Notes to Accounts of APM Industries Ltd.

Mar 31, 2024

Terms/Rights attached to equity shares

The company has one class of Equity shares having par value of Rs. 2 per share. Each shareholder is entitled to one vote per share. All equity shareholders are having right to get dividend in proportion to paid up value at each equity shares as and when declared. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all the preferential amounts, in proportion to their shareholding.

Nature and purpose of Reserves

(a) Securities Premium: The amount of difference between the issue price and the face value of the share is recognized in Securities Premium.

(b) General Reserve: General reserve is the accumulation of the portions of the net profits transferred by the Company in the past years. This reserve is available for distirbution to the shareholders.

(c) Retained Earnings: Retained earnings comprise of the profits of the Company earned till date net of distributions and other adjustments.

(d) Other Items of Other Comprehensive Income: Other Items of Other Comprehensive Income represents recognized remeasurement gains/ (loss) on defined benefit plans.

20.1 Nature of Security & Terms of Repayments

Term Loans are secured by first pari-passu charge over Company’s immovable properties and plant and machinery, both present and future, situated at Bhiwadi and second pari-passu charge on all movable assets, both present and future, of the company.These loans are further secured by personal guarantee of the Chairman of the Company.

20.2 Non-current borrowings shown above are net of current maturities of 491 lakhs (March 31,2023 - Nil) as shown under Note 23.

20.3 Borrowings amount is net of processing fee of Rs. 3 lakhs (March 31,2023 - Rs. 4 lakhs) to be amortised in future.Processing fee of Rs.2 lakhs (March 31, 2023 Nil) is adjusted against current maturities of Non-Current Borrowings shown under Note 23.

20.4 There is no default in repayment of principal or payment of interest to the lenders by the Company during the year.

20.5 The term loans taken by the Company during the year have been applied for the purposes for which they are taken.

20.6 Rs.34 lakhs (March 31,2023 - Rs. 644 lakhs) is pending for disbursement from HDFC Bank against the sanctioned limit of Rs. 1,100 lakhs, repayable in 15 quarterly instalment of Rs. 2.24 lakhs each.

23.1 Working Capital loans from banks are repayable on demand and are secured by hypothecation of Inventories and book debts and second pari passu charge on all the immovable properties and plant and machinery of the Company, both present and future. These loans are further secured by the personal guarantee of the Chairman of the Company. The loans are carrying current floating interest rate of 8.56% p.a.based on 1.71% above 3 months Treasury Bill in case of HDFC Bank and 9.05% based on 0.50% above 6 months MCLR in case of State Bank of India as at March 31, 2024 payable on last day of the month.

23.2 The Company has utilised Rs. 1,307 lakhs as at March 31,2024 (March 31,2023 - Rs. 1,367 lakhs) against total sanctioned limit aggregating to Rs. 3,000 lakhs by two banks.

23.3 Quarterly Returns/ Statements filed by the Company with the banks as per terms of the sanction letters of working capital limit of the concerned bank are in agreement with the books of account.

(c) Performance Obligation is satisfied at a point in time when the control of the goods is tranferred to the customer as per contract.The amounts receivable from customers are generally due after expiry of the credit period as per the relevant agreement terms.There is no significant financing component in the transactions with the customers.

(f) There was no contract where revenue was to be recognised over period of time during the year.

(g) During the year, the Company is engaged in only one Business Segment i.e. Yarn Manufacturing, hence no business segment disclosure is required.

The above sensitivity analysis has been determined based on reasonably possible changes of the respective assumption occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the method (Projected Unit Credit Method) used to calculate the liability recognized in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous year.

46. FINANCIAL RISK MANAGEMENT AND POLICIES

46.1 Capital Risk Management

(a) Risk Management

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to the shareholders.

The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary, adjust, its capital structure.

The gearing ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings less cash and cash equivalents. Total capital is calculated as equity as shown in the balance sheet plus all other reserves attributable to equity shareholders of the Company.

(b) The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.

46.2 Financial Risk Management

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support the Company’s operations. The Company’s principal financial assets comprise cash and bank balance, trade and other receivables and security deposits.

The risk management policies of the Company are established to identify and analysis the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Company is exposed to market risk, credit risk, liquidity risk and operational and business risk. The Company’s management oversees the management of these risks to ensure the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with Company’s policies and risk objectives. The major risks are summarized below:

a) Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the value of financial instruments. The value of financial instruments may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including security deposits, payables and loans and borrowings.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommend risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, borrowing strategies and ensuring compliance with market risk limits and policies.

a)(i) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates. The loan taken from the banks by the Company are linked to MCLR/Treasury Bills rate of the respective bank which are variable.

b) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to import of machinery, store and spare and other materials. The Company’s foreign currency risks are identified, measured and managed at periodic intervals in accordance with the Company’s policies. However, there is no foreign currency risk as at March 31,2024.

c) Credit Risk

Credit risk is the risk that counterparty will default on its contractual obligations resulting in financial loss to the company. The Company has adopted a policy of dealing with creditworthy customers.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as actual or expected significant adverse changes in business, operating results, financial or economic conditions and third-party collateral guarantees or credit.

