A. Corporate Information
Banswara Syntex Limited (“the Company”) is a Company domiciled in India and limited by shares (CIN:
L24302RJ1976PLC001684). The shares of the Company are publicly traded on the National Stock Exchange of India
Limited and Bombay Stock Exchange Limited. The address of the Company's registered office is Industrial Area, Dahod
Road, Banswara Rajasthan.
The Company is a vertically integrated textile mill manufacturing man-made synthetic blended Yarn, wool and wool mixed
yarn, all type of Fabrics, Jacquard Furnishing Fabrics, besides production of Readymade Garments and Made-up's.
These Standalone Financial Statements of the Company have been prepared in accordance with the Indian Accounting
Standards (hereinafter referred to as the 'Ind AS') as per the Companies (Indian Accounting Standards) Rules, 2015 notified
under Section 133 of Companies Act, 2013, (the 'Act') and other relevant provisions of the Act.
These Standalone Financial Statements were authorized for issue by Board of Directors on 19 May 2026.
B. Basis of Preparation of Standalone Financial Statement
1. Compliance with Ind AS
These Standalone Financial Statements are prepared on going concern basis following accrual basis of accounting and
comply in all material aspects with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting
Standards) Rules, 2015 and subsequent amendments thereto, the Companies Act, 2013.
2. Basis of measurement/Use of Estimates
(i) The Standalone Financial Statements are prepared on going concern and accrual basis under the historical cost
convention except certain financial assets, financial liabilities and defined benefits plans- plan assets that are
measured at fair value. The methods used to measure fair values are discussed in notes no. 53 to Standalone Financial
Statements.
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.
(ii) The preparation of Standalone Financial Statements requires judgments, estimates and assumptions that affect the
reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the Standalone Financial
Statements and the reported amount of revenues and expenses during the reporting period. Difference between the
actual results and estimates are recognized in the period in which the results are known/ materialized. Major Estimates
are discussed in Part D.
3. Recent pronouncement
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time.
In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable w.e.f.
April 1,2025. The Company has reviewed the amendment and based on its evaluation has determined that it does not have
any significant impact in its financial statements.
In August 2025, MCA notified the following amendments to:
a. Ind AS 1, Presentation of Financial Statements, applicable w.e.f. April 1,2025 - The amendment relates to classification
of liabilities as current or noncurrent and non-current liabilities with covenants. In the context of classifying a liability
as current, it removes the requirement of existence of a right to defer settlement for at least 12 months after the
reporting date and instead requires that the said right should exist on the reporting date and have substance. The
amendment also introduces guidance on classification of liabilities with covenants. The Company has no impact of
these amendments in its classification criteria of current and non-current liabilities.
b. Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures, applicable w.e.f. April 1,
2025 - The amendment in Ind AS 7 requires to inform users of financial statements of the existence of supplier
finance arrangements and explain the nature of the arrangements, the carrying amount of liabilities and the range of
payment due dates. Ind AS 107 has been amended to add supplier finance arrangements as a factor that may cause
concentration of liquidity risk. The Company has reviewed the amendment and based on its evaluation has determined
that it does not have any significant impact in its financial statements.
4. Functional and presentation currency
These Standalone Financial Statements are presented in Indian Rupees (INR), which is the Company's functional currency.
All financial information presented in INR has been rounded to the nearest Lakhs (up to two decimals), except as stated
otherwise.
C. Material accounting policies
A summary of the material accounting policies applied in the preparation of the Standalone Financial Statements are as
given below. These accounting policies have been applied consistently to all periods presented in the Standalone Financial
Statements.
1. Property, plant &equipment1.1. Initial recognition and measurement
Property, plant and equipments (“PPE”) are measured at cost less accumulated depreciation/amortization and accumulated
impairment losses. Cost includes expenditure that is directly attributable to bringing the asset, inclusive of non-refundable
taxes & duties, to the location and condition necessary for it to be capable of operating in the manner intended by management.
Freehold land is carried at cost.
When parts of an item of property, plant and equipments have different useful lives, they are recognized separately.
Spare parts are capitalized when they meet the definition of PPE, i.e. when the Company intends to use these for a period
exceeding 12 months.
