Notes to Accounts of Anka India Ltd.

Mar 31, 2025

j) Provisions and Contingencies

A Provisions

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 resources embodying economic benefits will be required to settle the
obligation and are liable 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 recognised 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.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost.

B Contingent Liabilities and Contingent Assets

A contingent liability is a possible obligation that arises from a past event, with the resolution of the contingency
dependent on uncertain future events, or a present obligation where no outflow is probable. Major contingent
liabilities are disclosed in the financial statements unless the possibility of an outflow of economic resources is
remote. Contingent assets are not recognized in the financial statements but disclosed, where an inflow of economic
benefit is probable.

k) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker of the Company is responsible for allocating resources and
assessing performance of the operating segments.

l) Exceptional Items

Exceptional Items refer to items of income or expenses including tax items, within the statement of profit and loss
from ordinary activities which are non-recurring and one of such size, nature of incidence that their separate
Disclosure is concerned necessary to explain the performance of the company.

m) Revenue

The Company has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor
in all the revenue arrangements as it has pricing latitude and is also exposed to inventory and credit risks. The
specific recognition criteria described below must also be met before revenue is recognised:

Sale of goods

Revenue from contracts with customers is recognised when the provision of service is completed at an amount that
reflects the consideration to which the Company expects to be entitled in provision for those services.

n) Leases

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have
a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies
the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on
short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease
term.

o) Recent Accounting pronouncements Standards issued but not yet effective and not early adopted by the
Company

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards from time to
time. There have been no new Standards made applicable from 1st April, 2025.

NOTE : 26

FINANCIAL RISK MANAGEMENT

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s risk management assessment and policies and processes are established to identify and
analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to
reflect changes in market conditions and the Company’s activities.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers, loans
and balance with banks. The carrying amount financial assets represents the maximum credit exposure .The maximum exposure to credit risk was Rs.5.95 Crores as at March 31, 2025 (March 31, 2024: Rs.7.71 Crores). Credit
risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of counterparty to which the Company grants credit terms in the normal course of business. Outstanding
customer receivables are regularly monitored. The management continuously monitors the credit exposure towards the customers and makes provision against those balances considered doubtful of recovery.

Trade receivables

The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into
account external and internal risk factors and historical data of credit losses from various customers.

NOTE : 30
LEASES

The Company has elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option
(short-term leases). There are no long term lease in the Company''s books and as a result, there is no impact on the financials.

NOTE : 31
Provision

In respect of any present obligation as a result of past event that could lead to a probable outflow of resources, provisions has been made, which would be required to settle the obligation. The
said provisions are made as per the best estimate of the management and disclosure as per Ind AS 37 - “Provisions, Contingent Liabilities and Contingent Assets” has been given below: ''

NOTE : 32

Deferred Tax Asset / (Liabilities) (Net)

Since the Company has been incurring losses it has not recognised Deferred Tax Assets.

NOTE : 33
SEGMENT

In the context of Indian Accounting Standard (Ind AS) 108 - Operating Segments, "Entertainment" is considered as the Operating Segment of the Company since the "Chief Operating Decision Maker" (CODM) reviews business
performance at an overall Company level as one segment.

NOTE : 34

REVENUE FROM CONTRACTS WITH CUSTOMERS

Ind AS 115 Revenue from Contract with Customer was issued on March 28,2018 and supersedes Ind as 11 ''Construction Contracts'' and Ind AS 18 ''Revenue'' and it applies with limited exception, to all revenue arising from
contracts with its customers. The Company adopted Ind AS115 using the modified retrospective method of adoption with the date of initial application of April 01,2018 which does not required restatementof comperartive period.
The Company elected to apply the standard to all contracts as at April 01,2018. There is no Impact to be recongnised at the date of initial application as an adjustment to the opening balance of retained earnings.

NOTE : 35

USE OF ESTIMATES, JUDGMENTS AND ASSUMPTIONS

The preparation of the Company''s financial statements requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies
that have the most significant effect on the amounts recognised in the financial statements.

39 Company does not have any immoveable property and accordingly the clause pertaining to owning the title
deeds does not apply.

40 Company has not granted any Loans and Advances in the nature of Loans to Promoters, Directors, KMPs and
the related parties (as defined under Companies Act, 2013) either severally or jointly with any other person
during the year.