Financial assets are written off when there is no reasonable expectation of recovery, such as a customer failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

The Company measures the expected credit loss of trade receivables based on historical trend, available external and internal credit risk factors such as financial condition, ageing of accounts receivable etc., industry practices and the business environment in which the entity operates.

As at March 31,2024, the company did not consider there to be any significant concentration of credit risk, which had not been adequately provided for. The carrying amount of the financial assets recorded in the financial statements, grossed up for any allowances for losses, represents the maximum exposure to credit risk.

d) Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company’s treasury team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s liquidity position through rolling forecasts on the basis of expected cash flows.

(ii) The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short-term receivables, trade payables, other current liabilities, short term loans from banks and others approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

3. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

55. SEGMENT REPORTING

The Company’s primary business segment is reflected based on principal business activities carried on by the Company. Chairman and Managing Director have been identified as being the Chief Operating Decision Maker (‘CODM’) and evaluates the Company’s performance and allocates resources based on analysis of the various performance indicators of the Company as a single unit. Therefore, there are no separate reportable business segments as per Ind AS 108-Operating Segments. The Company operates in one reportable business segment i.e., manufacturing of Yarn.

56. OTHER DISCLOSURES/INFORMATION

56.1 Additional information required as per Schedule III of the Companies Act, 2013

(i) Details of benami property held

No proceedings have been initiated or are pending against the Company as at March 31,2024 for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016), as amended and rules made thereunder.

(ii) Wilful defaulter

The company has not been declared wilful defaulter by any bank, financial institution or lender as at March 31,2024.

(iii) Relationship with struck off companies

There is no transaction during the year with or outstanding balance of the struck off companies as at March 31,2024.

(iv) Compliance with number of layers of companies

The Company does not have any subsidiary or Associate or Joint Venture company during the year.

(v) Compliance with approved scheme(s) of arrangements

During the year, no scheme of arrangements in relation to the Company has been approved by the competent authority in terms of Section 232 to 237 of the Companies Act, 2013.

(vi) Utilisation of borrowed funds and share premium

During the year the Company has not advanced or lend or invested funds (either from the borrowed funds or share premium or any other sources or kind of funds) to any person or entity, including foreign entity (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (a) 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 (b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

The Company has not received any fund from any person or entity, including foreign entity (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

(vii) Undisclosed income

The Company does not have any unrecorded transactions in the books of account which have been surrendered or disclosed as Income during the year in the tax assessment under the Income Tax Act, 1961.

(viii) Transactions in crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the year ended March 31,2024.

(ix) Revaluation of property, plant & equipment and intangible asset

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the year ended March 31,2024.

(x) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are pending to be registered with the Registrar of Companies as on March 31, 2024.

56.2 Other Statutory information

(i) The Company has no long-term contracts including derivative contracts having material foreseeable losses as at March 31,2024.

(ii) The Company has not received any whistleblower complaint during the year ended March 31,2024.

(iii) There is no Core Investment Company within the group as defined in the regulations made by the Reserve Bank of India.

(iv) There is neither any fraud by the Company nor on the company noticed or reported during the year.

(v) There is no amount outstanding for transfer to the Investor Education and Protection Fund by the Company under Section 125 of Companies Act, 2013 as at March 31,2024.

(vi) The Company has not given any loans or advances in the nature of loans to promoters, directors, KMPs and/ or related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are repayable on demand, or without specifying any terms or period of repayment.

Definitions:

(a) Earnings available for debt services = Profit after tax non-cash items Interest on Term Loans Interest on lease liabilities^ other items like gain on sale of assets etc.

(b) Debt (outstanding Liabilities) = Borrowings

(c) Debt service = Principal Repayments of term loans and lease liabilities due within one year Interest payable on term loans and lease liabilities.

(d) Average inventory = (Opening inventory Closing inventory)/ 2

(e) Net sales = Gross sales minus Sales return.

(f) Average trade receivables = (Opening trade receivables Closing trade receivables) / 2

(g) Net purchase = Gross purchases minus Purchase return

(h) Average trade payables = (Opening trade payables Closing trade payables)/ 2

(i) Working capital = Current assets - Currents liabilities

(j) Earnings before interest and taxes = Profit before tax Finance costs

(k) Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability

(l) Profit after tax = Profit after tax before OCI

(m) Income from Investments = Income from Investments Fair value changes on Investments.

