Notes to Accounts of Filatex India Ltd.

Mar 31, 2025

2.17 Provisions and contingencies
Provisions:

Provisions are recognised when the Company has a
present obligation (LegaL or constructive) as a resuLt of a
past event, it is probabLe that an outflow of resources
embodying economic benefits wiLL be required to settLe
the obLigation and a reLiabLe estimate can be made of
the amount of the obLigation. Provisions are measured at
the best estimate of the expenditure required to settLe
the present obLigation at the BaLance Sheet date.

If the effect of the time vaLue of money is materiaL,
provisions are discounted to reflect its present vaLue
using a current pre-tax rate that reflects the current
market assessments of the time vaLue of money and
the risks specific to the obLigation. When discounting is
used, the increase in the provision due to the passage of
time is recognised as a finance cost.

Where the Company expects some or aLL of a provision
to be reimbursed, the reimbursement is recognised as
a separate asset but onLy when the reimbursement is
virtuaLLy certain. The expense reLating to any provision
is presented in the income statement net of any
reimbursement.

Contingencies:

Contingent liabilities
A contingent liability is:

• a possibLe obLigation arising from past events, the
existence of which wiLL be confirmed onLy by the
occurrence or non-occurrence of one or more
uncertain future events not whoLLy within the
controL of the Company, or

• a present obLigation that arises from past events but
is not recognised because:

- it is not probabLe that an outflow of resources
embodying economic benefits wiLL be required
to settLe the obLigation; or

- the amount of the obLigation cannot be
measured with sufficient reLiabiLity.

Contingent LiabiLities are not recognized but discLosed
unLess the contingency is remote.

Contingent assets

A contingent asset is a possibLe asset that arises from
past events and whose existence 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.

Contingent assets are not recognised but are discLosed
when the inflow of economic benefits is probabLe. When
inflow is virtuaLLy certain, an asset is recognized.

2.18 Segment Reporting

Operating segments are defined as components of an
enterprise for which discrete financiaL information is
avaiLabLe that is evaLuated reguLarLy by the chief operating
decision maker, in deciding how to aLLocate resources
and assessing performance.

The Company is engaged in manufacture and trading
of synthetic yarn and textiLes which is considered as
the onLy reportabLe business segment. The Company''s
Chief Operating Decision Maker (CODM) is the Managing
Director. He evaLuates the Company’s performance
and aLLocates resources based on anaLysis of various
performance indicators by geographicaL areas onLy.

2.19 Related party

A reLated party is a person or entity that is reLated to the
reporting entity and it incLudes:

(a) A person or a cLose member of that person’s famiLy
if that person:

(i) has controL or joint controL over the reporting
entity;

(ii) has significant influence over the reporting
entity; or

(iii) is a member of the key management personneL
of the reporting entity or of a parent of the
reporting entity.

(b) An entity is reLated to the reporting entity if any of
the foLLowing conditions appLy:

(i) The entity and the reporting entity are
members of the same Group.

(ii) One entity is an associate or joint venture of
the other entity.

(iii) Both entities are joint ventures of the same
third party.

(iv) One entity is a joint venture of a third entity
and the other entity is an associate of the third
entity.

(v) The entity is a post-empLoyment benefit pLan
for the benefit of employees of either the
reporting entity or an entity reLated to the
reporting entity.

(vi) The entity is controLLed or jointLy controLLed by a
person identified in (a).

(vii) A person identified in (a) (i) has significant
influence over the entity or is a member of the
key management personneL of the entity (or of
a parent of the entity).

(viii) The entity, or any member of a Group of
which it is a part, provides key management
personneL services to the reporting entity or to
the parent of the reporting entity.

CLose members of the famiLy of a person are those
famiLy members who may be expected to influence, or
be influenced by, that person in their deaLings with the
entity incLuding:

(a) that person’s chiLdren, spouse or domestic partner,
brother, sister, father and mother;

(b) chiLdren of that person’s spouse or domestic
partner; and

(c) dependents of that person or that person’s spouse
or domestic partner.

Key management personneL are those persons having
authority and responsibiLity for pLanning, directing
and controLLing the activities of the entity, directLy or
indirectLy, incLuding any director (whether executive or
otherwise) of that entity.

ReLated party transactions and outstanding baLances
discLosed in the financiaL statements are in accordance
with the above definition as per Ind AS 24.

2.20 Cash and cash equivalents

Cash and cash equivaLents in the BaLance Sheet
comprise cash at banks and cash on hand and short
term deposits/investments with an originaL maturity of
three months or Less from the date of acquisition, which
are subject to an insignificant risk of changes in vaLue.
These excLude bank baLances (incLuding deposits) heLd as
margin money or security against borrowings, guarantees
etc. being not readiLy avaiLabLe for use by the Company.

For the purpose of the Statement of cash flows, cash
and cash equivaLents consist of cash and short term
deposits and excLude items which are not avaiLabLe for
generaL use as on the date of BaLance Sheet, as defined
above, net of bank overdrafts which are repayabLe on
demand where they form an integraL part of an entity''s
cash management.

2.21 Dividend to equity share holders of
the Company

The Company recognises a LiabiLity to make dividend
distributions to equity hoLders of the Company when
the distribution is authorised and the distribution is no
Longer at the discretion of the Company. As per the
corporate Laws in India, a distribution is authorised when
it is approved by the sharehoLders. A corresponding
amount is recognised directLy in equity.

2.22 Cash Flow Statement

Statement of Cash FLows is prepared segregating the
cash flows into operating, investing and financing
activities. Cash flow from operating activities is reported
using indirect method as set out in Ind AS 7 ''Statement
of Cash FLows'', adjusting the net profit for the effects of:

i. changes during the period in inventories and
operating receivabLes and payabLes transactions of a
non-cash nature;

ii. non-cash items such as depreciation, provisions,
deferred taxes, unreaLised foreign currency gains
and Losses, and"

iii. aLL other items for which the cash effects are
investing or financing cash flows.

2.23 Earnings per share

The Basic Earnings per equity share (''EPS'') is computed
by dividing the net profit or Loss after tax before other
comprehensive income for the year attributabLe to the
equity sharehoLders of the Company by weighted average
number of equity shares outstanding during the year.
Ordinary shares that wiLL be issued upon the conversion
of a mandatoriLy convertibLe instrument are incLuded
in the caLcuLation of basic earnings per share from the
date the contract is entered into. ContingentLy issuabLe
shares are treated as outstanding and are incLuded in
the caLcuLation of basic earnings per share onLy from the
date when aLL necessary conditions are satisfied (i.e. the
events have occurred).

DiLuted earnings per equity share are computed by
dividing the net profit or Loss before OCI attributabLe to
equity hoLders of the Company by the weighted average
number of equity shares considered for deriving basic
earnings per equity share and aLso the weighted average
number of equity shares that couLd have been issued
upon conversion of aLL diLutive potentiaL equity shares
(incLuding options and warrants). The diLutive potentiaL
equity shares are adjusted for the proceeds receivabLe
had the equity shares been actuaLLy issued at fair vaLue.
DiLutive potentiaL equity shares are deemed converted
as of the beginning of the period unLess issued at a Later
date. Anti-diLutive effects are ignored.

2.24 Events after Reporting date

Where events occurring after the BaLance Sheet date
provide evidence of conditions that existed at the end
of the reporting period, the impact of such events is
adjusted within the financiaL statements. Where the
events are indicative of conditions that arose after the
reporting period, the amounts are not adjusted, but are
discLosed if those non-adjusting events are materiaL.

2.27 Recent accounting pronouncements

2.25 Exceptional Items

An item of Income or expense which by its size, type
or incidence requires disclosure in order to improve an
understanding of the performance of the Company is
treated as an exceptional item and the same is disclosed
in the financial, statements.

2.26 Corporate Social Responsibility
(CSR) expenditure

The Company charges its CSR expenditure during the
year to the statement of profit & Loss.

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as
issued from time to time. During the year ended March
31, 2025, MCA has not notified any new standards or
amendments to the existing standards appLicabLe to the
Company.

Nature and Purpose of Reserves

a) Capital Reserve

Capital, reserve was created under the previous GAAP out of the profit earned from a specific transaction of capital,
nature. Capital, reserve is not avaiLabLe for the distribution to the shareholders.

b) Capital Redemption Reserve

CapitaL Redemption Reserve was created on redemption of Preference shares and purchase of its own shares out
of free reserves of the Company in accordance with the requirements of Companies Act. This can be utiLized in
accordance with the provisions of the Companies Act, 2013

c) Securities Premium

The amount received in excess of face vaLue of the equity shares is recognised in Securities Premium Reserve. This
can be utiLized in accordance with the provisions of the Companies Act, 2013.

d) General Reserve

This Reserve is created by an appropriation from one component of equity (generaLLy retained earnings) to another,
not being an item of Other Comprehensive Income. The same can be utiLized by the Company in accordance with the
provisions of the Companies Act, 2013.

e) Employee Stock Option Outstanding

The fair vaLue of the equity-settLed share based payment transactions with empLoyees is recognised in Statement of
Profit and Loss with corresponding credit to EmpLoyee Stock Options Outstanding Account.

f) Retained Earnings

Retained earnings are the profits that the Company has earned tiLL date, Less any transfer to GeneraL Reserve,
dividends or other distributions paid to the sharehoLders.

I. Term loans

External Commercial Borrowings (ECB) From Foreign Consortium Banks

(i) '' 6,370.45 Lakhs (net of transaction cost '' 149.01 Lakhs) [previous Year '' 8,240.33 Lakhs (net of transaction
cost '' 257.98 Lakhs)], are secured by first priority exclusive charge over FuLLy Drawn Yarn spinning machinery and
equipment''s thereof and personaL guarantee of promoter directors. The Loan is repayable in 20 haLf yearLy equaL
instalments that commenced from September 2018 and bear Interest at 6M Euribor 1.10% p.a.

(ii) '' 2,499.97 Lakhs (net of transaction cost '' 38.17 Lakhs) [previous Year '' 3,396.40 Lakhs (net of transaction
cost '' 75.90 Lakhs)], are secured by first priority excLusive charge over PartiaL Oriented Yarn spinning machinery
and equipment''s thereof and personaL guarantee of promoter directors. The Loans are repayabLe in 14 haLf yearLy
equaL instaLments that commenced from December 2019 and bear Interest at 6M Euribor 0.80% p.a.