41 There has been no proceedings initiated or are pending against the Company for holding any Benami
Property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

42 Company does not have any borrowings from any Banks or Financial Institutions and accordingly it has not
been declared as a Willful Defaulter.

43 Company has not entered into transactions wiith any of the Struck Off Companies during the financial year.

44 During the year there has been no satisfaction of charges registered with the Registrar of the Company.

45 Company has not been sanctioned any Working Capital limits from any Banks or Financial Institutions on the
basis of security of the Company''s Current Assets and accordingly Company is not required to provide any
quarterly submissions to any Bank or Financial Institution.

46 To the best of our knowledge and belief, no funds (which are material either individually or in the aggregate)
have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries

47 To the best of our knowledge and belief, no funds (which are material either individually or in the aggregate)
have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

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

For R.S. PRABHU & ASSOCIATES Anka India Limited

Chartered Accountants

ICAI Firm Registration Number 127010W Raman Rakesh Trikha

Director
DIN: 00383578
Dated : 30th May, 2025
Place : Gurugram

Anitha Viswanathan
Partner

Membership No.113512 Sulakshana Trikha

Place : Vasai Road (East) Director

Dated : 30th May, 2025 DIN: 02924761

Dated : 30th May, 2025
Place : Gurugram

Anu Sharma
Company Secretary
Dated : 30th May, 2025
Place : Gurugram

Manish Umakant Pandey
Chief Financial Officer
Dated : 30th May, 2025
Place : Gurugram

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Mar 31, 2024

j) Provisions and Contingencies
A Provisions

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 resources embodying economic benefits will be required to settle the obligation and are liable 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 recognised 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.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance

B Contingent Liabilities and Contingent Assets

A contingent liability is a possible obligation that arises from a past event, with the resolution of the contingency dependent on uncertain future
events, or a present obligation where no outflow is probable. Major contingent liabilities are disclosed in the financial statements unless the
possibility of an outflow of economic resources is remote. Contingent assets are not recognized in the financial statements but disclosed,
where an inflow of economic benefit is probable.

k) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief
operating decision maker of the Company is responsible for allocating resources and assessing performance of the operating segments.

l) Exceptional Items

Exceptional Items refer to items of income or expenses including tax items, within the statement of profit and loss from ordinary activities which
are non-recurring and one of such size, nature of incidance that their separate Disclosure is concerned necessary to explain the performance of
the company.

m) Revenue

The Company has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue
arrangements as it has pricing latitude and is also exposed to inventory and credit risks. The specific recognition criteria described below must
also be met before revenue is recognised:

Sale of goods

Revenue from contracts with customers is recognised when the provision of service is completed at an amount that reflects the consideration to
which the Company expects to be entitled in provision for those services.

n) Leases

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months
or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to
leases that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a
straight-line basis over the lease term.

o) Recent Accounting pronouncements

Standards issued but not yet effective and not early adopted by the Company

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards from time to time. There have been no new
Standards made applicable from 1st April, 2024.

NOTE : 25

FINANCIAL RISK MANAGEMENT

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s risk management assessment and policies and processes are established to identify and
analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to
reflect changes in market conditions and the Company’s activities.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers, loans
and balance with banks. The carrying amount financial assets represents the maximum credit exposure .The maximum exposure to credit risk was Rs.7.71 Lakhs as at March 31, 2024 (March 31, 2023 : Rs.7.19 Lakhs). Credit
risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of counterparty to which the Company grants credit terms in the normal course of business. Outstanding
customer receivables are regularly monitored. The management continuously monitors the credit exposure towards the customers and makes provision against those balances considered doubtful of recovery.

40 Company has not granted any Loans and Advances in the nature of Loans to Promoters, Directors, KMPs and
the related parties (as defined under Companies Act, 2013) either severally or jointly with any other person
during the year.

41 There has been no proceedings initiated or are pending against the Company for holding any Benami Property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

42 Company does not have any borrowings from any Banks or Financial Institutions and accordingly it has not been
declared as a Willful Defaulter.

43 Company has not entered into transactions wiith any of the Struck Off Companies during the financial year.

44 During the year there has been no satisfaction of charges registered with the Registrar of the Company.

45 Company has not been sanctioned any Working Capital limits from any Banks or Financial Institutions on the
basis of security of the Company''s Current Assets and accordingly Company is not required to provide any
quarterly submissions to any Bank or Financial Institution.

