Notes to Accounts of Aditya Spinners Ltd.

Mar 31, 2025

xv. Provisions, contingent liabilities and contingent assets

Provisions are recognised when the company has a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of economic benefits will be required to settle
the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle
the present obligation at the end of the reporting period, taking into account the risks and
uncertainties surrounding the obligation. When a provision is measured using the cash flows
estimated to settle the present obligation, it carrying amount is the present value of those cash
flows (when the effect of the time value of money is material).

28 Other Statutory information:

_n The Company does not have any Benami property, where any proceeding has been initiated or pending
^{( )} against the Company for holding any Benami Property.

.... The Company does not have any charges or satisfactory which is yet to be registered with ROC beyond the
^{( )} statutory period.

(i i i) The Company has not traded or invested in Crypto currency or Virtual Currency during the Financial Year.

The Company has not received any fund from any person(s) or entities, including foreign entities (funding
party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a)
(iv) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries.

, . The Company has not been declared willful defaulter by any bank or financial institution or government or
^{( )} any government authority.

(vi) The Company has no transactions with Companies struck off under Companies Act.

The Company has no transactions which are not recorded in the books of accounts that has been

(vii) surrendered or disclosed as income during the year in the tax assessments under the income tax act,1961
(such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

The company has filed a writ petition before the Honorable High Court of Andhra Pradesh, challenging
the excess electricity duty levied by APSPDCL. On 15.09.2023, the Honorable High Court of Andhra
Pradesh, Amaravati, through interim order in W.P. Nos. 16619 of 2022 and related cases, directed
APSPDCL to refund or adjust the excess electricity duty collected beyond 6 paise per unit from the
consumers. During the Financial Year 2023-24, by virtue of the above interim order of Honble AP High
Court, the company has reversed the entire provision created for Electricity Duty. However, the Final
Judgement is yet to be pronounced by the Honorable High Court of Andhra Pradesh.

31 Fuel and Power Purchase Cost Adjustment (FPPCA) Charges

The Andhra Pradesh Electricity Regulatory Commission (APERC) through Press Note released on 25-10¬
2024 and 29-11-2024, authorized the electricity distribution companies (DISCOMs) to recover Fuel and
Power Purchase Cost Adjustment (FPPCA) charges relating to the FY 2022-23 and 2023-24 from various
consumers. APERC further instructed the DISCOMS to recover these FPPCA Charges along with the
monthly electricity bills starting from November''2024 to November''2026 based on the predetermined
monthly rates.

An appeal has been filed by the textile industry association before the Appellate Tribunal for Electricity
contesting the retrospective applicability and calculation of these charges. The matter is currently
under adjudication, and no final decision has been delivered as on the date of approval of these
financial statements.

No demand is raised either APERC or by Discoms to the Company contends that it is not liable to pay
FPPCA charges amounting to T1.13 crores for FY 2022-23 and T1.11 crores for FY 2023-24, aggregating to
T2.24 crores. The management of the company decided to recognize the FPPCA charges as expenses as
and when the amounts are demanded by DISCOMS.

During the Financial Year 2024-25, the Company was demanded T0.55 crores towards FPPCA charges by
DISCOMS as part of monthly electricity bills from November 2024 to March 2025. The company has paid
and recognised T0.55 crores as expenses in the Statement of Profit & Loss for the Financial Year 2024¬
25. Accordingly, the balance FPPCA charges payable by the company is T 1.69 crores and the same will
be recognized and paid as and when the amounts are demanded by DISCOMS.

Notes to the Ind AS financial statements for the year ended March 31, 2025 (continued)

32 Employee Benefits Obligation

Defined contribution plans - Provident fund:

Contribution towards employee provident fund, which is a defined contribution plan for the period aggregated to
Rs 39.57 lacs charged in the statement of profit and loss.

33 Defined Benefit Plan - Gratuity:

In accordance with the ''Payment of Gratuity Act, 1972'' of India, the Company provides for gratuity, a defined
retirement benefit plan (the ''Gratuity Plan'') covering eligible employees. Liabilities with regard to such gratuity
plan are determined by an independent actuarial valuation and are charged to the Statement of Profit and Loss

in the period determined. The gratuity plan is administered by life Insurance Corporation of India,

Balances due to or due from parties are subject to confirmation

Previous year figures have been regrouped / reclassified wherever necessary to confirm to the current
year classification.

Figures have been rounded off to nearest rupee.

