Notes to Accounts of Eurotex Industries & Exports Ltd.

Mar 31, 2025

18. Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised if, as a result of a past event, the group 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.

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are
lower than the unavoidable costs of meeting the future obligations under the contract.

A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not
require an outflow of resources or an obligation for which the future outcome cannot be ascertained with reasonable certainty.
When there is a possible or a present obligation where the likelihood of outflow of resources is remote, no provision or disclosure
is made.

Contingent assets are neither recognized nor disclosed in financial statements.

19 Non-Current assets held for sale:

Non-current assets 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.

Non-current assets classified as held for sale are measured at lower of their carrying amount and fair value less cost to sell. Non¬
current assets classified as held for sale are not depreciated or amortised from the date when they are classified as held for sale.

Non-current assets classified as held for sale are presented separately from the other assets in the Balance Sheet.

31.2 Commitments :

Estimated amount of contracts remaining to be executed on Capital Account - -

31.3 a) The Company’s case in the matter of higher Electricity charges wrongly claimed by Maharashtra State Electricity

Distribution Company Ltd.( MSEDCL ) from November, 1998 to June, 2008 by refusing to reduce the Contract
Demand had been decided in favour of the Company by Maharashtra Electricity Regulatory Commission (MERC)
and the order was upheld by the Appellate Tribunal, New Delhi in appeal preferred by MSEDCL. MSEDCL
preferred an appeal before the Hon’ble Supreme Court challenging the order of MERC and APTEL. The Hon’ble
Supreme Court vide order dated 28th February, 2020 in Civil Appeal No. 4304 of 2007 partly allowed the appeal
filed by MSEDCL and the orders of MERC and APTEL to the extent that they set aside the circulars and policy
decisions issued before the MERC was constituted, has been set aside without disturbing the findings / orders of
MERC and APTEL in favour of the Company on issues of reduction of contract demand and drawing of power from
one of its unit at Plot E-23, CPP to another unit at Plot E-1. The Company has then filed application before MERC
seeking restitution of benefits and incentives which were denied to Company due to pendency of the Appeal and
which the Company was otherwise entitled to receive. MERC vide order dated 12th July, 2021 rejected Company’s
petition for restitution on the erroneous basis that the Supreme Court allowed the appeal preferred by MSEDCL.
The Company has filed Appeal No. 284 of 2021 before APTEL, Delhi on 16th August, 2021 against the order
dated 12th July 2021 and same is pending adjudication. The company has a good case on merits and should be
compensated for the loss caused to it due to pendency of legal proceedings, during which period, citing the
pendency, MSEDCL wrongfully denied the various benefits / incentives to the Company. The case is pending for
final hearing in “LIST OF FINALS” and disposal before APTEL, as per the APTEL order dated 10.03.2022. The
Load factor incentive and prompt payment discount receivable Rs.178.06 lakhs are disclosed under Note 5 (a) of the
financial Statement. Also, security deposit of Rs. 62.18 lakhs included in Note 3(a) and interest receivable of Rs.
10.02 lakhs on deposit is disclosed under Note 11 of the financial statement is wrongfully denied, upheld by
MSEDCL.

b) Similarly the High Court of Mumbai has in the matter of electricity duty on Captive Power Generation has decided
in Company’s favour and the Government has filed an appeal before the Supreme Court which is pending.

c) The Management foresees only a remote possibility of an outflow of / adjustments to the resources embodying
economic benefits, in view of the expert legal opinion in the aforesaid matters obtained by the Company.

31.10 Audit Trail

The Company has used an accounting software (Unix Operating System) for maintaining its books of account which have
a feature of recording audit trail (edit log) facility which has been operated throughout the year for all relevant transactions
recorded in the software except that audit trail feature is not enabled to trace information contained in certain statements
or reports back to the original input source. Additionally, the Company is in compliance with the preservation of audit
trail as per the statutory requirements for record retention.

Segment revenue and results :

The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure (net of
allocable income).

Segment assets and Liabilities :

Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and equipment, trade
receivables, inventories and other operating assets. Segment liabilities primarily includes trade payable and other liabilities. Common
assets and liabilities which can not be allocated to any of the business segment are shown as unallocable assets / liabilities.

