Notes to Accounts of Dhanalaxmi Roto Spinners Ltd.

Mar 31, 2025

I. Provisions, contingent liabilities and contingent assets

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. Provision are recognised at the best estimates of the expenditure required
to settle the present obligation at the balance sheet date. If the effect of the time value of money is material,
provisions are discounted using a pre-tax rate that reflects, when appropriate, the risks specific to the
liabilities.

A present obligation that arises from past events where it is either not probable that an outflow of resources
will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent
liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events,
the existence of which will be confirmed only by the occurrence or non - occurrence of one or more uncertain
future events not wholly within the control of the Company.

Claims against the Company where the possibility of any outflow of resources in settlement is remote, are
not disclosed as contingent liabilities.

Contingent assets are not recognised in financial statements since this may result in the recognition of
income that may never be realised. However, when the realisation of income is virtually certain, then the
related asset is not a contingent asset and is recognised.

J. Revenue

i. Sale of goods

Revenue is measured at the fair value of consideration received or receivable net off trade discounts,
volume rebates, outgoing taxes on sales. Any amounts receivable from the customer are recognised as
revenue after the control over the goods sold are transferred to the customer. Revenue is recognised on the
basis of approved contracts regarding the transfer of goods or services to a customer for an amount that
reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

ii. Rendering of services

Revenue for job work services is recognised as and when services are rendered, in accordance with the
terms of the contract. The amount recognised as revenue is exclusive of goods and service tax (GST) and
its net of returns and trade discounts.

iii. Rental income

Rental income is recognised as part of other income on a straight-line basis over the term of the lease except
where the rentals are structured to increase in line with expected general inflation.

iv. Dividend

Dividend from investment is recognised as revenue when right to receive the payments is established.

v. Interest income

Interest income is recognized using the effective interest rate method. The effective interest rate is the rate
that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
gross carrying amount of a financial asset. While calculating the effective interest rate, the company
estimates the expected cash flows by considering all the contractual terms of the financial instruments but
does not consider the expected credit losses

K Income tax

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it
relates to a business combination or to an item recognised directly in equity or in other comprehensive
income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and
any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax
reflects the best estimate of the tax amount expected to be paid or received after considering the
uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or
substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the
recognised amounts and it is intended to realise the asset and settle the liability on a net basis or
simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes.
Deferred tax is also recognised in respect of carried forward tax losses and tax credits.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available
against which they can be used. Deferred tax assets - unrecognised or recognised, are reviewed at each
reporting date and are recognised/ reduced to the extent that it is probable/ no longer probable respectively
that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised
or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting
date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which
the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and
liabilities.

Deferred tax assets or liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets and they relate to income taxes levied by the same tax authority on the same taxable entity or on
different taxable entities, but they intend to settle current tax liabilities and assets on net basis or their tax
assets and liabilities will be realised simultaneously.

Minimum alternate tax Credit Entitlement

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The
Company recognizes a deferred tax asset on the MAT credit available only to the extent that there is
convincing evidence that the Company will pay normal income tax during the specified period, i.e., the
period for which MAT credit is allowed to be carried forward. The Company reviews the deferred tax asset
created on MAT credit entitlement asset at each reporting date and writes down the asset to the extent the
Company does not have convincing evidence that it will pay normal tax during the specified period.

L Borrowing costs

Borrowing cost are interest and other costs (including exchange differences relating to foreign currency
borrowings to the extent that they are regarded as an adjustment to interest cost) incurred in connection with
the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of asset which
necessarily take a substantial period of time to get ready for their intended use are capitalised as part of cost
of asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.

M Earnings per share

The basic earnings per share (‘EPS'') is computed by dividing the net profit / (loss) after tax for the year
attributable to the equity shareholders by the weighted average number of equity shares outstanding during
the year.

For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year attributable to
the equity shareholders and the weighted average number of equity shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.