46 To the best of our knowledge and belief, no funds (which are material either individually or in the aggregate) have
been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries

46 To the best of our knowledge and belief, no funds (which are material either individually or in the aggregate) have
been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”),
with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

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Mar 31, 2014

1. CORPORATE INFORMATION -

Anka India Limited is a public company, incorporated in India under the provisions of Companies Act, 1956. The Company is having its Regd. Office at Gurgaon Haryana and Corporate office at New Delhi.

2. BASIS OF PREPARATION -

The accompanying financial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standard issued by the Institute of CharteredAccountants of India (ICAI) and the provisions of Companies Act, 1956. These accounting policies have been consistently applied, except where newly issued accounting standard is initially adopted by the Company. Management evaluates the effect of accounting standards issued on an-on-going basis and ensures they are adopted as mandatory by the ICAI.

3. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share.

4. Secured Loan from Darsh Polymers Pvt. Ltd is secured by a first charge and mortgage of all immovable properties both present and future and first charge by way of hypothecation of movable assets (except book debts), and guaranteed by a Non executive Director, a Whole time Director and Joint Managing Director of the Company and further secured by way of pledge of 341800 Equity Shares of Rs.10 each of promoter group. Darsh Polymers Pvt. Ltd. has an option to convert 50% of the amount of loan into equity, subject to the approval of the shareholders of Anka India Ltd. and the Board for Industrial and Financial Reconstruction and also in accordance with prevalent norms , policies and statutory provisions.

6. Leave Encashment

There were no accumulated unavailed leaves in respect of any of the employees as on 31.03.2014, hence no actuarial valuation was required in this regard as on that date

Gratuity

The company had not made the provision for gratuity on the basis of actuarial valuation. Considering the fact that only one employee is working in the company and high cost involved in the getting the actuarial valuation done, the provision for gratuity for the period has been made on estimated basis. In the absence of actuarial valuation as on 31st March 2014 the impact, of such deviation from the accounting standard - 15 as prescribed under the Companies Act, 1956, on the accounts is not ascertainable and also the required disclosures cannot be made.

7. The Company has reclassified previous year figures to conform to this year''s classification.

8. In the opinion of the Management, the value on realization of current assets, loans & advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities has been made.

9. Figures are rounded-off to the nearest rupee.

10. Contingent Liabilities-

Particulars 31.03.2014 31.03.2013

Claims against the company not acknowledged as debt or Guarantees -NIL- -NIL-

Other money for which the company is contingently liable

Disputed Demand from Central Excise Deptt. 1,88,319 1,88,319

Disputed Demand under Land ReformAct. 1,90,000 1,90,000

Disputed Demand under Sales Tax - 1,82,760

Custom Duty Written Back 3,15,664 3,15,664

Total 6,93,983 8,76,743

11. Balances outstanding under the captioned heads Sundry Debtors, Sundry Creditors, Loans & Advances, Bank Balances as on the date of Balance Sheet - are subject to reconciliation and confirmation.

12. Deferred Tax -

The company has unabsorbed depreciation and carryforward losses undertax laws. In the absence of virtual certainty of sufficient future taxable income, net deferred tax asset has not been recognised on prudent basis in accordance with the Accounting Standard - 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

13. The Company being engaged only in the business of manufacture of Shoe -Soles, separate segment reporting, in terms of Accounting Standard AS -17 on "Segment Reporting" issued by the Institute of Chartered Accountant of India, is not required.

14. Additional information pursuant to the provisions of Paragraph 3 and 4 of part-II of Schedule VI to the Companies Act, 1956.

15. Without considering the impact, if any, of the qualifications in the auditor''s report, the Company has no intention to discontinue its operations even though the net worth is negative. Therefore, these accounts have been prepared on ''Going Concern Basis''. and is looking fora new profitable venture.

16. The company has requested its suppliers to intimate whether they are registered under "The Micro, Small and Medium Enterprises Development Act 2006", No supplier has intimated to the company that they are registered under the said Act.

17. Directors have waived off their right to sitting fee in respect of meetings of Board of Directors and committees thereof attended by them.

