Notes to Accounts of Anjani Synthetics Ltd.

Mar 31, 2024

L. Provisions, Contingent liabilities, Contingent assets and Commitments General

Provisions are recognized when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Contingent liability is disclosed in the case of:

1. A present obligation arising from the past events, when it is not probable that an outflow of resources will be required to settle the obligation;

2. A present obligation arising from the past events, when no reliable estimate is possible;

3. A possible obligation arising from the past events, unless the probability of outflow of resources is remote.

Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

M. Dividend

Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

The Company recognizes a liability to make cash distributions to equity holders of the Company when the distribution is authorized, and the distribution is no longer at the discretion of the Company. Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors. The interim dividends declared during the year are approved by the Board of Directors.

However no dividend has been paid by Company during the year.

N. Earnings per share

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the company''s earnings per share is the net profit for the period after deducting preference dividends and any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date. The diluted potential equity shares have been arrived at, assuming that the proceeds receivable were based on shares having been issued at the average market value of the outstanding shares. In computing dilutive earnings per share, only potential equity shares that are dilutive and that would, if issued, either reduce future earnings per share or increase loss per share, are included.

O. Use of estimates and judgements

The presentation of the financial statements is in conformity with the Ind AS which requires the management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on management''s evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are recognized in the period in which the trades are revised and in any future periods affected.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes:

• Current tax

• Fair valuation of unlisted securities

P. Statement of cash flows

Cash flow are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals of accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and finance activities of the company are segregated.

Q. Current and non-current classification

The company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:

i. Expected to be realized or intended to be sold or consumed in normal operating cycle;

ii. Held primarily for the purpose of trading;

iii. Expected to be realized within twelve months after the reporting period, or

iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

i. It is expected to be settled in normal operating cycle;

ii. It is held primarily for the purpose of trading;

iii. It is due to be settled within twelve months after the reporting period, or

iv. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

All other liabilities are classified as non-current.

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

Operating Cycle

The operating cycle is the time between the acquisition of assets for processing and their realization

in cash and cash equivalents. The company has identified twelve months as its operating cycle.

R. Foreign currency translation

Items included in the financial statements of the entity are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency''). The financial statements are presented in Indian rupee (INR), which is company''s functional and presentation currency.

Transactions and balances

Transactions in foreign currencies are initially recorded by the company''s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in OCI or profit or loss are also recognized in OCI or profit or loss, respectively).

S. Fair value measurement

The company measures financial instruments, such as, derivatives at fair value at each balance sheet date.

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. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

i. In the principal market for the asset or liability, or

ii. In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

i. Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or Liabilities.

ii. Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

iii. Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the company determines whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The company''s Valuation Committee determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement, such as assets held for distribution in discontinued operations. The Valuation Committee comprises of the head of the investment properties segment, heads of the company''s internal mergers and acquisitions team, the head of the risk management department, financial controllers and chief finance officer.

External valuers are involved for valuation of significant assets, such as unquoted financial assets. Involvement of external valuers is decided upon annually by the Valuation Committee after discussion with and approval by the management. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. Valuers are normally rotated every three years. The management decides, after discussions with the company''s external valuers, which valuation techniques and inputs to use for each case.

At each reporting date, the management analyses the movements in the values of assets and liabilities which are required to be remeasured or re-assessed as per the company''s accounting policies. For this analysis, the management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation.

The management, in conjunction with the Company''s external valuers, also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable.

On an interim basis, the Valuation Committee and the Company''s external valuers present the valuation results to the Audit Committee and the company''s independent auditors. This includes a discussion of the major assumptions used in the valuations.

For the purpose of fair value disclosures, the company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

This note summarizes accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

i. Disclosures for valuation methods, significant estimates and assumptions.

ii. Quantitative disclosures of fair value measurement hierarchy.

iii. Investment in unquoted equity shares (discontinued operations).

iv. Financial instruments (including those carried at amortized cost).