N Foreign currency transactions

In preparing the financial statements of the Company, transactions in currencies other than the Company''s
functional currency (i.e. foreign currencies) are recognised at the rates of exchange prevailing at the dates
of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies
are translated at the rates prevailing at that date. Non-monetary items carried at fair value that are
denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was
determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are
translated using the exchange rate as at the date of initial transactions.

Exchange differences on monetary items are recognised in the statement of profit and loss in the period in
which they arise.

O Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits
with banks that are readily convertible into cash which are subject to insignificant risk of changes in value
and are held for the purpose of meeting short-term cash commitments.

P Cash flow statement

Cash flow statement Cash Flows are reported using the indirect method, whereby net Profit before tax is
adjusted forthe effects of transactions of a non-cash nature, such as deferrals or accruals of past or future
operating cash receipts or payments and items of income or expenses associated with investing or
financing cash flows. In the statements of cash flows, cash and cash equivalents consist of cash and short
term deposits, as defined above net of outstanding bank overdrafts as they are considered as integral part of
the Company cash management.

12.3 The Company has one class of equity shares having a face value of Rs10 each .Each shareholder is
eligible for one vote per share held.

12.4 In the event of liquidation of the Company, equity shareholders will be entitled to receive remaining assets
of the Company after distribution of all preferential amounts. The distribution will be in proportion to the
number of equity share held by the shareholders.

12.5 There were no equity shares allotted as fully paid up pursuant to contracts without payment received in
cash, bonus shares were issued and allotted in the ratio 1:1 i.e, 39,00,300 shares of Rs. 10/- each. There
were no equity shares bought back, during the period of 5 years immediately preceding the Balance
Sheet date

14.4 Working capital limits sanctioned by Tamilnad Mercantile Bank Ltd, are repayble on demand from bank
and are secured against hypothecation of inventories, book debts/receivables,bills negotiation drawn
under ILC/FLC, against collateral security of premises in the name of the company and in the name of
Directors & relatives personal gurantee of directors and the sanction limits are Rs. 0.01 crores for CC, Rs.
6.50 Crores for IBN, Rs. 20.00 crores for FLC/ILC, Rs.20.00 crores for forward Sales contract.

14.5 Working Capital limits sanctioned by Kotak Mahindra Bank Ltd, are repayable on demand from bank and
are secured against hypothecation of inventories, book debts/receivables, bills negotiation drawn under
ILC/FLC, against collateral security of premises in the name of the Directors & relatives. Personal
Guarantee of Directors and Company fixed Deposits to the tune of Rs 5.28 crores and the sanction limits
are Rs. 0.10 crores for OD, Rs. 15.00 crores fOr LCBD, Rs 25.00 crores for FLC/ILC.

14.6 There is no breach of loan agreement. The Company has not defaulted on repayment of interest and
loans as at the balance sheet date.

18.1 The Company is primarily in the Business of Trading and sale of Pulp and Paper Products. All sales are
made at a point in time and revenue recognised upon satisfaction of the performance obligations which
are typically upon dispatch/ delivery. The Company has a credit evaluation policy based on which the
credit limits for the trade receivables are established, the Company does not give significant credit period
resulting in no significant financing component.

34.1 Decrease in EPS is primarily due to the increase in authorised capital and subsequent issuance of bonus
shares , which has led to a higher total number of shares, thereby diluting the EPS

35 Approval of financial statements:

The financial statements were approved for issue by the Board of Directors on 27th May, 2025

36 Corporate Social Responsibility expenditure :

As per Section 135 of the Act, a Company meeting the applicability threshold, needs to spend atleast 2% of
its average net profit for the immediately preceding three financial years on CSR activities. The Company
was required to spend the gross amount of Rs 24.97/- Lakhs during the year on corporate social
responsibility activities.

38 Capital Management :

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business. Management monitors the return on capital
as well as the level of dividends to ordinary shareholders.