(iii) '' 3,286.03 Lakhs (net of transaction cost '' 93.71 Lakhs) [previous Year '' 3,897.93 Lakhs (net of transaction cost
'' 138.61 Lakhs)], are secured by first priority excLusive charge over PartiaL Oriented Yarn spinning machinery and
equipment''s thereof and personaL guarantee of promoter directors. The Loans are repayabLe in 16 haLf yearLy
equaL instaLments that commenced from February 2023 and bear Interest at 6M Euribor 0.88% p.a.

II. VehicLe Loan are secured by hypothecation of specific vehicLes acquired out of proceeds of the Loans. The said

Loans carry interest rate 8.85% p.a and repayabLe in 60 Equated MonthLy instaLments tiLL JuLy 2028.

III. The Company has used the borrowings from banks and financiaL institution for the specific purpose for which

it was taken at the baLance sheet date.

IV. As on the baLance sheet date, there is no defauLt in repayment of Loan and interest.

I. Working capital. Loans from consortium member banks (Punjab NationaL Bank, Bank of Baroda, Indusind Bank
Ltd and Yes Bank Ltd.) are secured by first charge by way of hypothecation of inventory of raw materials, finished
goods, semi finished goods, stores and spares, book debts and other receivables (both present and future) and first
charge on mortgage on immovable properties (save & except mortgage on vehicles and plant & machinery acquired
out of specific loan(s)) on pari passu basis. These loans are repayable on demand. Rupee working capital loan carry an
interest at 1Year MCLR to 1Year MCLR 0.25% and 3 months T-BiU plus spread aggregating not more than 9% p.a.

II. Disclosure of returns/Statements submitted by the Company to the bank on
quarterly basis in respect of borrowings: Quarterly returns or statements of current assets filed by
the Company with banks or financiaL institutions are in agreement with the books of account.

III. The Company has not been declared as wilful defaulter by any bank or financial institution or government or
any government authority.

C

i) The Company has fiLed writ petition in Gujrat High
Court at Ahmedabad on March 17, 2022 against the
demand raised by Asst. Commissioner, Bharuch for
'' 2,340.87 Lakhs in respect of ITC on services in the
case of inverted duty refunds granted for the period
May 2018 to January 2021. Hon’bLe High Court has
stayed the demand. The Company is entitLed to
Input Tax credit of aLLeged excess refund even if the
case is decided against the Company. Thus, there
wouLd not be any financial impact of the same.
However, the Company may have to pay interest
which is presentLy not ascertainabLe.

ii) DGGI Surat ZonaL Unit has issued Show Cause
Notice dated January 16, 2023 raising a demand
of '' 815.81 Lakhs towards IGST amount on
deemed suppLy of services by corporate office
of the Company to other distinct persons i.e.,
manufacturing pLants of the Company in other
states on account of aLLeged vioLation of Section
74(1) of CGST Act, 2017 read with Section 20 of
IGST Act, 2017 and RuLes made thereunder. The
Company has fiLed repLy to the Show Cause Notice
on ApriL 03, 2023. AdditionaL Commissioner, CentraL
GST DeLhi East has wide order dated January 31,
2025 confirmed the demand of '' 815.81 Lakhs
together with penaLty of same amount. The
Company is in the process of fiLing appeaLs with
Commissioner AppeaLs, CGST DeLhi with in the
stipuLated time aLLowed. The Company may have to
pay interest which is presentLy not ascertainabLe.

iii) Hon’bLe Gujarat High Court vide its order dated
February 18, 2022 had quashed and set aside
the order dated JuLy 19, 2021 passed by Joint
Commissioner CGST & CentraL Excise raising

a demand for aLLeged excess GST refunds
of '' 8,537.07 Lakhs, with the direction for
reassessment. On reassessment excess refund
of '' 2,301.11 Lakhs has been determined for
the period January, 2018 to October, 2019. The
Company is in appeaL against the reassessment

orders. The Company is entitLed to Input Tax credit
of aLLeged excess refund. Thus, there wouLd not be
any financiaL impact of the same. The Company
may have to pay interest which is presentLy not
ascertainabLe.

iV) During FY 2023-24 the Company has received three
show cause notices for an aggregate amount of
'' 28,771.16 Lakhs on the ground of Inverted Duty
Refunds under ruLe 89(5) of CGST RuLes, 2017
granted erroneousLy for the period January 2018 to
January 2023. The Company has fiLed writ petition
with Hon’bLe High Court of Gujarat at Ahmedabad
against each of the three show cause notices. The
Company is quiet hopefuL of a favourabLe decision
in its favour. Even in case of adverse decision the
Company wiLL be entitLed to input tax credit of the
GST amount. However, in case of an adverse order
the Company wiLL be Liable for interest.

The aforementioned amounts under disputes as
per the demands from various authorities for the
respective periods and has not been adjusted to
incLude further interest and penaLty LeviabLe, if any,
at the time of finaL outcome of the appeaLs.

* Guarantees issued by banks are secured by way of
first pari-passu charge and hypothecation of stock
and book debts of the Company.

The Company does not expect any reimbursement
in respect of the above contingent LiabiLities and it is
not practicabLe to estimate the timings of the cash
outflows, if any, in respect of the matters pending
resoLution of the appeLLate proceedings and it is
not probabLe that an outflow of resources wiLL be
required to settLe the above cLaims.

Based on the discussion with the soLicitors and
as advised, the management and Company''s tax
advisors beLieves that there are fair chances of
decisions in its favour (in respect of the items Listed
in A(a) to A(d) & C above). Hence, no provision is
considered necessary against the same.

Grants relating to property, plant and equipment relate
to duty saved on import of capital, goods and spares
under the EPCG scheme. Under such scheme, the
Company is committed to export prescribed times of the
duty saved on import of capital, goods over a specified
period of time. In case such commitments are not met,
the Company wouLd be required to pay the duty saved
aLong with interest to the reguLatory authorities. The
Grant does not incLude refundable duties & taxes.

51. SHARE BASED PAYMENTS

(I) Employee Stock Option Scheme (ESOS)

- TRANCHE 3

(Refer Note No 2.14 of accounting poLicy)

The Nomination and Remuneration Committee of
the Company had at its meeting heLd on October 30,
2023, approved grant of 27,20,000 (face vaLue of
'' 1/- per share) stock options (“options”) to the eLigibLe
empLoyees of the Company under the FiLatex EmpLoyee
Stock Option Scheme 2015 (FiLatex ESOS -2015), at an
exercise price of '' 48.05 per option (being the cLosing

price at NSE on October 27, 2023 i.e. immediateLy
preceding the grant date), each option being convertibLe
into one Equity Share of the Company upon vesting
subject to the Securities and Exchange Board of India
(Share Based EmpLoyee Benefits) ReguLations, 2014 and
the terms and conditions of the FiLatex ESOS 2015.

The terms and conditions of the grant as per the FiLatex
EmpLoyee Stock Option Scheme, 2015 (FiLatex ESOS
2015) are as under:

A. Vesting period

On compLetion of 2 Years from the date of grant of
options for 15%

On compLetion of 3 Years from the date of grant of
options for 20%

On compLetion of 4 Years from the date of grant of
options for 25%

On compLetion of 5 Years from the date of grant of
options for 40%

Methods and assumptions used to estimate the fair
vaLues are consistent with those used for the year ended
31^st March, 2024. The foLLowing methods/assumptions
were used to estimate the fair vaLues:

1 The carrying vaLue of Cash and cash equivalents,
trade receivabLes, trade payabLes, short-term
borrowings, other financiaL assets and financiaL
LiabiLities approximate their fair vaLue mainLy due to
the short-term maturities of these instruments.

2 The fair vaLues of investment in MutuaL funds,
quoted equity shares and ALternate investment fund
is based on the quoted price in the active market of
respective investment as at the BaLance Sheet date.

3 Derivative financiaL instruments - The fair vaLue of
forward foreign exchange contracts is determined
using the forward exchange rates at the baLance
sheet date using vaLuation techniques with inputs
that are directLy or indirectLy observabLe in the
marketpLace. The derivatives are entered into with
the banks/counterparties with investment grade
credit ratings.

4 Description of significant unobservabLe inputs to
vaLuation (LeveL 3):

The foLLowing shows the vaLuation techniques and
inputs used for Non-current financiaL instruments
that are not carried at fair vaLue:

a. Security deposits given against Lease and Lease
LiabiLities: Discounted cash flow method using
appropriate discounting rate.

b. Non-current FinanciaL assets/LiabiLities other
than above: Expected Cash FLow for the
financiaL instruments

5 Unquoted equity instruments: where most recent
information to measure fair vaLue is insufficient and
where the fair vaLue of these investments cannot
be reLiabLy measured, or if there is a wide range of
possibLe fair vaLue measurements, cost has been
considered as the best estimate of fair vaLue.

6 There has been no change in the vaLuation
methodoLogy for LeveL 3 inputs during the year.
There were no transfers between LeveL 1 and LeveL
2 during the year and no transfer into and out of
LeveL 3 fair vaLue measurements.

II. Financial Risk Management Objectives
and Policies

The Company’s activities expose it to a variety of
financiaL risks nameLy market risk, credit risk and
Liquidity risk. The Company’s primary risk management
focus is to minimize potentiaL adverse effects of market
risk on its financiaL performance. The Company’s risk
management assessment and poLicies and processes are
estabLished to identify and anaLyse the risks faced by the
Company, to set appropriate risk Limits and controLs, and
to monitor such risks and compLiance with the same.

Risk assessment and management poLicies and
processes are reviewed reguLarLy to reflect changes
in market conditions and the Company’s activities.

The Board of Directors and the Audit Committee

is responsibLe for overseeing the Company’s risk
assessment and management poLicies and processes.

The Company’s financiaL risk management poLicy is set
by the management. Market risk is the risk of Loss of
future earnings, fair vaLues or future cash flows that
may resuLt from a change in the price of a financiaL
instrument. The vaLue of a financiaL instrument may
change as a resuLt of changes in the interest rates,
foreign currency exchange rates, equity prices and
other market changes that affect market risk sensitive
instruments. The Company manages market risk which
evaLuates and exercises independent controL over
the entire process of market risk management. The
management recommends risk management objectives
and poLicies, which are approved by Senior Management
and the Audit Committee.

a) Credit Risk

Credit risk is the risk of financiaL Loss to the Company if a
customer or counterparty to a financiaL instrument faiLs
to meet its contractuaL obLigations, and arises principaLLy
from the Company’s receivabLes from customers. Credit
risk arises from cash heLd with banks as weLL as credit
exposure to cLients, incLuding outstanding accounts
receivabLe. The maximum exposure to credit risk is
equaL to the carrying vaLue of the financiaL assets.