As per our report of even date For and On behalf of the Board

For Aditya Spinners Limited

For. T Mohan & Associates,

Chartered Accountants Sd/- Sd/-

(FRN No 012482S) K Vijay Kumar K Sriram

Sd/- Managing Director Joint Managing Director

Mohan Reddy T DIN: 00769568 DIN: 05103429

Partner

M No: 239635 Sd/- Sd/-

UDIN: 25239635BMKZMP1269 Priyanka Baldewa P Ramamoorthy

Place: Hyderabad Company Secretary Chief Financial Officer

Date: 30.05.2025 ACS: 48077

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Mar 31, 2024

At the Meeting of Board of Directors held on 13th February''2023, it was decided to diversify business operations and explore new avenues in the industry by setting up a carton manufacturing unit for which purchase of land was approved against which an advance of Rs.349 lacs was agreed to be paid to a Director of the Company on the condition that the registration formalities in favour of the Company should be completed within 45 days. As per the terms of the agreement, the entire advance paid was received back from the Director as on the date of this Balance Sheet.

(b) Terms/rights attached to equity shares

The Company has issued only one class of shares referred to as Equity Shares having a par value of Rs.10/- each. Each holder of Equity Shares is entitled to one vote per share.

(i) Term Loan is secured by first pari-passu charge on the property, plant & machinery owned by or belonging to the Company both present and future, and by second pari-passu charge on the current assets of the Company and are guaranteed by K Vijay Kumar, Managing Director and K V Naga Lalitha, Director. The Company has used the borrowings for the purposes for which it was taken

Term Loans also include Rs.260.42 lacs @ 8.25 p.a. received under Guaranted Emergency Credit Line Scheme.

APSPDCL has charged electricity duty of Rs.1.00 per unit for the units consumed, as reflected in the monthly electricity bills (August''2022 to August''2023). The Company subsequently filed a petition with the Andhra Pradesh High Court challenging the excess electricity duty. The Company has paid electricity duty of 6 paise per unit to APSPDCL against the Rs.1.00 per unit charged APSPDCL. The Company has recognized the remaining amount i.e., 0.94 paise per unit as a provision in the books of accounts upto August''2023.

On 15.09.2023, the High Court of Andhra Pradesh, Amaravathi, in its interim order in W.P.No.16619 of 2022 and related cases, directed APSPDCL to refund or adjust the excess electricity duty collected beyond 6 paise per unit from the consumers. Based on the interim order of Honble AP High Court, the company has reversed the provision (0.94 paise per unit) recognized till August''2023. The amount of provision reversal relating to current Financial Year 2023-24 is Rs.46.11 lacs and provision reversed relating to Financial Year 2022-23 is Rs.76.58 lacs.

Note: 2

On February 24, 2023, the Andhra Pradesh Electricity Regulatory Commission (APERC) issued a notice to the Company, demanding a deposit of Rs.43,04,000/- due to a shortfall in meeting the Renewable Power Purchase Obligation (RPPO) Regulations towards purchase of electricity through open access. The Company has recorded this amount as a provision under "Power Bill Payable." Currently, the company is working on identifying remedial actions to address this demand.

The Company has availed cash credit facilities from HDFC Bank Limited. This facility is secured by first pari-passu charge against all current assets, present and future, and by second pari-passu charge on the entire property, plant & machinery of the Company including land and buildings, and are guaranteed by K Vijay Kumar, Managing Director and K V Naga Lalitha, Director. The loans are repayable on demand and carries interest @ 9%. The Company has used the borrowings for the purposes for which it was taken

Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors. The amount of dues payable to Micro, Small and Medium Enterprises are as follows:

Sl.No		Particulars	As at 31st March 2024	As at 31st March 2023
(i)	The principal amount and interest due thereon remaining unpaid to any supplier as at the end of the financial year		6.06	5.47
(ii)	The amount of interest paid by the buyer under the Act along with the amount of payment made to the supplier beyond the appointed day during each accounting year		-
(iii)	The amount of interest due and payable for the period of delay in making payment (which has been paid but beyond the appointed day during the year), but without adding the interest specified under this Act. (Refer Note:)		-
(iv)	The amount of interest accrued and remaining unpaid at the end of the accounting year		-
(v)	The amount of further interest due and payable even in the succeeding year, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance of a deductable expenditure under section 23.		-
	Note: The above MSME vendors have not demanded interest on delayed payments. Accordingly, we have not made a provision for interest.
	Note	Particulars	As at	As at
			31st March 2024	31st March 2023
	17	Other Current Financial Liabilities
		- Power Payable	79.22	76.86
		- Salaries&Wages Payable	55.76	57.55
		- Stipend Payable	34.80	58.96
		- Bonus Payable	17.88	57.42
		- Other Payables	9.07	13.61
			196.73	264.41
	18	Other current liabilities
		Advances from customers	20.60	19.03
		Statutory dues	26.91	28.86
			47.51	47.90

28 Other Statutory information:_

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any '' ⁾ Benami Property.