The Company monitors capital using a ratio of ‘adjusted net debt'' to ‘total equity''. For this purpose, adjusted
net debt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations
under finance leases, less cash and cash equivalents. Adjusted equity comprises all components of
equity.

D Other Statutory Information

(i) The Company did not have any transactions with companies struck off under section 248 of the Companies
Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

(ii) No transactions to report against the following disclosure requirements as notified by MCA pursuant to
amended Schedule III:

(a) Crypto Currency or Virtual Currency

(b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made
thereunder

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

(d) Approved scheme(s) of Arrangements

(e) Number of layers of companies

(f) Undisclosed income

(g) Revaluation of PPE and intangible assets

(h) Title Deeds of immovable properties not held in name of the company

(i) Wilful defualter

(iii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries)with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(iv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(v) The Company has borrowings from bank on the basis of security of current assets. The quarterly returns or
statement of current assets filed by the Company with banks are in agreement with the books of accounts.

40. The Code on Social Security, 2020 (‘Code'') relating to employee benefits during employment and post¬
employment benefits received Presidential assent in September 2020. The Code has been published in the
Gazette of India. However, the date on which the Code will come into effect has not been notified. The
Company will assess the impact of the Code when it comes into effect and will record any related impact in
the period the Code becomes effective.

41 Events after the reporting period :

No significant adjusting event occurred between the balance sheet date and date of the approval of these
financial statements by the Board of Directors of the Company requiring adjustment or disclosure.

42 Information with regard to other matters specified in Schedule III to the Act is either nil or not applicable to the
Company for the year.

43 The figures for the previous periods have been regrouped / rearranged wherever necessary to confirm to
the current periods classification in order to comply with the requirements of the amended Schedule III to the
Companies Act, 2013 effective 1st April, 2021.

As per our Report of even date attached

for G.D. Upadhyay & Co., For and on Behalf of Board of Directors

Chartered Accountants

Firm Regn No.005834S gd/_ Sd/-

Narayan Inani Anirudh Inani

^Sd/ Managing Director cum CFO Whole-time Director

^(G-^D-^Up^adhy^ay⁾ DIN: 00525403 DIN: 02253588

Partner

Membership No.027187

UDIN: 25027187BMOWLF1169 .. . , . ^Sd^/-

Keshav Inani Pooja Gadhia

Whole-time Director cum CEO Company Secretary

p^lace^:My^deraDaa DIN: 09296529 M.No A61818

Date: 27/05/2025

---

Mar 31, 2024

I) Provisions, contingent liabilities and contingent assets

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provision are recognised at the best estimates of the expenditure required to settle the present obligation at the balance sheet date. If the effect of the time value of money is material, provisions are discounted using a pre-tax rate that reflects, when appropriate, the risks specific to the liabilities.

A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non - occurrence of one or more uncertain future events not wholly within the control of the Company.

Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.

Contingent assets are not recognised in standalone financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognised.

J) Revenue

i. Sale of goods

Revenue is measured at the fair value of consideration received or receivable net off trade discounts, volume rebates, outgoing taxes on sales. Any amounts receivable from the customer are recognised as revenue after the control over the goods sold are transferred to the customer. Revenue is recognised on the basis of approved contracts regarding the transfer of goods or services to a customer for an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

ii. Rendering of services

Revenue for job work services is recognised as and when services are rendered, in accordance with the terms of the contract. The amount recognised as revenue is exclusive of goods and service tax (GST) and its net of returns and trade discounts.

iii. Rental income

Rental income is recognised as part of other income on a straight-line basis over the term of the lease except where the rentals are structured to increase in line with expected general inflation.

iv. Dividend

Dividend from investment is recognised as revenue when right to receive the payments is established.

v. Interest income

Interest income is recognized using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. While calculating the effective interest rate, the company estimates the expected cash flows by considering all the contractual terms of the financial instruments but does not consider the expected credit losses.

