Notes to Accounts of BSL Ltd.

Mar 31, 2025

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

When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement
is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented
in the statement of profit and loss net of any reimbursement.

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

Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement, unless the possibility
of an outflow of resources embodying economic benefits is remote. Contingent liabilities are not recognized but are disclosed in notes.

Contingent assets are not recognized. However, when the realization of income is virtually certain, then the related asset is no longer
a contingent asset, but it is recognized as an asset.

Xii. Segment reporting

The Board of Directors of the Company identified Textiles as primary business segment as the company mainly dealing in Textile
business only.

Further, the board has identified two geographical segments i.e. ''Domestic'' and ''Export'' considering the political and economic
environment. Type A customers, assets employed and risk parameters associated in respect of each of the geographical area.

Xiii. Earnings per share

Basic earnings per share are computed by dividing the profit/loss for the year attributable to the shareholders of the Company by the
weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit/
loss for the year attributable to the shareholders of the Company as adjusted for dividend, interest and other charges to expense or
income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares
considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued
on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to

equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed
to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares
are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding
shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and
potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

XIV. Statement of Cash flow

Statement of cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or future operating cash receipts or payments and
item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing
activities of the Company are segregated based on the available information.

XV. Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily
take a substantial period of time to get ready for their intended use or sale, are added to the cost of the assets, until such time as the
assets are substantially ready for their intended use or sale.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted
from the borrowing costs eligible for capitalization.

All other borrowing costs are recognised in statement of profit and loss in the period in which they are incurred.

XVI. Non-Current assets (or disposal groups) held for sale and discontinued operations

Non-Current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a
sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their
carrying amount and fair value less cost to sell, except for assets such as deferred tax assets, assets arising from employee benefits,
financial assets and contractual rights under insurance contracts, which are specifically exempt from this requirement.

An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell.
A gain is recognised for any subsequent increases in fair value less cost to sell of an asset (or disposal group), but not in excess of any
cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current
asset (or disposal group) is recognised at the date of de-recognition.

Non-current assets (including those that are part of disposal group) are not depreciated or amortised while they are classified as held for
sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised.

Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from
the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other
liabilities in the balance sheet.

A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represent a
separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of
business or area of operations or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are
presented separately in the statement of profit and loss.

XVii. Fair Value Measurement

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

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in most advantageous market for the asset or liability and the Company has access to the
principal or the most advantageous market.

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

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by
using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best
use.

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

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

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

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

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

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

For the purpose of fair value disclosures, the Company has determined classes of assets & liabilities on the basis of the nature,
characteristics and the risks of the asset or liability and the level of the fair value hierarchy as explained above. This note summarizes
accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

XVIII. Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are
subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to
be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

For the purposes of the presentation of cash flow statement, cash and cash equivalents include cash on hand, in banks and demand
deposits with banks, net of outstanding bank overdrafts that are repayable on demand, book overdraft as they being considered as
integral part of the Company''s cash management system.

XIX. Financial instruments

Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.
Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or
issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss)
are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability. Transaction costs
directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss (FVTPL) are recognized
immediately in the statement of profit and loss.

Financial assets

For purposes of subsequent measurement, financial assets are classified in below mentioned categories:

• Financial assets carried at amortized cost.

• Financial asset at fair value through other comprehensive income.

• Financial asset at fair value through profit or loss.

Financial assets at amortized cost

Financial assets are subsequently measured at amortized cost using the effective interest method if these financial assets are held within
a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income (OCI) if these financial assets are held within a
business model whose objective is achieved by both selling financial assets and collecting contractual cash flows, the contractual terms
of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

On initial recognition, the Company makes an irrevocable election on an instrument-by-instrument basis to present the subsequent
changes in fair value in other comprehensive income pertaining to investments in equity instruments, other than equity investment
which are held for trading. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value
recognized in other comprehensive income and accumulated in the "Reserve for equity instruments through other comprehensive
income''. The cumulative gain or loss is not reclassified to the statement of profit and loss on disposal of the investments.

Financial assets at fair value through profit or loss (''FVTPL'')

Investment in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present
subsequent changes in fair value in other comprehensive income for investment in equity instruments which are not held for trading.

Other financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at fair value through
other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and
liabilities at fair value through profit or loss are immediately recognized in Statement of profit or loss.

Impairment of financial assets (other than at fair value)

The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the
credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument
has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an
amount equal to 12-month expected credit losses.

However, for trade receivables, the Company measures the loss allowance at an amount equal to lifetime expected credit losses. In
cases, where the amounts are expected to be realized up to one year from the date of the invoice, loss for the time value of money is
not recognized, since the same is not considered to be material.

Derecognition of financial assets

The Company derecognizes a financial asset when the contractual right to the cash flow from the asset expires or when it transfers the
financial asset and substantially all risk and reward of ownership of the asset to other party. If the Company neither transfers nor retains
substantially all the risk and reward of ownership and continues to control the transferred asset, the Company recognizes its retained
interest in the asset and an associate liability for an amount it has to pay. If the Company retains substantially all the risks and reward of
ownership of a transferred financial asset, the company continues to recognize the financial asset and also a collateralized borrowing
for the proceeds received.

Financial liabilities

All financial liabilities are subsequently measured at amortized cost using the effective interest method.

Classification as debt or equity

Debt and equity instruments issued by a Company are classified as either financial liabilities or as equity in accordance with the
substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its liabilities.
Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the effective interest
rate (EIR) method. Gains and losses are recognized in the statement of profit or loss when the liabilities are derecognized as well as
through the effective interest rate (EIR) amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part
of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.

T rade and other Payables

These amounts represent liabilities for goods & services provided to the Company prior to the end of the financial year which are
unpaid. These are recognized initially at fair value and subsequently measured at amortized cost using effective interest method.
Where the maturity period is within one year from balance sheet date, the carrying amount approximate the fair value at initial
recognition due to short maturity of these instruments.

The Company derecognizes financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have
expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is
recognized in the statement of profit and loss.

Reclassification of financial assets and financial liabilities

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification
is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a
reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are
expected to be infrequent. The Company''s senior management determines change in the business model as a result of external or
internal changes which are significant to the Company''s operations. Such changes are evident to external parties. A change in the
business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the
Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day
of the immediately next reporting period following the change in business model. The Company does not restate any previously
recognized gains, losses (including impairment gains or losses) or interest.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable
legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities
simultaneously.

XX. impairment of Non-Financial assets

The non-financial assets, other than biological assets, inventories and deferred tax asset are reviewed at each reporting date to determine
whether there is any indication of impairment. If any such indications exist, then the asset''s recoverable amount is estimated. Goodwill
is tested annually for impairment.

For impairment testing, assets that do not generate independent cash inflows are grouped together into cash generating units (CGUs).
Each CGU represents the smallest group of assets that generate cash inflows that are largely independent of the cash inflows of other
assets or CGUs.

Goodwill arising from the business combination is allocated to CGUs or groups of CGUs that are expected to benefits from the
synergies of the combination.

The recoverable amount of the CGU (or an individual asset) is the higher of its value in use and its fair value less cost to sell. Value
in use is based on the estimated future cash flows, discounted to their present value using a pre- tax discount rate that reflects current
market assessment of the time value of money and the risks specifics to the CGU (or the asset).

The corporate assets (e.g. central office building for providing support to various CGUs) do not generate independent cash inflows. To
determine impairment of a corporate asset, recoverable amount is determined for the CGUs to which the corporate asset belongs.

The impairment loss is recognized if the carrying amount of the asset or the CGU exceeds its estimated recoverable amount. Impairment
losses are recognized in the statement of profit & loss. Impairment loss recognized in respect of CGU is allocated first to reduce the
carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amount of the CGU (or group of CGUs) on a
pro rata basis.

An impairment loss in respect of goodwill is not subsequently reversed. In respect of other assets for which impairment loss has been
recognized in prior periods, the company reviews at each reporting date whether there is any indication that the loss has decreased or
no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.
Such a reversal is made only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortization, if no impairment loss had been recognized.

XXi. Use of estimates

The preparation of the financial statement in conformity with Ind AS requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses
during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.
Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the
periods in which the results are known / materialize.

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

XXii. Critical accounting judgments and key sources of estimation uncertainty

The preparation of the Company''s financial statements requires management to make judgments, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent
liabilities.

> Critical accounting judgments in applying accounting policies

The following are the critical judgments, apart from those involving estimations that the Management have made in the process
of applying the Company''s accounting policies and that have most significant effect on the amounts recognised in the financial
statements.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation
are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual
developments in the future. These include the determination of the discount rate; future salary increases and mortality rates. Due to
the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted
prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models
are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair
values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these
factors could affect the reported fair value of financial instruments. (Refer Note XVii)

Impairment of non-financial assets

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal,
recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.
These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair
value indicators.

Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company
uses judgment in making assumption and selecting the inputs to the impairment calculation, based on Company''s past history, existing
market conditions as well as forward estimate at the end of each reporting period.

Assets Held for sale

Management Judgment is required for identifying the assets which are classified as held for sale if their carrying amount will be
recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the
asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such asset
and its sale is highly probable which could lead to significant judgment. Management must be committed to the sale, which should be
expected to qualify for recognition as a completed sale within one year from the date of classification.

income taxes

Management judgment is required for the calculation of provision for income taxes and deferred tax assets and liabilities. The Company
reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates may differ from actual
outcome which could lead to significant adjustment to the amounts reported in the financial statements.

contingencies

Management judgment is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/ litigations
against the Company as it is not possible to predict the outcome of pending matters with accuracy.

insurance claims

Insurance claims are recognized when the Company has reasonable certainty of recovery. Subsequently, any change in recoverability
is provided for.

XXiii. Key Source of estimation uncertainty

Key source of estimation uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying
amounts of assets and liabilities within the next financial year, is in respect of impairment of investments, provisions and contingent
liabilities.

The areas involving critical estimates are:

Useful lives and residual values of property, plant and equipment

Useful life and residual value of property, plant and equipment are based on management''s estimate of the expected life and residual
value of those assets and is as per schedule II to the Companies Act 2013/ as per technical opinion taken by the company.