The objective of managing counterparty credit risk is
to prevent Losses in financiaL assets. The Company
assesses the credit quaLity of the counterparties, taking
into account their financiaL position, past experience
and other factors. The Company estabLishes an
aLLowance for impairment that represents its expected
credit Losses in respect of trade and other receivabLes.
The management uses a simpLified approach for the
purpose of computation of expected credit Loss for trade
receivabLes.

The Company’s exposure to credit risk is influenced
mainLy by the individuaL characteristics of each
customer. The demographics of the customer, incLuding
the defauLt risk of the industry and country, in which
the customer operates, aLso has an influence on credit
risk assessment. Credit risk is managed through credit
approvaLs, estabLishing credit Limits, continuousLy
monitoring the credit worthiness of customers to which
the Company grants credit terms in the normaL course
of business and through reguLar monitoring of conduct
of accounts. The Company aLso hoLds security deposits
for outstanding trade receivabLes which mitigate the
credit risk to some extent.

An impairment anaLysis is performed at each reporting
date on an individuaL basis for major customers
and foLLows simpLified approach for recognition of
impairment Loss aLLowance. The history of trade
receivabLes shows a negLigibLe provision for bad and
doubtfuL debts. The management beLieves that no
further provision is necessary in respect of trade
receivabLes based on historicaL trends of these
customers. Further, the Company''s exposure to
customers is diversified and no singLe customer has
significant contribution to trade receivabLe baLances.

c) Market Risk

Market risk is the risk of Loss of future earnings, fair vaLues or future cash flows that may resuLt from adverse changes
in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the
price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market
risk is attributable to aLL market risk-sensitive financial instruments and aLL short term and long-term debt. Market
risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk
and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTPL
investments, trade payables, trade receivables, derivative financial instruments and other financial instruments. The
Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market
value of its investments. Thus, the Company’s exposure to market risk is a function of investing and borrowing
activities.

i) Foreign exchange risk

Foreign currency risk is the risk that the fair vaLue or future cash flows of an exposure wiLL fluctuate because of
changes in foreign exchange rates. The Company’s foreign exchange risk arises from its foreign currency borrowings
and trade receivabLes and trade payabLes denominated in foreign currencies. The resuLts of the Company’s operations
can be affected as the rupee appreciates/depreciates against these currencies. The Company enters into derivative
financiaL instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on
foreign currency exposures The Company has a treasury team which monitors the foreign exchange fluctuations on a
continuous basis and advises the management of any materiaL adverse effect on the Company.

iii) Price risk

The Company invests its surpLus funds in various mutuaL funds (debt fund, equity fund, Liquid schemes and income
funds etc.), short term debt funds, Listed or unListed equity shares, government securities and fixed deposits. The
price risk arises due to uncertainties about the future market vaLues of these investments. In order to manage its
price risk arising from investments, the Company diversifies its portfoLio in accordance with the Limits set by the risk
management poLicies.

III Capital Risk Management Policies and Objectives

The Company’s objective whiLe managing capitaL is to safeguard its abiLity to continue as a going concern (so that
it is enabLed to provide returns and create vaLue for its sharehoLders, and benefits for other stakehoLders), support
business stability and growth, ensure adherence to the covenants and restrictions imposed by Lenders and/or reLevant
Laws and reguLations, and maintain an optimaL and efficient capitaL structure so as to reduce the cost of capitaL and
to maximise sharehoLders vaLue. In order to maintain or adjust the capitaL structure, the Company may adjust the
dividend payment to sharehoLders, return capitaL to sharehoLders, issue new shares, obtain new borrowings or seLL
assets to reduce debt, etc.

The Company manages its capitaL structure and makes adjustments to it, in Light of changes in economic conditions
or its business requirements and the requirements of the financiaL covenants.

The Company monitors capitaL using a gearing ratio, which is net debt divided by totaL capitaL pLus net debt. Net debt
is caLcuLated as interest bearing Loans and borrowings Less cash and cash equivaLents.

In order to achieve this overaLL objective, the Company’s capitaL management, amongst other things, aims to ensure
that it meets financiaL covenants attached to the interest-bearing Loans and borrowings that define capitaL structure
requirements. Breaches in meeting the financiaL covenants wouLd permit the bank to immediateLy caLL Loans and
borrowings. There have been no breaches in the financiaL covenants of any interest-bearing Loans and borrowings in
the current period.

IV. Changes in liabilities arising from financing activities as per Ind AS 7 -
Statement of cash flows

The major changes in the Company’s LiabiLities arising from financing activities are due to financing cash flows and
accruaL of financiaL LiabiLities. The Company did not acquire any LiabiLities arising from financing activities during
business combinations effected in the current period or comparative period.

The Company discLosed information about its interest-bearing Loans and borrowings. There are no obLigations under
finance Lease and hire purchase contracts.

4. Details of crypto currency or virtual
currency:

The Company has not traded or invested in Crypto
currency or Virtual. Currency during the current or
previous year.

5. Utilisation of borrowed funds and
share premium:

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.

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.

6. Compliance with approved scheme(s) of
arrangements:

The Company has not entered into any scheme of
arrangement which has an accounting impact on current
or previous financiaL year.

7. Valuation of PPE, Intangible Assets
and Investment property:

The Company has not revaLued its property, pLant &
equipment (incLuding Right Of Use Assets) or intangibLe
assets or both during the current or previous year.

8. Loans/advances to specified persons:

There is no grant of Loans/advances in the nature of
Loans repayabLe on demand.

9. The Company has compLied with the number of
Layers of companies prescribed under the Companies
Act, 2013.

10. Undisclosed income:

There is no income surrendered or discLosed as
income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has
not been recorded in the books of account.

56. Research and Development:

The revenue expenditure of '' NiL (Previous Year: '' 186.11 Lakhs) and capitaL expenditure for acquisition/construction
of assets of '' 187.00 Lakhs (Previous Year: '' 51.29 Lakhs) on Research & DeveLopment at Dahej, Gujarat are as
detaiLed beLow.

57. Use of estimates and judgements

The preparation of financial, statements in conformity
with the recognition and measurement principles of
Ind AS requires management to make estimates and
assumptions that affect the reported amounts of assets
and Liabilities and disclosure of contingent liabilities at
the date of the financial statements and the results of
operations during the reporting period end. Although
these estimates are based upon management’s best
knowledge of current events and actions, historical
experience and other factors, including expectations of
future events that are believed to be reasonable, actual
results could differ from these estimates. The estimates
and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the
revision affects only that period, or in the period of the
revision and future periods if the revision affects both
current and future periods.

A. Judgements in applying accounting
policies

The judgements, apart from those involving estimations
(see note below), that the Company has made in the
process of applying its accounting policies and that have
a significant effect on the amounts recognised in these
financial statements pertain to:

Leases:

Ind AS 116 requires lessees to determine the lease
term as the non-cancellable period of a lease adjusted
with any option to extend or terminate the lease, if the
use of such option is reasonably certain. The Company
makes an assessment on the expected lease term on
a lease-by-lease basis and thereby assesses whether
it is reasonably certain that any options to extend or
terminate the contract will be exercised. In evaluating
the lease term, the Company considers factors such
as any significant leasehold improvements undertaken
over the lease term, costs relating to the termination
of the lease and the importance of the underlying
asset to Company’s operations taking into account the
location of the underlying asset and the availability of
suitable alternatives. The lease term in future periods
is reassessed to ensure that the lease term reflects
the current economic circumstances. After considering
current and future economic conditions, the Company
has concluded that no changes are required to lease
period relating to the existing lease contracts.

Investment:

"The Company has invested more than 20% equity
capital in the power SPV''s namely FPEL Sunrise Private
Limited and FP Crysta Energy Private Limited to qualify
as a captive user. As per the shareholding agreement,
the Company shall not directly or indirectly take part
in financial and operation policy decisions of the Power
SPV''s.

As per Ind AS 28, If an entity holds, directly or indirectly
(e.g. through subsidiaries), 20 per cent or more of the
voting power of the investee, it is presumed that the
entity has significant influence, unless it can be clearly
demonstrated that this is not the case.

Based on the above facts, the presumption of significant

influence/participating in financial and operating decision
making is not valid even though it holds 20% or more of
the voting rights of another entity as the shareholding
by the Company is only by virtue of compliance with
electricity regulations with no intent of influencing the
operations of the power SPV''s. In view of the above
investments are not considered as investment in
associates."

B. Key sources of estimation uncertainty

The following are the key assumptions concerning the
future, and other key sources of estimation uncertainty
at the end of the reporting period that may have a
significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next
financial year:

(i) Impairment of trade receivables:

The impairment provisions for trade receivables are
based on lifetime expected credit loss based on a
provision matrix. Lifetime expected credit losses are
the expected credit losses that result from all possible
default events over the expected life of a financial
instrument. The provision matrix takes into account
historical credit loss experience and is adjusted for
forward looking information. The expected credit loss
allowance is based on the ageing of the receivables that
are due and the rates used in the provision matrix.

The Company uses judgment in making assumptions
about risk of default and expected loss rates and
selecting the inputs to the impairments calculation,
based on the Company’s past history, existing market
conditions as well as forward looking estimates at the
end of each reporting period.

(ii) Fair value measurements of
financial instruments:

In estimating the fair value of a financial asset or a
financial liability, the Company uses market-observable
data to the extent it is available. Where active market
quotes are not available, the management applies
valuation techniques to determine the fair value
of financial instruments. This involves developing
estimates, assumptions and judgements consistent with
how market participants would price the instrument.

(iii) Actuarial Valuation:

The determination of Company’s liability towards defined
benefit obligation viz. gratuity and other long-term
employee benefit obligation viz. long term compensated
absences to employees is made through independent
actuarial valuation including determination of amounts
to be recognised in the Statement of Profit and Loss and
in other comprehensive income. Such valuation depend
upon assumptions determined after taking into account
inflation, seniority, promotion and other relevant factors
such as supply and demand factors in the employment
market. Information about such valuation is provided in
notes to the financial statements.