K. Income tax

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination or to an item recognised directly in equity or in other comprehensive income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognised in respect of carried forward tax losses and tax credits.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets - unrecognised or recognised, are reviewed at each reporting date and are recognised/ reduced to the extent that it is probable/ no longer probable respectively that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets or liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different taxable entities, but they intend to settle current tax liabilities and assets on net basis or their tax assists and liabilities will be realised simultaneously.

Minimum alternate tax Credit Entitlement

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The Company recognizes a deferred tax asset on the MAT credit available only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. The Company reviews the deferred tax asset created on MAT credit entitlement asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.

L. Borrowing costs

Borrowing cost are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest cost) incurred in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of asset which necessarily take a substantial period of time to get ready for their intended use are capitalised as part of cost of asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.

Earnings per share

The basic earnings per share (‘EPS’) is computed by dividing the net profit / (loss) after tax for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year attributable to the equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

N. Foreign currency transactions

In preparing the standalone financial statements of the Company, transactions in currencies other than the Company’s functional currency (i.e. foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of initial transactions.

Exchange differences on monetary items are recognised in the statement of profit and loss in the period in which they arise.

O. Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with banks that are readily convertible into cash which are subject to insignificant risk of changes in value and are held for the purpose of meeting short-term cash commitments.

D Other Statutory Information

(i) The Company did not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

(ii) No transactions to report against the following disclosure requirements as notified by MCA pursuant to amended Schedule III:

(a) Crypto Currency or Virtual Currency

(b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder

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

(d) Approved scheme(s) of Arrangements

(e) Number of layers of companies

(f) Undisclosed income

(g) Revaluation of PPE and intangible assets

(h) Title Deeds of immovable properties not held in name of the company

(i) Wilful defualter

(iii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries)with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(iv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

40 Impact of COVID-19 Pandemic :

The COVID-19 pandemic marginally disrupted business operations due to lockdown and other emergency measures imposed by the government. The Company’s operations was shut down during Lockdown . As of today, Business remain operational, following enhanced internal safety guidelines. The Company has considered internal and external information while assessing recoverability of its assets disclosed in the financial statement upto the date of approval of these financial results by the Board of Directors. Based on such assessment and considering the current economic indicators, the Company expects to recover the carrying amount of these assets. Management has also considered the impact of COVID-19 on the business for the foreseeable future and have concluded that the Company has sufficient resources to continue as a going concern. The impact of the global health pandemic may be different from that estimated as at the date of approval of these financial results and the Company will continue to closely monitor any material changes to future economic conditions.

41 Events after the reporting period :

No significant adjusting event occurred between the balance sheet date and date of the approval of these financial statements by the Board of Directors of the Company requiring adjustment or disclosure.

42 Information with regard to other matters specified in Schedule III to the Act is either nil or not applicable to the Company for the year.

43 The figures for the previous periods have been regrouped / rearranged wherever necessary to confirm to the current periods classification in order to comply with the requirements of the amended Schedule III to the Companies Act, 2013 effective 1st April, 2021.

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

For G.D. Upadhyay & Co., Chartered Accountants, Sd/- Sd/-

Firm Regn No.005834S Narayan Inani Anirudh Inani

Sd/- Managing Director cum CFO Executive Director

(G.D.Upadhyay) Partner (DIN: 00525403) (DIN: 02253588)

M.No. 027187, UDIN : 24027187BKERTP3713 Sd/- Sd/-

Place : Hyderabad Keshav Inani Pooja Gadhia

Date : 21/05/2024 CEO Company Secretary

(DIN : 09296529) (M.No. A61818)

-;

---

Mar 31, 2023

I) Provisions, contingent liabilities and contingent assets

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provision are recognised at the best estimates of the expenditure required to settle the present obligation at the balance sheet date. If the effect of the time value of money is material, provisions are discounted using a pre-tax rate that reflects, when appropriate, the risks specific to the liabilities.

A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non - occurrence of one or more uncertain future events not wholly within the control of the Company.

Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.

Contingent assets are not recognised in standalone financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognised.