(n) Investments = Opening Investments Investments made during the year

58. DIVIDEND

The Board of Directors in their meeting held on May 24, 2024 have recommended a dividend @ Re 0.50 per Equity share of face value of Rs.2 each (i.e.25%) for the financial year 2023-24 (Rs.1.60 per Equity share for the financial year 2022-23) in accordance with the provisions of section 123 of the Act subject to approval of the shareholders of the Company at the ensuing General Meeting. The proposed dividend of Rs 108.06. lakhs will be recognized as liability in the books of account after approval of the shareholders.

60. The Company is using ERP software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software. However, the audit trail feature is not enabled when using administrative access right to the ERP application for direct data changes which is restricted to limited set of users who necessarily require this access for maintenance and administration of the database. Further, no instance of audit trail feature being tempered with has been noticed during the year in respect of the accounting software.

61. All amounts in the financial statements and notes have been rounded off to the nearest lakh as per requirement of Schedule III except per share data and as otherwise stated. Figures in brackets represent corresponding previous year figures. Previous year figures have been regrouped / reclassified wherever considered necessary.

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Mar 31, 2023

3.22 Provisions, Contingent Liabilities and Contingent Assets

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. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.

If the effect of the time value of money is material, provisions are discounted to reflect its present value using a current pretax rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

A contingent asset is disclosed, where an inflow of economic benefit is probable. An entity shall not recognize a contingent asset unless the recovery is virtually certain.

3.23 Event after reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the Financial Statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

3.24 Law enacted but not effective

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits has received Indian Parliament’s approval and Presidential assent in September 2020. However, the effective dates of the Code and final rules for quantifying the financial impact are yet to be notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

3.25 Amendments in Ind AS

The 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. On March 31,2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

1. IInd AS 1 - Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1,2023. The Company has evaluated the amendment and the impact of the amendment is expected to be insignificant on the financial statements.

2. Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of ‘accounting estimates’ and distinguishes changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1,2023. The Company has evaluated the amendment and there is no impact on its financial statements.

3. IInd AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 1,2023. The Company has evaluated the amendment and there is no impact on its financial statements.

45. Financial risk management and policies

45.1 Capital Risk Management

(a) Risk Management

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to the shareholders.

The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes ineconomic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary, adjust, its capital structure.

The gearing ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings less cash and cash equivalents. Total capital is calculated as equity as shown in the balance sheet plus all other reserves attributable to equity shareholders of the Company.

45.2 Financial-Risk-Management

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support the Company’s operations. The Company’s principal financial assets comprise cash and bank balance, trade and other receivables and security deposits.

The risk management policies of the Company are established to identify and analysis the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Company is exposed to market risk, credit risk, liquidity risk and operational and business risk. The Company’s management oversees the management of these risks to ensure the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with Company’s policies and risk objectives. The major risks are summarized below:

a) Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the value of financial instruments. The value of financial instruments may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including security deposits, payables and loans and borrowings.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommend risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, borrowing strategies and ensuring compliance with market risk limits and policies.

a)(i) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates. The loan taken from the banks by the Company are linked to MCLR/Treasury Bills rate of the respective bank which are variable.

b) Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to import of machinery, store and spare and other materials. The Company’s foreign currency risks are identified, measured and managed at periodic intervals in accordance with the Company’s policies. However, there is no foreign currency risk as at March 31,2023.

c) Credit Risk:

Credit risk is the risk that counterparty will default on its contractual obligations resulting in financial loss to the company. The Company has adopted a policy of dealing with creditworthy customers.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwardinglooking information such as actual or expected significant adverse changes in business, operating results, financial or economic conditions and third-party collateral guarantees or credit.

Financial assets are written off when there is no reasonable expectation of recovery, such as a customer failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

The Company measures the expected credit loss of trade receivables based on historical trend, available external and internal credit risk factors such as financial condition, ageing of accounts receivable etc., industry practices and the business environment in which the entity operates.

As at March 31,2023, the company did not consider there to be any significant concentration of credit risk, which had not been adequately provided for. The carrying amount of the financial assets recorded in the financial statements, grossed up for any allowances for losses, represents the maximum exposure to credit risk.

d) Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company’s treasury team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s liquidity position through rolling forecasts on the basis of expected cash flows.

(ii) Measurement of fair values

The above table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, as described below:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Input other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or the liabilities that are not based on observable market data (unobservable Inputs).

52.5 No amount pertaining to related parties which have been provided for as doubtful debts or written off.

52.6 The transactions with the related parties are made on terms equivalent to and those applicable to all unrelated parties on arm’s length basis. Outstanding balances of security deposits at the year-end are unsecured, interest free and will be settled in cash.

53. Segment Reporting

The Company''s primary business segment is reflected based on principal business activities carried on by the Company. Chairman and Managing Director have been identified as being the Chief Operating Decision Maker (''CODM'') and evaluates the Company''s performance and allocates resources based on analysis of the various performance indicators of the Company as a single unit. Therefore, there are no separate reportable business segments as per Ind AS 108-Operating Segments. The Company operates in one reportable business segment i.e., manufacturing of Yarn.