(ii) The Company does not have any charges or satisfactory which is yet to be registered with ROC beyond the statutory period.

(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the Financial Year.

The Company has not received any fund from any person(s) or entities, including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities ^{( )} identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(vi) The Company has no transactions with Companies struck off under Companies Act.

The Company has no transactions which are not recorded in the books of accounts that has been surrendered or disclosed as income during the

(vii) year in the tax assessments under the income tax act,1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

The company has filed a writ petition before the Honorable High Court of Andhra Pradesh, challenging the excess electricity duty levied by APSPDCL. On 15.09.2023, the Honorable High Court of Andhra Pradesh, Amaravati, through interim order in W.P. Nos. 16619 of 2022 and related cases, directed APSPDCL to refund or adjust the excess electricity duty collected beyond 6 paise per unit from the consumers. During the Financial Year 2023-24, by virtue of the above interim order of Honble AP High Court, the company has reversed the entire provision created for Electricity Duty. However, the Final Judgement is yet to be pronounced by the Honorable High Court of Andhra Pradesh.

31 Restatement of financial statements

In accordance with Ind AS 8 (Accounting Policies, Changes in Accounting Estimates, and Errors) and paragraph 40A of Ind AS 1 (Presentation of Financial Statements), the management has retrospectively restated the financial statements for the year ended 31 March 2023 to correct prior period errors as follows:

An amount of Rs. 163.17 lakhs was charged to deferred tax in the profit and loss account for the financial year 2022-23 due to prior period adjustments. Consequently, the revised deferred tax as of 31 March 2023 is Rs. 272.79 lakhs, compared to the previously reported deferred tax asset of Rs. 453.41 lakhs. This adjustment is made in compliance with Ind AS 8 regarding accounting policies, changes in accounting estimates, and errors.

32 Employee benefits obligation

Defined contribution plans - Provident fund:

Contribution towards employee provident fund, which is a defined contribution plan for the period aggregated to Rs 30.36 lacs charged in the statement of profit and loss.

33 Defined benefit plan - Gratuity:

In accordance with the ''Payment of Gratuity Act, 1972'' of India, the Company provides for gratuity, a defined retirement benefit plan (the ''Gratuity Plan'') covering eligible employees. Liabilities with regard to such gratuity plan are determined by an independent actuarial valuation and are charged to the Statement of Profit and Loss in the period determined. The gratuity plan is administered by Life Insurance Corporation of India.

Previous year figures have been regrouped / reclassified wherever necessary to confirm to the current year classification.

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Mar 31, 2015

L. Related party transactions

The Company had transactions with the following related parties:

(a) Major shareholders holding more than 20% of the share capital (herein after referred to as Parties having significant influences":

1. Mr.K Vijay Kumar

2. IVlrs.K V Nags Lalitha

(b) Enterprises over which major investing parties have control

Nit

(c) Key Manageriat Personnel represented on board

Name Designation

1. K. Vijay Kumar Managing Director

2. R. Shw Kumar Executive Vice Chapman

3. P. Ramamoorthy CFO

4. P. Rajendna Babu Company Secretary

(d) Relatives of Key Managerial Personnel

V N. Krishna Mohan

2. K. V. Magalalitha

3. P. Dharralakshmi

(e) Companies controlled by directors f relatives of directors

1. Errvean Leasing &. Investment Limited

2. Contingent LiafalEities and commitments :

(to the extend not provided for

I) Contingent Liebilliies 31.03.2015 31-03.2014

a Claimt against Hie Company not 9.59 Lakhs 9.59 lakhs acknowlwdged as debt

b| Guarantees NIL NIL

C Others NIL NIL

ii) commitments

(a) Estabilshment amount of confects rgmerning NIL NIL to be executed On capital account and not provided for

(b Uncalled liblity on Shares and other Investment! parity pad NIL NIL

(6 Others NIL NIL

7 Balances due to or due from oadi-es are subject to confirmation

8. previous year figures have been regrouped reclassed whether necessary confirm to the current year classification

9. Figures have been rounded off to near rupee.

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Mar 31, 2014

Note 1.1: Cash Credit Facility represents loan from Andhra Bank which is secured by hypothecation of stocks and receivables. The above loan is also secured by mortage of land and buildings of the Company and the land belonging to the Managing Director and further guaranted by Mr.K.Vijay Kumar, Managing Director and Mrs.K.V.Naga Lalitha, Director.