(iv) Claims, Provisions and Contingent

Liabilities:

The Company has ongoing Litigations with various
reguLatory authorities and third parties. Where an
outflow of funds is believed to be probable and a
reliable estimate of the outcome of the dispute can be
made based on management’s assessment of specific
circumstances of each dispute and reLevant externaL
advice, management provides for its best estimate of
the LiabiLity. Such accruaLs are by nature compLex and
can take number of years to resoLve and can invoLve
estimation uncertainty. These estimates couLd change
substantiaLLy over time as new facts emerge and each
dispute progresses. Information about such Litigations is
provided in notes to the financiaL statements.

(v) Income Taxes

Deferred tax assets are recognised for unused tax
Losses and unabsorbed depreciation carry forwards to
the extent that it is probabLe that taxabLe profit wiLL be
avaiLabLe against which the Losses/depreciation can be
utiLised. Significant management judgement is required
to determine the amount of deferred tax assets that can
be recognised, based upon the LikeLy timing and the LeveL
of future taxabLe profits together with future tax pLanning
strategies.

(vi) Share-based payments

Estimating fair vaLue for share-based payment
transactions requires determination of the most
appropriate vaLuation modeL, which is dependent on the
terms and conditions of the grant. This estimate aLso

requires determination of the most appropriate inputs
to the vaLuation modeL incLuding the expected Life of the
share option, voLatiLity and dividend yieLd and making
assumptions about them. This requires a reassessment
of the estimates used at the end of each reporting
period. The assumptions and modeLs used for estimating
fair vaLue for share-based payment transactions are
discLosed in notes to the financiaL statements.

(vii) Useful lives of property, plant
and equipment and intangible assets:

As described in the significant accounting poLicies, the
Company determines and aLso reviews the estimated
usefuL Lives of property, pLant and equipment and
intangibLe assets at the end of each reporting period.
Such Lives are dependent upon an assessment of both
the technicaL Life of the assets and aLso their LikeLy
economic Life, based on various internaL and externaL
factors incLuding reLative efficiency and operating costs.
AccordingLy, depreciabLe Lives are reviewed annuaLLy
using the best information avaiLabLe to the Management.

58. The figures for the previous years have been
regrouped and/or recLassified wherever necessary to
conform with the current year presentation.

59. No Subsequent event occurred post baLance
sheet date which requires adjustment in the standaLone
financiaL statement for the year ended March 31, 2025.

As per our report of even date

for ARUN K. GUPTA & for R.N. MARWAH & CO LLP For and on behaLf of the Board of Directors of

ASSOCIATES Firm Registration No. 001211N/ Filatex India Limited

Firm Registration No. 000605N N500019

Chartered Accountants Chartered Accountants

GIREESH KUMAR GOENKA SUNIL NARWAL MADHU SUDHAN MADHAV BHAGERIA

Partner Partner BHAGERIA Joint Managing Director

Membership No. 096655 Membership No. 511190 Chairman & Managing DIN: 00021953

Director
DIN: 00021934

Date: ApriL 23, 2025 NITIN AGARWAL RAMAN KUMAR JHA

Place: New DeLhi Chief FinanciaL Officer Company Secretary

---

Mar 31, 2024

2.17 Provisions and contingencies

Provisions:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.

If the effect of the time value of money is material, provisions are discounted to reflect its present value using a current pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Where the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the income statement net of any reimbursement.

Contingencies:

Contingent liabilities:

A contingent liability is:

• a possible obligation arising from past events, the existence of which willbe confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company; or

• a present obligation that arises from past events but is not recognised because:

- it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

- the amount of the obligation cannot be measured with sufficient reliability.

Contingent liabilities are not recognized but disclosed unless the contingency is remote.

Contingent assets:

A contingent asset is a possible asset that arises from past events and whose existence 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.

Contingent assets are not recognised but are disclosed when the inflow of economic benefits is probable. When inflow is virtually certain, an asset is recognized.

2.18 Segment reporting

Operating segments are defined as components of an enterprise for which discrete financialinformation is available that is evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and assessing performance.

The Company is engaged in manufacture and trading of synthetic yarn and textiles which is considered as the only reportable business segment. The Company''s Chief Operating Decision Maker (CODM) is the Managing Director. He evaluates the Company''s performance and allocates resources based on analysis of various performance indicators by geographical areas only.

2.19 Related party

A related party is a person or entity that is related to the reporting entity and it includes:

(a) A person or a close member of that person''s family if

that person:

(i) has controlor joint controlover the reporting entity;

(ii) has significant influence over the reporting entity; or

(iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.

(b) An entity is related to the reporting entity if any of the

following conditions apply:

(i) The entity and the reporting entity are members of the same Group;

(ii) One entity is an associate or joint venture of the other entity;

(iii) Both entities are joint ventures of the same third party;

(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity;

(v) The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity;

(vi) The entity is controlled or jointly controlled by a person identified in (a);

(vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity);

(viii) The entity, or any member of a Group of which it is a part, provides key management personnel services to the reporting entity or to the parent of the reporting entity.

Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity including:

(a) that person''s children, spouse or domestic partner, brother, sister, father and mother;

(b) children of that person''s spouse or domestic partner; and

(c) dependents of that person or that person''s spouse or domestic partner.

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.

Related party transactions and outstanding balances disclosed in the financial statements are in accordance with the above definition as per Ind AS 24.

2.20 Cash and cash equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at banks and cash on hand and short term deposits/ investments with an original maturity of three months or less from the date of acquisition, which are subject to an insignificant risk of changes in value. These exclude bank balances (including deposits) held as margin money or security against borrowings, guarantees etc. being not readily available for use by the Company.

For the purpose of the Statement of cash flows, cash and cash equivalents consist of cash and short term deposits and exclude items which are not available for general use as on the date of Balance Sheet, as defined above, net of bank overdrafts which are repayable on demand where they form an integral part of an entity''s cash management.

2.21 Dividend to equity share holders of the Company

The Company recognises a liability to make dividend distributions to equity holders of the Company when the distribution is authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

2.22 Cash flow statement

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method as set out in Ind AS 7 ''Statement of Cash Flows'', adjusting the net profit for the effects of:

i. changes during the period in inventories and operating receivables and payables transactions of a non-cash nature;

ii. non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and losses, and

iii. all other items for which the cash effects are investing or financing cash flows.

2.23 Earnings per share

The Basic Earnings per equity share (''EPS'') is computed by dividing the net profit or loss after tax before other comprehensive income for the year attributable to the equity shareholders of the Company by weighted average number of equity shares outstanding during the year. Ordinary shares that will be issued upon the conversion of a mandatorily convertible instrument are included in the calculation of basic earnings per share from the date the contract is entered into. Contingently issuable shares are treated as outstanding and are included in the calculation of basic earnings per share only from the date when all necessary conditions are satisfied (i.e. the events have occurred).

Diluted earnings per equity share are computed by dividing the net profit or loss before OCI attributable to equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares (including options and warrants). The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value. Dilutive potential equity shares are deemed converted as of the beginning of the period unless issued at a later date. Anti-dilutive effects are ignored.

2.24 Events after reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financialstatements. Where the events are indicative of conditions that arose after the reporting period, the amounts are not adjusted, but are disclosed if those non-adjusting events are material.

2.25 Exceptional items

An item of Income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the performance of the Company is treated as an exceptional item and the same is disclosed in the financial statements.

2.26 Corporate Social Responsibility (CSR) expenditure

The Company charges its CSR expenditure during the year to the statement of profit & loss.

2.27 Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March 31,2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Nature and Purpose of Reserves

a) Capital Reserve

Capital Reserve was created under the previous GAAP on account of Capital profit in settlement with IDBI Bank and on redemption of certain preference shares.

b) Capital Redemption Reserve

Capital Redemption Reserve was created on redemption of Preference shares and purchase of its own shares out of free reserves of the Company in accordance with the requirements of Companies Act. This can be utilized in accordance with the provisions of the Companies Act, 2013.

c) Securities Premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. This can be utilized in accordance with the provisions of the Companies Act, 2013.

d) General Reserve

This Reserve is created by an appropriation from one component of equity (generally retained earnings) to another, not being an item of Other Comprehensive Income. The same can be utilized by the Company in accordance with the provisions of the Companies Act, 2013.

e) Employee Stock Option Outstanding

The fair value of the equity-settled share based payment transactions with employees is recognised in Statement of Profit and Loss with corresponding credit to Employee Stock Options Outstanding Account.

f) Retained Earnings

Retained earnings are the profits that the Company has earned till date, less any transfer to General Reserve, dividends or other distributions paid to the shareholders.

I. Term loans

a) From Indian Banks

From banks under consortium arrangement lead by PNB and member bank BOB '' 7,485.62 Lakhs (net of transaction cost of '' 58.49 Lakhs) [previous year '' 8,906.69 Lakhs (net of transaction cost of '' 81.41 Lakhs)]. Rupee term loan bear floating interest rate at 1Y MCLR to 1Y MCLR 0.25% are repayable in ballooning quarterly instalments and is secured by equitable mortgage created/extended by way of deposit of title deeds on pari passu basis in respect of immovable property at Dahej (land & buildings) and first charge by way of hypothecation of Company''s all movable & immovable assets pertaining to specific loan (also save & except vehicles, plant & machinery and equipment acquired through specific loans) and personal guarantees of the promoter directors. These loans are further secured by second pari passu charge by way of hypothecation all other movable & immovable assets including mortgage of other properties of the Company and inventory of raw material, finished goods, semi-finished goods, stores & spares, book debts and other receivables (both present and future).

b) External Commercial Borrowings (ECB) From Foreign Consortium Banks

(i) '' 8,240.33 Lakhs (net of transaction cost '' 257.98

Lakhs) [previous Year '' 10,157.10 Lakhs (net of transaction cost '' 396.97 Lakhs)], are secured by first priority exclusive charge over Fully Drawn Yarn spinning machinery and equipment''s thereof and personal guarantee of promoter directors. The loan is repayable in 20 half yearly equal instalments that commenced

from September 2018 and bear Interest at 6M Euribor 1.10% p.a.