These estimates are reviewed at the end of each reporting period. Any reassessment of these may result in change in depreciation
expense for future years (Refer note no VI).

impairment of property plant and equipment

The recoverable amount of the assets has been determined on the basis of their value in use. For estimating the value in use, it is
necessary to project the future cash flow of assets over its estimated useful life. If the recoverable amount is less than its carrying
amount, the impairment loss is accounted for in statement of profit and loss. (Refer note VI)

Valuation of deferred tax assets

Deferred tax assets are recognized only to the extent it is considered probable that those assets will be recoverable. This involves an
assessment of when those deferred tax assets are likely to reverse and a judgment as to whether or not there will be sufficient taxable
profits available to offset the tax assets when they do reverse. The Company reviews the carrying amount of deferred tax assets at the
end of each reporting period. Any change in the estimates of future taxable income may impact the recoverability of deferred tax assets
(Refer note X).

Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of
resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at
the balance sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent
liabilities are disclosed in the Notes. Contingent assets are not recognized but disclosed in the financial statements wherever applicable.
(Refer note XI)

Capital Reserve - Capital reserve is created on amalgamation of Bhilwara Processors Limited and BSL Wulfing Limited with the company
and the same will be utilized as per the provisions of the Companies Act, 2013.

Capital Redemption Reserve - Capital redemption reserve is created on redemption of preference share capital and the same will be utilized
as per the provisions of the Companies Act, 2013.

Securities Premium - Security premium is created on issue of equity shares at premium and the same will be utilized as per the provisions
of the Companies Act, 2013.

(i) The Other Comprehensive Income (Net gains/(loss) on hedging instruments) represents the cumulative effective portion of gain /
(losses) arising on changes in fair value of designated portion of hedging instruments entered into for Cash Flow Hedge reserve. The
cumulative gain/ (losses) arising on changes in fair value of designated portion of the hedging instruments that are recognized and
accumulated under the heading of Cash Flow Hedge Reserve will be reclassified to the Profit and Loss only when the hedge transaction
affects the Profit and Loss account.

(ii) Details of Dividend Proposed

After the reporting date, the Board of Directors of the company has recommended a dividend @ 8% (P.Y.@10%) to Equity shareholder
i.e. '' 0.80 (P.Y. '' 1.00) per Equity share amounting to '' 82.33 Lacs (P.Y. '' 102.92 lacs). The dividend proposed by the Board is subject
to approval at the annual general meeting of the company. The dividend has not been recognized as liability.

i) Nature of Security: The Term Loans from Banks are secured by way of joint equitable mortgage / hypothecation of all immovable and
movable existing and future assets of the Company except book debts ranking pari-passu subject to prior charge created in favor of the
Company''s bankers on stocks of raw materials, semi-finished, finished goods for working capital.

The GECL 2.0 (WCTL) loans under ECLGS-2.0 are secured against hypothecation of stocks of raw materials, finished goods and goods
in process. The same is also secured by second charge created in favor of Company''s Bankers by way of joint equitable mortgage on
immovable properties of the Company which is ranking pari-passu.

Vehicle Loans are secured against hypothecation of respective vehicles.

ii) No term loan is guaranteed by Directors or Others.

iii) Terms of Repayment of Secured Borrowing: Secured term loans from banks are repayable in quarterly/monthly installments and
having floating interest rates ranging from Base Rate/MCLR spread (0.40% to 2.15% as on 31.03.2025 and 0.40% to 2.50% as on
31.03.2024) and vehicle loans are repayable in monthly installments and having interest rates ranging from 7.95% to 10.49% as on
31.03.2025 and 7.95% to 9.76% as on 31.03.2024. Period of maturity and installments outstanding are as under:-

(xiii) Description on Risk Exposure

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to

various risks as follows:-

A) Salary Increases - Actual salary increases will increase the Plan''s liability. Increase in salary, increase rate assumption in
future valuations will also increase the liability.

B) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the
discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate - Reduction in discount rate in subsequent valuations can increase the plan''s liability.

D) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact
the liabilities.

E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at
subsequent valuations can impact Plan''s liability.

41. SEGMENT REPORTING

The Company''s operation predominantly relates to Textiles. Hence, primary reportable segment is textiles only. Further, the geographical
segment have been considered as secondary segment and bifurcated into Domestic & Export segments.

Valuation Technique used to determine Fair Value

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data
available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and
assumptions were used to estimate the fair values:

1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities measured at
amortized cost is approximate to their carrying amounts largely due to the short-term maturities of these instruments. The fair
value of other non-current financial assets and liabilities (security deposit taken/given and advance to employees) carried at
amortized cost is approximately equal to fair value. Hence, carrying value and fair value is taken same.

2) Long-term variable-rate borrowings measured at amortized cost are evaluated by the Company based on parameters such as
interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings
approximates their carrying values. Risk of other factors for the company is considered to be insignificant in valuation.

3) The fair values of the forward contract are determined using the forward exchange rate at the balance sheet date based on
quotes from banks and financial institutions. Management has evaluated the credit and non-performance risks associated with its
derivative counterparties and believe them to be insignificant and not warranting a credit adjustment.

(C) FINANCIAL RISK MANAGEMENT OBJECTIVES & POLICIES

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these
financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other
receivables, and cash and cash equivalents that derive directly from its operations.

The company''s activities expose it to a variety of financial risks: currency risk, interest rate risk, credit risk and liquidity risk. The
company''s overall risk management strategy seeks to minimize adverse effects from the unpredictability of financial markets on
the company''s financial performance. The Company''s senior management is supported by a financial risk committee that advises
on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides
assurance to the Company''s senior management. 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 the Company''s policies and risk
objectives. The Audit committee reviews and agrees policies for managing each of these risks.

(D) foreign currency risk management

Foreign exchange risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes
in foreign exchange rate. The Company derives significant portion of its revenue in foreign currency, exposing it to fluctuations in
currency movements. The Company has laid down a foreign exchange risk policy as per which senior management team reviews and
manages the foreign exchange risks in a systematic manner, including regular monitoring of exposures, proper advice from market
experts, hedging of exposures, etc.

The Company uses derivative financial instruments, such as foreign exchange forward contracts, to mitigate foreign exchange related
risk exposures. Derivative financial instruments relating to a firm commitment or a highly probable forecast transaction are marked to
market at every reporting date. In management''s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange
risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

Interest Rate Risk Management

The company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by
the company by maintaining an appropriate mix between fixed and floating rate borrowings. The company''s exposures to interest rates
on financial assets and financial liabilities are detailed in the liquidity risk management section of this note.

Interest Rate Sensitivity Analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non-derivative
instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability
outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease represents
management''s assessment of the reasonably possible change in interest rates.

If interest rates has been 50 basis points higher / lower and all other variables were held constant, the company''s:

Profit for the year ended 31st March, 2025 would decrease / increase by '' 210.64 lacs (31st March, 2024: decrease / increase by
'' 218.61 lacs). This is mainly attributable to the company''s exposure to interest rates on its variable rate borrowings; and the company''s
sensitivity to interest rates has decreased during the year mainly due to the reduction in variable rate debt instruments.

Other Price Risks

The company is not exposed to any instrument which has price risks.
credit Risk Management

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The
Company''s exposure to credit risk primarily arises from trade receivables, balances with banks, investments and security deposits. The
credit risk on bank balances is limited because the counterparties are banks with good credit ratings.

- Trade Receivables

Credit risk is managed through credit approvals, establishing credit limits, continuous monitoring of creditworthiness of customers
to which the company grants credit terms in the normal course of business. The Company also assesses the financial reliability of
customers taking into account the financial condition, current economic trends and historical bad debts and ageing of accounts
receivables.

- cash & cash Equivalent

With respect to credit risk arising from financial assets which comprise of cash and cash equivalents, the Company s risk exposure
arises from the default of the counterparty, with a maximum exposure equal to the carrying amount of these financial assets at the
reporting date. Since, the counter party involved is a bank, Company considers the risks of non-performance by the counterparty
as non-material.

Liquidity Risk Management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity
risk management framework for the management of the company''s short, medium and long-term funding and liquidity management
requirements.

Liquidity and interest risk tables

The following tables detail the company''s remaining contractual maturity for its financial liabilities with agreed repayment periods.
The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
company can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are floating
rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based
on the earliest date on which the company may be required to pay.

44. CAPITAL MANAGEMENT

The company manages its capital to ensure that the entities in the Company will be able to continue as going concern while maximizing the
return to shareholders and also complying with the ratios stipulated in the loan agreements through the optimization of the debt and equity
balance.

The capital structure of the Company consists of net debt (borrowings as detailed in note 18 and 22) offset by cash and cash equivalents as
detailed in note 10 and total equity of the Company. The company is not subject to any externally imposed capital requirements.

Gearing Ratio

The gearing ratio at the end of the reporting period is as follows:

47. During the year, the company has taken term loan of '' 1458.68 Lac for installation of Stenter, Shrinking Range, Calendaring, Jigger
machineries, RO, MEE Plant, Solar Plant, DG Set & Other machineries and the vehicle loan of '' 99.52 lacs for purchases of vehicles. All
these loans are utilized for the same purpose for which these are taken.

48. Additional Regulatory information

a. Title deeds of immovable property not held in name of the company.

Bhilwara Processors Limited is amalgamated with the company w.e.f. 01.04.2009; however Leasehold Land of '' 143.46 lacs of
amalgamated company is under name transfer process with state government authorities.

b. No proceeding has been initiated or pending against the company during the year for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

c. The company has borrowing of '' 22707.33 Lacs (P.Y. '' 23603.51 Lacs) from banks on the basis of security of current assets. All the
quarterly return and statements of current assets filled by the company during the year with banks are in agreement with the books of
accounts.

d. The Company has not been declared willful defaulter by any bank or lender during the year.

e. The company has not made any transactions during the year with companies struck off under section 248 of Companies Act, 2013 or
section 560 of Companies Act, 1956.

Remarks for more than 25% changes in ratios of FY 2024-25 as compared to FY 2023-24:-

i) Profit for the year is lower because of higher raw material cost and pressure on price realization due to global uncertainty i.e.
price war, higher demand of raw material etc

g. The company has not advanced or loaned or invested funds to any other person or entity including foreign entity during the year with
the understanding 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 Beneficiary) or provide any guarantee, security or the like to or on behalf of the
ultimate beneficiary.

h. The company has not received any fund from any persons or entity including foreign entity (funding party) during the year with
the understanding 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.

i. The company has not surrendered or disclosed any transaction not recorded in the books of accounts as income during the year in the
tax assessment under the Income Tax Act, 1961

j. CSR Expenditure - The Company has made CSR expenditure of '' 35.69 lacs during the year. Details of the same areas under:-

i) Amount require to be spent - '' 35.65 lacs

ii) Amount of expenditure incurred - '' 35.69 lacs

iii) Shortfall at the end of the year - NIL

iv) Total of previous years shortfall - NIL

v) Reasons for shortfall - N.A.

vi) Nature of CSR Activities -

49. APPROVAL OF FINANCIAL STATEMENTS

The financial statements of the Company for the year ended 31st March, 2025 are approved for issue by the Company''s Board of Directors
on 22nd May, 2025.

