Notes to Accounts of Bhilwara Spinners Ltd.

Mar 31, 2024

10. Provisions, Contingent Liability & Contingent Assets

(a) Provisions involving substantial degree of estimation in measurement, are recognized when the present obligation resulting from past events given rise to probability of outflow of resources embodying economic benefits on settlement.

(b) Contingent liabilities are not recognized and are disclosed in notes.

(c) Contingent assets are neither recognized nor disclosed in financial statements.

(d) Provisions are reviewed at each Balance sheet date and adjusted to reflect the current best estimates.

11. Employees Benefits

(a) Retirement benefits in the form of Provident fund, Pension Schemes and Superannuation are defined contribution schemes and the contributions are charged to the Profit & Loss Account of the year when the contributions to the respective funds are due.

(b) During the year 2023-2024, there is no Staff eligible for Gratuity there for no provision for gratuity is made during the year.

(c) Provision for Leave encashment is accrued and provided for on the basis of an actual valuation made at the end of each financial year.

(d) Actuarial gains / losses are immediately taken to Profit & Loss Account and are not deferred.

(e) Expenses incurred on voluntary retirement of employees are charged off to the Profit & Loss Account in the year of incurrence.

(f) Liability on account of short term employee benefits, comprising largely of performance incentives is recognized on an undiscounted, accrual basis during the period on the vesting period of benefit.

12. Tax Expense

a) Current year charge

Provision for taxation is ascertained on the basis of assessable profits computed in accordance with the provision of Income Tax Act, 1961.However, where the tax is computed in accordance with the provision of Section 115JB of the income Tax act,1961,as Minimum Alternate Tax(MAT),it is charged.

b) Deferred Tax

i) Deferred tax is recognized, subject to the consideration of prudence, as the tax effect of timing difference between the taxable income and accounting income computed for the current accounting year and reversal of earlier years'' timing differences.

ii) Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty, except arising from unabsorbed depreciation and carry forward losses which are recognized to the extent that there is deferred tax liabilities or there is virtual certainty,that suffucient future taxable income.

(C) MAT TAX

No provision is made for MAT credit entitlement as per past practice followed by Company.

C) In the year 2020-2021 Company has Purchased 26800 sqmtrs Industrial Land and 1 Biga 7 biswa Agriculture land for Rs. 7,51,56,189 through open auction as directed by Hon. N.C.L.T. Jaipur Bench Conducted by Official Liquidator on 31.8.2020. and the same sale deed registered in favour of the company on 03.02.2021 in Registrar Office Bhilwara. However, M/s Pammvi Consultancy Services ltd (An operational Creditor of Liquidated Company, Global Syntex Bhilwara Ltd) and GST department has filed a Legal suit before Hon N.C.L.T Jaipur Bench against Liquidator and also made the company as Respondent No. 4 as The Financial Creditor/Auction Purchaser. The matter is still pending before The N.C.L.T. Bench Jaipur and subpubic and Company does not anticipate any financial liability. The Order pronounced by Hon.NCLT on 23.04.2024 and the instant Application no IA(IBC)340/JPR/2029 of M/s Pammvi Consultancy Services Ltd and IA NO (IBC) NO 68/JPR/2022 of CGST Department is dismissed and stands disposed of, however in Hon. NCLT order it was directed Financial Creditors to return interest charged on finance amount required to be return ,due to this liability of Rs.6147967.00 on account of interest is arisen but company has not accepted the said liability and preferring and appeal before the upper bench i.e NCLAT.

27. EMPLOYEES BENEFITS PLANS

1. The Company makes contribution towards employees’ Provident Fund, Pension Fund, Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. During the year the Company has recognized Rs. .85 Lac as expenses to these plans.

28. Debtors, Creditors and advances are subject to confirmations, Reconciliations and adjustments, if any. The Management does not expect any significant variation and in the process of taking the necessary steps in this regard in the current year.