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Mar 31, 2012

1. CONTINGENT LIABILITIES

Particulars as at as at 31-Mar-2012 31-Mar-2011

Contingent Liabilities

Claims against the company not acknowledged as debt Guarantees

Other money for which the company is contingently liable 2,276,743 568257

Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Uncalled liability on shares and other investments partly paid Other commitments

Total 2276743 568257

Notes

Disputed Demand from Central Excise Deptt. 188319 195497

Disputed Demand under Land Reform Act. 190000 190000

Disputed Demand under Sales Tax 182760 182760

Unsecured Loan Written Back 1400000

Custom Duty Written Back 315664

2276743 568257

2. Balances standing to the debit and credit of the debtors, creditors, and few other parties are subject to confirmation/reconciliation. Consequent impact on accounts upon confirmation/reconciliation is not ascertainable in the present circumstances.

3. In the opinion of the Board of directors, the value on realisation of current assets, loans & advances, in the ordinary course of business, shall not be less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities have been made and contingent liabilities have been disclosed properly.

4. Prior Period Adjustment includes Rs.16,064/- for the current year and Rs.12,281/- for previous period.

Note : That during the year the company has written back a sum of Rs.27,96.481/- which has been shown under the head extraordinary items of statement of Profit & Loss Account.

5. The company has unabsorbed depreciation and carry forward losses under tax laws. In the absence of virtual certainty of sufficient future taxable income, net deferred tax asset has not been recognised on prudent basis in accordance with the Accounting Standard - 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

6. In the absence of complete assessment for determining impairment loss on the assets in accordance with the Accounting Standard - 28 issued by the Institute of Chartered Accountants of India, an impairment loss amounting to Rs. 28,81,304.95 provided during the period ended on 30th June 2009 (i.e. to the extent of loss estimated as per the scheme sanctioned by the Board for Industrial and Financial Reconstruction) has been retained and no further provision has been made during the current period. In the opinion of management, no material impairment was there in the assets of the company.

7. The Company being engaged only in the business of manufacture of Shoe -Soles, separate segment reporting, in terms of Accounting Standard AS - 17 on "Segment Reporting" issued by the Institute of Chartered Accountant of India, is not required.

*There were no potential equity shares. That during the year face value and paid up value of company has changed from Rs.5 to Rs.10 each due to which the no of shares for the said has been reclassified and rearranged.

8 RELATED PARTY DISCLOSURE:

Related party disclosure in accordance with the Accounting Standard (AS-18) on ''Related Party Disclosure'' issued by the Institute of Chartered Accountant of India are as under:

i) Related Parties :

KEY MANAGEMENT PERSONNEL :

Mr. A.S. Sethi - Joint Managing Director

Mr. H.S. Sethi - Wholetime Director

Mrs. Paramjeet Kaur Sethi - Director

ENTERPRISES OVER WHICH ABOVE PERSON CAN EXERCISE SIGNIFICANT CONTROL

Darsh Polymers Pvt. Ltd.

Auram Polymers (P) Ltd.

Note:- Related parties and their relationship are as identified by the management and relied upon by the auditors.

9. Without considering the impact, if any, of the qualifications in the auditor''s report, there is a positive net worth of the Company and the Company has no intention to discontinue its operations. Therefore, these accounts have been prepared on ''Going Concern Basis''.

10. Company, being unable to raise funds to purchase a car for official use, had purchased one Car for Rs.1098570/- during the F.Y 2005-2006 in the name of one of its directors and taken the car loan from ICICI Bank Ltd. in the name of that director.

Cost of car has been included in the Fixed Assets. Loan amount has already been fully repaid in the previous year. The company is in the process of getting the vehicle transferred in its own name.

(b) There were no accumulated unavailed leaves in respect of any of the employees as on 31. 03. 2012, hence no actuarial valuation was required in this regard as on that date.

(c) Up to the period ended on 30th June 2009, the company had made the provision for gratuity on the basis of actuarial valuation. Considering the fact that only two employees are working in the company and high cost involved in the getting the actuarial valuation done, the provision for gratuity for the period from 01.04.2011 to 31.03.2012 has been made on estimated basis. In the absence of actuarial valuation as on 31st March 2012 the impact, of such deviation from the accounting standard - 15 as prescribed under the Companies Act, 1956, on the accounts is not ascertainable and also the required disclosures cannot be made.

11. The company has requested its suppliers to intimate whether they are registered under "The Micro, Small and Medium Enterprises Development Act 2006", No supplier has intimated to the company that they are registered under the said Act.

12. Directors have waived off their right to setting fee in respect of meetings of Board of Directors and committees thereof attended by them.