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

For ssMs & Associates ARUN KUMAR cHURIWAL PRAVEEN KUMAR JAiN

Chartered Accountants Chairman Director (Operations) & CFO

Firm Regd. No.: 019351C DIN : 00001718 DIN : 09196198

(satish somani) nivedan churiwal shubham jain

Partner Managing Director Company Secretary

Membership No. 076241 DIN : 00001749 Membership No. : A49973

Place : Bhilwara (Raj.) Place: Kolkata (W.B.) Place: Bhilwara (Raj.)

Date : 22^nd May, 2025

UDIN : 25076241BMTDGH4462

---

Mar 31, 2024

Xi. Provisions, Contingent Liabilities

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

When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

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

Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement, unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent liabilities are not recognized but are disclosed in notes.

Contingent assets are not recognized. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognized as an asset.

Xii. Segment reporting

The Board of Directors of the Company identified Textiles as primary business segment as the company mainly dealing in Textile business only.

Further the board has identified two geographical segments i.e. ''Domestic'' and ''Export'' considering the political and economic environment. Type A customers, assets employed and risk parameters associated in respect of each of the geographical area.

Xiii. Earnings per share

Basic earnings per share are computed by dividing the profit/loss for the year attributable to the shareholders of the Company by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit/loss for the year attributable to the shareholders of the Company as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

XIV. Statement of Cash flow

Statement of cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

XV. Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of the assets, until such time as the assets are substantially ready for their intended use or sale.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

All other borrowing costs are recognised in statement of profit and loss in the period in which they are incurred.

XVi. Non-Current assets(or disposal groups) held for sale and discontinued operations

Non-Current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less cost to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and contractual rights under insurance contracts, which are specifically exempt from this requirement.

An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less cost to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. Again or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date of de-recognition.

Non-current assets (including those that are part of disposal group) are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised.

Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet.

A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represent a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately in the statement of profit and loss.

XVII. Fair Value Measurement

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

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in most advantageous market for the asset or liability and the Company has access to the principal or the most advantageous market.

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

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

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

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

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

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

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

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

For the purpose of fair value disclosures, the Company has determined classes of assets & liabilities on the basis of the nature, characteristics and the risks of the asset or liability and the level of the fair value hierarchy as explained above. This note summarizes accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

XVIII. Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

For the purposes of the presentation of cash flow statement, cash and cash equivalents include cash on hand, in banks and demand deposits with banks, net of outstanding bank overdrafts that are repayable on demand, book overdraft as they being considered as integral part of the Company''s cash management system.

XIX. Financial instruments

Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss (FVTPL) are recognized immediately in the statement of profit and loss.

Financial assets

For purposes of subsequent measurement, financial assets are classified in below mentioned categories:

• Financial assets carried at amortized cost.

• Financial asset at fair value through other comprehensive income.

• Financial asset at fair value through profit or loss.

Financial assets at amortized cost

Financial assets are subsequently measured at amortized cost using the effective interest method if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income (OCI) if these financial assets are held within a business model whose objective is achieved by both selling financial assets and collecting contractual cash flows, the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition, the Company makes an irrevocable election on an instrument-by-instrument basis to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments, other than equity investment which are held for trading. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in the "Reserve for equity instruments through other comprehensive income''. The cumulative gain or loss is not reclassified to the statement of profit and loss on disposal of the investments.

Financial assets at fair value through profit or loss (''FVTPL'')

Investment in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investment in equity instruments which are not held for trading.

Other financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognized in Statement of profit or loss.

Impairment of financial assets (other than at fair value)

The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses.

However, for trade receivables, the Company measures the loss allowance at an amount equal to lifetime expected credit losses. In cases where the amounts are expected to be realized up to one year from the date of the invoice, loss for the time value of money is not recognized, since the same is not considered to be material.

Derecognition of financial assets

The Company derecognizes a financial asset when the contractual right to the cash flow from the asset expires or when it transfers the financial asset and substantially all risk and reward of ownership of the asset to other party. If the Company neither transfers nor retains substantially all the risk and reward of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the asset and an associate liability for an amount it has to pay. If the Company retains substantially all the risks and reward of ownership of a transferred financial asset, the company continues to recognize the financial asset and also a collateralized borrowing for the proceeds received.

Financial liabilities

All financial liabilities are subsequently measured at amortized cost using the effective interest method.

Classification as debt or equity

Debt and equity instruments issued by a Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate (EIR) method. Gains and losses are recognized in the statement of profit or loss when the liabilities are derecognized as well as through the effective interest rate (EIR) amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.

T rade and other Payables

These amounts represent liabilities for goods & services provided to the Company prior to the end of the financial year which are unpaid. These are recognized initially at fair value and subsequently measured at amortized cost using effective interest method. Where the maturity period is within one year from balance sheet date, the carrying amount approximate the fair value at initial recognition due to short maturity of these instruments.

Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in the statement of profit and loss.

Reclassification of financial assets and financial liabilities

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company''s senior management determines change in the business model as a result of external or internal changes which are significant to the Company''s operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognized gains, losses (including impairment gains or losses) or interest.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

XX. impairment of Non-Financial assets

The non-financial assets, other than biological assets, inventories and deferred tax asset are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indications exist, then the asset''s recoverable amount is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets that do not generate independent cash inflows are grouped together into cash generating units (CGUs). Each CGU represents the smallest group of assets that generate cash inflows that are largely independent of the cash inflows of other assets or CGUs.

Goodwill arising from the business combination is allocated to CGUs or groups of CGUs that are expected to benefits from the synergies of the combination.

The recoverable amount of the CGU (or an individual asset) is the higher of its value in use and its fair value less cost to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre- tax discount rate that reflects current market assessment of the time value of money and the risks specifics to the CGU (or the asset).

The corporate assets (e.g. central office building for providing support to various CGUs) do not generate independent cash inflows. To determine impairment of a corporate asset, recoverable amount is determined for the CGUs to which the corporate asset belongs.

The impairment loss is recognized if the carrying amount of the asset or the CGU exceeds its estimated recoverable amount. Impairment losses are recognized in the statement of profit & loss. Impairment loss recognized in respect of CGU is allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amount of the CGU (or group of CGUs) on a pro rata basis.

An impairment loss in respect of goodwill is not subsequently reversed. In respect of other assets for which impairment loss has been recognized in prior periods, the company reviews at each reporting date whether there is any indication that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. Such a reversal is made only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

XXI. Use of estimates

The preparation of the financial statement in conformity with Ind AS requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

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

XXII. Critical accounting judgments and key sources of estimation uncertainty

The preparation of the Company''s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities.

> critical accounting judgments in applying accounting policies

The following are the critical judgments, apart from those involving estimations that the Management have made in the process of applying the Company''s accounting policies and that have most significant effect on the amounts recognised in the financial statements.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate; future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. (Refer Note XVii)

Impairment of non-financial assets

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making assumption and selecting the inputs to the impairment calculation, based on Company''s past history, existing market conditions as well as forward estimate at the end of each reporting period.

Assets Held for sale

Management Judgment is required for identifying the assets which are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such asset and its sale is highly probable which could lead to significant judgment. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.

Income taxes

Management judgment is required for the calculation of provision for income taxes and deferred tax assets and liabilities. The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates may differ from actual outcome which could lead to significant adjustment to the amounts reported in the financial statements.

Contingencies

Management judgment is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/ litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

Insurance claims

Insurance claims are recognized when the Company has reasonable certainty of recovery. Subsequently any change in recoverability is provided for.

XXIII. Key Source of estimation uncertainty

Key source of estimation uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of impairment of investments, provisions and contingent liabilities.

The areas involving critical estimates are:

Useful lives and residual values of property, plant and equipment

Useful life and residual value of property, plant and equipment are based on management''s estimate of the expected life and residual value of those assets and is as per schedule II to the Companies Act 2013/ as per technical opinion taken by the company.

These estimates are reviewed at the end of each reporting period. Any reassessment of these may result in change in depreciation expense for future years (Refer note no VI).

Impairment of property plant and equipment

The recoverable amount of the assets has been determined on the basis of their value in use. For estimating the value in use, it is necessary to project the future cash flow of assets over its estimated useful life. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for in statement of profit and loss. (Refer note VI)

Valuation of deferred tax assets

Deferred tax assets are recognized only to the extent it is considered probable that those assets will be recoverable. This involves an assessment of when those deferred tax assets are likely to reverse and a judgment as to whether or not there will be sufficient taxable profits available to offset the tax assets when they do reverse. The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. Any change in the estimates of future taxable income may impact the recoverability of deferred tax assets (Refer note X).

Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognized but disclosed in the financial statements wherever applicable. (Refer note XI)

Capital Reserve - Capital reserve is created on amalgamation of Bhilwara Processors Limited and BSL Wulfing Limited with the company and the same will be utilized as per the provisions of the Companies Act, 2013.

Capital Redemption Reserve - Capital redemption reserve is created on redemption of preference share capital and the same will be utilized as per the provisions of the Companies Act, 2013.

Securities Premium - Security premium is created on issue of equity shares at premium and the same will be utilized as per the provisions of the Companies Act, 2013.

(i) The Other Comprehensive Income (Net gains/(loss) on hedging instruments) represents the cumulative effective portion of gain / (losses) arising on changes in fair value of designated portion of hedging instruments entered into for Cash Flow Hedge reserve. The cumulative gain/ (losses) arising on changes in fair value of designated portion of the hedging instruments that are recognized and accumulated under the heading of Cash Flow Hedge Reserve will be reclassified to the Profit and Loss only when the hedge transaction affects the Profit and Loss account.

(ii) Details of Dividend Proposed

After the reporting date, the Board of Directors of the company has recommended a dividend @ 10% (P.Y.@15%) to Equity shareholder i.e. '' 1.00 (P.Y.? 1.50) per Equity share amounting to '' 102.92 Lacs (P.Y. '' 154.38 lacs).The dividend proposed by the Board is subject to approval at the annual general meeting of the company. The dividend has not been recognized as liability.

i) Nature of Security: The Term Loans from Banks are secured by way of joint equitable mortgage / hypothecation of all immovable and movable existing and future assets of the Company except book debts ranking pari-passu subject to prior charge created in favor of the Company''s bankers on stocks of raw materials, semi-finished, finished goods for working capital.