J) Revenue

i. Sale of goods

Revenue is measured at the fair value of consideration received or receivable net off trade discounts, volume rebates, outgoing taxes on sales. Any amounts receivable from the customer are recognised as revenue after the control over the goods sold are transferred to the customer. Revenue is recognised on the basis of approved contracts regarding the transfer of goods or services to a customer for an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

ii. Rendering of services

Revenue for job work services is recognised as and when services are rendered, in accordance with the terms of the contract. The amount recognised as revenue is exclusive of goods and service tax (GST) and its net of returns and trade discounts.

iii. Rental income

Rental income is recognised as part of other income on a straight-line basis over the term of the lease except where the rentals are structured to increase in line with expected general inflation.

iv. Dividend

Dividend from investment is recognised as revenue when right to receive the payments is established.

v. Interest income

Interest income is recognized using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. While calculating the effective interest rate, the company estimates the expected cash flows by considering all the contractual terms of the financial instruments but does not consider the expected credit losses.

K. Income tax

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination or to an item recognised directly in equity or in other comprehensive income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognised in respect of carried forward tax losses and tax credits.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets - unrecognised or recognised, are reviewed at each reporting date and are recognised/ reduced to the extent that it is probable/ no longer probable respectively that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets or liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different taxable entities, but they intend to settle current tax liabilities and assets on net basis or their tax assists and liabilities will be realised simultaneously.

Minimum alternate tax Credit Entitlement

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The Company recognizes a deferred tax asset on the MAT credit available only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. The Company reviews the deferred tax asset created on MAT credit entitlement asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.

L. Borrowing costs

Borrowing cost are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest cost) incurred in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of asset which necessarily take a substantial period of time to get ready for their intended use are capitalised as part of cost of asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.

Earnings per share

The basic earnings per share (‘EPS’) is computed by dividing the net profit / (loss) after tax for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year attributable to the equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

N. Foreign currency transactions

In preparing the standalone financial statements of the Company, transactions in currencies other than the Company’s functional currency (i.e. foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of initial transactions.

Exchange differences on monetary items are recognised in the statement of profit and loss in the period in which they arise.

O. Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with banks that are readily convertible into cash which are subject to insignificant risk of changes in value and are held for the purpose of meeting short-term cash commitments.

38 Capital Management :

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.

The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘total equity’. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations under finance leases, less cash and cash equivalents. Adjusted equity comprises all components of equity.

The Company’s adjusted net debt to equity ratio at 31 March 2023 was as follows.

D Other Statutory Information

(i) The Company did not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

(ii) No transactions to report against the following disclosure requirements as notified by MCA pursuant to amended Schedule III:

(a) Crypto Currency or Virtual Currency

(b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder

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

(d) Approved scheme(s) of Arrangements

(e) Number of layers of companies

(f) Undisclosed income

(g) Revaluation of PPE and intangible assets

(h) Title Deeds of immovable properties not held in name of the company

(i) Wilful defualter

(iii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries)with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(iv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

40 Impact of COVID-19 Pandemic :

The COVID-19 pandemic marginally disrupted business operations due to lockdown and other emergency measures imposed by the government. The Company’s operations was shut down during Lockdown . As of today, Business remain operational, following enhanced internal safety guidelines. The Company has considered internal and external information while assessing recoverability of its assets disclosed in the financial statement upto the date of approval of these financial results by the Board of Directors. Based on such assessment and considering the current economic indicators, the Company expects to recover the carrying amount of these assets. Management has also considered the impact of COVID-19 on the business for the foreseeable future and have concluded that the Company has sufficient resources to continue as a going concern. The impact of the global health pandemic may be different from that estimated as at the date of approval of these financial results and the Company will continue to closely monitor any material changes to future economic conditions.

41 Events after the reporting period :

No significant adjusting event occurred between the balance sheet date and date of the approval of these financial statements by the Board of Directors of the Company requiring adjustment or disclosure.