(ii) '' 3,396.40 Lakhs (net of transaction cost '' 75.90 Lakhs) [previous Year '' 4,307.61 Lakhs (net of transaction cost '' 126.58 Lakhs)], are secured by first priority exclusive charge over Partial Oriented Yarn spinning machinery and equipment''s thereof and personal guarantee of promoter directors. The loans are repayable in 14 half yearly equal instalments that commenced from December 2019 and bear Interest at 6M Euribor 0.80% p.a.

(iii) '' 3,897.93 Lakhs (net of transaction cost '' 138.61 Lakhs) [previous Year '' 4,544.75 Lakhs (net of transaction cost '' 193.44 Lakhs)], are secured by first priority exclusive charge over Partial Oriented Yarn spinning machinery and equipment''s thereof and personal guarantee of promoter directors. The loans are repayable in 16 half yearly equalinstalments that commenced from February 2023 and bear Interest at 6M Euribor 0.88% p.a.

II. Vehicle loans are secured by hypothecation of specific vehicles acquired out of proceeds of the Loans. The said loans carry interest rate 8.85% p.a and repayable in 60 Equated Monthly instalments till July 2028.

III . The Company has used the borrowings from banks and financial institution for the specific purpose for which it was taken at the balance sheet date.

IV. As on the balance sheet date, there is no default in repayment of loan and interest.

50. SHARE BASED PAYMENTS

(I) Employee Stock Option Scheme (ESOS) - TRANCHE 3

(Refer Note No 2.13 of accounting policy)

The Nomination and Remuneration Committee of the Company had at its meeting held on October 30, 2023, approved grant of 27,20,000 (face value of '' 1/- per share) stock options ("options") to the eligible employees of the Company under the Filatex Employee Stock Option Scheme 2015 (Filatex ESOS -2015), at an exercise price of '' 48.05 per option (being the closing price at BSE on October 27, 2023 i.e. immediately preceding the grant date), each option being convertible into one Equity Share of the Company upon vesting subject to the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and the terms and conditions of the Filatex ESOS 2015.

The terms and conditions of the grant as per the Filatex Employee Stock Option Scheme, 2015 (Filatex ESOS 2015) are as under:

A. Vesting period

On completion of 2 Years from the date of grant of options for 15%

On completion of 3 Years from the date of grant of options for 20%

On completion of 4 Years from the date of grant of options for 25%

On completion of 5 Years from the date of grant of options for 40%

B. Exercise period

The exercise period will be 30 days from the date of vesting for 1^st, 2^nd and 3^rd vesting and 45 days for 4^th vesting of options. The options, which have been vested and not exercised within such period, can be carried forward till the last vesting and can be exercised, either partially or wholly, within a period upto one year from last vesting or within such other period and at such time as may be decided and communicated by the Nomination and Remuneration committee, however, the options not so exercised with the period available for exercising of last vesting shall lapse and will not be available for exercise by the employee.

The Nomination and Remuneration Committee of the Company had at its meeting held on May 07, 2018, approved grant of 4,30,000 (face value of '' 10/- per share) [subsequently sub-divided into 21,50,000 shares of face value of '' 2/- per share, further sub-divided into 43,00,000 shares of face value of '' 1/- per share] stock options ("options") to the eligible employees of the Company under the Filatex Employee Stock Option Scheme 2015 (Filatex ESOS -2015), at an exercise price of '' 211 per option (being the closing price at BSE on May 04, 2018 i.e. immediately preceding the grant date), each option being convertible in to one Equity Share of the Company upon vesting subject to the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and the terms and conditions of the Filatex ESOS 2015.

The Nomination and Remuneration Committee of the Company had at its meeting held on August 28, 2020 approved modification/re-pricing of outstanding 19,95,000 Stock Options (of face value of '' 2/- each) granted in 2^nd Tranche under Filatex Employee Stock Option Scheme, 2015 (hereinafter referred to as "Filatex ESOS, 2015" or "the Scheme"), exercisable into not more than 19,95,000 fully paid-up equity shares of face value of '' 2/- (Rupees Two) each from Exercise price of '' 42.20 per option to '' 28.85 per option.

The terms and conditions of the grant as per the Filatex Employee Stock Option Scheme, 2015 (Filatex ESOS 2015) are as under:

A. Vesting period

On completion of 3 Years from the date of grant of options for 50%

On completion of 4 Years from the date of grant of options for 25%

On completion of 5 Years from the date of grant of options for remaining 25%

B. Exercise period

The exercise period will commence from the date of vesting itself and shall be exercised in such period as may be decided and communicated by the Nomination & Remuneration Committee. The options, which have been vested and not exercised within such period, can be carried forward till the last vesting and can be exercised, either partially or wholly, within a period upto one year from last vesting or within such other period and at such time as may be decided and communicated by the Nomination and Remuneration committee, however, the options not so exercised with the period available for exercising of last vesting shall lapse and will not be available for exercise by the employee.

1. The carrying value of Cash and cash equivalents, trade receivables, trade payables, short-term borrowings, other current financial assets and financial liabilities approximate their fair value mainly due to the shortterm maturities of these instruments.

2. The fair values of investment in quoted investment in equity shares is based on the quoted price in the active market of respective investment as at the Balance Sheet date.

3. Derivative financial instruments: The fair value of forward foreign exchange contracts is determined using the forward exchange rates at the balance sheet date using valuation techniques with inputs that are directly or indirectly observable in the marketplace. The derivatives are entered into with the banks/counterparties with investment grade credit ratings.

4. Description of significant unobservable inputs to valuation (Level 3):

The following shows the valuation techniques and inputs used for Non-current financial instruments that are not carried at fair value:

a. Security deposits given against lease and lease liabilities: Discounted cash flow method using appropriate discounting rate.

b. Non-current Financial assets/liabilities other than above: Expected Cash Flow for the financial instruments.

5. Unquoted equity instruments: where most recent information to measure fair value is insufficient and where the fair value of these investments cannot be reliably measured, or if there is a wide range of possible fair value measurements, cost has been considered as the best estimate of fair value.

6. There has been no change in the valuation methodology for Level3 inputs during the year. There were no transfers between Level 1 and Level 2 during the year and no transfer into and out of Level 3 fair value measurements.

II. Financial Risk Management Objectives and Policies

The Company''s activities expose it to a variety of financial risks namely market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimize potentialadverse effects of market risk on its financial performance. The Company''s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same.

Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company''s risk assessment and management policies and processes.

The Company''s financial risk management policy is set by the management. Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. The Company manages market risk which evaluates and exercises independent control over the entire process of market risk management. The management recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee.

a) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers. Credit risk arises from cash held with banks as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financialassets. The objective of managing counterparty credit risk is to prevent losses in financialassets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors. The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade and other receivables. The management uses a simplified approach for the purpose of computation of expected credit loss for trade receivables.

The Company''s exposure to credit risk is influenced mainly by the individualcharacteristics of each customer. The demographics of the customer, including the default risk of the industry and country, in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits, continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business and through regular monitoring of conduct of accounts. The Company also holds security deposits for outstanding trade receivables which mitigate the credit risk to some extent.

An impairment analysis is performed at each reporting date on an individualbasis for major customers and follows simplified approach for recognition of impairment loss allowance. The history of trade receivables shows a negligible provision for bad and doubtful debts. The management believes that no further provision is necessary in respect of trade receivables based on historical trends of these customers. Further, the Company''s exposure to customers is diversified and no single customer has significant contribution to trade receivable balances.

In respect of financial guarantees provided by the Company to banks & financial institutions, the maximum exposure which the Company is exposed to is the maximum amount which the Company would have to pay if the guarantee is called upon. Based on the expectation at the end of the reporting period, the Company considers that it is more likely than not that such an amount will not be payable under the guarantees provided.

The credit risk on liquid funds such as banks in current and deposit accounts and derivative financial instruments is limited because the counterparties are banks with high credit-ratings.

b) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and committed borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities and by monitoring rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

c) Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments and all short term and long-term debt. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTPL investments, trade payables, trade receivables, derivative financial instruments and other financial instruments. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company''s exposure to market risk is a function of investing and borrowing activities.

i) Foreign exchange risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s foreign exchange risk arises from its foreign currency borrowings and trade receivables and trade payables denominated in foreign currencies. The results of the Company''s operations can be affected as the rupee appreciates/depreciates against these currencies. The Company enters into derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures The Company has a treasury team which monitors the foreign exchange fluctuations on a continuous basis and advises the management of any material adverse effect on the Company.

III. Capital Risk Management Policies and Objectives

The Company''s objective while managing capital is to safeguard its ability to continue as a going concern (so that it is enabled to provide returns and create value for its shareholders, and benefits for other stakeholders), support business stability and growth, ensure adherence to the covenants and restrictions imposed by lenders and/or relevant laws and regulations, and maintain an optimal and efficient capital structure so as to reduce the cost of capital and to maximise shareholders value. In order to maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders, issue new shares, obtain new borrowings or sell assets to reduce debt, etc.

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

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Net debt is calculated as interest bearing loans and borrowings less cash and cash equivalents.

1. Details of Benami property: No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and the rules made thereunder.

2. Transaction with Struck Off Companies: The

Company do not have any transaction with companies struck off.

3. Charges with Registrar of Companies: The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

4. Details of crypto currency or virtual currency: The

Company has not traded or invested in Crypto currency or Virtual Currency during the current or previous year.

5. Utilisation of borrowed funds and share premium:

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.

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.

6 Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

7 Valuation of PPE, Intangible Assets and Investment property: The Company has not revalued its property, plant & equipment (including Right Of Use Assets) or intangible assets or both during the current or previous year.

8 Loans/advances to specified persons: There is no grant of loans/advances in the nature of loans repayable on demand.

9 Undisclosed income: There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

The Company has decided to present Exchange fluctuation (net) as a separate line item on the face of Statement of Profit and Loss, distinct from other income/other expenses. This change aims to provide stakeholders with better visibility into the impact of currency fluctuations on the Company''s financial performance.

58. USE OF ESTIMATES AND JUDGEMENTS

The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based

upon management''s best knowledge of current events and actions, historical experience and other factors, including expectations of future events that are believed to be reasonable, actual results could differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

A. Judgements in applying accounting policies

The judgements, apart from those involving estimations (see note below), that the Company has made in the process of

applying its accounting policies and that have a significant effect on the amounts recognised in these financial statements pertain to:

Leases:

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Company''s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. After considering current and future economic conditions, the Company has concluded that no changes are required to lease period relating to the existing lease contracts.