The GECL 2.0 (WCTL) loans under ECLGS-2.0 are secured against hypothecation of stocks of raw materials, finished goods and goods in process. The same is also secured by second charge created in favor of Company''s Bankers by way of joint equitable mortgage on immovable properties of the Company which is ranking pari-passu.

Vehicle Loans are secured against hypothecation of respective vehicles.

ii) No term loan is guaranteed by Directors or Others.

iii) Terms of Repayment of Secured Borrowing: Secured term loans from banks are repayable in quarterly/monthly installments and having floating interest rates ranging from Base Rate/MCLR spread (0.40% to 2.50% as on 31.03.2024 and 0.50% to 5.00% as on 31.03.2023) and vehicle loans are repayable in monthly installments and having interest rates ranging from 7.95% to 9.76% as on 31.03.2024 and 7.95% to 9.76% as on 31.03.2023.Period of maturity and installments outstanding are as under:-

(C) FINANCIAL RISK MANAGEMENT OBJECTIVES & POLICIES

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The company''s activities expose it to a variety of financial risks: currency risk, interest rate risk, credit risk and liquidity risk. The company''s overall risk management strategy seeks to minimize adverse effects from the unpredictability of financial markets on the company''s financial performance. The Company''s senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Company''s senior management. 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 the Company''s policies and risk objectives. The Audit committee reviews and agrees policies for managing each of these risks.

(D) foreign currency risk management

Foreign exchange risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes in foreign exchange rate. The Company derives significant portion of its revenue in foreign currency, exposing it to fluctuations in currency movements. The Company has laid down a foreign exchange risk policy as per which senior management team reviews and manages the foreign exchange risks in a systematic manner, including regular monitoring of exposures, proper advice from market experts, hedging of exposures, etc.

The Company uses derivative financial instruments, such as foreign exchange forward contracts, to mitigate foreign exchange related risk exposures. Derivative financial instruments relating to a firm commitment or a highly probable forecast transaction are marked to market at every reporting date. In management''s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

Interest Rate Risk Management

The company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the company by maintaining an appropriate mix between fixed and floating rate borrowings. The company''s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section of this note.

Interest Rate sensitivity Analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease represents management''s assessment of the reasonably possible change in interest rates.

Other Price Risks

The company is not exposed to any instrument which has price risks.

Credit Risk Management

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company''s exposure to credit risk primarily arises from trade receivables, balances with banks, investments and security deposits. The credit risk on bank balances is limited because the counterparties are banks with good credit ratings.

- Trade Receivables

Credit risk is managed through credit approvals, establishing credit limits, continuous monitoring of creditworthiness of customers to which the company grants credit terms in the normal course of business. The Company also assesses the financial reliability of customers taking into account the financial condition, current economic trends and historical bad debts and ageing of accounts receivables.

- cash & cash Equivalent

With respect to credit risk arising from financial assets which comprise of cash and cash equivalents, the Company s risk exposure arises from the default of the counterparty, with a maximum exposure equal to the carrying amount of these financial assets at the reporting date. Since the counter party involved is a bank, Company considers the risks of non-performance by the counterparty as non-material.

Liquidity Risk Management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the company''s short, medium and long-term funding and liquidity management requirements.

Liquidity and interest risk tables

The following tables detail the company''s remaining contractual maturity for its financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the company may be required to pay.

Remarks for more than 25% changes in ratios of FY 2023-24 as compared to FY 2022-23:-

i) Profit for the year is lower because of higher finance cost and higher depreciation expenses due to cotton spinning project and other capex plans of the company.

ii) During the year, Purchases of the company has increased due to new cotton spinning project. However the Company has paid sundry creditors out of short term borrowed fund & retain earnings and kept the sundry creditors at lower level than previous year. Thus the same has resulted higher trade payables turnover ratio.

iii) During the year, turnover of the company has increased due to new cotton spinning project. However the Company has managed its working capital at almost same level in compare to previous year. Thus the same has resulted higher net capital turnover ratio.

The company has not advanced or loaned or invested funds to any other person or entity including foreign entity during the year with the understanding 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 Beneficiary) or provide any guarantee, security or the like to or on behalf of the ultimate beneficiary.

The company has not received any fund from any persons or entity including foreign entity (funding party) during the year with the understanding 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.

The company has not surrendered or disclosed any transaction not recorded in the books of accounts as income during the year in the tax assessment under the Income Tax Act, 1961.

51. APPROVAL OF FINANCIAL STATEMENTS

The financial statements of the Company for the year ended 31st March, 2024 are approved for issue by the Company''s Board of Directors on 20th May, 2024.

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

For ssMs & Associates. 1) ARUN cHURIWAL 3) PRAVEEN JAiN

Chartered Accountants Chairman Director (Operations) & CFO

Firm Regd. No.: 019351C DIN: 00001718 DIN: 09196198

(satish sOMANi) 2) nivedan churiwal 4) shubham jain

Partner Managing Director Company Secretary

Membership No.076241 DIN: 00001749 Membership No. : A49973

Place: Kolkata (W.B.) Place: Bhilwara (Raj.)

Place: Bhilwara (Raj.)

Date: 20^th May, 2024

UDiN : 24076241BKGYXW2700

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Mar 31, 2023

i) Term / Rights attached to Equity shares

The Company has one class of equity shares having a par value of ''10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Capital Reserve - Capital reserve is created on amalgamation of Bhilwara Processors Limited and BSL Wulfing Limited with the company and the same will be utilized as per the provisions of the Companies Act, 2013.

Capital Redemption Reserve - Capital redemption reserve is created on redemption of preference share capital and the same will be utilized as per the provisions of the Companies Act, 2013.

Securities Premium - Security premium is created on issue of equity shares at premium and the same will be utilized as per the provisions of the Companies Act, 2013.

(i) The Other Comprehensive Income (Net gains/(loss) on hedging instruments) represents the cumulative effective portion of gain / (losses) arising on changes in fair value of designated portion of hedging instruments entered into for Cash Flow Hedge reserve. The cumulative gain/ (losses) arising on changes in fair value of designated portion of the hedging instruments that are recognized and accumulated under the heading of Cash Flow Hedge Reserve will be reclassified to the Profit and Loss only when the hedge transaction affects the Profit and Loss account.

(ii) Details of Dividend Proposed

After the reporting date, the Board of Directors of the company has recommended a dividend @15% (P.Y.@12%) to Equity shareholder i.e. ''1.50 (P.Y. ''1.20) per Equity share amounting to '' 154.38 Lac (P.Y. ''123.51 lacs).The dividend proposed by the Board is subject to approval at the annual general meeting of the company. The dividend has not been recognized as liability.

i) Nature of Security: The Term Loans from Banks are secured by way of joint equitable mortgage / hypothecation of all immovable and movable existing and future assets of the Company except book debts ranking pari-passu subject to prior charge created in favor of the Company''s bankers on stocks of raw materials, semi-finished, finished goods for working capital.

The GECL 2.0 (WCTL) loans under ECLGS-2.0 are secured against hypothecation of stocks of raw materials, finished goods and goods in process. The same is also secured by second charge created in favor of Company''s Bankers by way of joint equitable mortgage on immovable properties of the Company which is ranking pari-passu.

Vehicle Loans are secured against hypothecation of respective vehicles.

ii) Terms of Repayment of Secured Borrowing: Secured term loans from banks are repayable in quarterly/monthly installments and having floating interest rates ranging from Base Rate/MCLR spread (0.50% to 5.0% as on 31.03.2023 and 0.50% to 5.45% as on 31.03.2022) and vehicle loans are repayable in monthly installments and having interest rates ranging from 7.95% to 9.76% as on 31.03.2023 and 7.95% to 12.93% as on 31.03.2022. Period of maturity and installments outstanding are as under:-

iii) No term loan is guaranteed by Directors or Others.

i) Bank loans for working capital are secured against hypothecation of stocks of raw materials, finished goods and goods in process. The same is also secured by second charge created/ in favor of Company''s Bankers by way of joint equitable mortgage on immovable properties of the Company which is ranking pari-passu and having floating interest rate ranging from 8.15% to 10.65% as on 31.03.2023 and 7.50% to 12.10% as on 31.03.2022

ii) No Working Capital loan is guaranteed by Directors or Others.

iii) Unsecured loans are having interest rate from 8.50% to 15.00 % as on 31.03.2023 and 7.25% to 11.85 % as on 31.03.2022.

(xii) Description on Risk Exposure

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to

various risks as follows:-

A) Salary Increases- Actual salary increases will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

B) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan''s liability

D) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

43. SEGMENT REPORTING

The Company''s operation predominantly relates to Textiles. Hence primary reportable segment is textiles only. Further the geographical segment have been considered as secondary segment and bifurcated into Domestic & Export segments.

Valuation Technique used to determine Fair Value

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities measured at amortized cost is approximate to their carrying amounts largely due to the short-term maturities of these instruments. The fair value of other non-current financial assets and liabilities (security deposit taken/given and advance to employees) carried at amortized cost is approximately equal to fair value. Hence carrying value and fair value is taken same.

2) Long-term variable-rate borrowings measured at amortized cost are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. Risk of other factors for the company is considered to be insignificant in valuation.

3) The fair values of the forward contract are determined using the forward exchange rate at the balance sheet date based on quotes from banks and financial institutions. Management has evaluated the credit and non-performance risks associated with its derivative counterparties and believe them to be insignificant and not warranting a credit adjustment.

(C) FINANCIAL RISK MANAGEMENT OBJECTIVES & POLICIES

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The company''s activities expose it to a variety of financial risks: currency risk, interest rate risk credit risk and liquidity risk. The company''s overall risk management strategy seeks to minimize adverse effects from the unpredictability of financial markets on the company''s financial performance. The Company''s senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Company''s senior management 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 the Company''s policies and risk objectives The Audit committee reviews and agrees policies for managing each of these risks, which are summarized below.

(D) FOREIGN CURRENCY RISK MANAGEMENT

Foreign exchange risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes in foreign exchange rate. The Company derives significant portion of its revenue in foreign currency, exposing it to fluctuations in currency movements. The Company has laid down a foreign exchange risk policy as per which senior management team reviews and manages the foreign exchange risks in a systematic manner, including regular monitoring of exposures, proper advice from market experts, hedging of exposures, etc.