54. Other disclosures/information

54.1. Additional information required as per Schedule III of the Companies Act, 2013:

(i) Details of benami property held

No proceedings have been initiated or are pending against the Company as at March 31,2023 for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016), as amended and rules made thereunder.

(ii) Wilful defaulter

The company has not been declared wilful defaulter by any bank, financial institution or lender as at March 31,2023.

(iii) Relationship with struck off companies

There is no transaction during the year with or outstanding balance of the struck off companies as at March 31,2023.

(iv) Compliance with number of layers of companies

The Company does not have any subsidiary or Associate or Joint Venture company during the year.

(v) Compliance with approved scheme(s) of arrangements

During the year, no scheme of arrangements in relation to the Company has been approved by the competent authority in terms of Section 232 to 237 of the Companies Act, 2013.

(vi) Utilisation of borrowed funds and share premium

During the year the Company has not advanced or lend or invested funds (either from the borrowed funds or share premium or any other sources or kind of funds) to any person or entity, including foreign entity (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (a) 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 (b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

The Company has not received any fund from any person or entity, including foreign entity (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

(vii) Undisclosed income

The Company does not have any unrecorded transactions in the books of account which have been surrendered or disclosed as Income during the year in the tax assessment under the Income Tax Act, 1961.

(viii) Transactions in crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the year ended March 31,2023.

(ix) Revaluation of property, plant & equipment and intangible asset

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the year ended March 31,2023.

(x) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are pending to be registered with the Registrar of Companies as on March 31, 2023.

54.2 Other Statutory information

(i) The Company has no long-term contracts including derivative contracts having material foreseeable losses as at March 31,2023.

(ii) The Company has not received any whistleblower complaint during the year ended March 31,2023.

(iii) There is no Core Investment Company within the group as defined in the regulations made by the Reserve Bank of India.

(iv) There is neither any fraud by the Company nor on the company noticed or reported during the year.

(v) There is no amount outstanding for transfer to the Investor Education and Protection Fund by the Company under Section 125 of Companies Act, 2013 as at March 31,2023.

Definitions:

(a) Earnings available for debt services = Profit after tax Non-cashitems Intereston term loans Interest on lease liabilities other items like gain on sale of assets etc.

(b) Debts (outstanding Liabilities) = Borrowings

(c) Debt service = Principal repayments of term loans and lease liabilities due within one year interest payable on term loans.

(d) Average inventory = (Opening inventory Closing inventory)/ 2

(e) Net sales = Gross sales minus Sales return.

(f) Average trade receivables = (Opening trade receivables Closing trade receivables) / 2

(g) Net purchase = Gross purchases minus Purchase return

(h) Average trade payables = (Opening trade payables Closing trade payables)/ 2

(i) Working capital = Current assets - Currents liabilities

(j) Earnings before interest and taxes = Profit before tax Finance costs

(k) Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability

(l) Profit after tax = Profit after tax before OCI

56. Dividend

The Board of Directors in their meeting held on May 16, 2023 have recommended a dividend @ Rs.1.60 per Equity share of face value of Rs. 2 each (i.e., 80%) for the financial year 2022-23 (Rs.1 per Equity share for the financial year 2021-22) in accordance with the provisions of section 123 of the Act subject to approval of the shareholders of the Company at the ensuing General Meeting. The proposed dividend of Rs. 346 lakhs will be recognized as liability in the books of account after approval of the shareholders.

58. All amounts in the financial statements and notes have been rounded off to the nearest lakh as per requirement of Schedule III except per share data and as otherwise stated. Figures in brackets represent corresponding previous year figures. Previous year figures have been regrouped / reclassified wherever considered necessary.

As per our report of even date FOR AND ON BEHALF OF THE BOARD

For CHATURVEDI & PARTNERS RAJENDRA KUMAR RAJGARHIA KHUSHI RAM GUPTA HARI RAM SHARMA

Chartered Accountants Chairman and Whole Time Director Director Managing Director

Firm Registration No. 307068E DIN-00141766 DIN-00027295 DIN-00178632

LAXMI NARAIN JAIN

Partner CHANDRA SHEKHAR VIJAY NEHA GOEL

Membership No.072579 Chief Financial Officer Company Secretary

Membship No. 48053

Place : New Delhi Date : May 16, 2023

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Mar 31, 2018

1. Financial risk management and policies 43.1 Capital Management

(a) Risk Management

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to our shareholders.

The capital structure of the Company is based on management''s judgment of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

The gearing ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings less cash and cash equivalents. Total capital is calculated as equity as shown in the balance sheet plus all other reserves attributable to equity shareholders of the Company.__

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.