Note:2.1 Out of the said amount Rs.Nil (Previous year Rs.Nil) pertains to Micro, Small and Medium Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006.

II. Notes on Other Disclosures :

1. RELATED PARTY DISCLOSURE:

Related Parties :

Sri Chakra Cement Ltd

Envean Leasing & Investments Ltd

Relationship :

Key Management Personnel

Mr.N Krishna Mohan

Mr.K Vijay Kumar

Related Party Transactions :

Loans & Advances amounting to Rs.164.77 Lakhs Outstanding balance with related parties as on March 31, 2014: Rs.164.77 Lakhs

2. Contingent Liabilities and commitments : (to the extent not provided for)

i) Contingent Liabilities 31.03.2014 31.03.2013

a) Claims against the Company not 9.59 Lakhs 9.59 Lakhs acknowledged as debt

b) Guarantees NIL NIL

c) Others NIL NIL

ii) Commitments

(a) Estimated amount of contacts remaining NIL NIL to be executed on capital account and not provided for;

(b) Uncalled Liability on Shares and other Investments partly paid NIL NIL

(c) Others NIL NIL

3. Balances due to or due from parties are subject to confirmation.

4. Consumption details of Raw Materials & Stores & spares.

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Mar 31, 2013

1. RELATED PARTY DISCLOSURE:

Related Party: Sri Chakra Cement Ltd

Relationship : Key Management Personnel , Mr. N. Krishna Mohan, Mr. K. Vijay Kumar Related Party Transactions: Loans & Advances amounting to Rs.1.20 Lakhs Outstanding balance with related party as on March 31, 2013: Rs.1.20 Lakhs

2. Contingent Liabilities and commitments :

(to the extent not provided for)

i) Contingent Liabilities 31.03.2013 31.03.2012

a) Claims against the Company not acknowledged as debt 9.59 Lakhs 9.59 Lakhs

b) Guarantees NIL NIL

c) Others NIL NIL

ii) Commitments

(a) Estimated amount of contacts remaining to be executed on capital account and not provided for; NIL NIL

(b) Uncalled Liability on Shares and other

Investments partly paid NIL NIL

(c) Others NIL NIL

3. Balances due to or due from parties are subject to confirmation.

4. Consumption details of Raw Materials & Stores & spares.

5. Previous year figures have been regrouped / reclassified wherever necessary to confirm to the current year classification.

6. Figures have been rounded off to nearest rupee.

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Mar 31, 2012

1. RELATED PARTY DISCLOSURE: Related Party: Sri Chakra Cement Ltd

Related Party Transactions: Loans & Advances amounting to Rs. 13.24 Lakhs

Outstanding balance with related party as on March 31' 2012: Rs.Nil

2. Contingent Liabilities and commitments :

(to the extent not provided for)

i) Contingent Liabilities 31.03.2012 31.03.2011

a) Claims against the Company not

acknowledged as debt 9.59 Lakhs NIL

b) Guarantees NIL NIL

c) Others NIL NIL

3. Previous year figures have been regrouped / reclassified wherever necessary to confirm to the current year classification.

4. Figures have been rounded off to nearest rupee.

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Mar 31, 2011

31.03.11 31.03.10

2. Contingent Liabilities in respect of In Rs. In Rs.

a) Bank Guarantee NIL NIL

b) Letter of Credit NIL NIL

4. Deferred Tax Asset Even though, the company has unabsorbed depreciation, carry forward losses and adjustments under section 43B of Income tax Act, 1961, Deferred Tax asset as per the Accounting Standard -22" Accounting for taxes on incomes" issued by the Institute of Chartered Accountants of India, has not been recognized and could not be quantified in the books of account since generation of sufficient taxable income in near future is uncertain.

5. Calls in arrears account is showing an amount of Rs. 977,802/- towards call money to be received. The amount of call money is still under reconciliation and is subject to confirmation.