The Company uses derivative financial instruments, such as foreign exchange forward contracts, to mitigate foreign exchange related risk exposures. Derivative financial instruments relating to a firm commitment or a highly probable forecast transaction are marked to market at every reporting date. In management''s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

Interest Rate Risk Management

The company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the company by maintaining an appropriate mix between fixed and floating rate borrowings. The company''s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section of this note.

Interest Rate Sensitivity Analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease represents management''s assessment of the reasonably possible change in interest rates.

Other Price Risks

The company is not exposed to any instrument which has price risks arising from equity investments which is not material.

Credit Risk Management

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company''s exposure to credit risk primarily arises from trade receivables, balances with banks, investments and security deposits. The credit risk on bank balances is limited because the counterparties are banks with good credit ratings.

Trade Receivables

Credit risk is managed through credit approvals, establishing credit limits, continuous monitoring of creditworthiness of customers to which the company grants credit terms in the normal course of business. The Company also assesses the financial reliability of customers taking into account the financial condition, current economic trends and historical bad debts and ageing of accounts receivables.

Cash & Cash Equivalent

With respect to credit risk arising from financial assets which comprise of cash and cash equivalents, the Company s risk exposure arises from the default of the counterparty, with a maximum exposure equal to the carrying amount of these financial assets at the reporting date. Since the counter party involved is a bank, Company considers the risks of non-performance by the counterparty as non-material.

Liquidity Risk Management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the company''s short, medium, and long-term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity and Interest risk tables

The following tables detail the company''s remaining contractual maturity for its financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the company may be required to pay.

FOREIGN CURRENCY EXPOSURE

(a) The Company hedges its export realizations and import payables through Foreign Exchange Hedge Contracts in the normal course of business so as to reduce the risk of exchange fluctuations. No Foreign Exchange Hedge Contracts are taken /used for trading or speculative purpose.

(b) The Company has following gross forward contract exposure outstanding as on balance sheet date which have been designated as cash flow hedge to its exposure to movements in foreign exchange rates :

46. CAPITAL MANAGEMENT

The company manages its capital to ensure that the entities in the Company will be able to continue as going concern while maximizing the return to shareholders and also complying with the ratios stipulated in the loan agreements through the optimization of the debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in note 19 and 24 offset by cash and cash equivalents as detailed in note 11 and total equity of the Company. The company is not subject to any externally imposed capital requirements.

49. During the year the company has taken term loan of '' 12566.60 Lac for its capex plan of installation of 29184 Cotton Spindles & modernization of synthetic spinning, weaving & processing divisions at the existing site and the vehicle loan of '' 143.17 lacs for purchases of vehicles. All these loans are utilized for the same purpose for which these are taken.

51. Additional Regulatory Informationa. Title deeds of immovable property not held in name of the company

Bhilwara Processors Limited is amalgamated with the company w.e.f. 01.04.2009; however Leasehold Land of '' 143.46 lacs of amalgamated company is under name transfer process with state government authorities.

b. No proceeding has been initiated or pending against the company during the year for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

c. The company has borrowing of '' 14177.07 Lac from banks on the basis of security of current assets. All the quarterly return and statements of current assets filled by the company during the year with banks are in agreement with the books of accounts.

d. The Company has not been declared willful defaulter by any bank or lender during the year.

e. The company has not made any transactions during the year with companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

i) Debt equity ratio increased mainly due to new term loans/ working capital loans taken for new cotton spinning project and other capex plans of the company.

ii) Profit for the year is higher due to increase in per unit sales realization and favourable market sentiments across all segments.

iii) During the year, the company has taken short term borrowings for meeting higher turnover requirements resulting into lower net working capital with higher turnover.

g. The company has not advanced or loaned or invested funds to any other person or entity including foreign entity during the year with the understanding 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 Beneficiary) or provide any guarantee, security or the like to or on behalf of the ultimate beneficiary.

h. The company has not received any fund from any persons or entity including foreign entity (funding party) during the year with the understanding 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.

i. The company has not surrendered or disclosed any transaction not recorded in the books of accounts as income during the year in the tax assessment under the Income Tax Act, 1961.

j. CSR Expenditure - The Company has made CSR expenditure of '' 11.21 lacs during the year. Details of the same are as under:-

i) Amount require to be spent - '' 10.90 lacs

ii) Amount of expenditure incurred - '' 11.21 lacs

iii) Shortfall at the end of the year - NIL

iv) Total of previous years shortfall - NIL

v) Reasons for shortfall - N.A.

vi) Nature of CSR Activities -

• Eradicating hunger, poverty & malnutrition, promoting preventive healthcare - 2.29 lacs

• Promoting education and enhancing vocation skills - 8.50 lacs

• Environment sustainability and ecological balance - 0.42 lacs

k. The company has not made any transaction in crypto currency or virtual currency during the year.

52. APPROVAL OF FINANCIAL STATEMENTS

The financial statements of the Company for the year ended 31^st March, 2023 are approved for issue by the Company''s Board of Directors on 08^th May, 2023.

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Mar 31, 2018

1. Company Overview and Accounting Policies

A. Corporate Information

BSL Limited ("the Company") is a public company incorporated under Indian Companies Act, 1956, having its registered office at Biliakalan, Mandpam, Bhilwara, Rajasthan. The Company has its primary listing on the BSE Limited and National Stock Exchange in India.

The Company''s operations predominantly relates to Textile & Generation of Wind Power. The Company is one of the India''s largest vertically integrated textile company and leading manufacturer of fashion fabrics and yarn of Poly Viscose and worsted in India.

(i) Disposal from Gross Block represents sale/transfer/discard of property, plant & equipment/ and adjustment of lease rent.

(ii) Deduction in depreciation is on account of Sale/Transfer/discard of property, plant & equipment.

(iii) Depreciation for the year 2017-18 includes Rs. 71.06 lac (P.Y. Rs. 45.65 lac) against amortization of government capital grants.

(iv) On transition date, the Company has opted to continue with carrying value of all of its property, plant & equipment as deemed cost and net carrying value under previous GAAP as on March 31^st, 2016 is recognized as gross carrying amount in Ind AS as on 01.04.2016.

(v) Assets pledged as security refer note no. 18 and 23.

During the year, the Company discounted trade receivable with an aggregate carrying amount of Rs.801.69 lac (Rs. 740.31 as on March 31^st, 2017 and Rs.1208.83 lac as on April 1^st, 2016) to the banks. If the trade receivables are not paid at maturity, the banks have right to recourse the Company to pay the unsettled balance. As the Company has not transferred significant risk and rewards relating to these trade receivables, it continues to recognize the full carrying amount of the receivables and has recognized amount received on the transfer as secured borrowings.

No trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

i) Term / Rights attached to Equity shares

The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(i) The Other Comprehensive Income (Net gains/(loss) on hedging instruments) represents the cumulative effective portion of gain / (losses) arising on changes in fair value of designated portion of hedging instruments entered into for Other Comprehensive Income. The cumulative gain/ (losses) arising on changes in fair value of designated portion of the hedging instruments that are recognized and accumulated under the heading of Other Comprehensive Income will be reclassified to the Profit and Loss only when the hedge transaction affects the Profit and Loss account.

(b) Proposed Dividend - After the reporting date, the Board of Directors of the Company has recommended a dividend @10% to Equity Shareholders i.e. Rs.1.00 (PY Rs.1.20) per Equity Share amounting to Rs.102.92 Lac (PY Rs.123.51 Lac) excluding applicable taxes for the year 2017-18. The dividend proposed by the Directors is subject to approval at the annual general meeting. The dividend has not been recognized as liability.

(i) Nature of Security: The Term Loans from Banks are secured by way of joint equitable mortgage / hypothecation of all immovable and movable existing and future assets of the Company except book debts ranking paripassu subject to prior charge created / to be created in favour of the Company''s bankers on stocks of raw materials, semi-finished, finished goods for working capital.

(ii) Terms of Repayment of Secured Borrowing: Secured term loans from banks are repayable in quarterly installments and having floating interest rates ranging from Base Rate/MCLR spread (1.00% to 2.40 % as on 31.03.2018 and 1.00% to 2.40% as on 31.03.2017) and vehicle loans are repayable in monthly installments and having interest rates ranging from 8.60% to 10.51% (P.Y. 9.48% to 10.51%). Period of maturity and installments outstanding are as under:-

(i) Bank loans for working capital are secured against hypothecation of stocks of raw materials, finished goods and goods in process. The same is also secured by second charge created/to be created in favour of Company''s Bankers by way of joint equitable mortgage on immovable properties of the Company which is ranking paripassu and having floating interest rate ranging from 9.75% to 11.50%(P.Y. 9.75% to 11.50%).

(ii) No Working Capital loan is guaranteed by Directors or Others.

There are no Micro, small and medium enterprises to whom the Company owes dues, which are outstanding for more than 45 days as at 31^st March, 2018. This information as 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.

2. EMPLOYMENT BENEFIT PLANS

The company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in separately administered funds. For defined contribution schemes the amount charged to the statements of profit or loss is the total of contributions payable in the year. the required disclosure are given here under:

vii) There are no amount included in the fair value of plan assets for

i) Company''s own financial instruments.

ii) Property occupied by or other assets used by the Company.

(xii) Description on Risk Exposure

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follows:-

A) Salary Increases- Actual salary increases will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

B) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate - Reduction in discount rate in subsequent valuations can increase the plan''s liability

D) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

3. SEGMENT REPORTING

The Company''s operation predominantly relates to Textile &Generation of Wind power. On the basis of assessment of the risk and return, the Company has identified Textile and Wind Power as primary reportable segments. Further the geographical segment have been considered as secondary segment and bifurcated into Domestic & Export segments.

Identification of Segments

The Board of Directors of the Company has been identified as Chief Operation Decision Maker who monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Accounting policy in respect of segments is in conformity with accounting policy of the company as a whole.

Inter segment Transfer

Segment revenue resulting from transactions with other business segments is accounted for on basis of transfer price agreed between the segments. Transfer prices between operating segments are on arm''s length basis in a manner similar to transactions with third parties.

Segment Revenue and Results

The revenue and expenditure in relation to the respective segment have been identified and allocated to the extent possible. Other items i.e. interest expenses, income tax, etc. not allocable to specific segments are disclosed separately as unallocated and adjusted directly against the total income of the Company.