2. Financial-Risk-Management

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support the Company operations. The Company''s principal financial assets comprise investments, cash and bank balance, trade and other receivables.

The Company is exposed to various financial risks such as market risk, credit risk and liquidity risk. The financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

a) Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommend risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, borrowing strategies and ensuring compliance with market risk limits and policies.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to import of store and spare and other materials. The Company''s foreign currency risks are identified, measured and managed at periodic intervals in accordance with the Company''s policies.

b) Credit Risk:

Credit risk is the risk that counterparty will default on its contractual obligations resulting in financial loss to the company. The Company has adopted a policy of only dealing with creditworthy customers.

The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors such as financial condition, ageing of accounts receivable and the Company''s historical experience for customers.

As at March 31, 2018, the company did not consider there to be any significant concentration of credit risk, which had not been adequately provided for. The carrying amount of the financial assets recorded in the financial statements, grossed up for any allowances for losses, represents the maximum exposure to credit risk.

c) Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company''s treasury team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company liquidity position through rolling forecasts on the basis of expected cash flows.

The table below summarizes the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments:

The fair value of the financial assets are included at amounts at which the instruments could be exchanged in a current transaction between willing parties other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair value:

(a) Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments.

(b) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for the expected losses of these receivables.

3. Segment Reporting

The Company has identified a second reportable segment of Finance and Investment during the current year as the same is added in the main object w.e.f. August 22, 2017. Accordingly, there are two reportable segment of Yarn Manufacturing and Finance and Investment. The Chief Operating Decision Maker reviews the operating results of these two segment. Segment data for the new reportable segment for the previous financial year ended March 31, 2017 presented for comparative purpose only. In the prior periods, such segment revenue was included under “Other Income”.

a) Business segment:

The Company has considered “Manufacturing” and “Finance and Investment” as business segment for disclosure in the context of Indian Accounting Standard 108 “Operating Segment”.

b) Geographical Segment:

During the period under report, the Company has engaged in its business primarily within India. The conditions prevailing in India being uniform, no separate geographical disclosure is considered necessary.

4. The Board of Directors of the Company vide resolution dated January 11, 2018, approved the Scheme of Arrangement (“Scheme”) under section 230-232 read with section 66 of the Companies Act, 2013 (“Act”) between APM Industries Limited (“Demerged Company”) and APM Finvest Limited (“Resulting Company”), a wholly owned subsidiary of the Demerged Company, and their respective shareholders and creditors. The Company had filed the Scheme with the BSE for approval on February 22, 2018 for Observation/No Objection letter which is still awaited. However, the Scheme is subject to approval of BSE Limited, the Securities and Exchange Board of India, Shareholders and Creditors of both the Companies and such other statutory authorities as may be required and sanction thereof by the Hon''ble National Company Law Tribunal, New Delhi Bench. The Appointed date being April 1, 2018 (or such other date as may be decided by the Board of both the companies with consent or as per the direction by the Tribunal), the proposed transaction will not have any effect in the current performance and state of affairs of the Company for the financial year ended March 31, 2018.

5. All amounts in the financial statements and notes have been rounded off to the nearest lakhs as per requirement of Schedule III except per share data and as otherwise stated. Figures in brackets represent corresponding previous year figures.

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Mar 31, 2015

1. Rights to the Share Holders

The Company has only one class of equity shares having a face value of Rs. 2 per share and each holder of equity shares is entitled to one vote per share. All equity Share holders are having right to get dividend in proportion to paid up value of the each equity share, as and when declared.

2. Nature of Security

a. Following Term Loans are secured by joint mortgage by deposit of title deeds of the Company's immovable properties situated at Bhiwadi and charge on all immovable and movable assets, both present and future subject to prior charge created on specified movable assets in favour of Company's bankers ranking pari-passu for working capital facilities:

Loan From Terms of Repayment

i.Industrial Development Bank of India (Rs. 560 Lacs)

Term Loans from Banks amounting to Rs 2,91,15,630/- Repayable in 32 from quarterly instalments October 2011 along (March 31, 2014 Rs. 3,49,15,630) with interest at the rate of 13.25% p.a.

ii. Punjab National Bank (Rs. 163 Lacs)

Term Loans from Banks amounting to Repayable in 20 quarterly Rs. 96,30,803/- instalments from June 2014 (March 31, 2014 Rs. 1,29,36,510) along with interest at the rate of 12.00% p.a.

iii. State Bank of Bikaner & Jaipur (Rs. 1710 Lacs)

Term Loans from Banks amounting to Rs. 2,96,10,274/- Repayable in 32 quarterly (March 31, 2014 Rs. 5,33,69,740) instalments from July 2008 along with interest at the rate of 12.85% p.a.

iv. State Bank of Bikaner & Jaipur (Rs. 230 Lacs)

Term Loans from Banks amounting to Rs. 33,46,764/- Repayable in 32 quarterly (March 31, 2014 Rs. 66,65,068) instalments from May 2009 along with interest at the rate of 13.60% p.a.

b. Vehicle loans from Banks amounting to Rs 21,24,938/- Repayable in 36 equalised (March 31, 2014 Rs. 34,72,519/-) monthly instalments are secured by hypothecation/ Lien of the respective vehicles.