13. Secured Loan from Darsh Polymers Pvt. Ltd is secured by a first charge and mortgage of all immovable properties both present and future and first charge by way of hypothecation of movable assets (except book debts), and guaranteed by a Non executive Director, a Whole time Director and Joint Managing Director of the Company and further secured by way of pledge of 341800 Equity Shares of Rs.10 each ( P.Y 683600 of Rs.5 each) of promoter group. Darsh Polymers Pvt. Ltd. has an option to convert 50% of the amount of loan into equity, subject to the approval of the shareholders of Anka India Ltd. and the Board for Industrial and Financial Reconstruction and also in accordance with prevalent norms , policies and statutory provisions.

14. During the year the company has increased its face value and paid up value from Rs.5 to Rs.10 each in an Extra Ordinary General Meeting held on 15.12.2011 at the registered office of the company.

15. During the year the company has ceased to be a sick industrial company within the meaning of section 3(1)(0) of the SICA.1985 by the order passed by Board for Industrial and Financial Reconstruction Bench - II dated 19.12.2011 subject to the directions as stated in the order.

16. Current period comprises of twelve months .i.e from 01st April 2011 to 31st March 2012 as against corresponding previous period which comprised of six months only i.e. from October 01, 2010 to March 31, 2011. Therefore, the current period figures may not be comparable with those of previous year.

17. Previous year''s figures have been reclassified/rearranged wherever considered necessary to conform to this year''s classification.

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Mar 31, 2011

1. CONTINGENT LIABILITIES

Current Period Previous Period

a) Disputed Demand from Central Excise Deptt. 188319.00 195497.00

b) Disputed Demand under Land Reform Act. 190000.00 190000.00

c) Disputed Demand under Sales Tax 182760.00 182760.00

2. Balances standing to the debit and credit of the debtors, creditors, and few other parties are subject to confirmation/reconciliation. Consequent impact on accounts upon confirmation/reconciliation is not ascertainable in the present circumstances.

3. In the opinion of the Board of directors, the value on realisation of current assets, loans & advances, in the ordinary course of business, shall not be less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities have been made and contingent liabilities have been disclosed properly.

4. The company has unabsorbed depreciation and carry forward losses under tax laws. In the absence of virtual certainty of sufficient future taxable income, net deferred tax asset has not been recognised on prudent basis in accordance with the Accounting Standard - 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

5. In the absence of complete assessment for determining impairment loss on the assets in accordance with the Accounting Standard - 28 issued by the Institute of Chartered Accountants of India, an impairment loss amounting to Rs. 28,81,304.95 provided during the period ended on 30th June 2009 (i.e. to the extent of loss estimated as per the scheme sanctioned by the Board for Industrial and Financial Reconstruction) has been retained and no further provision has been made during the current period. In the opinion of management, no material impairment was there in the assets of the company.

6. The Company being engaged only in the business of manufacture of Shoe -Soles, separate segment reporting, in terms of Accounting Standard AS -17 on "Segment Reporting" issued by the Institute of Chartered Accountant of India, is not required.

7. RELATED PARTY DISCLOSURE:

Related party disclosure in accordance with the Accounting Standard (AS-18) on ''Related Party Disclosure'' issued by the Institute of Chartered Accountant of India are as under:

i) Related Parties:

KEY MANAGEMENT PERSONNEL :

Mr.A.S.Sethi - Joint Managing Director

Mr. H.S. Sethi - Wholetime Director and Brother of Joint Managing Director

RELATIVES:

Mrs. Paramjeet Kaur Sethi - Director and Mother of Joint Managing Director

Mrs. Gurpreet Kaur Sethi - Wife of Mr. H.S. Sethi

Mrs. Pooja Sethi - Wife of Mr. A.S. Sethi

Mr. Dildeep Singh Sethi - Brother of Joint Managing Director

ENTERPRISES OVER WHICH ABOVE PERSON CAN EXERCISE SIGNIFICANT CONTROL

Darsh Polymers Pvt. Ltd.

Auram Polymers (P) Ltd.

Note:- Related parties and their relationship are as identified by the management and relied upon by the auditors.

8. Without considering the impact, if any, of the qualifications in the auditor''s report, there is a positive net worth of the Company and the Company has no intention to discontinue its operations. Therefore, these accounts have been prepared on ''Going Concern Basis''.