29. Related party disclosure in accordance with the Accounting Standard 18 issued by the Institute of Chartered Accountants of India is given below : Names of Related parties and nature of relationship where control exists

i) Key Management personal and relative of such personal

In Accordance with our Report attached For ABN & COM

Chartered Accountants FRN : 004447C

C.A S.C. Kabra Ashok Kothari Anshul Kothari Bhopal Singh Choudhary

Partner , M. No. 035604 Director, DIN 00132801 Director, DIN 02624500 Chief Financial Officer

Place : Bhilwara Smt. Sushila Kothari Smt. Anjali Jain

Date : 24.05.2024 Director, DIN 00132802 Company Secretary

Acs 43429

---

Mar 31, 2015

Current Year Previous Year (Rs.in lacs) (Rs.in lacs)

1. Contingent Liabilities not provided for in respect of:

A) Claims against the company not acknowledged as debts: 1.01 1.6

B) Contingent liabilities not provided for:

a) Income Tax demand raised by Income tax Authorities. Nil Nil

b) Excise & Coustom duty demands raised by Excise Authorities. 58.11 58.11

Matter pending in appeal with Appellate Authorities

2. EMPLOYEES BENEFITS PLANS:

1) The Company makes contribution towards employees' Provident Fund, Pension Fund, Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. During the year the Company has recognized Rs. .42 Lac as expenses to these plans.

2) In view of the non viability in the existing set of operational and manufacturing setup,all the fixed assets have been disposed off setteling almost all liabilities and labourdues, Flowever, accounts continued to be prepared on the basis of going concern, as the management is exploring other business opportunities to be carried in the company. All the necessary provisions , losses and liabilities to the extent identified and assessed by the management have been provided for. Further management is of the view that the value in realization of current assets, loans & advances and current liabilities would not significantly differ from the position as stated in the books as on year end.

3. Debtors, Creditors and advances are subject to confirmations, Reconciliations and adjustments, if any. The Management does not expect any significant variation and in the process of taking the necessary steps in this regard in the current year.

4. Related party disclosure in accordance with the Accounting Standard 18 issued by the Institute of Chartered Accountants of India is given below :

Sr.No.

5. Names of Related parties and nature of relationship where control exists

(i) Key Management Personnel and relative of such personnel

Ashok Kumar Kothari Director DIN 00132801

Anshul Kothari Director DIN 02624500

Flanuman Pokharna Director DIN 031555927

Smt. Sushila Kothari Additional Director DIN 00132802 WEF. 12-2-2015

ArvindTater Additional Director DIN 07167125 WEF. 22-4-2015

6. Based on the information available with the Company, no balance is due to Micro & Small Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006.as on 31st March 2015 Further during the year no interest has been paid or payable under the terms of the said Act.

7. a) In View of absence of Profit in accordance with Section 197 (12) of the Companies Act 2013, no commission is payable to the Managing Director for the current year.

b) Directors' remuneration

(i) Directors sitting fees

---

Mar 31, 2013

Current Year Previous Year (Rs.in lacs) (Rs.in lacs)

1. Contingent Liabilities not provided for in respect of:

A) Claims against the company not acknowledged as debts: 1.6 1.6

B). Contingent liabilities not provided for:

a) Income Tax demand raised by Income tax Authorities. Nil Nil

b) Excise & Coustom duty demands raised by Excise Authorities. 58.11 58.11 Matter pending in appeal with Appellate Authorities

2. Estimated amount of contracts remaining to be executed on capital Nil Nil account and not provided for.,

3. EMPLOYEES BENEFITS PLANS :

1) The Company makes contribution towards employees'' Provident Fund, Pension Fund, Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. During the year the Company has recognized Rs. .50 Lac as expenses to these plans.

2) In view of the non viability in the existing set of operational and manufacturing setup,all the fixed assets have been disposed off setteling almost all liabilities and labourdues, However, accounts continued to be prepared on the basis of going concern, as the management is exploring other business opportunities to be carried in the company. All the necessary provisions , losses and liabilities to the extent identified and assessed by the management have been provided for. Further management is of the view that the value in realization of current assets, loans & advances and current liabilities would not significantly differ from the position as stated in the books as on year end.

4. Debtors, Creditors and advances are subject to confirmations, Reconciliations and adjustments, if any. The Management does not expect any significant variation and in the process of taking the necessary steps in this regard in the current year.

5. Based on the information available with the Company, no balance is due to Micro & Small Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006.as on 31st March 2013 Further during the year no interest has been paid or payable under the terms of the said Act.