3. Secured long term loans aggregating to Rs 7,17,03,471/- (March 31, 2014 Rs. 107,886,948/-) are guaranteed by the chairman and Managing Director.

4. The Long Term borrowing shown above is net of Rs. 3,76,17,666/- (Mar 31, 2014 Rs.38,411,798) current maturities, which is shown under note no. 7

5. Working capital loans are secured by hypothecation of inventories, book debts, receivables and other movable assets and also by second charge on Company's immovable properties situated at Bhiwadi ranking pari-passu between the Banks/ Financial Institutions and guaranteed by Chairman & Managing Director of the Company.

6. There are no amounts due for payment to The Investor Education and protection Fund as at the year end.

7. Related party disclosures

Information regarding Related Party Transactions as Accounting Standards AS-18 "Related Party Disclosures" notified by Companies (Accounting Standards) Rules, 2006, (as amended).

List of related parties

A. Companies under common control Sr. No. Name of the Company

1. Orient Abrasives Limited

2. Orient Refractories Limited

3. Perfectpac Limited

4. Rajgarhia Leasing & Financial Services (P) Limited

5. Arvind Syntex Pvt Ltd

B. Key Management Personnel and their relatives

Sr. No. Name of the Person Relationship

1. R. K. Rajgarhia Chairman and Managing Director

2. H. R. Sharma Executive Director

3. S. G. Rajgarhia Director

4. Ajay Rajgarhia Key Management Person

5. Aditi Rajgarhia Grand Daughter of CMD

6. Prabha Rajgarhia Wife of CMD

D. No amount pertaining to related parties which have been provided for as doubtful debts or written off in respect of related parties.

E. Related party relationship is as identified by the Company and relied upon by the Auditors.

8. Profit/Loss on the sale of raw material is adjusted in the raw material consumed account. However, the amount of profit/loss is not material.

9. Figures of previous year have been regrouped or rearranged wherever found necessary and the same are appearing in brackets.

10. Note 1 to 36 form an integral part of the accounts and have duly been authenticated.

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Mar 31, 2014

1.1 Nature of Security

a. Following Term Loans are secured by joint mortgage by deposit of title deeds of the Company''s immovable properties situated at Bhiwadi and charge on all immovable and movable assets,both present and future subject to prior charge created on specified movable assets in favour of Company''s bankers ranking pari-passu for working capital facilities:

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

a. Claims against the Company not acknowledged as debts:-_

Particulars Year ended March 31, 2014 March 31, 2013 Rupees Rupees

Excise Duty [Payment made Rs . NIL (Previous years 486,2400 0 888,970

Sales Tax 3,754,178 3,754,178

Bank Guarantee (Net of Margin Rs. NIL (Previous Year 661,000) NIL 1,024,000

b. Other Commitments

Estimated amount of contracts remaining to be executed on capital account [Net of advances Rs. 6,656,402/- Previous Year Rs. 5,761,058/-] not provided for Rs. 33,582,964/- (Previous Year Rs. 38,356,018/-).

3. There are no Micro, Small and Medium Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at March 31, 2014. This information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. Related party disclosures

Information regarding Related Party Transactions as Accounting Standards AS-18 "Related Party Disclosures" notified by Companies (Accounting Standards) Rules,2006,(as amended).

List of related parties

A. Companies under common control

Sr. No. Name of the Company

1. Orient Abrasives Limited

2. Orient Refractories Limited

3. Perfectpac Limited

4. Rajgarhia Leasing & Financial Services (P) Limited

B. Key Management Personnel and their relatives

Sr. No. Name of the Person Relationship

1. R. K. Rajgarhia Chairman and Managing Director

2. H. R. Sharma Executive Director

3. S. G. Rajgarhia Director

4. Ajay Rajgarhia Key Management Person

5. Aditi Rajgarhia Grand Daughter of CMD

6. Prabha Rajgarhia Wife of CMD

5. Profit/Loss on the sale of raw material is adjusted in the raw material consumed account. However, the amount of profit/loss is not material.

6. Figures of previous year have been regrouped or rearranged wherever found necessary and the same are appearing in brackets.