6. Secured Loans:

i) The term loans are secured by:

a) First Charge on all assets of the company present and future, excluding the specified receivables charged to the bankers for working capital.

b) Personal guarantees of Managing Director, and three other promoters of the company.

c) Interest on Term Loan was not provided in the Books for the period since the company has entered into an OTS agreement with the financial institutions.

The Company has entered into One Time Settlement with all the above Financial Institutions and cleared the entire amount due as per OTS and obtained no due certificate but the impact of this OTS agreements was not reflected in the books of account resulting thereby overstatement of Long Term Loans and Interest accrued thereon by Rs.20369.71 lakhs,

ii) The working capital borrowings are secured by

a) Hypothecation of raw material, stock in progress, finished goods, receivables, and stores & spares.

b) First charge on all current assets past, present and future of the company ranking pari passu among consortium.

c) Second charge on fixed assets of the company,

d) Personal Guarantees of the Managing Director and three other promoters of the company.

e) Interest on working capital borrowings was not provided in the Books for the year since the company has entered into an OTS agreement with the respective Banks.

The Company has entered into One Time Settlement with all the above Banks and cleared the entire amount due as per OTS and obtained no due certificate but the impact of this OTS agreements was not reflected in the books of account resulting thereby overstatement of Long Term Loans and Interest accrued thereon by Rs.577.55 Lakhs.

Segment Accounting:

The Company has no reportable segments under AS-17.

8. Balances due to or due from parties are subject to confirmation.

9. For the years 2006-07 to 2009-10 depreciation was charged on Continuous Process basis. Since the factory has actually worked on triple shift basis, depreciation was reworked and provided for the difference amounting to Rs.44285046/- during the current year.

10. Quantitative information pursuant to the provisions of paragraphs 3, 4C and 4D of part II of Schedule VI of companies Act, 1956 in respect of goods manufactured.

11. Previous year figures have been regrouped / reclassified wherever necessary to confirm to the current year classification.

12. Figures have been rounded off to nearest rupee.

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Mar 31, 2010

31.03.10 31,03.09

1. Contingent Liabilities in respect of In Rs. In Rs.

a) Bank Guarantee NIL NIL

b) Letter of Credit NIL NIL

2. Deferred Tax Asset

Even though, the company has unabsorbed depreciation, carry forward losses and adjustments under section 43B of Income tax Act, 1961, Deferred Tax asset as per the Accounting Standard -22" Accounting for taxes on incomes" issued by the Institute of Chartered Accountants of lndia, has not been recognized and could not be quantified in the books of account since generation of sufficient taxable income in near future is uncertain.

3. Calls in arrears account is showing an amount of Rs.977,802/- towards call money to be received. The amount of call money is still under reconciliation and is subject to confirmation.

4. Secured Loans:

i) The term loans are secured by:

a) First Charge on all assets of the company present and future, excluding the specified receivables charged to the bankers for working capital.

b) Personal guarantees of Managing Director, and three other promoters of the company.

c) Interest on Term Loan was not provided in the Books for the period since the company has entered into an OTS agreement with the financial institutions.

The Company has entered into One Time Settlement with the Financial Institutions i.e. IFCI and IDB1 and cleared the entire amount due as per OTS and obtained no due certificate but the impact of this OTS Settlements was not reflected in the books of account pending finalization of DRS by BIFR resulting thereby overstatement of Long Term Loans and Interest accrued thereon by Rs. 20369.71 Lakhs.

ii) The working capital borrowings are secured by

a) Hypothecation of raw material, slock in progress, finished goods, receivables, and stores & spares.

b) First charge on all current assets past, present and future of the company ranking pari passu among consortium.

c) Second charge on fixed assets of the company,

d) Persona] Guarantees of the Managing Director and three other promoters of the company.

e) Interest on working capita! borrowings was not provided in the Books for the year since the company has entered into an OTS agreement with the respective Banks,

The Company has entered into One Time Settlement with the Banks i.e. SBH, SBP SB I and SBT and cleared the entire amount due as per OTS and obtained no due certificate but the impact of this OTS settlements was not reflected in the books of account pending finalization of DRS by BIFR resulting fhereby overstatement of working Capital Borrowings and interest accrued thereon by Rs, 577.55 Lakhs.

5. Segment Accounting:

The financial results relate to Textile segment only have no segment reporting is made in accordance with Accounting Standards-17,

6. Balances due to or due from parties are subject to confirmation.

7. Previous year figures have been regrouped/reclassified wherever necessary for the current year classification.

8. Figures have been rounded off to nearest rupee.