42 Information with regard to other matters specified in Schedule III to the Act is either nil or not applicable to the Company for the year.

43 The figures for the previous periods have been regrouped / rearranged wherever necessary to confirm to the current periods classification in order to comply with the requirements of the amended Schedule III to the Companies Act, 2013 effective 1st April, 2021.

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

For G.D. Upadhyay & Co., Chartered Accountants, Sd/- Sd/-

Firm Regn No.001322S Rajkumar Inani Narayan Inani

Sd/- Managing Director Executive Director cum CFO

(G.D.Upadhyay) Partner (DIN: 00885466) (DIN: 00525403)

M.No. 027187, UDIN : 23027187BGTOGU3023 Sd/- Sd/- Sd/-

Pl_{ace :} Hyd_erab_ad Anirudh Inani Keshav Inani Pooja Gadhia

_{Date : 30/05/2023} Whole Time Director CEO Company Secretary

(DIN: 02253588) (PAN : ACAPI4720R (M.No. A61818)

---

Mar 31, 2015

1.1 Working Capital Limits Sanctioned by Tamilnad Mercantile Bank Ltd., are repayable on demand from bank and are secured against Hypothecation of Inventories, Book Debts / Receivables , Bills Negotiation drawn under ILC/ FLC, against Collateral Security of Open Land and premises in the name of the Company and Personal Gurantee of Directors and the sanctionad limits are Rs. 1.50 Crores for C.C. Rs. 50 Lacs for FBN/IBN. Rs. 14 Crores for FLC/ILC. Rs. 15 Crores for Forward Contract.

2. Limits Sanctioned by Can Bank Factors Ltd is secured against the PDC's for the full value of factored invoices of 5 parties.

3. Orher Payables includes Rental Advance and statutory dues such as TDS Payable, Service Tax Payable and other Outstanding Liabilities.

4. As confirmed by the management, there are no dues above Rs. 1.00 Lakh Outstanding for more than 45 days to Micro and Small Scale Undertakings.

5. Fixed Deposits with Bank includes deposits of Rs.55.70/- Lakhs(Previous year 153.65/-) with maturity of more than 12 Months.

6. Advance to Others includes an amount of Rs. 11,00,000/- paid Anand Solvex Limited which is overdue and the case is pending in the court for the recovery of the same.

7. Deposits includes deposits paid towards amenities i.e., Electricity, Telephone, Rent etc.,

8. The company does not have Whole Time Company Secretary, as per requirements of Section 203 of the Companies Act, 2013. Hence, the accounts have not been signed by the Company Secretary.

9. The company operates in only one segment i.e. 'India'. Hence separate information on geographical segment is not required. The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparation of financial information of the Company.

10. Related Party Disclosure as per Accounting Standard -18:

During the year, the Company entered into transactions with the related parties. Those transactions along with related balances as at 31 st March, 2015 and for the year ended are presented in the following table.

11. Figures in brackets in these notes are in respect of previous year.

---

Mar 31, 2014

1.1 Depreciation :

Depreciation has been provided on slraignt line method on pro-rata basis at the rates prescribed in Schedule XIV ol the Companies Act, 1956.

1.2 Inventories:

Inventories are valued at lower of cost and net realizable value whichever is lower.

1.3 Foreign Currency Transactions:

Transactions denominated In foreign currencies are recorded at the exchange rate prevailing on the date ol the transaction or that approximate the actual rate at the date of the transaction.

Monetary Items denoted in foreign currencies at the year end are restated at year end rates. Non monetary items are carried at cost

1.4 Investments:

Quoted Investments:

Investments are valued at cost. No provision is made lor the temporary decrease in the value ol the long term investments

Unquoted Investments: In the opinion ol the management Investment in the Unquoted Investment in Associates and other Companies are ol Long Term nature meant to be held permanently and any diminution in the latest available book value as compared to the cost of such shares Is considered temporary by the management and hence not provided (not ascertained)

1.5 Revenue Recognition :

Revenue Irom sale ol goods and services rendered Is recognized upon passage ol title and rendering ol services.