9. Company, being unable to raise funds to purchase a car for official use, had purchased one Car for Rs.1098570/- during the F.Y 2005-2006 in the name of one of its directors and taken the car loan from ICICI Bank Ltd. in the name of that director.

Cost of car has been included in the Fixed Assets. Loan amount has already been fully repaid in the previous year. The company is in the process of getting the vehicle transferred in its own name.

(b) There were no accumulated unavailed leaves in respect of any of the employees as on 31 st March 2011, hence no actuarial valuation was required in this regard as on that date.

(c) Upto the period ended on 30th June 2009, the company had made the provision for gratuity on the basis of actuarial valuation. Considering the factthat only two employees are working in the company and high cost involved in the getting the actuarial valuation done, the provision for gratuity for the period from 01.07.2009 to 31.03.2011 has been made on estimated basis. In the absence of actuarial valuation as on 31 st March 2011 the impact, of such deviation from the accounting standard -15 as prescribed under the Companies Act, 1956, on the accounts is not ascertainable and also the required disclosures cannot be made.

10. The company has requested its suppliers to intimate whetherthey are registered under''The Micro, Small and Medium Enterprises Development Act 2006", No supplier has intimated to the company that they are registered underthe said Act.

11. Directors have waived off their right to setting fee in respect of meetings of Board of Directors and committees thereof attended by them.

12. Current period comprises of six months only i.e. from October 01,2010 to March 31,2011 as against corresponding previous period which comprised of fifteen monthsfrom July 01,2009 to September30, 2010. Therefore, the current period figures may not be comparable with those of previous year.

13. Previous year''s figures have been reclassified/rearranged wherever considered necessary to conform to this year''s classification.

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Sep 30, 2010

Notes :

1 Secured Loan from Darsh Polymers Pvt. Ltd is secured by a first charge and mortgage of all immovable properties both present and future and first charge by way of hypothecation of movable assets (except book debts), and guaranteed by a Non executive Director, a Whole time Director and Joint Managing Director of the Company and further secured by way of pledge of 683600 Equity Shares of Rs.5 each of promoter group. Darsh Polymers Pvt. Ltd. has an option to convert 50% of the amount of loan into equity, subject to the approval of the shareholders of Anka India Ltd. and the Board for Industrial and Financial Reconstruction and also in accordance with prevalent norms, policies and statutory provisions.

2. CONTINGENT LIABILITIES

Current Year Previous Year Rs. Rs.

a) Disputed Demand from Central Excise Deptt. 195497.00 195497.00

b) Disputed Demand under Land Reform Act. 190000.00 190000.00

c) Disputed Demand under Sales Tax 182760.00 __



3. Balances standing to the debit and credit of the debtors, creditors, and few other parties are subject to confirmation/reconciliation. Consequent impact on accounts upon confirmation/reconciliation is not ascertainable in the present circumstances.

4. In the opinion of the Board of directors, the value on realisation of current assets, loans & advances, in the ordinary course of business, shall not be less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities have been made and contingent liabilities have been disclosed properly.

5. a) Directors have waived off their right to sitting fee in respect of meetings of Board of Directors attended by them.

b) In terms of the resolution passed by the Board of Directors no remuneration has been paid to the Joint Managing Director and the Whole Time Director during the current period.

6. The company has unabsorbed depreciation and carry forward losses under tax laws. In the absence of virtual certainty of sufficient future taxable income, net deferred tax asset has not been recognised on prudent basis in accordance with the Accounting Standard - 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

7. In the absence of complete assessment for determining impairment loss on the assets in accordance with the Accounting Standard - 28 issued by the Institute of Chartered Accountants of India, an impairment loss amounting to Rs. 28,81,304.95 provided during the period ended on 30th June 2009 (i.e. to the extent of loss estimated as per the scheme sanctioned by the Board for Industrial and Financial Reconstruction) has been retained and no further provision has been made during the current period. In the opinion of management, no material impairment was there in the assets of the company.

8. The Company being engaged only in the business of manufacture/job-work of Shoes -Soles, separate segment reporting, in terms of Accounting Standard AS -17 on "Segment Reporting" issued by the Institute of Chartered Accountant of India, is not required.