DISCLOSURE PURSUANT TO IND AS - 19
"EMPLOYEE BENEFITS"

i) Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan ("The
Gratuity Plan") covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on
retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment
that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by
actuarial valuation on the reporting date and the Company makes annual contribution to the gratuity fund administered by
Aditya Birla Sunlife Insurance Company Limited under Group Gratuity Scheme.

FINANCIAL INSTRUMENTS

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale.

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

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

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

losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or
indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market
data.

NOTE- 35

FINANCIAL RISK FACTORS

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

The Company’s activities exposes it to Liquidity Risk, Market Risk and Credit risk. The Board of Directors reviews and agrees policies
for managing each of these risks, which are summarised as below

(a) Liquidity risk

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by
delivering cash or another financial asset. Liquidity risk management implies maintenance sufficient cash including availability
of funding through an adequate amount of committed credit facilities to meet the obligations as and when due.

The Company manages its liquidity risk by ensuring as far as possible that it will have sufficient liquidity to meet its short term and
long term liabilities as and when due. Anticipated future cash flows, undrawn committed credit facilities are expected to be
sufficient to meet the liquidity requirements of the Company.

(i) Financing arrangements

The Company has access to the following undrawn borrowing facilities as at the end of the reporting period:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and
commodity risk. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency
exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market
risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and
borrowings.

(i) Foreign currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign
exchange rates. The Company has foreign currency trade payables and receivables and is therefore exposed to foreign
exchange risk. The exchange rates have been volatile in the recent years and may continue to be volatile in the future. Hence the
operating results and financials of the Company may be impacted due to volatility of the rupee against foreign currencies. The
Company is not significantly exposed to foreign currency risk due to their limited transaction in the foreign currency.

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations. The
Company is exposed to credit risks from its operating activities, primarily trade receivables, cash and cash equivalents, deposits
with banks and other financial instruments. To manage the credit risk from trade receivables, the Company periodically assess
financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical
bad debts and ageing of accounts receivable. Individual risk limits are set accordingly. The Company considers the probablity of
default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis
throughout each reporting period.

NOTE 36

CAPITAL RISK MANAGEMENT
(a) Capital risk management

The Company’s objectives when managing capital are to :

(i) safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits
for other stakeholders, and

(ii) maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may issue new shares, adjust the amount of dividends paid to
shareholders etc.

The Company monitors capital using a gearing ratio being a ratio of net debt as a percentage of total capital.

NOTE- 37

RECENT ACCOUNTING PRONOUNCEMENTS:

There has been no announcements in respect of amendments /announcement in IND AS applicable for next financial year 2025-26.
NOTE- 38

REAL ESTATE DEVELOPMENT AT KOLHAPUR

The Company is developing land at Uchagaon, Kolhapur bearing R.S.No.364/2, R.S.No.363/2A (Old R.S. No 363/2) and
R.S.No.365/B1 (Old R.S. No.365/B) at Euro Palace, Uchagaon, Kolhapur, admeasuring about 2300 Sq.Mtrs, 800 Sq.Mtrs. and
710 Sq.Mtrs. respectively. The Company has passed resolution at Board meeting held on 8th November, 2014 and 12th August,
2017 respectively to enter into Development Agreement with M/s Randive Builders & Developers and give necessary power of
Attorney for above specified land parcels to them. The development agreement has been executed on 20th December, 2014 & 14th
March, 2018 respectively. Accordingly, land parcels of 3810 Sq. Mtrs. have been converted into Stock-in-Trade from Property, Plant
and Equipment at fair market value of Rs.172.50 lakhs in August, 2014 and Rs.173.65 lakhs in September, 2017 respectively as per
valuation reports. Most of the civil constructions work have been completed and final internal finishing works are also completed in
mostly flats and shops. Many flats are sold and customers have paid sale considerations amount and agreement to sale registered and
possession is also handedover to respective customers. The project is likely to be completed before 31st December, 2025.

NOTE- 39
GOING CONCERN

The Board of Directors in their meeting held on 26th March, 2022, has decided for closure of its manufacturing plants situated at
Kolhapur under Industrial Disputes Act, 1947, due to continuous grinding halt of operations of plants at Kolhapur since 25th March,
2019 arising out of persistent, unfair and illegal activities of labour including severe inter-union rivalry and disconnection of power.