T. Exceptional items

Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the company is such that its disclosure improves the understanding of the performance of the company, such income or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial statements.

U. Rounding off

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs as per the requirements of Schedule III, unless otherwise stated.

• Recent accounting pronouncements

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. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

As per our report of even date attached For and on behalf of the Board of Directors

For Nahta Jain & Associates ANJANI SYNTHETICS LIMITED

Chartered Accountants Firm Regn. No. 106801 W

Vasudev S. Agarwal Sanjay G. Sharma

(CA. Gaurav Nahta) (Managing Director) (Director)

Partner (DIN- 01491403) (DIN- 02455999)

M.No. 116735

Sandeep Mehta Vikas Sharma

(Chief Financial Officer) (Chief Executive Officer)

Place: Ahmedabad Place: Ahmedabad

Date: 30.05.2024 Date: 30.05.2024

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Mar 31, 2015

1.Terms/rights attached to equity shares :

The company has only one class of equity shares having par value of Rs. 10/-(Previous year Rs. 10/-) per share. Each holder of equity shares is entitled to one vote per share.

2. Figures have been rounded off to nearest rupee.

3. Contingent liabilities & Commitments NIL NIL

4. Break up of expenditure incurred on employess who were in receipt of remuneration aggregating Rs. 6000000/- or more for year or Rs. 500000/- or more, per month where employed for a part of the year. Nil (Previous Year Rs. Nil).

5. DEFERRED TAX : The company on prudent basis has not considered deferred tax assets.

6. Pursuant to the enactment of Companies Act 2013, the Company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortised carrying value is being depreciated over the revised/remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted in the opening balance of Profit and Loss Account amounting of Rs. 1843867/-.

7. Disclosures in respect of related parties as defined in Accounting Standard 18, with whom transactions have taken place during the year are given below :-

a. Associate Companies in which directors or their relatives are interested

: Virat Spinners Pvt.Ltd.

b. Associate Concerns in which directors or their relatives are interested

: Aakruti Textile

c. Directors and their relatives

: Subhkaran T Agarwal

Subhkaran T Agarwal HUF Vasudev S. Agarwal Vasudev S. Agarwal HUF Ravi kumar S.Agarwal Ravi kumar S.Agarwal HUF Kajal Ravi Agarwal Anjana Kailash Agarwal Bimla Devi S.agarwal Kailash S. Agarwal Kailash S. Agarwal HUF Anita V. Agarwal Aashna V.Agarwal Mahavir Prasad Dalmia

8. Micro & Small Enterprises Dues :

As per information given to us there were no amount overdue and remaining outstanding to small scale and /or ancillary Industrial suppliers on account of principal and /or interest as at the close of the year. Based on the information available with company, there are no dues outstanding to Micro and Small Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 for more than 45 days as at March 31,2015.

9.Previous year's figures have been regrouped/rearranged wherever necessary so as to make them comparable with the figures of the current year.

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Mar 31, 2014

Terms/rights attached to equity shares

The company has only one class of equity shares having par value of Rs. 10/- (Previous year Rs. 10/-) per share. Each holder of equity shares is entitled to one vote per share.

1. Term loan from Punjab National Bank are secured against hypothecation of Plant & Machinery and other fixed assets of the company. The loans are further secured by mortgage of certain land, office building, residential premises owned by Directors or their relatives.

2. Installments falling due in respect of all the above term loans upto 31.03.2014 have been grouped under "Current maturities of long term borowings." (refer Note 6)

1 Working capital facilities under the name cash credit, packing credit etc. are secured against hypothecation of all current assets including stock of raw material, stock in process, finished goods, stores & spares, book debt etc. The facilities are further secured by mortgaged of certain immovable properties owned by Directors and their relatives.