9. RELATED PARTY DISCLOSURE:

Related party disclosure in accordance with the Accounting Standard (AS-18) on ''Related Party Disclosure'' issued by the Institute of Chartered Accountant of India are as under:

i) Related Parties :

KEY MANAGEMENT PERSONNEL :

Mr. A.S. Sethi - Joint Managing Director

Mr. H.S. Sethi - Wholetime Director and Brother offf Joint Managing Director RELATIVES :

Mrs. Paramjeet Kaur Sethi - Director and Mother of Joint Managing Director

Mrs. Gurpreet Kaur Sethi - Wife of Mr. H.S. Sethi

Mrs. Pooja Sethi - Wife of Mr. A.S. Sethi

Mr. Dildeep Singh Sethi - Brother of Joint Managing Director

ENTERPRISES OVER WHICH ABOVE PERSON CAN EXERCISE SIGNIFICANT CONTROL

Jauss Polymers Ltd. Darsh Polymers Pvt. Ltd.

DTG India Pvt. Ltd. Auram Polymers (P) Ltd.

Note:- Related parties and their relationship are as identified by the management and relied upon by the auditors.

10. Without considering the impact, if any, of the qualifications in the auditor''s report, there is a positive net worth of the Company and the Company has no intention to discontinue its operations. Therefore, these accounts have been prepared on ''Going Concern Basis''.

11. Company, being unable to raise funds to purchase a car for official use, had purchased one Car for Rs.1098570/- during the F.Y 2005-2006 in the name of one of its directors and taken the car loan from ICICI Bank Ltd. in the name of that director.

Cost of car has been included in the Fixed Assets. Loan amount has been fully repaid during the year. The company is in process of getting the vehicle transferred in its own name.

(b) There were no accumulated unavailed leaves in respect of any of the employees as on 30th September 2010, hence no actuarial valuation was required in this regard as on that date. Provision for leave encashment lying at the beginning of the year has been written back.

(c) Upto the period ended on 30th June 2009, the company had made the provision for gratuity on the basis of actuarial valuation. Considering the fact that only two employees are working in the company and high cost involved in the getting the actuarial valuation done, the provision for gratuity for the period ended on 30.09.2010 has been made on estimated basis. In the absence of actuarial valuation as on 30th September 2010 the impact, of such deviation from the accounting from the accounting policy of the company as well as the accounting standard - 15 as prescribed under the companies Act, 1956, on the accounts is not ascertainable and also the required disclosures cannot be made.

12. The company has requested its suppliers to intimate whether they are registered under "The Micro, Small and Medium Enterprises Development Act 2006", No supplier has intimated to the company that they are registered under the said Act.

13. Previous year''s figures have been reclassified/rearranged wherever considered necessary to conform to this year''s classification.

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Jun 30, 2009

1. CONTINGENT LIABILITIES

Current year Previous year Rs. Rs.

a) Bank Guarantee issued on behalf of the Company 100000.00 100000.00

b) Other amounts for which the Company is contingently liable

Disputed Demand from Central Excise Deptt. 195497.00 195497.00

Disputed Demand under Land Reform Act. 190000.00 190000.00

2. Balances standing to the debit and credit of the debtors, creditors, and other parties are subject to confirmation/reconciliation. Consequent impact on accounts upon confirmation/reconciliation is not ascertainable in the present circumstances.

3. In the opinion of the Board, the value on realisation of current assets, loans & advances in the ordinary course of business shall not be less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities have been made and contingent liabilities have been disclosed properly.

4. a) Directors have waived off their right to sitting fee in respect of meetings of Board of Directors attended by them.

b) Remuneration has been paid to the Joint Managing Director and a Whole Time Director as a minimum remuneration in accordance with the limits prescribed in Schedule-XIII of the Companies Act, 1956 and resolution passed by the members in the General Meeting as per details given hereunder :-

Salary & Allowances :- Rs. 18,00,000/- (Previous Year: Rs. 14,40,000/-)

Contribution to PF and other Funds :- Rs.91,080/- (Previous Year: Rs.86400/-)

5. The company has unabsorbed depreciation and carry forward losses under tax laws. In the absence of virtual certainty of sufficient future taxable income, net deferred tax asset has not been recognised on prudent basis in accordance with the Accounting Standard - 22 on "Accounting for Taxes on Income" Issued by the Institute of Chartered Accountants of India.