7. Note 1 to 35 form an integral part of the accounts and have duly been authenticated.

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Mar 31, 2013

1.1 Nature of Security

a. Following Term Loans are secured by joint mortgage by deposit of title deeds of the Company''s immovable properties situated at Bhiwadi and charge on all immovable and movable assets, both present and future subject to prior charge created on specified movable assets in favour of Company''s bankers ranking pari-passu for working capital facilities:

1.2 Secured long term loans aggregating Rs. 165,976,759 (March 31, 2012 Rs. 221,403,961) are guaranteed by the Chairman and Managing Director.

1.3 The Long Term borrowing shown above is net of Rs. 56,685,077 (March 31, 2012 Rs. 57,613,182) current maturities, which is shown under Note no. 8

2.1 Note :

Working capital loans are secured by hypothecation of inventories, book debts, receivables and other movable assets and also by second charge on Company''s immovable properties situated at Bhiwadi ranking pari-passu between the Banks/ Financial Institutions and guaranteed by Chairman & Managing Director of the Company.

3.1 There are no amounts due for payment to The Investor Education and protection Fund under section 205C of the Companies Act,1956 as at the year end.

4. Contingent liabilities and commitments (to the extent not provided for)

a. Claims against the Company not acknowledged as debts:-

Particulars Year ended_ March 31,2013 March 31,2012 (Rs.) (Rs.)

Excise Duty (Payment made Rs. 486,240 (Previous year Rs.486,240)) 888.970 1,208,934

Sales Tax 3,754,178 2,550,809

Bank Guarantee (Net of Margin Rs. 661,000 (Previous Year Nil)) 1,024,000

b. Other Commitments

Estimated amount of contracts remaining to be executed on capital account [Net of advances Rs. 5,761,058/- Previous Year Rs. 5,911,690/-] not provided for Rs. 38,356,018/- (Rs. 35,738,215/-).

5. There are no Micro, Small and Medium Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at March 31, 2013. This information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company.

6. Related party disclosures

Information regarding Related Party Transactions as per Accounting Standards AS-18 "Related Party Disclosures" notified by Companies

(Accounting Standards) Rules,2006, (as amended).

List of related parties

A. Companies under common control

S. No. Name of the Company

1 Orient Abrasives Limited

2 Orient Refractories Limited

3 Perfectpac Limited

4 Rajgarhia Leasing and Financial Services Private Limited

5 Axis Cottex Private Limited

6 AJR Fiscal Private Limited

7. Profit/Loss on the sale of raw material is adjusted in the raw material consumed account. However, the amount of profit/loss is not material.

8. Figures of previous year have been regrouped or rearranged wherever found necessary and the same are appearing in brackets.

9. Note 1 to 35 forms an integral part of the accounts and have duly been authenticated.

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Mar 31, 2012

1.1 Nature of Security

a. Following Term Loans are secured by joint mortgage by deposit of title deeds of the Company's immovable properties situated at Bhiwadi and charge on all immovable and movable assets, both present and future, except book debts subject to prior charge created on specified movable assets in favour of Company's bankers ranking pari-passu for working capital facilities.:

1.2 Secured long term loans aggregating to Rs. 221,403,961/- (March 31,2011 Rs. 272,614,203/-) are guaranteed by the chairman and Managing Director.

2.1 Note :

Working capital loans are secured by hypothecation of inventories, book debts, receivables and other movable assets and also by second charge on Company's immovable properties situated at Bhiwadi ranking pari-passu between the Banks/ Financial Institutions and guaranteed by Chairman & Managing Director of the Company.

3.1 There are no amounts due for payment to The Investor Education and protection Fund under section 205C of the Companies Act,1956 as at the year end.

4. Contingent liabilities and commitments (to the extent not provided for)

a. Claims against the Company not acknowledged as debts;

Particulars Year ended

March 31, 2012 March 31, 2011

Rupees Rupees

Excise-Duty(Payment made Rs. 486,240{Previous year Rs. 486,240}) 1,208,934 806,204

Sales Tax 2,550,809 6,842,285

b. Other Commitments

Estimated amount of contracts remaining to be executed on capital account [Net of advances Rs.5,911,690/-Previous Year Rs.13,008,324/-] not provided for Rs.35,738,215/- (Rs. 35,714,530/-).

5. There are no Micro, Small and Medium Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at March 31, 2012. This information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company.

6. Related party disclosures

Information regarding Related Party Transactions as per Accounting Standard AS-18 "Related Party Disclosures" notified by Companies (Accounting Standards) Rules, 2006, (as amended).

7 List of related parties

A. Companies under common control

S. No. Name of the Company

1 Orient Abrasives Limited

2 Orient Refractoriness Limited

3 Perfecta Limited

4 Rajgarhia Leasing and Financial Services Private Limited

5 Faridabad Paper Mills Limited

6 Axis Cottex Private Limited

7 AJR Fiscal Private Limited

B. Key Management Personnel and their relatives

S. No. Name of the Company Relationship

1 R K Rajgarhia Chairman and Managing Director

2 H R Sharma Executive Director

3 S G Rajgarhia Director

4 Ajay Rajgarhia Key Management Person

5 Aditi Rajgarhia Grand Daughter of CMD

6 R K Rajgarhia & Sons HUF

C. Related Party Transactions

D. No amount pertaining to related parties which have been provided for as doubtful debts written off in respect of related parties

E. Related party relationship is as identified by the Company and relied upon by the Auditors

F. Disclosure of material transaction with related party

8. Profit/Loss on the sale of raw material is adjusted in the raw material consumed account. However, the amount of profit/loss is not material.