3. Figures have been rounded off to nearest rupee.

4. Balance of Trade Payables, Receivables, Loans and advances, unsecured loans are subject to confirmation.

5. contingent liabilities & Commitments NIL NIL

6. Break up of expenditure incurred on employess who were in receipt of remuneration aggregating Rs. 6000000/- or more for year or Rs. 500000/- or more, per month where employed for a part of the year. Nil (Previous Year l Nil).

7. DEFERRED TAX

The company on prudent basis has not considered deferred tax assets.

8. "Ahmedabad Textile Processors Association, in which company is also a member had formed an organization namely "Narol Textile Infrastructure and Enviro Management" to Resolve the recurring Problem of water pollution arising out of discharge of polluted water by textile processors. This organization has started work on the project and contribution from each member towards project has been calculated on the basis of discharge of water every day by the member company. The company''s total contribution towards project was determined at Rs. 1,14,00,000/- which the company has paid/- . The last installment has been completed during the current year. The company is treating the said contribution as a addition spereately in the schedule to Fixed Assets and depreciation has been claimed on the rates applicable as per the companies Act. As informed the company has also started discharging its polluted water through this pipeline. "

9. Micro & Small Enterprises Dues

As per information given to us there were no amount overdue and remaining outstanding to small scale and /or ancillary Industrial suppliers on account of principal and /or interest as at the close of the year. Based on the information available with company, there are no dues outstanding to Micro and Small Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 for more than 45 days as at March 31, 2014.

10. Previous year''s figures have been regrouped/rearranged wherever necessary so as to make them comparable with the figures of the current year.

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Mar 31, 2013

1 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure

2 Figures have been rounded off to nearest rupee.

3 DEFERRED TAX

The compnay on prudent basis has not considered deferred tax assets.

4 Ahmedabad Textile Processors Association, in which company is also a member has form an organization namely "Narol Textile Infrastructure and Enviro Management" to Resolve the recurring Problem of water pollution arising out of discharge of polluted water by textile processors. The newly formed organization has started work on the project and contribution from each member towards project has been calculated on the basis of discharge of water every day by the member company. The company’s total contribution towards project has been determined at Rs. 1,14,00,000/- and out of that a sum of Rs. 71,25,000/- has been paid. Pending completion of project i.e. pipe line and common Affluent Treatment Plant, the contribution made by the company has been shown under the head "Loans and Advances".

c. Directors and their relatives:

Shri Subhkaran T. Agarwal

Shri Subhkaran T. Agarwal HUF

Shri Vasudev S. Agarwal

Shri Vasudev S. Agarwal HUF

Shri Vasudev S. Agarwal Family Trust

Shri Ravi kumar S. Agarwal

Shri Ravi kumar S. Agarwal HUF

Smt.Kajal Ravi Agarwal

Smt.Anjana Kailash Agarwal

Smt.Bimla Devi S.agarwal

Shri Kailash S. Agarwal

Shri Kailash S. Agarwal HUF

Shri Kailash S. Agarwal Family Trust

Smt.Anita V. Agarwal

Aashna V.Agarwal

Mahavir Prasad Dalmiya

5 Micro & Small Enterprises Dues

As per information given to us there were no amount overdue and remaining outstanding to small scale and /or ancillary Industrial suppliers on account of principal and /or interest as at the close of the year. Based on the information available with company, there are no dues outstanding to Micro and Small Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 for more than 45 days as at March 31, 2013.

6 Previous year’s figures have been regrouped/rearranged wherever necessary so as to make them comparable with the figures of the current year.

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Mar 31, 2012

A. Terms/rights attached to equity shares

The company has only one class of equity shares having par value of Rs. 10/- (Previous year Rs. 1/-) per share. Each holder of equity shares is entitled to one vote per share.

1 Term loan from Punjab National Bank are secured against hypothecation of Plant & Machinery and other fixed assets of the campany. The loans are further secured by mortgage of certain land, office building, residential premises owned by Directors or their relatives.