6. Segment reporting

As the company''s business activity falls within a single primary business segment - taxtile yarn, the disclosure requirements of Accounting Standard -17 " Segment reporting " issued by the Institute of Charted Accountants of India, are not applicable

7. Figures for the previous year have been restated /regrouped/ rearranged wherever considered necessary

---

Mar 31, 2012

Current Year Previous Year (Rs.in lacs) (Rs.in lacs)

1. Contingent Liabilities not provided for in respect of:

A) Claims against the company not acknowledged as debts: 1.60 1.60

B). Contingent liabilities not provided for :

a) Income Tax demand raised by Income tax Authorities. Nil Nil

b) Excise & Coustom duty demands raised by Excise Authorities. 58.11 58.11

Matter pending in appeal with Appellate Authorities

2. Estimated amount of contracts remaining to be executed on capital Nil 180.00 account and not provided for.,

3. Prior period income (expense) amounting to Rs.0.80 Lac

{previous period Rs. 4.63 Lac} have been debited / Credited to respective heads of Accounts.

2. EMPLOYEES BENEFI TS PLANS :

1) The Company makes contribution towards employees’ Provident Fund, Pension Fund, Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. During the year the Company has recognized Rs. .50 Lac as expenses towards contribution to these plans. 2) In view of the non viability in the existing set of operational and manufacturing setup,all the fixed assets have been disposed off setteling almost all liabilities and labourdues, However, accounts continued to be prepared on the basis of going concern, as the management is exploring other business opportunities to be carried in the company. All the necessary provisions , losses and liabilities to the extent identified and assessed by the management have been provided for. Further management is of the view that the value in realization of current assets, loans & advances and current liabilities would not significantly differ from the position as stated in the books as on year end.

3. Debtors, Creditors and advances are subject to confirmations, Reconciliations and adjustments, if any. The Management does not expect any significant variation and in the process of taking the necessary steps in this regard in the current year.

4 Related party disclosure in accordance with the Accounting Standard 18 issued by the Institute of Chartered Accountants of India is given below :

5. Based on the information available with the Company, no balance is due to Micro & Small Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Further during the year no interest has been paid or payable under the terms of the said Act.

6. a) In View of absence of Profit in accordance with Section 349 of the Companies Act 1956, no commission is payable to the Managing Director for the current year.

7. Segment reporting

As the company's business activity falls within a single primary business segment - textile yarn, the disclousre requirements of Accounting Standard - 17 "Segment reporting" issued by the Institute of Chartered Accountants of India, are not applicable.

8. Figures for the previous Year have been restated / regrouped / rearranged wherever considered necessary.

9. Till the year ended the 31st March 2011, the Company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended the 31st March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company. The Company has reclassified previous year figures to conform to this year's classification.

---

Mar 31, 2011

Current Year Previous Year (Rs. ln lacs) (Rs. In lacs)

1. Contingent Liabilities not provided for in respect of:

A) Claims against the company not acknowledged as debts: 1.60 3.90

B). Contingent liabilities not provided for:

a) income Tax demand raised by Income tax Authorities. Nil Nil

b) Excise & Coustom duty demands raised by Excise Authorities. 58.11 226.20

Matter pending in appeal with Appellate Authorities

2. Prior period income (expense) amounting to Rs. 4.63 Lac {previous period Rs 4.55 Lac} have been debited / Credited to respective heads of Accounts.

3. EMPLOYEES BENEFITS PLANS:

1) The Company makes contribution towards employees' Provident Fund, Pension Fund, Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. During the year the Company has recognized Rs. .63 Lac as expenses towards contribution to these plans.

2) In view of the non viability in the existing set of operational and manufacturing setup, all the fixed assets have been disposed off setteling almost all liabilities and labour dues, However, accounts continued to be prepared on the basis of going concern, as the management is exploring other business opportunities to be carried in the company. All the necessary provisions , losses and liabilities to the extent identified and assessed by the management have been provided for. Further management is of the view that the value in realization of current assets, loans & advances and current liabilities would not significantly differ from the position as stated in the books as on year end.

3. Debtors, Creditors and advances are subject to confirmations, Reconciliations and adjustments, if any. The Management does not expect any significant variation and in the process of taking the necessary steps in this regard in the current year.

4 Related party disclosure in accordance with the Accounting Standard 18 issued by the Institute of Chartered Accountants of India is given below :

Sr.No.

1 Names of Related parties and nature of relationship where control exists

(1) Key Management Personnel and relative of such personnel

Ashok Kothari Director

Anshul Kothari Director

Hanuman Pokhama Director

(ii) Enterprise over which Key Management Personnel and their relatives are able to exercise significant influences :

Ahinsa Suitings Bhilwara

4. Based on the information available with the Company, no balance is due to Micro & Small Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 as on 31st March 2009. Further during the year no interest has been paid or payable under the terms of the said Act.

