1 General Corporate Information
Shiva Mills Limited ("the Company”) is a public limited Company with its registered office at 249 A Bye-Pass Road,
Mettupalayam Road, Coimbatore and factory at Dindigul, Tamil Nadu, India. The Company is listed on the Bombay Stock
Exchange (BSE) and the National Stock Exchange (NSE). The Company is engaged in the manufacturer of cotton yarn.
The Company's financial statements were authorised for issue in accordance with the resolution of the Board of Directors on
27th May, 2026
A Basis of accounting and preparation of financial statements
(i) State of Compliance
These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified
under Section 133 of the Companies Act, 2013. The financial statement have also been prepared in accordance with
the relevant presentation requirements of the Companies Act, 2013.
(ii) Basis of Preparation
The financial statements have been prepared on a historical cost basis, except for the following:
(a) certain financial assets and liabilities that are measured at fair value and
(b) defined benefit plans - plan assets measured at fair value
B Use of estimates
The estimates and associated assumptions are based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision
and future periods if the revision affects both current and future periods.
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of
the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year.
a) Useful lives of property, plant and equipment
The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This
assessment may result in change in the depreciation expense in future periods.
b) Employee Benefits
The cost of defined benefit plans are determined using actuarial valuations. The actuarial valuation involves making
assumptions about discount rates, expected rates of return on assets, future salary increases, mortality rates and future
pension increases. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty.
C Material Accounting Policies
This material accounting policies applied by the Company in the preparation of its financial statements are listed below.
These policies have been consistently applied to all the years presented, unless otherwise stated.
1.1 Inventories
Inventories are valued at lower of cost and net realisable value. Cost of raw materials, Packing materials, Stores and Spares
and consumables are valued at Cost on weighted average cost basis. Value of finished goods are valued at cost or NRV
whichever is lower and work-in-progress are determined on weighted average cost basis and include appropriate share of
overheads.
1.2 Property, plant and equipment
The cost of property, plant and equipment comprises its purchase price net of any trade discounts and rebates, any import
duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable
expenditure on making the asset ready for its intended use. Expenditure incurred after the property, plant and equipment
have been put into operation, such as repairs and maintenance, are charged to the Statement of Profit and Loss.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected
to arise from the continued use of the asset. Any gain or loss is determined as the difference between the sales proceeds and
the carrying amount of the asset and is recognized in Statement of Profit and Loss. Property, plant and equipment except
freehold land held for use in the production, supply or administrative purposes, are stated in the balance sheet at cost less
accumulated depreciation and accumulated impairment losses, if any.
Depreciation commences when the assets are ready for their intended use. Depreciation is recognized so as to write off the
cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives,
using straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.
1.3 Revenue Recognition
a) Sale of goods
Revenue from customers is recognised when the Company satisfies performance obligation when control of goods is
transferred to the customer which is usually on despatch or delivery. Revenue is measured based on transaction price
adjusted for volume based price discount, price concessions and net off returns.
b) Sale of services
The Company recognises revenue when the significant terms of the arrangement are enforceable, services have been
rendered and the collectability is reasonably assured.
c) Other operating revenue
Other operating revenue comprising of income from ancillary activities incidental to the operations of the Company
and is recognised when the right to receive the income is established.
1.4 Other income
Interest
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company
and the amount of income can be measured reliably. Interest income is accrued on a time basis by reference to the principal
outstanding and at the effective interest rate applicable.
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