The Notice of Closure of the manufacturing plants at Kolhapur has been displayed on 30th March, 2022 at the main gate of the Plants
and a copy of said Notice has been sent to concerned workers and authorities.

The matter in respect of labour dues for lay off of workers which was subjudice, has been disposed off by the Hon’ble Supreme Court
mentioning that the remedy has to be sought in the Hon’ble High court. Accordingly, the Company has filed a writ petition before
Hon’ble High Court, Mumbai. In view of expert legal advice taken in the matter, the Company expects a favourable decision. The
management has settled all the dues of lender banks and the Company is planning to undertake the further development of available
land area at Kolhapur in near future. In view of such positivities, the financial statements have been prepared on a going concern basis.

NOTE- 40

OTHER STATUTORY INFORMATION:

I) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company
for holding any benami property.

ii) The Company does not have any transactions with companies struck off.

iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

v) 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.

vi) 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:

L. i

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
funding party (ultimate beneficiaries) or

b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961.

viii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017.

ix) The Company is not declared wilful defaulter by any bank or financial institution or lender during the year."

NOTE- 41

The financial statements were approved for issue by the Board of Directors on 21st May, 2025.

K. K. PATODIA DIN : 00027335 Chairman and Managing Director
RAJIV PATODIA DIN : 00026711 Executive Director & CFO

H. P. SIOTIA DIN : 00015103 Director

VRUSHALI V. MHATRE DIN : 08458629 Director

NEHA GARG

Mumbai, 21st May, 2025

---

Mar 31, 2024

18. Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised if, as a result of a past event, the group 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.

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are
lower than the unavoidable costs of meeting the future obligations under the contract.

A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not
require an outflow of resources or an obligation for which the future outcome cannot be ascertained with reasonable certainty.
When there is a possible or a present obligation where the likelihood of outflow of resources is remote, no provision or disclosure
is made.

Contingent assets are neither recognized nor disclosed in financial statements.

32.2 Commitments :

Estimated amount of contracts remaining to be executed on Capital Account - -

32.3 a) The Company’s case in the matter of higher Electricity charges wrongly claimed by Maharashtra State Electricity

Distribution Company Ltd. (MSEDCL) from November, 1998 to June, 2008 by refusing to reduce the Contract
Demand had been decided in favour of the Company by Maharashtra Electricity Regulatory Commission (MERC)
and the order was upheld by the Appellate Tribunal, New Delhi in appeal preferred by MSEDCL. MSEDCL
preferred an appeal before the Hon’ble Supreme Court challenging the order of MERC and APTEL. The Hon’ble
Supreme Court vide order dated 28th February, 2020 in Civil Appeal No. 4304 of 2007, partly allowed the appeal
filed by MSEDCL and the orders of MERC and APTEL to the extent that they set aside the circulars and policy
decisions issued before the MERC was constituted, has been set aside without disturbing the findings / orders of
MERC and APTEL in favour of the Company on the issues of reduction of contract demand and drawing of power
from one of its Unit Plot-E-23 CPP to another Unit Plot E-1. The Company has then filed application before MeRC
seeking restitution of benefits and incentives which were denied to Company due to pendency of the Appeal and
which the Company was otherwise entitled to receive. MERC vide order dated 12th July, 2021 rejected Company’s
petition for restitution on the erroneous basis that the Supreme Court allowed the appeal preferred by MSEDCL.
The Company has filed Appeal No. 284 of 2021 before APTEL, Delhi on 16th August, 2021 against the order
dated 12th July 2021 and same is pending adjudication. The company has a good case on merits and should be
compensated for the loss caused to it due to pendency of legal proceedings, during which period, citing the
pendency, MSEDCL wrongfully denied the various benefits / incentives to the Company. The case is pending for
final hearing in “LIST OF FINALS” and disposal before APTEL, as per the APTEL Order dated 10.03.2022. The
Load factor incentive and prompt payment discount receivable Rs.178.06 lakhs are disclosed under Note 5 (a) of the
financial Statement. Also, security deposit of Rs. 62.18lakhs included in Note 3(a) and interest receivable of Rs.
10.02 lakhs on deposit is disclosed under Note 11 of the financial statement is wrongfully denied, upheld by
MSEDCL.

b) Similarly the High Court of Bombay has in the matter of electricity duty on Captive Power Generation decided in
Company’s favour and the Government has filed an appeal before the Hon’ble Supreme Court which is pending.

c) The Management foresees only a very remote possibility of an outflow of / adjustments to the resources embodying
economic benefits, in view of the expert legal opinion in the aforesaid matters obtained by the Company.