Investment:

The Company has invested more than 20% equity capital in the power SPV''s namely FPEL Sunrise Private Limited and FP Crysta Energy Private Limited to qualify as a captive user.

As per the shareholding agreement, the Company shall not directly or indirectly take part in financial and operation policy decisions of the Power SPV''s.

As per Ind AS 28, If an entity holds, directly or indirectly (e.g. through subsidiaries), 20 per cent or more of the voting power of the investee, it is presumed that the entity has significant influence, unless it can be clearly demonstrated that this is not the case.

Based on the above facts, the presumption of significant influence/participating in financial and operating decision making is not valid even though it holds 20% or more of the voting rights of another entity as the shareholding by the Company is only by virtue of compliance with electricity regulations with no intent of influencing the operations of the power SPV''s. In view of the above investments are not considered as investment in associates.

B. Key sources of estimation uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year:

(i) Impairment of trade receivables:

The impairment provisions for trade receivables are based on lifetime expected credit loss based on a provision matrix. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument. The provision matrix takes into

account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and the rates used in the provision matrix.

The Company uses judgment in making assumptions about risk of default and expected loss rates and selecting the inputs to the impairments calculation, based on the Company''s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

(ii) Fair value measurements of financial instruments:

In estimating the fair value of a financial asset or a financial liability, the Company uses market-observable data to the extent it is available. Where active market quotes are not available, the management applies valuation techniques to determine the fair value of financial instruments. This involves developing estimates, assumptions and judgements consistent with how market participants would price the instrument.

(iii) Actuarial valuation:

The determination of Company''s liability towards defined benefit obligation viz. gratuity and other long-term employee benefit obligation viz. long term compensated absences to employees is made through independent actuarial valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in other comprehensive income. Such valuation depend upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. Information about such valuation is provided in notes to the financial statements.

(iv) Claims, provisions and contingent liabilities:

the Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on management''s assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature complex and can take number of years to resolve and can involve estimation uncertainty. These estimates could change substantially over time as new facts emerge and each dispute progresses. Information about such litigations is provided in notes to the financial statements.

(v) Income taxes:

Deferred tax assets are recognised for unused tax losses and unabsorbed depreciation carry forwards to the extent that it is probable that taxable profit will be available against which the losses/depreciation can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

(vi) Share-based payments:

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. This requires a reassessment of the estimates used at the end of each reporting period. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in notes to the financial statements.

(vii) Useful lives of property, plant and equipment and intangible assets:

As described in the significant accounting policies, the Company determines and also reviews the estimated useful lives of property, plant and equipment and intangible assets at the end of each reporting period. Such lives are dependent upon an assessment of both the technical life of the assets and also their likely economic life, based on various internal and external factors including relative efficiency and operating costs. Accordingly, depreciable lives are reviewed annually using the best information available to the Management.

59. The figures for the previous years have been regrouped and/or reclassified wherever necessary to conform with the current year presentation.

As per our report of even date

for ARUN K. GUPTA & ASSOCIATES for R.N. MARWAH & CO LLP For and on behalf of the Board of Directors of

Firm Registration No. 000605N Firm Registration Filatex India Limited

Chartered Accountants No. 001211N/N500019

Chartered Accountants

SACHIN KUMAR SUNIL NARWAL MADHU SUDHAN BHAGERIA PURRSHOTTAM BHAGGERIA

Partner Partner Chairman & Managing Director Joint Managing Director

Membership No. 503204 Membership DIN: 00021934 DIN: 00017938

No. 511190

MADHAV BHAGERIA RAMAN KUMAR JHA

Joint Managing Director & CFO Company Secretary

DIN: 00021953

Date: April 30, 2024

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Mar 31, 2023

Provisions and contingencies Provisions

Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic

benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. Provisions
are measured at the best estimate of the expenditure required to

settle the present obligation at the Balance Sheet date.

If the effect of the time value of money is material, provisions are
discounted to reflect its present value using a current pre-tax rate
that reflects the current market assessments of the time value of
money and the risks specific to the obligation. When discounting
is used, the increase in the provision due to the passage of time
is recognised as a finance cost.

Where the Company expects some or all of a provision to be
reimbursed, the reimbursement is recognised as a separate
asset but only when the reimbursement is virtually certain. The
expense relating to any provision is presented in the income
statement net of any reimbursement.

Contingencies:

Contingent liabilities
A contingent liability is:

• a possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not
wholly within the control of the Company, or

• a present obligation that arises from past events but is not
recognised because:

- it is not probable that an outflow of resources embodying
economic benefits will be required to settle the

obligation; or

- the amount of the obligation cannot be measured with

sufficient reliability.

Contingent liabilities are not recognized but disclosed unless the

contingency is remote.

Contingent assets

A contingent asset is a possible asset that arises from past events
and whose existence 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.

Contingent assets are not recognised but are disclosed when the
inflow of economic benefits is probable. When inflow is virtually
certain, an asset is recognized.

2.17 Segment Reporting

Operating segments are defined as components of an enterprise
for which discrete financial information is available that is
evaluated regularly by the chief operating decision maker, in
deciding how to allocate resources and assessing performance.

The Company is engaged in manufacture and trading of
synthetic yarn and textiles which is considered as the only
reportable business segment. The Company''s Chief Operating
Decision Maker (CODM) is the Managing Director. He evaluates

the Company''s performance and allocates resources based
on analysis of various performance indicators by geographical

areas only.

2.18 Related party

A related party is a person or entity that is related to the reporting
entity and it includes:

(a) A person or a close member of that person''s family if
that person:

(i) has control or joint control over the reporting entity.

(ii) has significant influence over the reporting entity. or

(iii) is a member of the key management personnel of the
reporting entity or of a parent of the reporting entity.

(b) An entity is related to the reporting entity if any of the
following conditions apply:

(i) The entity and the reporting entity are members of the
same Group.

(ii) One entity is an associate or joint venture of the
other entity.

(iii) Both entities are joint ventures of the same third party.

(iv) One entity is a joint venture of a third entity and the
other entity is an associate of the third entity.

(v) The entity is a post-employment benefit plan for the
benefit of Employees of either the reporting entity or an
entity related to the reporting entity.

(vi) The entity is controlled or jointly controlled by a person

identified in (a).

(vii) A person identified in (a) (i) has significant influence
over the entity or is a member of the key management
personnel of the entity (or of a parent of the entity).

(viii) The entity, or any member of a Group of which it is a part,
provides key management personnel services to the
reporting entity or to the parent of the reporting entity.

Close members of the family of a person are those family

members who may be expected to influence, or be influenced by,
that person in their dealings with the entity including:

(a) that person''s children, spouse or domestic partner, brother,
sister, father and mother;

(b) children of that person''s spouse or domestic partner; and

(c) dependents of that person or that person''s spouse or

domestic partner.

Key management personnel are those persons having authority
and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including any director
(whether executive or otherwise) of that entity.

Related party transactions and outstanding balances disclosed
in the financial statements are in accordance with the above

definition as per Ind AS 24.

2.19 Cash and cash equivalents

Cash and cash equivalents in the Balance Sheet comprise cash
at banks and cash on hand and short term deposits/investments

with an original maturity of three months or less from the date of
acquisition, which are subject to an insignificant risk of changes
in value. These exclude bank balances (including deposits) held
as margin money or security against borrowings, guarantees etc.
being not readily available for use by the Company.

For the purpose of the Statement of cash flows, cash and cash
equivalents consist of cash and short term deposits and exclude
items which are not available for general use as on the date of
Balance Sheet, as defined above, net of bank overdrafts which
are repayable on demand where they form an integral part of an
entity''s cash management.

2.20 Dividend to equity share holders of the Company

The Company recognises a liability to make dividend distributions
to equity holders of the Company when the distribution is
authorised and the distribution is no longer at the discretion of
the Company. As per the corporate laws in India, a distribution
is authorised when it is approved by the shareholders. A
corresponding amount is recognised directly in equity.

2.21 Cash Flow Statement

Statement of Cash Flows is prepared segregating the cash flows
into operating, investing and financing activities. Cash flow from
operating activities is reported using indirect method as set out
in Ind AS 7 ''Statement of Cash Flows'', adjusting the net profit for
the effects of:

i. changes during the period in inventories and operating
receivables and payables transactions of a non-cash nature;

ii. non-cash items such as depreciation, provisions, deferred
taxes, unrealised foreign currency gains and losses; and

iii. all other items for which the cash effects are investing or

financing cash flows.

2.22 Earnings per share

The Basic Earnings per equity share (''EPS'') is computed by
dividing the net profit or loss after tax before other comprehensive
income for the year attributable to the equity shareholders of
the Company by weighted average number of equity shares
outstanding during the year. Ordinary shares that will be issued
upon the conversion of a mandatorily convertible instrument are
included in the calculation of basic earnings per share from the
date the contract is entered into. Contingently issuable shares
are treated as outstanding and are included in the calculation of
basic earnings per share only from the date when all necessary
conditions are satisfied (i.e. the events have occurred).

Diluted earnings per equity share are computed by dividing the
net profit or loss before OCI attributable to equity holders of
the Company by the weighted average number of equity shares
considered for deriving basic earnings per equity share and also
the weighted average number of equity shares that could have
been issued upon conversion of all dilutive potential equity shares
(including options and warrants). The dilutive potential equity
shares are adjusted for the proceeds receivable had the equity
shares been actually issued at fair value. Dilutive potential equity
shares are deemed converted as of the beginning of the period
unless issued at a later date. Anti-dilutive effects are ignored.

2.23 Events after Reporting date

Where events occurring after the Balance Sheet date provide
evidence of conditions that existed at the end of the reporting
period, the impact of such events is adjusted within the financial
statements. Where the events are indicative of conditions that
arose after the reporting period, the amounts are not adjusted,
but are disclosed if those non-adjusting events are material.

2.24 Research and development expenditure

Research expenditure is charged to the Statement of profit
and loss. Development costs of products are also charged to
the Statement of Profit and Loss unless a product''s technical
feasibility has been established, in which case such expenditure
is capitalised as an intangible asset under development. Tangible
assets used in research and development are capitalised under
respective heads.