1.6 Dividend:

Income from Dividend is recognized as and when rece ve

1.7 Financial Derivatives and Commodity Hedging transactions :

In respect ol derivative contracts, premium paid gain/losses on settlement and losses on restatement are recognized in the Statement ol Profit and Loss.

1.8 Employee Benefits :

a) Short term employee benefits :

Employee Benefits such as salaries, allowances, and non-monetary benefits which fall due lor payment within a period ol twelve months after rendering of services, are charged as expense to theStatement of Profit and Loss in the period in which the service is rendered.

b) Post- employment benefits :

No provision has been made towards retirement benefits as In the opinion of the board; none ol the employees are eligible for the same.

1. General Information :

Dhanalaxml Roto Spinners Limited is mainly engaged in trading activity in the line of Textiles, Paper, Cotton Seed and Wood Pulp market. The company is trying to improve on in commodity trading and exports. The company is a Public Listed Company listed on the Bombay Stock Exchange.

---

Mar 31, 2013

1. General Information :

Dhanalaxmi Roto Spinners Limited is mainly engaged in Trading Activity in the line of Textiles, Paper and Wood Pulp market. The Company is trying to improve on small beginning made in last couple of years in commodity trading and exports. The Company is a Public Listed Company Llisted on the Bombay Stock Exchange.

2.1 The company does not have Whole Time Company Secretary, as per requirements of Section 383A of the Companies Act, 1956. Hence, the accounts have not been signed by the Company Secretary.

2.2 The company operates in only one segment i.e. ''India''. Hence separate information on geographical segment is not required. The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparation of financial information of the Company

2.3 Related Party Disclosure as per Accounting Standard -18:

During the year, the Company entered into transactions with the related parties. Those transactions along with related balances as at 31st March, 2013 and for the year ended are presented in the following table.

2.4 Figures in brackets in these notes are in respect of previous year.

---

Mar 31, 2012

1. General Information :

Dhanalaxmi Roto Spinners Limited is mainly engaged in Trading Activity in the line of Textiles, Paper and Wood Pulp market. The Company is tfying to improve on small beginning made in last couple of years in commodity trading and exports. The Company is a Public Listed Company Llisted on the Bombay Stock Exchange.

2.1 During the year there was no fresh issue of equity shares, hence number of shares out standing at the beginning of the year and at the end of the year are same i e., 39,00,300 Equity Shares.

2.2 No Shareholder is holding more than 5% of the Share holding in the Company.

3.1 Working Capital Loans Sanctioned by Tamilnad Mercantile Bank Ltd., are repayable on demand from banks, these have been secured by Hypothecation of Inventories Book Debts and Receivables and Collateral Security of open land and premises in the name of the Company and Personal Gurantees of Directors.

3.2 Limits Sanctioned by Can Bank Factors Ltd is secured against the PDC's for the full value of factored invoices of 3 parties.

4.1 Figures in brackets in these notes are in respect of previous year.

4.2 The financial slataments lor the year ended March 31,2012 had beer prepared as per the applicable, pre-revisecf Sechedute VI to the Companies Act, 1956. Consequent to Ihe notihcation ol Revised Seehedule VI under the Companies Act. 1956, the financial statements lor the year ended March 31, 2012 are prepared as per Revised Schedule VI. Accordingly the previous year figures have also been reclassified to ecnlirm to this year's classification. The adoption of Revised Schedule VI for previous year figures does not Impact recognition and measuremeni principles Followed for preparation of financial statements.

---

Mar 31, 2011

1) Secured Loans:

Cash Credit (Stock) and Foreign Letter of Credit from Tamilnad Mercantile Bank Ltd are Secured against hypothecation of Stocks, Receivables, Collateral Security of open land and premises in the name of Company and Personal guarantees of Directors .