Segment Assets and Liabilities

Segment Assets includes all operating assets used by the operating segment and mainly consisting property, plant & equipment, trade receivables, cash and cash equivalents and inventory etc. Segment Liabilities primarily include trade payables and other liabilities. Common assets & liabilities which cannot be allocated to specific segments are shown as a part of unallocable assets/liabilities.

(B). Fair value hierarchy

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

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

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

Valuation Technique used to determine Fair Value

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values:

Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities measured at amortized cost is approximate to their carrying amounts largely due to the short-term maturities of these instruments. The fair value of other non-current financial assets and liabilities (security deposit taken/given and advance to employees) carried at amortized cost is approximately equal to fair value. Hence carrying value and fair value is taken same.

Long-term variable-rate borrowings measured at amortized cost are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. Risk of other factors for the company is considered to be insignificant in valuation.

The fair values of the forward contract are determined using the forward exchange rate at the balance sheet date based on quotes from banks and financial institutions. Management has evaluated the credit and non-performance risks associated with its derivative counterparties and believe them to be insignificant and not warranting a credit adjustment.

(C) FINANCIAL RISK MANAGEMENT OBJECTIVES & POLICIES

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The company''s activities expose it to a variety of financial risks: currency risk, interest rate risk credit risk and liquidity risk. The company''s overall risk management strategy seeks to minimize adverse effects from the unpredictability of financial markets on the company''s financial performance. The Company''s senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Company''s senior management 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 the Company''s policies and risk objectives The Audit committee reviews and agrees policies for managing each of these risks, which are summarized below.

(D) FOREIGN CURRENCY RISK MANAGEMENT

Foreign exchange risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes in foreign exchange rate. The Company derives significant portion of its revenue in foreign currency, exposing it to fluctuations in currency movements. The Company has laid down a foreign exchange risk policy as per which senior management team reviews and manages the foreign exchange risks in a systematic manner, including regular monitoring of exposures, proper advice from market experts, hedging of exposures, etc.

The Company uses derivative financial instruments, such as foreign exchange forward contracts, to mitigate foreign exchange related risk exposures. Derivative financial instruments relating to a firm commitment or a highly probable forecast transaction are marked to market at every reporting date. In management''s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

Sensitivity Analysis

The Following table demonstrates the sensitivity in the foreign exchange rate (USD & EURO) to the Indian Rupees with all other variable held constant. The impact on statement of profit & loss is given below:

Interest Rate Risk Management

The company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the company by maintaining an appropriate mix between fixed and floating rate borrowings. The company''s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section of this note.

Interest Rate Sensitivity Analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease represents management''s assessment of the reasonably possible change in interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the company''s:

Profit for the year ended 31 March, 2018 would decrease/increase by Rs.84.62 lacs (31 March, 2017: decrease/increase by Rs.88.36 lacs). This is mainly attributable to the company''s exposure to interest rates on its variable rate borrowings; and the company''s sensitivity to interest rates has decreased during the current year mainly due to the reduction in variable rate debt instruments.

Other Price Risks

The company is not exposed to any instrument which has price risks arising from equity investments which is not material.

Credit Risk Management

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company''s exposure to credit risk primarily arises from trade receivables, balances with banks, investments and security deposits. The credit risk on bank balances is limited because the counterparties are banks with good credit ratings.

Trade Receivables

Credit risk is managed through credit approvals, establishing credit limits, continuous monitoring of creditworthiness of customers to which the company grants credit terms in the normal course of business. The Company also assesses the financial reliability of customers taking into account the financial condition, current economic trends and historical bad debts and ageing of accounts receivables

Cash & Cash Equivalent

With respect to credit risk arising from financial assets which comprise of cash and cash equivalents, the Company s risk exposure arises from the default of the counterparty, with a maximum exposure equal to the carrying amount of these financial assets at the reporting date. Since the counter party involved is a bank, Company considers the risks of non-performance by the counterparty as non-material.

Liquidity Risk Management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the company''s short, medium, and long-term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity and Interest risk tables

The following tables detail the company''s remaining contractual maturity for its financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the company may be required to pay.

FOREIGN CURRENCY EXPOSURE

(a) The Company hedges its export realizations and import payables through Foreign Exchange Hedge Contracts in the normal course of business so as to reduce the risk of exchange fluctuations. No Foreign Exchange Hedge Contracts are taken /used for trading or speculative purpose.

(b) The Company has following gross forward contract exposure outstanding as on balance sheet date which have been designated as cash flow hedge to its exposure to movements in foreign exchange rates:

4. CAPITAL MANAGEMENT

The Company manages its capital to ensure that the entities in the Company will be able to continue as going concern while maximizing the return to shareholders and also complying with the ratios stipulated in the loan agreements through the optimization of the debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in note 18 and 23 offset by cash and bank balances as detailed in note 10 & 11) and total equity of the Company. The Company is not subject to any externally imposed capital requirements.

Notes:

Under previous GAAP, dividends on equity shares recommended by the boards of directors after the end of the reporting period but before the financial statements were approved for issue were recognised in the financial statements as a liability. Under Ind AS, such dividends are recognised when declared by the members in a general meeting. The effect of this change is an increase in total equity as at 01^st April, 2016 of Rs.148.65 Lac, but does not affect profit before tax and total profit for the year ended 01^st April, 2016.

Under previous GAAP, acturial gains and losses were recognized in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability/asset which is recognized in other comprehensive income. Consequently, the tax effect of the same has also been recognized in other comprehensive income under Ind AS instead of profit or loss. The actuarial loss for the year ended 31^st March, 2017 was Rs.55.92 Lac and the tax effect thereon Rs.18.45 Lac. This change does not affect total equity, but there is increase in profit before tax of Rs.55.92 lac and in total profit of Rs.37.47 lac for the year ended 31^st March,2017.

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of statement of profit and loss as part of expenses. There is no impact on the total equity and profit.

Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences, which was not required under previous GAAP.

Under Ind AS, effective portion of the cash flow hedge to be recognized in other comprehensive income and however in the previous GAAP same has been recognized under Reserve and Surplus under the head " Cash Flow Hedge Reserve". There is no impact on the total equity and profit.

Under Previous GAAP, there was no concept of other comprehensive income. Under Ind AS, specified items of income, expenses, gains, or losses ae required to be presented in other comprehensive income.

5. RECENT ACCOUNTING PRONOUNCEMENTS

(i) Appendix B to Ind AS 21, Foreign currency transactions and advance consideration: On 28^th March, 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from 01^st April, 2018. The Company is evaluating the effect of this on the financial statements.

(ii) Ind AS 115- Revenue from Contract with Customers: On 28^th March, 2018, Ministry of Corporate Affairs ("MCA") has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers.

(iii) The standard permits two possible methods of transition:

Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors.

Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach)

(iv) The effective date for adoption of Ind AS 115 is financial periods beginning on or after 01^st April, 2018. The Company will adopt the standard on 01^st April, 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended 31^st March, 2018 will not be retrospectively adjusted. The company is evaluating the effect on adoption of Ind AS 115.

6. APPROVAL OF FINANCIAL STATEMENTS

The financial statements of the Company for the year ended 31^st March, 2018 are approved for issue by the Company''s Board of Directors on 11^th May, 2018.

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Mar 31, 2016

1) Term / Rights attached to Equity shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

During the year ended 31^st March, 2016, the amount per share of proposed dividend to equity shareholder is Rs. 1.20 Per Share (Previous year: Rs. 1.20 Per Share)

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2) Detail of Shares held by Shareholders holding more than 5% shares of the Company

3) Nature of Security: The Term Loans from Banks are secured by way of joint equitable mortgage / hypothecation of all immovable and movable existing and future assets of the Company except book debts ranking pari passu subject to prior charge created / to be created in favour of the Company''s bankers on stocks of raw materials, semi-finished, finished goods for working capital.

4) Terms of Repayment of Secured Borrowing: Secured term loans from banks are repayable in quarterly installments and having floating interest rates ranging from Base Rate spread (1.00% to 2.25 % as on 31.03.2016 and 1.00% to 2.25% as on 31.03.2015) and vehicle loans are repayable in monthly installments and having interest rates ranging from 9.50% to 10.57% (P.Y. 10.50% to 10.57%). Period of maturity and installments outstanding are as under:-

5) Disposal from Gross Block represents sale/transfer/discard of fixed assets/capital grant receipt and adjustment of lease rent.

6) Deduction in depreciation is on account of Sale/Transfer/discard of Fixed Assets.

7) Gross block and Net Block of fixed assets includes Rs. 891.42 Lac (P.Y. Rs. 963.05 Lac) and Rs. 247.84 Lac (P.Y. Rs. 275.51 Lac) respectively on account of revaluation of fixed assets carried out in past by erstwhile Bhilwara Processors Limited. Depreciation of Rs. 27.67 Lac (P.Y. Rs. 30.08 Lac) on revaluation amount has been charged to statement of Profit & Loss. Carrying amount of revaluation is Rs. Nil (P.Y. Rs. 157.13 Lac) on assets having useful life nil as on 01.04.2014 has been charged to General Reserve.

8) a) Carrying amount of assets which were existed on 01.04.2014 are depreciated over the remaining useful life of the assets on 01.04.2014.

9) Assets which are acquired after 01.04.2014 i.e. after the date on which schedule II to the Companies Act, 2013 came into effect are depreciated as per useful lives defined in this schedule.

10) No provision is required for impairment of assets according to AS-28 ''Impairment of Assets” as the value in use as estimated by the management, is higher than the carrying amount of the assets as on Balance Sheet date. In order to arrive at the value in use, the Company has reviewed the future earnings of the remaining useful life of all its cash generating units as at Balance Sheet date which has been discounted at the average long term lending rate of the Company.

11. PREVIOUS YEAR FIGURES

The figures of the previous year have been regrouped/ recast wherever found necessary.