These development costs are amortised over the estimated
useful life of the projects or the products they are incorporated
within. The amortisation of capitalised development costs begins
as soon as the related product is released to production.

2.25 Exceptional Items

An item of Income or expense which by its size, type or incidence
requires disclosure in order to improve an understanding of the
performance of the Company is treated as an exceptional item
and the same is disclosed in the financial statements.

2.26 Corporate Social Responsibility (CSR) expenditure

The Company charges its CSR expenditure during the year to the

statement of profit & loss.

2.27 Standards notified but not yet effective

Ministry of Corporate Affairs ("MCA") notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. On March 31, 2023, MCA amended the Companies (Indian
Accounting Standards) Amendment Rules, 2023, as below.

Ind AS 1 -Presentation of Financial Statements - This amendment
requires the entities to disclose their material accounting policies
rather than their significant accounting policies. The effective
date for adoption of this amendment is annual periods beginning
on or after April 01, 2023. The Company has evaluated the
amendment and the impact of the amendment is insignificant in
the financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates
and Errors - This amendment has introduced a definition of
''accounting estimates'' and included amendments to Ind AS 8
to help entities distinguish changes in accounting policies from
changes in accounting estimates. The effective date for adoption
of this amendment is annual periods beginning on or after April
01, 2023. The Company has evaluated the amendment and there
is no impact on its financial statements.

Ind AS 12 - Income Taxes - This amendment has narrowed the
scope of the initial recognition exemption so that it does not apply
to transactions that give rise to equal and offsetting temporary
differences. The effective date for adoption of this amendment
is annual periods beginning on or after April 01, 2023. The
Company has evaluated the amendment and there is no impact
on its financial statement.

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Mar 31, 2018

1. CORPORATE INFORMATION

Filatex India Ltd. (‘The Company’) is a Public Limited Company incorporated in India. The address of its Corporate office and principal place of business is at 43, Community Centre, New Friends Colony, New Delhi - 110025, India. The main business of the Company is manufacturer of Polyester Chips, Polyester/ Nylon/Polypropylene Multi & Mono Filament Yarn and Narrow Fabrics. The Company is listed on BSE Limited and National Stock Exchange of India Limited

The financial statements were authorised by the Board of Directors for issuing accordance with a resolution passed on May 07, 2018.

2. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 101 FIRST TIME ADOPTION OF INDIAN ACCOUNTING STANDARDS

The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from 1st April, 2017 with a transition date of 1st April, 2016. These financial statements for the year ended March 31, 2018, are The Company’s first Ind AS financial statements which have been prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, The Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with relevant rules of the Companies (Accounts) Rules, 2014 (Previous GAAP).

Accordingly, The Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. The Company has prepared the opening balance sheet as per Ind AS as of April 1, 2016 (the transition date) by:

a. recognising all assets and liabilities whose recognition is required by Ind AS,

b. not recognising items of assets or liabilities which are not permitted by Ind AS,

c. reclassifying items from previous Generally Accepted Accounting Principles (GAAP) to Ind AS as required under Ind AS, and

d. applying Ind AS in measurement of recognised assets and liabilities.

In preparing these Ind AS financial statements, The Company has availed certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity). This note explains the adjustments made by The Company in restating its financial statements prepared under previous GAAP, including the Balance Sheet as at 1st April, 2016 and the financial statements as at and for the year ended 31st March, 2017.

A. Ind AS optional Exemptions from retrospective application

i) Investments in subsidiary

“When an entity prepares separate financial statements, Ind AS 27 requires it to account for its investments in subsidiary either at cost; or in accordance with Ind AS 109. If a first-time adopter measures such an investment at cost in accordance with Ind AS 27, it shall measure that investment at one of the following amounts in its separate opening IndAS Balance Sheet:

(a) cost determined in accordance with Ind AS 27; or

(b) deemed cost. The deemed cost of such an investment shall be its:

(i) fair value at the entity’s date of transition to Ind ASs in its separate financial statements; or

(ii) previous GAAP carrying amount at that date. A first-time adopter may choose either (i) or (ii) above to measure its investment in its subsidiary that it elects to measure using a deemed cost. The Company has availed the exemption and has measured its investment in subsidiary at deemed cost being the previous GAAP carrying amount at that date.

ii) Deemed cost for a class of property, plant and equipment

The Company has elected to measure some items (viz. leasehold and freehold land) of property, plant and equipment at the date of transition to Ind AS at their fair value and use that fair value as its deemed cost at that date. The remaining items of property, plant and equipments are measured as per Ind AS at the date of transition.

iii) Long term Foreign currency Monetary Items

Under Previous GAAP, The Company had opted for paragraph 46A of Accounting Standard for ‘Effect of Changes in Foreign Exchange Rates’ (AS 11) which provided an alternative accounting treatment whereby exchange differences arising on long term foreign currency monetary items relating to depreciable capital asset can be added to or deducted from the cost of the asset and should be depreciated over the balance life of the asset. Ind AS 101 includes an optional exemption that allows a firsttime adopter to continue the above accounting treatment in respect of the long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP. The Company has elected to avail this optional exemption. However, the capitalization of exchange differences is not allowed on any new long term foreign currency monetary item recognized from the first Ind AS financial reporting period.

B. Mandatory Exceptions from retrospective application

i) De-recognition of financial assets and liabilities exception

Financial assets and liabilities de-recognized before transition date are not re-recognized under Ind AS.

ii) Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

On an assessment of the estimates made under the Previous GAAP financial statements, The Company has concluded that there is no necessity to revise the estimates under Ind AS (except for adjustments to reflect any difference in accounting policies), as there is no objective evidence that those estimates were in error. However, estimates, that were required under Ind AS but not required under Previous GAAP, are made by The Company for the relevant reporting dates, reflecting conditions existing as at that date without using any hindsight.

C. Transition to Ind AS - Reconciliations

The following reconciliations provide the explanations and quantification of the effect of significant differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101:

I. Reconciliation of Balance sheet as previously reported under IGAAP to Ind AS as at 1st April, 2016 and 31st March, 2017

II. Reconciliation of Statement of Profit and Loss as previously reported under IGAAP to Ind AS for the year ended 31st March, 2017

III. Reconciliation of Equity as at 1st April, 2016 and 31st March, 2017

IV. Reconciliation of Total Comprehensive Income for the year ended 31^st March, 2017

V. Reconciliation of Cash Flow Statement for the year ended 31st March, 2017

The presentation requirements under Previous GAAP differs from Ind AS and hence, Previous GAAP information have been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statement of The Company prepared in accordance with Previous GAAP.

1. loan processing fees / transaction cost:

Under previous GAAP, transaction costs incurred towards origination of borrowings were capitalised to plant, property & equipment.

Ind AS 109 requires these transaction costs to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the profit or loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method.

Accordingly, the excess transaction costs capitalised in plant, property & equipment and corresponding depreciation charged is reversed (de-capitalised), and unamortised transaction costs have been shown as a deduction from loans.

2. fair Valuation of certain properties

The Company has in accordance with provisions of Ind AS 101 First time adoption of Indian Accounting Standards, considered fair value for a class of properties viz. Land as the deemed cost as on its Opening Balance Sheet on April 01, 2016 . Consequently, the impact on Freehold land and leasehold land being the difference of book value and fair value of these land properties have been credited in the retained earnings as on April 01, 2016. Consequently The Company has recognised additional depreciation/ amortization as applicable on aforesaid based on the fair value in subsequent year. The balance assets have been recomputed as per the requirements of Ind AS retrospectively as applicable.

3. Trade Receivables - Expected Credit Losses

Under the Previous GAAP, provision for bad debt was recognised for the doubtful debtors on a case to case basis. However, under Ind AS, The Company assesses impairment based on expected credit losses (ECL) model for measurement and recognition of impairment loss on the trade receivables by following simplified approach. The application of simplified approach does not require the group to track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. The Company’s trade receivables do not contain significant financing component and loss allowance on trade receivables is measured at an amount equal to life time expected losses i.e. expected cash shortfall. The Company measures the expected credit loss associated with its assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis.

Hence, trade receivables have been reduced and correspondingly impact for additional allowance for credit loss has been taken in Retained Earnings on the date of transition and in Statement of Profit & Loss for FY 2016-17.

4 Government Grant

Under Ind AS, import duty waivers for capital assets purchased under Export Promotion Credit Guarantee (EPCG) schemes are recorded as deferred revenue and recognized in Profit and Loss on a systematic basis over the periods of useful lives of the respective assets. On the transition date, The Company, therefore, recorded an adjustment to measure such Property, plant and equipment in accordance with Ind AS 16. Under Previous GAAP, cost of the property, plant and equipment was recorded at the cash price paid to acquire such assets. Consequently, depreciation relating to the above differences in the cost of property, plant and equipment under Ind AS and Previous GAAP has also been adjusted.

5. Security deposits

Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value. Accordingly, The Company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as prepaid rent. Consequent to this change, the amount of security deposits decreased and the prepaid rent increased as at 31st March, 2017. The profit for the year and total equity as at 31st March, 2017 decreased due to amortisation of the prepaid rent which is partially off-set by the notional interest income recognised on security deposits.

6. fair valuation of investments

Under the previous GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. As explained in accounting policy under Ind AS, such investments are measured/accounted for at fair value ( FVTPL). The resultant impact as on April 01,2016 has been adjusted in retained earning and subsequent changes has been recorded in the Statement of Profit and loss.

7. Fair value of Derivative Instruments - Foreign Exchange Forward Contracts

Under Indian GAAP, foreign exchange forward contracts were accounted for based on premium amortisation method and no fair valuation was required. However, under Ind AS, such derivative financial instruments are to be recognised at fair value ( FVTPL). The resultant impact as on April 01,2016 has been adjusted in retained earning and subsequent changes has been recorded in the Statement of Profit and loss.

8. Employee share-based payments

Under the previous GAAP, the cost of equity-settled employee share-based plan is to be recognised using the intrinsic value method. Under Ind AS, the cost of equity settled share-based plan is recognised based on the fair value of the options as at the grant date.