6. In the absence of complete assessment for determining impairment loss on other assets in accordance with the Accounting Standard - 28 issued by the Institute of Chartered Accountants of India, an impairment loss amounting to Rs. 28,81,304.95 on assets lying as on 30th June 2009 has been provided only to the extent of loss estimated as per the scheme sanctioned by the Board for Industrial and Financial Reconstruction (BIFR) during the current period. This amount has been charged to Profit & Loss Account under the head Extra Ordinary Items ( Refer Note No. 19).

7. The Company being engaged only in the business of manufacture/job-work of Shoes -Soles, separate segment reporting, in terms of Accounting Standard AS-17 on "Segment Reporting" issued by the Institute of Chartered Accountant of India, is not required.

8. RELATED PARTY DISCLOSURE :

Related party disclosure in accordance with the Accounting Standard (AS-18) on ''Related Party Disclosure'' issued by the Institute of Chartered Accountant of India are as under:

i) Related Parties :

KEY MANAGEMENT PERSONNEL :

Mr. A.S. Sethi - Joint Managing Director

Mr. H.S. Sethi - Chairman & Wholetime Director and Brother of Joint Managing Director

RELATIVES :

Mrs. Paramjeet Kaur Sethi - Director & Mother of Joint Managing Director & Chairman & Wholetime Director

Mrs. Gurpreet Kaur Sethi - Wife of Mr. H.S. Sethi Chairmn

Mrs. Pooja Sethi - Wife of Mr. A.S. Sethi Joint Managing Director

Mr. Dildeep Singh Sethi - Brother of Joint Managing Director & Chairman & Wholetime Director

ENTERPRISES OVER WHICH ABOVE PERSON CAN EXERCISE SIGNIFICANT CONTROL

Jauss Polymers Ltd. Darsh Polymers Pvt. Ltd. DTG India Pvt. Ltd.

Note:- Related parties and their relationship are as identified by the management and relied upon by the auditors.

9. Net Worth of the Company is in negative and the Company has no intention to discontinue itsoperations.Therefore, these accounts have been prepared on ''Going Concern Basis''.

10. Company, being unable to raise funds to purchase a car for official use, has purchased one Car for Rs.1098570/-during the FY. 2005-2006 in the name of one of its directors and taken the car loan from ICICI Bank Ltd. in the name of that director.

Cost of car has been included in the Fixed Assets and outstanding loan account has also been included in Secured Loans in the Company''s balance sheet.

11. EMPLOYEES BENEFITS

As per Accounting Standard 15 "Employee Benefits", the require disclosures of Employee Benefits to the extent applicable to the company are given below:

The estimates of rate of escalation in salary as considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in employment market. The above information is certified by the actuary.

12. The company has requested its suppliers to intimate whether they are registered under ''The Micro, Small and Medium Enterprises Development Act 2006", No supplier has intimated to the company that they are registered under the said Act.

13 During the period covered under these accounts, the company has stopped the production of PU Soles and disposed off all the machineries and moulds used in its production. The same has been done as these machines were very old and not working properly and also the same were requiring high maintenance cost. At the same time these were consuming more power and the company was incurring huge losses in production of PU Soles. The company proposes to obtain shareholders approval in this regard in the ensuing annual general meeting and also the permission of the Board for Industrial & Financial Reconstruction is being sought.

In the meantime the company is exploring the viability of commencing the business of PU Soles again with the machines of latest technology.

14. Board for Industrial and Financial Reconstruction, vide its order dated 15.05.2009, has sanctioned a Rehabilitation Scheme (Sane tioned Scheme) for revival of the company under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985.

Pursuant to the directions given in the sanctioned scheme following adjustments have been made in these accounts :

(a) Unsecured loans to the tune of Rs. 125 lacs received in earlier years have been converted into fully paid 25 lacs equity shares of Rs.5 each at par.

(c) To give effect to the reduction in face value of paid up share capital from Rs.10 to Rs.5, the Authorised Capital of the company has also been restructured from 12000000 equity shares of Rs.10 each to 24000000 equity shares of Rs.5 each.

(d) The company is in the process of giving effect to the other directions given in the sanctioned scheme the impact of which, if any, would be given after the completion of the process.

15. Unpaid Cheques in Schedule ''F'', aggregating to Rs.128 lacs ( Previous Year: NIL), represent cheques issued against repayment of unsecured loan which are lying unpaid as at 30th June,2009.

16. These accounts are for an extended period of 15 months, hence the figures of current period may not be comparable with those of previous year.

17 Previous year''s figures have been reclassified/rearranged wherever considered necessary to conform to this year''s classification.