recognition

1 Sales Revenue is recognized on dispatch of goods, net of freight, insurance, Excise and VAT and GST.

2 Interest income is recognised on time proportion basis.

C. Fixed Assets:

Fixed assets are stated at cost of acquisition and inclusive of inward freight, duties & taxes & incidential
expenses related to acquisition net of capital subsidy relating to specific fixed assets.

Capital work in progress/Intangible assets under development includes cost of assets at site, advances made
for acquisition of capital assets and pre operative expenditure pending allocation to fixed assets.

D. Inventory Valuation

Inventories are valued at cost or net realizable price whichever is lower except scrap at net realisable value.
The cost formula used for valuation of inventories are:-

1 In respect of raw material and stores and spares have been valued at cost or market price which ever is lower
on FIFO basis.

2 In respect of work in process is valued at cost of raw material plus conversion cost.

3 Finished goods are valued on retail sale price less GP% method or market price which ever is lower

E. Depreciation

Depreciation has been provided on provided on written down method at the rates specified in schedule II of
The Companies Act, 2013. The fixed assets acquired prior to 1st April 2014 are depreciated over the revised
remaining useful life of the assets based on the indicative usefull life of the assets mandated by schedule II to
the Companies Act, 2013

F. Taxes on Income

Provision for Tax is made for both current and deferred taxes. Provisions for current income tax is made on
the current tax rates based on assessable income. The Company provides for deferred tax based on the tax
effect of timing differences resulting from the recognition of items in the financial statements and in estimating
its current tax provision.

G. Employee Benefits

i) None of the employees is covered under EPF act.

ii) Provision for leave encashment is made on the basis of leave accrued to the employees during the financial
year.

iii) "The company has a defined benefit gratuity plan. Provision for gratuity has not been made as company does
not have any employee which “is covered under gratuity Act"

H. GST

GST is Levied on dispatch of the goods from the company during year.

I. Foreign Currency Transaction

"Transactions in Foreign Currency are recorded at the rate of exchange prevailing at the date of transactions.
All current assets and liabilities are translated “at the relevant rates of exchange prevailing at the year end.
The translation/settlement differences are recognized in the profit & Loss Account."

J. Impairment of Assets

"As at Balance Sheet date, an assessment is made whether any indication exists that an asset has been
impaired. If any such indication exists, an impairment loss i.e. the “amount by which the carrying amount of an
asset exceed its recoverable amount is provided in the books of account."