FINANCIAL INSTRUMENTS

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale.

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

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

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

Fair value estimation

For financial instruments measured at fair value in the Balance Sheet, a three level fair value hierarchy is used that reflects the
significance of inputs used in the measurements. The hierarchy gives the highest priority to unadjusted quoted prices in active markets
for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

• Level 1: quoted prices for identical instruments

• Level 2: directly or indirectly observable market inputs, other than Level 1 inputs; and

• Level 3: inputs which are not based on observable market data.

NOTE- 36

FINANCIAL RISK FACTORS

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

The Company’s activities exposes it to Liquidity Risk, Market Risk and Credit risk. The Board of Directors reviews and agrees policies
for managing each of these risks, which are summarised as below

(a) Liquidity risk

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by
delivering cash or another financial asset. Liquidity risk management implies maintenance sufficient cash including availability
of funding through an adequate amount of committed credit facilities to meet the obligations as and when due.

The Company manages its liquidity risk by ensuring as far as possible that it will have sufficient liquidity to meet its short term and
long term liabilities as and when due. Anticipated future cash flows, undrawn committed credit facilities are expected to be
sufficient to meet the liquidity requirements of the Company.

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and
commodity risk. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency
exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market
risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and
borrowings.

(i) Foreign currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign
exchange rates. The Company has foreign currency trade payables and receivables and is therefore exposed to foreign
exchange risk. The exchange rates have been volatile in the recent years and may continue to be volatile in the future. Hence the
operating results and financials of the Company may be impacted due to volatility of the rupee against foreign currencies. The
Company is not significantly exposed to foreign currency risk due to their limited transaction in the foreign currency.

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in
market interest rates. The Company’s long term borrowings have fixed rate of interest and are carried at amortised costs. The
interest rate risk exposure is mainly from changes in fixed and floating interest rates. The interest rate are disclosed in the
respective notes to the financial statement of the Company. The following table analyse the breakdown of the financial assets
and liabilities by type of interest rate:

(c) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations. The
Company is exposed to credit risks from its operating activities, primarily trade receivables, cash and cash equivalents, deposits
with banks and other financial instruments. To manage the credit risk from trade receivables, the Company periodically assess
financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical
bad debts and ageing of accounts receivable. Individual risk limits are set accordingly. The Company considers the probablity of
default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis
throughout each reporting period.

NOTE 37

CAPITAL RISK MANAGEMENT
(a) Capital risk management

The Company’s objectives when managing capital are to :

(i) safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits
for other stakeholders, and

(ii) maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may issue new shares, adjust the amount of dividends paid to
shareholders etc.

The Company monitors capital using a gearing ratio being a ratio of net debt as a percentage of total capital.

NOTE- 38

RECENT ACCOUNTING PRONOUNCEMENTS:

There has been no announcements in respect of amendments /announcement in IND AS applicable for next financial year 2024-25.
NOTE- 39

The Company is developing land at Uchagaon, Kolhapur bearing R.S.No.364/2, R.S.No.363/2A (Old R.S. No 363/2) and
R.S.No.365/B1 (Old R.S. No.365/B) at Euro Palace, Uchagaon, Kolhapur, admeasuring about 2300 Sq.Mtrs, 800 Sq.Mtrs. and
710 Sq.Mtrs. respectively. The Company has passed resolution at Board meeting held on 8th November, 2014 and 12th August,
2017 respectively to enter into Development Agreement with M/s Randive Builders & Developers and give necessary power of
Attorney for above specified land parcels to them. The development agreement has been executed on 20th December, 2014 & 14th
March, 2018 respectively. Accordingly, land parcels of 3810 Sq. Mtrs. have been converted into Stock-in-Trade from Property, Plant
and Equipment at fair market value of Rs.172.50 lakhs in August, 2014 and Rs.173.65 lakhs in September, 2017 respectively as per
valuation reports. Most of the civil constructions work have been completed and final internal finishing works are also completed in
mostly flats and shops. Many flats are sold and customers have paid sale considerations amount and agreement to sale registered and
possession is also handedover to respective customers. The project is likely to be completed before 31st December, 2024.