2 Installments falling due in respect of all the above term loans upto 31.03.2013 have been grouped under "Current maturities of long term borowings." (refer Note 6)

1 Working capital facilities under the name cash credit, packing credit etc. are secured against hypothecation of all current assets including stock of raw material, stock in process, finished goods, stores & spares, book debt etc. The facilities are further secured by mortgaged of certain immovable properties owned by Directors and their relatives.

1 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure

2 Figures have been rounded off to nearest rupee.

3 Balance of Trade Payables, Receivables, Loans and advances, unsecured loans are subject to confirmation.

4 Break up of expenditure incurred on employess who were in receipt of remuneration aggregating Rs. 2400000/ - or more for year or Rs. 200000/- or more, where employed for a part of the year. Nil (Previous Year Rs. Nil).

5 DEFERRED TAX

The compnay on prudent basis has not considered deferred tax assets.

6 Ahmedabad Textile Processors Association, in which company is also a member has form an organization namely "Narol Textile Infrastructure and Enviro Management" to Resolve the recurring Problem of water pollution arising out of discharge of polluted water by textile processors. The newly formed organization has started work on the project and contribution from each member towards project has been calculated on the basis of discharge of water every day by the member company. The company's total contribution towards project has been determined at Rs 1,14,00,000/- and out of that a sum of Rs. 35,62,500/- has been paid. Pending completion of project i.e. pipe line and common Affluent Treatment Plant, the contribution made by the company has been shown under the head "Loans and Advances".

7 Micro & Small Enterprises Dues

As per information given to us there were no amount overdue and remaining outstanding to small scale and /or ancillary Industrial suppliers on account of principal and /or interest as at the close of the year. Based on the information available with company, there are no dues outstanding to Micro and Small Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 for more than 45 days as at March 31, 2012.

8 Previous year's figures have been regrouped/rearranged wherever necessary so as to make them comparable with the figures of the current year.

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Mar 31, 2010

1. Figures have been rounded off to nearest rupee.

2. Previous year figures have been regrouped, rearranged, wherever found necessary

3 Balances of Sundry Debtors, Creditors, Loans and advances are subject to confirmation.

4. In the op,n,on of the directors, current assets, loans and advances have the value at which they are stated in Balance Sheet if realized, in the ordinary course of the business The provision for all liability is adequate and not , excess of the amount reasonably necessary.

There is no amount overdue to small scale and / or Ancillary Industrial suppliers on account of principal and / or interest as at the close of the year. This information is based on the data/ particulars received by the company from the parties.

i Provision for income tax is based on the taxable profits of the company in accordance with the income Tax Act.

ii. Estimated amounts of contracts remaining to be executed on capital account and not provided for Rs NIL (Prev. Yr Rs NIL)

iii. Amount of borrowing cost capitalized as per "Accounting Standard-16". during the year was Rs NIL

1 There is no lease transaction during the year as per "Accounting Standard - 19"

2. As required by "Accounting Standard -20" the basic Earning per Share (EPS) is Rs. 0.22 arrived at by dividing the Profit After Tax (PAT) by the total number of shares issued and subscribed as at the end of the year.

3 There are no separate reportable segments as per Accounting Standard 17 as the entire operations of the Company relate to one segments, viz. the Textile

5. Disclosures in respect of related parties as defined in Accounting Standard 18, with whom transactions have taken place during the year are given below :-

(a) Associate Bodies Corporate. Parth International P. Ltd.

(b) Associate Concerns in which directors or their relatives are interested Aakruti Textile

(c) Directors and their relatives : Shri SubhkaranT.Agarwal ShriVasudevS. Agarwal Shri Vasudev S. Agarwal HUF

Shri Vasudev S. Agarwal Family Trust

Shri Ravi kumar S.Agarwal

Smt.AnjanaKailashAgarwal

Smt. Bimla Devi S.agarwal

Shri Kailash S. Agarwal

Shri Kailash S. Agarwal HUF

Shri Kailash S. Agarwal Family Trust

Smt. Anita V. Agarwal