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Mar 31, 2015

1. Term / Rights attached to equity shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

During the year ended 31st March, 2015, the amount per share of proposed dividend to equity shareholder is Rs. 1.20 (Previous year: Rs. 1.00 Per Share)

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Nature of Security: The Term Loans from Banks are secured by way of joint equitable mortgage / hypothecation of all immovable and movable existing and future assets of the Company except book debts ranking pari passu subject to prior charge created / to be created in favour of the Company's bankers on stocks of raw materials, semi-finished, finished goods for working capital.

i) Disposal from Gross Block represents sale / transfer / discard of fixed assets/ capital grant receipt and adjustment of lease rent.

ii) Deduction in depreciation is on account of Sale / Transfer / discard of Fixed Assets.

iii) Gross block and Net Block of fixed assets includes Rs. 963.05 Lac (P.Y. Rs. 1016.00 Lac) and Rs. 275.51 Lac (P.Y. Rs. 462.64 Lac) respectively on account of revaluation of fixed assets carried out in past by erstwhile Bhilwara Processors Limited. Depreciation of Rs. 30.08 Lac (P.Y. Rs. 78.99 Lac) on revaluation amount has been charged to statement of Profit & Loss. Carrying amount of revaluation of Rs. 157.13 Lac (P.Y. Rs. Nil) on assets having useful life nil as on 01.04.2014 has been charged to General Reserve.

iv) a) Carrying amount of assets whose lives are nil as on 01.04.2014 i.e. the date on which schedule II to the Companies Act, 2013 come into effect are recognized in the opening balance of General Reserve.

b) Carrying amount of assets other than covered under iv-a) above and existed on 01.04.2014 are depreciated over the remaining useful life of the assets.

c) Assets which are acquired after 01.04.2014 i.e. after the date on which schedule II to the Companies Act, 2013 came into effect are depreciated as per useful lives defined in this schedule.

v) No provision is required for impairment of assets according to AS-28 'Impairment of Assets" as the value in use as estimated by the management, is higher than the carrying amount of the assets as on Balance Sheet date. In order to arrive at the value in use, the Company has reviewed the future earnings of the remaining useful life of all its cash generating units as at Balance Sheet date which has been discounted at the average long term lending rate of the Company.

2. FOREIGN CURRENCY EXPOSURE

(a) The Company hedges its export realizations through Foreign Exchange Hedge Contracts in the normal course of business so as to reduce the risk of exchange fluctuations. No Foreign Exchange Hedge Contracts are taken /used for trading or speculative purpose.

(b) According to AS 30 "Financial Instruments: Recognition and Measurement" The effective portion of such forward contracts is taken into hedging reserve for Rs. 5.91 Lac (P.Y. Rs. 107.99 Lac) and profit on ineffective portion, not designated as hedge is taken into statement of profit & loss for Rs. 15.18 Lac (P.Y. Rs. 59.39 Lac).

3. CONTINGENT LIABILITIES AND COMMITMENTS (Rs. in lac)

S. Particulars For the year ended No. 31.03.2015 31.03.2014 (i) Contingent Liabilities

(a) Claims against the Company not 15.52 15.52 acknowledged as debts

(b) Guarantees given by the Company's 292.67 195.86 Bankers

(c) Others

(i) Bills discounted with Banks 666.02 1600.29

(ii) Excise duty demand disputed by 3.56 9.81 the Company

(iii) Sales Tax demand of Erstwhile - 31.64 BSL Wulfing Ltd., disputed by the Company

(ii) Commitments

(a) Estimated value of contracts remaining 1137.90 329.21 to be executed on Capital Accounts

4. PREVIOUS YEAR FIGURES

The figures of the previous year have been regrouped/ recast wherever found necessary.

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Mar 31, 2014

1. SHARE CAPITAL

i) Term / Rights attached to Equity shares

The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. During the year ended 31st March, 2014 the amount per share of proposed dividend to equity shareholder is Rs. 1.00 (Previous year: Rs. Nil Per Share)

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

ii) Equity Share Capital includes 29,57,469 Shares issued for consideration other than Cash, pursuant to Scheme of Amalgamation of erstwhile Bhilwara Processors Limited with the Company as approved by the Hon''ble High Court Rajasthan at Jodhpur.

2. LONG-TERM BORROWINGS

i) Nature of Security: The Term Loans from Banks are secured by way of joint equitable mortgage / hypothecation of all immovable and movable existing and future assets of the Company except book debts ranking pari passu subject to prior charge created / to be created in favour of the Company''s bankers on stocks of raw materials, semi-finished, finished goods for working capital.

ii) Terms of Repayment of Secured Borrowing: Secured term loans from banks are repayable in quarterly/ monthly installments and having floating interest rates ranging from Base Rate spread (1.25% to 2.25% as on 31.03.2014 and 1.60% to 2.25% as on 31.03.2013). Period of maturity and installments outstanding as on 31.03.2014.

3. SHORT-TERM BORROWINGS

i) Bank loans for working capital are secured against hypothecation of stocks of raw materials, finished goods and goods in process. The same is also secured by second charge created/to be created in favour of Company''s Bankers by way of joint equitable mortgage on immovable properties of the Company which is ranking pari passu and having floating interest rate ranging from 10.45% to 13.10% (P.Y. 9.70% to 13.25%).

ii) No Working Capital loan is guaranteed by Directors or Others

4. TRADE PAYABLES

There are no Micro, small and medium enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31st March, 2014. This information as 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.

5. FIXED ASSETS

i) Disposal from Gross Block represents sale / transfer / discard of fixed assets/ capital grant receipt and adjustment of lease rent.

ii) Deduction in depreciation is on account of Sale / Transfer / discard of Fixed Assets.

iii) Gross block and Net Block of fixed assets includes Rs. 1016.00 Lac (P.Y. Rs. 1094.35 Lac) and Rs. 462.64 Lac (P.Y. Rs. 563.87 Lac) respectively on account of revaluation of fixed assets carried out in past by erstwhile Bhilwara Processors Limited. Depreciation of Rs. 78.99 Lac (P.Y. Rs. 81.74 Lac) on revaluation amount has been charged to statement of Profit & Loss.

iv) No provision is required for impairment of assets according to AS-28 ''Impairment of Assets" as the value in use as estimated by the management, is higher than the carrying amount of the assets as on Balance Sheet date. In order to arrive at the value in use, the company has reviewed the future earnings of the remaining useful life of all its cash generating units as at Balance Sheet date which has been discounted at the average long term lending rate of the Company.

5. SEGMENT REPORTING

The Company''s operation predominantly relates to Textile & Generation of Wind power. On the basis of assessment of the risk and return differential in terms of AS-17, the Company has identified Textile and Wind Power as primary reportable segments. Further the geographical segment have been considered as secondary segment and bifurcated into Domestic & Export segments.

The revenue and expenditure in relation to the respective segment have been identified and allocated to the extent possible. Other items i.e. interest expenses, income tax, etc. not allocable to specific segments are disclosed separately as unallocated and adjusted directly against the total income of the Company.

6. RELATED PARTY TRANSACTIONS

a) Enterprises that directly, or indirectly through one or more intermediaries, control or are controlled by or are under common control with the reporting enterprise (this includes holding companies, subsidiaries and fellow subsidiaries) - None

b) Associates and joint ventures - None

c) Individuals owning directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual. - None

d) Key management Personnel and their relatives - Shri A.K.Churiwal Shri Nivedan Churiwal

e) Enterprises over which any person described in (c) or (d) is able to exercise significant influence. - RSWM Limited

7. FOREIGN CURRENCY EXPOSURE

(a) The Company hedges its export realizations through Foreign Exchange Hedge Contracts in the normal course of business so as to reduce the risk of exchange fluctuations. No Foreign Exchange Hedge Contracts are taken /used for trading or speculative purpose.

(b) According to AS 30 "Financial Instruments: Recognition and Measurement" The effective portion of such forward contracts is taken into hedging reserve for Rs. 107.99 Lac (P.Y. Rs. -1.73 Lac) and profit on ineffective portion, not designated as hedge is taken into statement of profit & loss for Rs. 59.39 Lac (P.Y. Rs. 15.07 Lac).

8. CONTINGENT LIABILITIES AND COMMITMENTS (Rs. in lac)

S.No. Particulars This Year Previous Year

(i) Contingent Liabilities

(a) Claims against the Company not acknowledged as debts 15.52 15.52

(b) Guarantees given by the Company''s Bankers 195.86 149.19

(c) Others

(i) Bills discounted with Banks 1600.29 937.18

(ii) Excise duty demand disputed by the Company 9.81 13.37

(iii) Sales Tax demand of Erstwhile BSL Wulfing Ltd., disputed by the company 31.64 31.64

(ii) Commitments

(a) Estimated value of contracts remaining to be executed on Capital Accounts 329.21 84.75

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Mar 31, 2013

1. The benefit, under Status Holder Incentive Scheme (SHIS) announced in Foreign Trade Policy 2009-2014 by Ministry of Commerce and Industries, Government of India to promote investment in up-gradation of technology, amounting to Rs. 153.53 lac @1 % on export sales has been accounted for during current financial year, based on clarification / legal opinion taken by the company upon its eligibility under this scheme.

Based on expert opinion obtained by the company, full value of SHIS scripts have been accounted for as income on the basis of ascertaining its probable use in the normal course of business, based on expansion plans prepared by the company.

2. SEGMENT REPORTING

The Company''s operation predominantly relates to Textile & Generation of Wind Power. On the basis of assessment of the risk and return differential in terms of AS-17, the Company has identified Textile and Wind Power as primary reportable segments. Further the geographical segment have been considered as secondary segment and bifurcated into Domestic & Export segments.

The revenue and expenditure in relation to the respective segment have been identified and allocated to the extent possible. Other items i.e. interest expenses, income tax, etc. not allocable to specific segments are disclosed separately as unallocated and adjusted directly against the total income of the Company.

3. FOREIGN CURRENCY EXPOSURE

(a) The Company hedges its export realizations through Foreign Exchange Hedge Contracts in the normal course of business so as to reduce the risk of exchange fluctuations. No Foreign Exchange Hedge Contracts are taken / used for trading or speculative purpose.

(b) According to AS 30 "Financial Instruments: Recognition and Measurement" The effective portion of such forward contracts is taken into hedging reserve for Rs. 1.73 Lac (P.Y. Rs. 150.00 Lac) and profit on ineffective portion, not designated as hedge is taken into statement of profit & loss for Rs. 15.07 Lac (P.Y. Rs. 21.25 Lac).

(c) The Company has following gross forward contract exposure outstanding as on balance sheet date which have been designated as cash flow hedge to its exposure to movements in foreign exchange rates:

4. PREVIOUS YEAR FIGURES

The figures of the previous year have been regrouped/ recast wherever found necessary.