NOTE-40

The Board of Directors in their meeting held on 26th March, 2022, has decided for closure of its manufacturing plants situated at
Kolhapur under Industrial Disputes Act, 1947, due to continuous grinding halt of operations of plants at Kolhapur since 25th March,
2019 arising out of persistent, unfair and illegal activities of labour including severe inter-union rivalry and disconnection of power.
The Notice of Closure of the manufacturing plants at Kolhapur has been displayed on 30th March, 2022 at the main gate of the Plants
and a copy of said Notice has been sent to concerned workers and authorities.

The matter in respect of labour dues for lay off of workers which was subjudice, has been disposed off by the Hon’ble Supreme Court
mentioning that the remedy has to be sought in the Hon’ble High court. Accordingly, the Company has filed a writ petition before
Hon’ble High Court, Mumbai. In view of expert legal advice taken in the matter, the Company expects a favourable decision. The
management has settled all the dues of lender banks, studying ways to revive some operations of the Company as also to undertake
the further development of available land area at Kolhapur in near future and in view of such positivities, the financial statements have
been prepared on a going concern basis.

NOTE - 41 OTHER STATUTORY INFORMATION:

i) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company
for holding any benami property.

ii) The Company does not have any transactions with companies struck off.

iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

v) 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.

vi) 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.

vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961.

viii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017.

ix) The Company is not declared wilful defaulter by and bank or financial institution or lender during the year.

NOTE- 42

The financial statements were approved for issue by the Board of Directors on May 24, 2024.

---

Mar 31, 2015

1 Right of Equity Shareholders:

Company has only one class of equity shares of par value Rs.10. The holder of this equity share is entitled to one vote per share. In the event of liquidation of the Company the holder of equity share will be entitled to receive any of the remaining assets of the Company after distribution of the preferential payments. However, no such preferential amounts exist currently. The distribution will be in proportion to the nos. of equity shares held by the shareholders.

2 Notes:

1) Term Loans at (a) (i) above are secured by way of first pari-passu mortgage created on immovable properties of the Company, situated at MIDC, Gokul Shirgaon, Kolhapur and other movable assets both present and future and second pari-passu charge created on inventories and book debts both present and future and some immovable properties of the Company at Kolhapur.

2) Loans in (a)(ii) above are secured by way of hypothecation of Vehicles purchased there against.

3 Contingent assets are not recognised or disclosed in the financial statement.

As at As at 31st March, 31st March, 2015 2014 (Rs. in Lacs) (Rs. in Lacs)

3 OTHER NOTES TO FINANCIAL STATEMENTS

1. Contingent liabilities :

Contingent liabilities not provided for in respect of :

a) Amount outstanding in respect of Bills discounted under Export 1,480.02 3,195.05 Letter of Credit (Since realised Rs.498.82 Lacs; Previous Year Rs.1199.69 Lacs)

b) Disputed Statutory claims / levies, including, those pending incourtand other claims not acknowledged as debts (excluding interestwhere not ascertained / demanded) in respect of:

(' Rs. Lacs) Sr. No Particulars Current Year Previous Year

a Sales Tax 408.44 330.92

b Excise Duty 1,391.32 1,391.32

c Custom Duty 136.39 136.39

c) "The Company's pending litigations comprise of claims against the Company and proceedings pending with tax and other Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements."

4). a) The Company's case in the matter of Electricity Charges wrongly claimed by Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) from November, 1998 to June, 2008 has been decided favourably by Maharastra Electricity Regulatory Commission (MERC) and Appellate Tribunal, New Delhi. MSEDCL has filed an appeal before the Supreme Court.

b) Similarly the High Court of Mumbai has in the matter of Electricity

5). a) In the opinion of Board, the assets other than Fixed Assets and non-current Investments have a value on realisation in the ordinary course of business, atleast equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and other known liabilities is adequate and not in excess of what is required.

b) The account of certain Trade Receivables, Loans and Advances given / received, Trade Payables and Bank Accounts are, however, subject to formal confirmations and reconciliations, if any. The management, however, is confident that the impact whereof for the year on the financial statements will not be material.