On transition to IND AS, the Company has elected to continue with the carrying value of all of its PPE recognized as at 1
April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the PPE.
1.2. Depreciation
Depreciation is recognized in statement of profit and loss on Straight Line Method (SLM) over the estimated useful life
of property, plant and equipment as mentioned in Schedule II of the Companies Act, 2013, except in case of Plant &
Machinery where the useful life has been taken as ascertained by technical experts of the Company. Considering materiality
of assets costing less than Rs. 5,000 are fully depreciated in the year of purchase/acquisition. The Company provide pro-rata
depreciation from/to the date on which asset is ready to use/ disposed off as appropriate.
Leasehold lands are amortized over the lease term unless it is reasonably certain that the Company will obtain ownership
by the end of the lease term.
Depreciation on additions to/deductions from property, plant and equipment during the year is charged on pro-rata basis
from/up to the date on which the asset is available for use/disposed.
In circumstance, where a PPE is abandoned, the cumulative capitalized costs relating to the property are written off in the
same period.
2. Capital work-in-progress
a. The cost of self-constructed assets includes the cost of materials & direct labour, any other costs directly attributable to
bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by
management and borrowing costs.
b. Expenses directly attributable to construction of property, plant and equipment incurred till they are ready for their
intended use are identified and allocated on a systematic basis on the cost of related assets.
c. Capital Stores are valued at weighted average cost. Specific provision is made for likely diminution in value, where
required.
3. Intangible assets and intangible assets under development
3.1. Initial recognition and measurement :
Intangible assets are measured on initial recognized at cost. Subsequent measurement is done at cost less accumulated
amortization and accumulated impairment losses. Cost includes any directly attributable incidental expenses necessary to
make the assets ready for its intended use.
Expenditure incurred which are eligible for capitalizations under intangible assets are carried as intangible assets under
development till they are ready for their intended use.
3.2. Amortization
Intangible assets having definite life are amortized on straight line method in their useful lives. For amortization, Useful life
of computer software is estimated at six years and useful life of Brands is estimated at five years.
4. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition, construction/exploration/ development or erection of qualifying
assets are capitalized as part of cost of such asset until such time the assets are substantially ready for their intended use.
Qualifying assets are assets which take a substantial period of time to get ready for their intended use or sale. Capitalization
of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying assets for their intended
uses are complete.
All other borrowing costs are charged to revenue as and when incurred.
5. Investment in Equity instrument of Joint Venture and Subsidiary
Investment in equity shares of subsidiary and joint venture are accounted at cost in the Standalone Financial Statement and
the same are tested for impairment in case of any indication of impairment.
6. Inventories
Inventories are valued at the lower of cost or net realizable value.
Cost of raw material, stores spares, packing material etc. includes cost of purchase and other cost incurred in bringing the
inventories to their present location and condition. Costs of purchased inventory are determined after deducting rebates and
discounts. Cost is determined on weighted average cost basis.
Cost of finished goods and work-in-progress includes the cost of conversion based on normal capacity and other costs
(excluding borrowing cost) incurred in bringing the inventories to their present location and condition. The cost of finished
goods and work-in-progress are computed on weighted-average basis.
Net realizable 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.
Waste is valued at net realizable value.
Spare parts those does not meet definition of Property, Plant and Equipment are carried as inventory.
The diminution in the value of obsolete, unserviceable, slow moving/non-moving inventory is ascertained on review based
on technical assessment, provided for, and shown as net of provision.
Transit stock are valued at cost.
7. Cash and Cash Equivalent
Cash and cash equivalent in the balance sheet comprise cash at banks and cash on hand and short-term deposits with an
original maturity of three months or less, which are subject to insignificant risk of change in value.
8. Government Grants
Government Grants related to income are recognized in the statement of profit and loss in the same period as the related
cost which they are intended to compensate are accounted for. Government Grant/subsidy related to subvention of a
particular expense is deducted from that expense in the year of recognition of that Government grant/subsidy.
Government grants relating to the purchase of property, plant and equipment are included in liabilities as deferred income
and are credited to Statement of Profit and Loss on straight -line basis over the expected lives of related assets and
presented within other income.
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