9. Figures of previous year have been regrouped or rearranged wherever found necessary and the same are appearing in brackets.

10. Schedules 1 to 35 form an integral part of the accounts and have duly been authenticated.

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Mar 31, 2011

1. Contingent liabilities not provided for:

Particulars Year ended March 31, 2011 March 31, 2010 Rupees Rupees

Unexpired letters of credit [Net of margins Rs. 5,083,116 (Previous year Rs. 5,848,506] 23,851,982 35,651,494

Bills discounted 74,172,947 50,757,185

Service Tax NIL 7,725

Excise Duty (Payment made Rs. 486,240 (Previous year Rs. 486,240)) 806,204 806,204

Sales Tax 6,842,285 6,842,285

2. Estimated amount of contracts remaining to be executed on capital account [Net of advances Rs. 10,475,746/- Previous Year Rs. 5,778,458/-] not provided for Rs. 35,714,530/- (Rs. 41,953,885/-).

3. There are no Micro, Small and Medium Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at March 31, 2011. This information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. Related party disclosures

a) The following are the related Parties of the Company

Companies under common control Orient Abrasives Limited with whom transactions have taken Perfectpac Limited place during the year: Rajgarhia Leasing and Financial Services Private Limited

AJR Fiscal Private Limited

Faridabad Paper Mills Limited

Companies under common control Axis Cortex Private Limited with whom no transactions have Ess Vee Fiscal Private Limited taken place during the year

Key management personnel & their relatives: R. K. Rajgarhia, Chairman and Managing Director

H. R. Sharma, Executive Director

S.G. Rajgarhia

Ajay Rajgarhia

Prabha Rajgarhia

Aditi Rajgarhia

R K Rajgarhia & Sons (HUF)

5. Employee Benefit :

Effective from April 01, 2007, the company adopted the revised accounting standard 15 "Employee Benefits" (AS - 15) issued by the Institute of Chartered Accountants of India.

6. Profit/Loss on the sale of raw material is adjusted in the raw material consumed account. However, the amount of profit/loss is not material.

7. At the Extra Ordinary Meeting held on January 18, 2011, the shareholders approved the split of face value of share of Rs. 10/- each into face value of share of Rs. 21- each. The new share certificates were issued to the members whose named appeared on record date i.e. January 28, 2011.

8. Figures of previous year have been regrouped or rearranged wherever found necessary and the same are appearing in brackets.

9. Schedules 1 to 18 form an integral part of the accounts and have duly been authenticated.

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Mar 31, 2010

1 Contingent liabilities not provided for:-

Year ended Particulars March 31, March 31,

2010 2009 Rupees Rupees

Unexpired letters of credit [Net of margins Rs.5,848,506 (Previous yearRs. 5,584,540)] 35,651,494 10,415,460

Bills discounted 50,757,185 14,589,381

Service Tax 7,725 Nil

Excise Duty 806,204 806,204

Sales Tax 6,842,285 Nil

2. Estimated amount of contracts remaining to be executed on capital account [Net of advances Rs.5,778,458 (Previous Year Rs.5,506,554] not provided for Rs.41,953,885. (Rs. 55,423,885).

3. There are no Micro, Small and Medium Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at March 31, 2010. This information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. Related party disclosures

a) The following are the related parties of the company Companies under common control Orient Abrasives Limited with whom transactions have taken Perfectpac Limited place during the year: Rajgarhia Leasing &- Financial Services Private Limited.

AJR Fiscal Private Limited Faridabad Paper Mills Limited

Companies under Common control Axis Cottex Private Limited with whom no transactions have taken Essvee Fiscal Private Limited place during the year:

Key Management Personnel & R.K.Rajgarhia,Chairman and Managing Director their relatives H.R.Sharma,Executive Director S.G. Rajgarhia Ajay Rajgarhia Prabha Rajgarhia Aditi Rajgarhia R.k.rajgarhia & sons (HOP)

b) Related Party Transactions

No amount pertaining to related parties which have been provided for as doubtful debts or written off in respect of related parties Related party relationship is as identified by the Company and relied upon by the Auditors.

5. Profit / Loss on the sale of raw material is adjusted in the raw material consumed account. However, the amount of the profit / loss is not material.

6. Figures of previous year have been regrouped of rearranged wherever found necessary and the same are appearing in brackets.