6). Related Party disclosures pursuant to Accounting Standard '18':

1. Name of the Parties:

(i) Key Management Personnel:

Shri Krishan Kumar Patodia (Chairman and Managing Director)

Shri Narayan Patodia (Managing Director)

Shri Rajiv Patodia (Executive Director & CFO w.e.f. 8th November, 2014)

Shri Rahul Rawat (Company Secretary)

(ii) Other Related Parties (Associates), where transactions have taken place during the year: PBM Polytex Limited

Patodia Syntex Limited Murarilal Mahendra Kumar Paramount Cotton Co.

provision has been made tor doubtful debts/receivables.

7). In terms ot Accounting Standard 17, the Company operates primarily only in one business segment Viz. Cotton yarn and has its production facilites and all other assets located in India. Sales comprises exports sales ot Rs. 20,180.78 Lacs (Previous year Rs. 25,021.61 Lacs) and Domestic sales of Rs. 6,789.91 Lacs (Previous year Rs. 8,222.32 Lacs).

8). During the year, certain freehold land has been converted into stock-in-trade and included in the inventory at cost. (Fair Value as per Govt. Valuer is 106.75 lacs).

9). Previous years' figures have been regrouped / rearranged wherever necessary to conform with current year's presentation.

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Mar 31, 2014

As at As at 31st March, 2014 31st March, 2013 NOTE - 1 (Rs. in Lacs) (Rs. in Lacs)

OTHER NOTES TO FINANCIAL STATEMENTS

1. Contingent liabilities :

Contingent liabilities not provided for in respect of :

a) Amount outstanding in respect of Bills discounted under Export Letter of Credit (Since realised Rs.1199.69 Lacs; Previous Year Rs.941.49 Lacs) 3,195.05 1,413.83

b) Disputed Statutory claims / levies, including, those pending in court and other claims not acknowledged as debts (excluding interest where not ascertained / demanded) in respect of:

(Rs. in Lacs)

Sr. Particulars Current Year Previous Year No.

a Sales Tax 330.92 515.61

b Income Tax - 36.19

c Excise Duty 1,392.34 1,411.79

d Custom Duty 136.39 136.39

2. a) The Company''s case in the matter of Electricity Charges wrongly claimed by Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) from November, 1998 to June, 2008 has been decided favourably by Maharastra Electricity Regulatory Commission (MERC) and Appellate Tribunal, New Delhi. MSEDCL has filed an appeal before the Supreme Court.

b) Similarly the High Court of Mumbai has in the matter of Electricity duty on Captive Power Generation has decided in Company''s favour and the Government has filed an appeal before the Supreme Court.

c) The Management foresees only a remote possibility of an outflow of/adjustments to the resources embodying economic benefits, in view of the expert legal opinion in the aforesaid matters obtained by the Company.

3.Related Party disclosures pursuant to Accounting Standard ''18'': 1. Name of the Parties:

(i) Key Management Personnel:

Shri Krishan Kumar Patodia (Chairman and Managing Director)

Shri Narayan Patodia (Managing Director)

Shri Rajiv Patodia (Executive Director) (ii) Other Related Parties (Associates), where transactions have taken place during the year:

PBM Polytex Limited

Patodia Syntex Limited

Murarilal Mahendra Kumar

Paramount Cotton Co.

Notes: 1. Related party relationship is as identified by the Company and relied upon by the Auditors.

2. No amounts in respect of related parties have been written off/written back during the year, nor any provision has been made for doubtful debts/receivables.

4. In terms of Accounting Standard 17, the Company operates primarily only in one business segment Viz. Cotton yarn and has its production facilites and all other assets located in India. Sales comprises exports sales of Rs.25,021.61 Lacs (Previous year Rs.17,908.80 Lacs) and Domestic sales of Rs.8,222.32 Lacs (Previous year Rs.9,385.67 Lacs).

5. Previous years'' figures have been regrouped / rearranged wherever necessary to conform with current year''s presentation.