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Mar 31, 2012

I) Term / Rights attached to Equity shares

The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

During the year ended 31st March,2012 the amount per share dividend recognized as distributed to equity shareholder is Rs. Nil (Previous year: Rs. 1.50 Per Share)

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

ii) Equity Share Capital includes 29,57,469 Shares issued for consideration other than Cash, pursuant to Scheme of Amalgamation of erstwhile Bhilwara Processors Limited with the Company as approved by the Hon'ble High Court of Rajasthan at Jodhpur.

i) Nature of Security: The Term Loans from Banks are secured by way of joint equitable mortgage / hypothecation of all immovable and movable existing and future assets of the Company except book debts ranking pari passu subject to prior charge created / to be created in favour of the Company's bankers on stocks of raw materials, semi-finished, finished goods for working capital.

iii) None of loans are guaranteed by Directors or Others.

ii) Deferred Tax Assets and Deferred Tax Liabilities have been offset as they relate to the same governing taxation laws.

i) Bank loans for working capital are secured against hypothecation of stocks of raw materials, finished goods and goods in process. The same is also secured by second charge created/to be created in favour of Company's Bankers by way of joint equitable mortgage on immovable properties of the Company which is ranking pari passu and having floating interest rate ranging from 10.60% to 13.50%

ii) None of Working Capital loans are guaranteed by Directors or Others

There are no Micro, small and medium enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31st March, 2012. This information as 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.

There is no amount of Un-paid dividend, due for payment to the Investor Education and Protection Fund under Section 205C of the Companies Act, 1956 as at the year end .

i) Disposal from Gross Block represents sale / transfer / discard of fixed assets and adjustment of lease rent.

ii) Deduction in depreciation is on account of Sale / Transfer / discard of Fixed Assets.

iii) Gross block and Net Block of fixed assets includes Rs. 1096.26 Lac (P.Y. Rs. 1096.31 Lac) and Rs. 646.36 Lac (P.Y. Rs. 728.21 Lac) respectively on account of revaluation of fixed assets carried out in past by erstwhile Bhilwara Processors Limited. Depreciation of Rs. 81.82 Lac (P.Y. Rs. 87.20 Lac) has been charged to statement of Profit & Loss on these revalued assets.

iv) No provision is required for impairment of assets according to AS-28 'Impairment of Assets" as the value in use as estimated by the management, is higher than the carrying amount of the assets as on Balance Sheet date. In order to arrive at the value in use, the company has reviewed the future earnings of the remaining useful life of all its cash generating units as at Balance Sheet date which has been discounted at the average long term lending rate of the Company.

v) The commercial production of 20 Nos. Toyota Airjet weaving machines have commenced during the year w.e.f. 01.01.2012. Preoperative expenditure incurred up to the date of commencement of commercial production is Rs. 43.26 Lacs.

Trade Receivable includes Rs. 39.64 Lacs (Previous year Rs. Nil) receivables from related parties.

Short term loans and advances includes Rs. Nil (Previous year Rs. Nil) receivables from Directors/ officers/ Companies and firms under same management.

The Company has complied with Accounting Standard 15 (Revised 2005) and the required disclosure are given hereunder:

The estimation of future salary increase considered in actuarial valuation, take account of inflation, seniority promotion and othe relevant factors, such as supply and demand in the employment market etc. The above information is certified by the Actuary. Th< estimate of contribution for the next year as per actuarial valuation is as under:-.

a) Gratuity - Rs. 51.29 lac

b) Earned Leave - Rs. 12.01 lac

1. SEGMENT REPORTING

The Company's operation predominantly relates to Textile & generation of Wind power. On the basis of assessment of the risk and return differential in terms of AS-17, the Company has identified Textile and Wind Power as primary reportable segments. Further the geographical segment have been considered as secondary segment and bifurcated into Domestic & Export segments.

The revenue and expenditure in relation to the respective segment have been identified and allocated to the extent possible. Other items i.e. interest expenses, income tax, etc. not allocable to specific segments are disclosed separately as unallocated and adjusted directly against the total income of the Company.

2. RELATED PARTY TRANSACTIONS

a) Enterprises that directly, or indirectly through one or more intermediaries, control or are controlled by or are under common control with the reporting enterprise (this includes holding companies, subsidiaries and fellow subsidiaries) - None

b) Associates and joint ventures - None

c) Individuals owning directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual. - None

d) Key management Personnel and their relatives –

Shri Arun Churiwal

Shri Nivedan Churiwal

e) Enterprises over which any person described in (c) or (d) is able to exercise significant influence.

- RSWM Limited

f) Transactions with Related Parties

The following transactions were carried out with the related parties in the ordinary course of business:

3. FOREIGN CURRENCY EXPOSURE

(a) The Company hedges its export realizations through Foreign Exchange Hedge Contracts in the normal course of business so as to reduce the risk of exchange fluctuations. No Foreign Exchange Hedge Contracts are taken /used for trading or speculative purpose.

(b) During the year Company has early adopted AS 30 "Financial Instruments: Recognition and Measurement" and The effective portion of such forward contracts is taken into hedging reserve for Rs. 150.00 Lacs and profit on ineffective portion, not designated as hedge is taken into statement of profit & loss for Rs. 21.25 Lacs.

(c) The Company has following gross forward contract exposure outstanding as on balance sheet date which have been designated as cash flow hedge to its exposure to movements in foreign exchange rates :

4. CONTINGENT LIABILITIES AND COMMITMENTS (Rs. in lac)

S. Particulars This Year Previous Year

No.

(i) Contingent Liabilities

(a) Claims against the Company not acknowledged as debts 15.52 15.52

(b) Guarantees given by the Company's Bankers 134.58 159.38

(c) Others

(i) Bills discounted with Banks 1653.21 1229.78

(ii) Excise duty demand disputed by the Company 18.65 23.88

(iii) Sales Tax demand of Erstwhile BSL Wulfing Ltd., disputed by the company 31.64 31.64

(ii) Commitments

(a) Estimated value of contracts remaining to be executed on Capital Accounts 14.78 617.97

5. PREVIOUS YEAR FIGURES

The financial statements for the year ended 31st March, 2011 had been prepared as per the applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31st March, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

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Mar 31, 2011

1) Contingent Liabilities not provided for:

(Rs. in lac)

This Year Previous Year

(a) Bills discounted with Banks 1229.78 1157.55

(b) Guarantees given by the Company's Bankers 159.38 79.22

(c) Claims against the Company not acknowledged as debts 15.52 15.52

(d) Excise duty demand disputed by the Company 23.88 23.88

(e) Sales Tax demand of Erstwhile BSL Wulfing Ltd., disputed by the company 31.64 31.64

(f) Estimated value of contracts remaining to be executed on Capital Accounts 617.97 569.42

2) Gross block and Net Block of fixed assets includes Rs.1096.31 Lac (P.Y. Rs. 1218.85 Lac) and Rs.728.21 Lac (P.Y. Rs. 889.70 Lac) respectively on account of revaluation of fixed assets carried out in past by erstwhile Bhilwara Processors Limited. Depreciation of Rs. 87.20 Lac (P.Y. Rs. 98.19 Lac) has been charged to Profit & Loss account on these revalued assets.

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 31* March, 2011. This information as 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) In view of legal opinion and various reliefs available under Income Tax Act, 1961 provision for taxation has been considered adequate.

5) The loans & advances, debtors and other current assets are reviewed annually and their value in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet as assessed by the management, however balance confirmation from parties are under process.

6) The figures for the previous year have been re-grouped and re-arranged wherever found necessary.

The estimation of future salary increase considered in actuarial valuation, take account of inflation, seniority promotion and other relevant factors, such as supply and demand in the employment market etc. The above information is certified by the Actuary. The estimate of contribution for the next year as per actuarial valuation is as under:-.

a) Gratuity - Rs. 53.62 lac

b) Earned Leave - Rs. 19.00 lac

viii) The overall expected rate of return on assets is assumed based on the market prices prevailing on that date over the accounting period. The Company is having approved gratuity trust and leave encashment policy, which is having insurer Managed Fund.

2) Segment Reporting

The Company's operation predominantly relates to Textile & generation of Wind power. On the basis of assessment of the risk and return differential in terms of AS-17, the Company has identified Textile and Wind Power as primary reportable segments. Further the geographical segment have been considered as secondary segment and bifurcated into Domestic & Export segments.

7) No provision is required for impairment of assets according to AS-28 'Impairment of Assets" as the value in use as estimated by the management, is higher than the carrying amount of the assets as on Balance Sheet date. In order to arrive at the value in use, the company has reviewed the future earnings of the remaining useful life of all its cash generating units as at Balance Sheet date which has been discounted at the average long term lending rate of the Company.

8) The Company hedges its export realisations through foreign exchange forward contracts in the normal course of business so as to reduce the risk of exchange fluctuation. These hedging transactions are part and parcel of normal business transactions.

The Company has outstanding foreign exchange forward contract of USD 13.38 Million and EURO 0.70 Million (Previous year USD 9.19 Millions) as on 31st March2011, which has been booked for hedging of export realisations.

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Mar 31, 2010

(Rs. in lac)

This Year Previous Year

1) Contingent Liabilities not provided for

(a) Bills discounted with Banks 1157.55 937.43

(b) Guarantees given by the Companys Bankers 79.22 12.08

(c) Guarantees issued on behalf of other Companies Nil 86.72

(d) Claims against the Company not acknowledged as debts 15.52 21.24

(e) Excise duty demand disputed by the Company 23.88 17.61

(f) Sales Tax demand of Erstwhile BSL Wulfing Ltd., disputed by the company 31.64 31.64

(g) Estimated value of contracts remaining to be executed on Capital Accounts 569.42 -

2) There are no Micro, small and medium enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31st March, 2010. This information as 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.

3) In view of legal opinion and various reliefs available under Income Tax Act, 1961 provision for taxation has been considered adequate.

4) Cross block and Net Block of fixed assets includes Rs. 1218.85 Lac and Rs. 889.70 Lac respectively on account of revaluation of fixed assets carried out in past by erstwhile Bhilwara Processors Limited. Depreciation of Rs.98.19 Lac has been charged to Profit & Loss account on these revalued assets.

5) To be in line and in conformity with the accounting policy of amalgamated company, method of charging depreciation on plant & machinery of erstwhile Bhilwara Processors Limited, now Processing Division has been changed from "Continuous Process Plant Method" to "Triple Shift Depreciation Method" as prescribed under Schedule XIV to the Companies Act,1956. As a result of this change, depreciation provided for the year is higher by Rs.88.00 Lac and consequently profit is lower to that extent.

6) The loans & advances, debtors and other current assets are reviewed annually and their value in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet as assessed by the management, however balance confirmation from parties are under process.

7) The figures for the previous year have been regrouped and rearranged wherever found necessary; however the same are not comparable with current year in post merger scenario.