2) In the opinion of the Board of Directors, Current Assets and Loans and Advances have the value at which these are stated in the Balance Sheet, if, realized in the ordinary course of business, unless otherwise stated and adequate provisions of all known liabilities have been made and are not in excess of the amount reasonably required

3) As confirmed by the management, there are no dues above Rs.1.00 Lac outstanding for more than 45 days to Micro and Small Scale Undertakings.

4} The company does not have Whole Time Company Secretary, as per requirements of Section 383A of the Companies Act,1956. Hence, the accounts have not been signed by the Company Secretary.

5) The company operates in only one segment i.e. 'India'. Hence separate information on geographical segment is not required.The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparation of financial information of the Company.

6. Related Party Disclosure as per Accounting Standard -18 :

During the year, the Company entered into transactions with the related parties. Those transactions along with related balances as at 31st March, 2011 and for the year ended are presented in the following table.

(The information is given as compiled and certified by the management).

SI. No Associate Concerns

1. Anirudh Marketing

2 Inani Distributors

3 Karmanghat Securities (P) Ltd

Directors/Key Management Personnel

1 Rajkumar Inani

2 Narayan lnani

3 K.N.Prasad

4 Shyam Sunder Jakhotia

5 Simanth Roi Chowdhury

6 Anirudh Inani

Relatives of Directors/Key Management Personnel

1 Natasha Inani

2 Sangita Inani

3 Divya Inani

4 Sri Gopal Inani

5 Laxmikanta Inani

7) Figures in brackets in these notes are in respect of previous year.

8) Figures of previous have been regrouped/rearranged/ reclassified, wherever considered necessary to confirm to current years presentation.

---

Mar 31, 2010

S.No Partculars 31/03/2010 31/03/2009

1 Contingent Liabilities not provided for Bank Guarantee and FLC issued By the Bank 97,79,433 73,15,508

2) Secured Loans:

Cash Credit (Stock) and Foreign Letter of Credit from Tamilnad Mercantile Bank Ltd are Secured against Hypothecation of Stocks, Receivables, Collateral Security of land in the name of Company and Personal guarantees of Directors.

3) In the opinion of the Board of Directors, Current Assets and Loans and Advances have the value at which these are stated in the Balance Sheet, if, realized in the ordinary course of business, unless otherwise stated and adequate provisions of all known liabilities husteaen made and are not in excess of the amount reasonably required.

4) As confirmed by the management, there are no dues above Rs. 1.00 Lakh outstanding for more than 45 days to Micro and Small Scale Undertakings.

5) The company does not have whole time Company Secretary, as per requirements of Section 383A of the Companies Act, 1956. Hence, the accounts have not been signed by the company Secretary.

6) The company operates in only one segment i.e. India. Hence separate information on geographical segment is not required. The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparation of financial information of the Company.

7) Related Party Disclosure as per Accounting Standard -18 :

During the year, the Company entered into transactions with the related parties. Those transactions along with related balances as at 31st March, 2010 and for the year ended are presented in the following table.

(The information is given as compiled and certified by the management.)

SL.

No ASSOCIATE CONCERNS

1 Anirudh Marketing

2 Inani Distributors

3 Inani Real Estate and Developers (P) Ltd

4 Dhansree Syntex (P) Ltd

5 Inani Commodities & Finance Ltd

6 Inani Securities Limited

7 Karmanghat Securities (P) Ltd



Directors/Key Management Personnel

1 Raj Kumar Inani

2 Narayan Inani

3 Anirudh Inani

4 K.N.Prasad

5 Shyam Sunder Jakhotia

6. Simanth Roy Chowdhury



Relatives of Directors/Key Management Personnel

1 Natasha Inani

2 Sangita Inani

3 Divya Inani

4 Sri Gopal Inani

5 Lakshmikanta Inani

8) Figures in brackets in these notes are in respect of previous year.

9) Figures of previous have been wherever considered necessary to confirm to current years presentation.