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Mar 31, 2013

As at As at 31st March, 2013 31st March, 2012 NOTE - 1 Amount in Rs. Amount in Rs.

OTHER NOTES TO FINANCIAL STATEMENTS

1. Contingent liabilities:

Contingent liabilities not provided for in respect of :

a) Amount outstandimg in respect of Bills discounted under Export Letter of Credit (Since realised Rs.9,41,48,812; Previous Year Rs.10,32,93,234) 14,13,83,289 22,58,96,119

b) Disputed Statutory claims / levies, including, those pending in court and other claims not acknowledged as debts (excluding interest where not ascertained / demanded) in respect of: (Amount in )

Sr Particulars Current Year Previous Year

a Sales Tax 5,15,60,607 4,61,13,069

b Income Tax 36,18,802 2,17,02,146

c Excise Duty 14,11,79,111 14,11,79,111

d Custom Duty 1,36,39,225 5,31,257

2. a) The Company''s case in the matter of Electricity Charges wrongly claimed by Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) from November, 1998 to June, 2008 has been decided favourably by Maharastra Electricity Regulatory Commission (MERC) and Appellate Tribunal, New Delhi. MSEDCL has filed an appeal before the Supreme Court.

b) Similarly the High Court of Mumbai has in the matter of Electricity duty on Captive Power Generation has decided in Company''s favour and the Government has filed an appeal before the Supreme Court.

c) The Management foresees only a remote possibility of an outflow of/adjustments to the resources embodying economic benefits, in view of the expert legal opinion in the aforesaid matters obtained by the Company.

3. Related Party disclosures pursuant to Accounting Standard ''18'': 1. Name of the Parties: (i) Key Management Personnel:

Shri Krishan Kumar Patodia (Chairman and Managing Director) Shri Narayan Patodia (Managing Director) Shri Rajiv Patodia (Executive Director) (ii) Other Related Parties (Associates), where transactions have taken place during the year:

PBM Polytex Limited Patodia Syntex Limited Eurospin Industries Limited

4. In terms of Accounting Standard 17, the Company operates primarily only in one business segment Viz. Cotton yarn and has its production facilites and all other assets located in India. Sales comprises exports sales of Rs.1,79,08,80,296 (Previous year Rs.l,75,10,86,014) and Domestic sales of Rs.93,85,66,937 (Previous year Ks.6y,Ul,U3,/4b).

5. Previous years'' figures have been regrouped / rearranged wherever necessary to conform with current year''s presentation.

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Mar 31, 2012

Right of Equity Shareholders:

Company has only one class of equity shares of par value Rs.10. The holder of this equity share is entitled to one vote per share. In the event of liquidation of the company the holder of equity share will be entitled to receive any of the remaining assets of the company after distribution of the preferential payments.However, no such preferential amounts exist currently.

The distribution will be in proportion to the nos. of equity shares held by the shareholders.

Notes:

Working Capital Facilities and non-fund limits of Rs. 144.22 lacs (Previous Year Rs. 1000.56 lacs) are secured by way of hypothecation of, both present and future, inventories and book debts as well as by way of mortgage of some immovable properties at Kolhapur and second charge created on Company's immovable and other movable assets.

Notes: The above Working Capital Facilities carries interest @ 12% to 17.5%

b) Leasehold Land and Buildings include Rs.6,77,766; Previous Year Rs.6,77,766 and Rs.11,08,380; Previous Year Rs. 11,08,380, respectively being cost of premises in a Co-operative Society held in the name of Managing Director on behalf of the Company.

c) Buildings include Rs.500; Previous Year Rs.500 being the value of ten Shares in a Co-operative Society.

As at As at 31st March, 2012 31st March, 2011

NOTE - 1 Amount in Rs. Amount in Rs.