5. a) In View of absence of Profit in accordance with Section 349 of the Companies Act 1956, no commission is payable to the Managing Director for the current year.

6. Segment reporting

As the company's business activity falls within a single primary business segment - textile yarn, the disclosure requirements of Accounting Standard-17 "Segment reporting" issued by the Institute of Chartered Accountants of India are not applicable.

7. Figures for the previous Year have been restated / regrouped / rearranged wherever considered necessary.

---

Mar 31, 2010

(Rs. In Lacs) Current Year Previous Year

1. Contingent Liabilities not provided for in respect of:

A) Claims against the company not acknowledged as debts: 3.90 3.90

B. Contingent liabilities not provided for :

a) Income Tax demand raised by Income tax Authorities. Nil Nil

b) Excises Coustom duty demands raised by Excise Authorities. 226.20 227.07 Matter pending in appeal with Appellate Authorities

C. Bank guarantees given by Companys Bankers. Nil 12.50

D. In relation to the disputed matter of the shortfall in the import of capital goods under Zero Duty EPCG Scheme, the company has fulfilled export obligation against import of capital goods under 10% EPCG Scheme (which was converted from Zero duty EPCG Scheme as per directives of DGFT) and have also paid applicable custom duty on such conversion. The said EPCG licence has also been redeemed by DGFT. However, the Customs Deptt have not accepted the conversion of EPCG licence from Zero duty to 10% duty scheme granted by DGFT, against which the company has fifed an appeal before the CESTAT the additional liability, if any, would be provided as and when the appeal is decided.

2. Estimated amount of contracts remaining to be executed on capital account Nil Nil and not provided for.,

3. Prior period income (expense) amounting to Rs.4.55 Lac (previous period Rs1.58 Lac} have been debited / Credited to respective heads of Accounts

4. Break up of Deferred Tax Liabilities (Net) into major components of the respective balances are as follows:

5. EMPLOYEES BENEFITS PLANS

In the curent year all employees have left the Company and the Company has made the full & final settlement through additional retirement benefits of Rs.287.50Lacs and Gratutity liability of Rs. 98.91 Lacs through the Companys Gratuity Trust. Similarly, Leave encashment liability of Rs.14.75Lacs has also been paid to all the eligible employees on their full & final settelment. Accordingly .the figure of previous year has only been given for comparatives in the following table summarizing the components of the net benefit expense recognized in the profit and loss account and the funded status and amounts recognized in the balance sheet for the respective plans.

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The Company makes contribution towards employees Provident Fund, Pension Fund, Superannuation Fund end Employees State Insurance Plan scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. During the year the Company has recognized Rs. 340.19 Lac as expenses towards contribution to these plans.

6. In view of the non viability in the existing set of operational and manufacturing setup,all the fixed assets have been disposed off setteling almost all liabilities and labourdues, during the year. However, accounts continued to be prepared on the basis of going concern, as the management is exploring othe business opportunities to be carried in the company. All the necessary provisions, losses and liabilities to the extent identified and assessed by the management have been provided for. Further management is of the view that the value in realization of current assets, loans & advances and current liabilities would not significantly differ from the position as stated in the books as on year end.

7. Debtors, Creditors and advances are subject to confirmations, Reconciliations and adjustments, if any. The Management does not expect any significant variation and in the process of taking the necessary steps in this regard in the current year.

8. Related party disclosure in accordance with the Accounting Standard 18 issued by the Institute of Chartered Accountants of India is given below :

Managing Director Shri R. N. Gupta - Details of remuneration to Managing Director is disclosed in Note 11 (b).

9. Based on the information available with the Company, no balance is due to Micro & Small Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 as on 31st March 2009. Further during the year no interest has been paid or payable under the terms of the said Act.

10. a) In View of absence of Profit in accordance with Section 349 of the Companies Act 1956, no commission is payable to the Managing Director for the current year.

11. Additional information pursuant to Part II of Schedule VI of the Companies Act, 1956,to the extent applicable:

12. Segment reporting

As the companys business activity falls within a single primary business segment - textile yarn, the disclosure requirements of Accounting Standard-17 "Segment reporting" issued by the Institute of Chartered Accountants of India, are not applicable.

13.Figures for the previous Year have been restated/ regrouped/ rearranged wherever considered necessary.