OTHER NOTES TO FINANCIAL STATEMENTS

1. Contingent liabilities:

Contingent liabilities not provided for in respect of :

a) Amount outstandimg in respect of Bills discounted under Export Letter of Credit (Since realised Rs. 1032.93 lacs; Previous Year Rs. 1548.98 lacs) 22,58,96,119 24,09,97,631

b) Disputed Statutory claims / levies, including, those pending in court and other claims not acknowledged as debts (excluding interest where not ascertained / demanded) in respect of:

(Amount in Rs. Lacs)

Sr. Particulars Current Previous No. Year Year

a Sales Tax 461.13 461.13

b Income Tax 217.02 284.54

c Excise Duty 1411.79 1411.79

d Custom Duty 5.31 9.25

3. a) The Company's case in the matter of Electricity Charges wrongly claimed by Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) from November, 1998 to June, 2008 has been decided favourably by Maharastra Electricity Regulatory Commission (MERC) and Appellate Tribunal, New Delhi. MSEDCL has filed an appeal before the Supreme Court.

b) Similarly the High Court of Mumbai has in the matter of Electricity duty on Captive Power Generation has decided in Company's favour and the Government has filed an appeal before the Supreme Court.

c) The Management foresees only a remote possibility of an outflow of/adjustments to the resources embodying economic benefits, in view of the expert legal opinion in the matters obtained by the Company.

NOTE - 3

11. Related Party disclosures pursuant to Accounting Standard '18':

1. Name of the Parties:

(i) Key Management Personnel:

Shri Krishan Kumar Patodia (Chairman and Managing Director)

Shri Narayan Patodia (Managing Director)

Shri Rajiv Patodia (Executive Director)

(ii) Other Related Parties (Associates), where transactions have taken place during the year:

PBM Polytex Limited

Patodia Syntex Limited

Eurospin Industries Limited

Note : 1. Related party relationship is as identified by the Company and relied upon by the Auditors.

2. No amounts in respect of related parties have been written off/written back during the year, nor any provision has been made for doubtful debts/receivables.

The Company has compiled the above information based on verbal/written confirmations from suppliers. As at the year end, no supplier has intimated the Company about its status as a Micro or Small Enterprise or its registration under the Micro, Small and Medium Enterprises Developement Act, 2006.

4. Previous years' figures have been regrouped / rearranged wherever necessary to conform with current year's presentation.

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Mar 31, 2010

As at As at 31st March, 2010 31st March, 2009 Rupees Rupees

1.Contingent liabilities:

Contingent liabilities not provided for in respect of :

a) Amount outstanding in respect of Bills discounted under Export Letter of Credit (Since realised Rs. 1037.25 lacs; Previous Year Rs.1004.96 lacs) 25,26,10,434 12,96,60,789

b) Disputed Statutory claims / levies, including, those pending in court and other claims not acknowledged as debts (excluding interest where not ascertained /demanded) in respect of:

(Amount in Rs. Lacs)

Sr. Particulars Current Previous No. Year Year

a Sales Tax 461.13 467.85

b Income tax 284.54 284.54

c Excise Duty 1411.79 1409.78

d Custom Duty 9.25 9.25

e Electricity Duty on Captive Power Generation 812.30 530.49

Additional Supply Charges -- 69.99 (ASC for electricity charges)

2. a) In the opinion of management, the Current assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance sheet. The provision for depreciation and other known liabilities is adequate and not in excess of what is required.

b) The account of certain debtors, loans and advances given / received, creditors and bank accounts are however subject to confirm and reconciliation, if any. The management, however is confident that the impact thereof on the current years financial statements will not be material.

3.The amount of Research and Development expenses is not ascertainable separately, the same having been included under various heads of expenditure in the Profit and Loss Account.

4.Related Party disclosures pursuant to Accounting Standard 18:

1. Name of the Parties:

(i) Key Management Personnel:

Shri Krishan Kumar Patodia (Chairman and Managing Director)

Shri Narayan Patodia (Managing Director)

Shri Rajiv Patodia (Executive Director)

(ii) Other Related Parties

(Associates), where transactions have taken place during the year:

PBM Polytex Limited

Patodia Syntex Limited

Eurospin Industries Limited

(iii) Shri R. K. Siotia (Relative of a Director)

5. In terms of Accounting Standard 17 , the Company operates primarily only in one business segment Viz. Cotton yarn and has its production facilites and all other assets located in India. Sales comprises exports sales of Rs.12,639.38 lacs (Previous year Rs.7,573.86 lacs) and Domestic sales of Rs.4,871.26 lacs (Previous year Rs.4,873.49 lacs).

6. Previous years figures have been regrouped / rearranged wherever necessary to conform with current years presentation.