9. Defined Benefit Plans

i. Actuarial gain/(loss) - Under Previous GAAP, the actuarial gain/(loss) of defined benefit plans had been recognised in Statement of Profit and Loss. Under Ind AS, the remeasurement gain/(loss) on net defined benefit plans is recognised in Other Comprehensive Income net of tax.

ii. Net interest cost on defined benefit plans - Under Previous GAAP, the interest cost on defined benefit liability and expected return on plan assets was recognised as employee benefit expenses in the Statement of Profit and Loss. Under Ind AS, The Company has recognised the net interest cost on defined benefit plans as finance cost.

10. Deferred Taxes

Under Previous GAAP, deferred taxes were recognised for the tax effect of timing differences between accounting profit and taxable profit for the year using the income statement approach. Under Ind AS, deferred taxes are recognised using the balance sheet for future tax consequences of temporary differences between the carrying value of assets and liabilities and their respective tax bases. The above difference, together with the consequential tax impact of the other Ind AS transitional adjustments lead to temporary differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or through other comprehensive income.

i) Plant & Machinery Includes cost of Rs.342.93 Lakhs (previous year Rs.342.93 Lakhs) of water supply connection from GIDC and Rs.101.00 Lakhs (Previous Year Rs.101.00 Lakhs) being cost of electricity transmission lines not owned by The Company being enabling assets.

ii) Foreign Exchange differences on long term foreign currency loans( as permitted by para. D13AA of Ind AS 101) aggregating loss of Rs.937.92 Lakhs (Previous year gain Rs.586.60 Lakhs) capitalised/decapitalised during the year. The accumulated foreign exchange fluctuation capitalised is Rs.4,814.25 Lakhs (Upto Previous year Rs.3,876.33 lakhs).

iii) Expenditure incurred during construction period Rs.673.47 Lakhs (previous year Rs.33.41 Lakhs) and borrowing cost Rs.2,290.12 Lakhs (previous year Rs.118.76 Lakhs) has been capitalised. (Refer note 53)

iv) Capital work-in-progress includes expenditure incurred during construction period pending allocation aggregating Rs.Nil (P.Y. Rs.78.67 lakhs) and borrowing cost Rs.Nil (P.Y. Rs.105.16 lakhs) (Refer note 53)

v) The Company has in accordance with provisions of Ind AS-101 first time adoption of Indian Accounting Standards, considered fair value for certain properties viz. freehold and leasehold land as the deemed cost as on its opening balance sheet on April 01, 2016. Consequently , the impact on freehold land amounting Rs.2,579.58 lakhs and leasehold land amounting Rs.2,877.75 lakhs being the difference of book value and fair value of these land properties have been credited in the retained earnings as on April 01,2016. The balance assets have been recomputed as per the requirements of Ind AS retrospectively as applicable.

vi) Measurement of fair value

a) Fair value hierarchy:

The fair value of freehold and leasehold land has been determined by external, independent property valuers, having appropriate recognised professional qualifications and experience in the category of the property being valued. The fair value measurement has been categorised as level 2 fair value based on the inputs to the valuations technique used.

b) Valuation technique:

Value of the property has been arrived at using market approach using market corroborated inputs. Adjustments have been made for factors specific to the assets valued including location and condition of the assets, the extent to which input relate to items that are comparable to the assets and the volume or the level of activity in the markets within which the inputs are observed.

vii) Charge has been created against the aforesaid assets for the borrowings taken by The Company. (Refer note 21 and 26)

i) The Company has elected to continue with the carrying value of all of its intangible assets recognised as of April 1, 2016 (the transition date) measured as per the previous GAAP and use such carrying value as its deemed cost as of the transition date.

ii) i ntangible Assets under Development comprises of expenditure on computer ERP license fee and it’s configuration and customization.

* Net of bill discounting Rs.277.74 Lakhs (previous year Rs.949.19 lakhs) under confirmed Letter of Credits (LC)

There are no trade or other receivables which are due from directors or other officers of the company either severally or jointly with any other person. Also, there are no trade or other receivables which are due from firms or private companies, in which any director is a partner, a director or a member.

trade Receivables have been pledged as security for borrowings, refer note 21 and note 26 for details

* These balance are not available for the use by the Company as they represent corresponding unpaid dividend liabilities. ** Deposits are in the nature of Margin Money pledged with banks against Bank Guarantee’s given/Letter of credit’s established by the bank

LAND AND BUILDING AT NANI TAMBADI

The Company had acquired Land at Nani Tambadi for setting up of Multi Filament Yarns facility with continuous polymerasation plant. Due to problems created by local villagers and undue delay in statutory clearances, the project had to be shifted to Dahej, Gujarat. consequent to this the company has decided to sell the said land and building constructed thereon. the company has entered into an agreement to sell the land & building and has received advance. on receipt of Pending approvals and Noc from concerned authority, the closure of the deal is likely to completed in FY 2018-19.

LAND, BUILDING & PLANT & MACHINERY AT NOIDA

Board of directors in its Board meeting held on 0711.2017 decided to close down operations at its noida Plant as the size of operations at noida plant were very small as compared to the other two plants at dahej and dadra, also the products manufactured at noida plant became unremunerative. out of the three production lines, two lines had already been sold till 31.03.2018 and negotiations are going on for sale of rest plant and machinery, land and building at noida Plant.

the company has identified the above as held for sale to optimise the capital allocation and focus on core business. the sale is envisaged through transfer of title for identified assets held for sale. the proposed sale are expected to be completed within 12 months from the respective reporting dates.

b. Terms / rights attached to equity shares

1. The Company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. the Company declares and pays dividend in indian rupees.

2. in the event of liquidation of the Company, the holders of equity shares 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 shares held by the shareholders.

c. Issue of convertible warrants and conversion into equity shares

1. During the year ended March 31, 2016 the Company had allotted 11,500,000 Convertible Warrants and received Rs.1,293.75 lakhs as application money being 25% of the issue price on preferential basis to the promoter’s group/others to be converted at the option of warrant holders in one or more tranches, within 18 months from the date of allotment (i.e. March 16, 2016) of warrants into equivalent number of fully paid equity shares of the Company of the face value of Rs.10/- per share at an exercise price of Rs.45/- per share (including premium of Rs.35/- per share).

2.During the year ended March 31, 2017 the Company has received Rs.3881.25 lakhs being 75% of the issue price and allotted 11,500,000 equity shares of face vale of Rs.10/- per share at a premium of Rs.35/- per share at its meeting held on July 30, 2016. The proceeds of the same have been utilised for the intended purpose of promoters contribution in the Company’s expansion project.

Nature and Purpose of Reserves

a) Capital Reserve

capital Reserve was created under the previous GAAP on account of capital profit in negotiation settlement with IDBI Bank and on redemption of certain preference shares.

b) Capital Redemption Reserve

capital redemption reserve was created during redemption of Preference shares out of the profits of the company in accordance with the requirements of companies act.

c) Security Premium Reserve

the amount received in excess of face value of the equity shares is recognised in securities Premium reserve. this can be utilized in accordance with the provisions of the companies act, 2013.

d) General Reserve

this reserve is created by an appropriation from one component of equity (generally retained earnings) to another, not being an item of other comprehensive Income. the same can be utilized by the company in accordance with the provisions of the companies act, 2013.

e) Employee Stock Option Outstanding

the fair value of the equity-settled share based payment transactions with employees is recognised in statement of Profit and Loss with corresponding credit to Employee stock options outstanding account.

f) Retained Earnings

retained earnings are the profits that the company has earned till date, less any transfer to General reserve, dividends or other distributions paid to the shareholders.

I. Term loans

a) from banks under consortium arrangement Rs.23,383.68 lakhs (net of transaction cost of Rs.184.24 lakhs) [previous year Rs.19,957.60 lakhs (net of transaction cost of Rs.114.54 lakhs)], are secured by equitable mortgage created/extended by way of deposit of title deeds on pari passu basis in respect of immovable properties and first charge by way of hypothecation of company’s all movable assets (save & except vehicles, plant & machinery and equipment acquired through specific loans), pledge of 7,472,679 equity shares of the face value of Rs.10/- each of the company held by the promoters and promoter’s group, mortgage of an immovable property owned by smc yarns Pvt ltd (related party), personal guarantees of the promoter directors alongwith corporate guarantee of smc yarns Pvt ltd (related party) upto value of the mortgage property. these loans are further secured by second pari passu charge by way of hypothecation of inventory of raw material, finished goods, semi-finished goods, stores & spares, book debts and other receivables (both present and future) Rupee loan bear floating interest rate ranging from MdR plus 2.10% - 4.25% p.a. while foreign currency term loan (FcTL) bear interest rate of 6 /12 Months libor 4.00% to 4.25% p.a. the loans are repayable in ballooning quarterly installments.

b) external commercial Borrowings (EcB) From Foreign consortium Banks

(i) Rs.5,954.57 lakhs (net of transaction cost Rs.348.46 lakhs) [previous Year Rs.5,782.08 lakhs (net of transaction cost Rs.466.02 lakhs)], are secured by first priority exclusive charge over fully drawn yarn spinning machinery and equipments thereof and personal guarantee of promoter directors. the loan is repayable in 16 half yearly equal installments that commenced from December 2016 and bear Interest at 6m Euribor 1.55% p.a.

(ii) Rs.17,’46718 lakhs (net of transaction cost Rs.1,546.11 lakhs) (previous year Rs. Nil), are secured by first priority exclusive charge over Fully Drawn Yarn spinning machinery and equipments thereof and personal guarantee of promoter directors. the loan is repayable in 20 half yearly equal installments that will commence from September 2018 and bear Interest at 6M Euribor 1.10% p.a.

II. Vehicle loans are secured by hypothecation of specific vehicles acquired out of proceeds of the Loans. the said loans carry interest rate which varies 8.25% to 10.50% and repayable in 36 - 60 Equated Monthly installments.

III. Buyers’ credit for capital goods amounting to Rs.2,941.32 Lakhs (Previous Year Rs.1,182.84 Lakhs) secured by Letters of Undertaking (LOUs) / Letter of comfort (LOcs) issued by consortium of banks. LOUs / LOcs facility is secured by equitable mortgage created by way of deposit of title deeds on pari passu basis in respect of immovable properties and first charge by way of hypothecation of company’s all movable assets (save & except inventories, book debts, vehicles, plant & machinery acquired through specific loans), pledge of 7,472,679 equity shares of the face value of Rs.10/- each of the company held by the promoter directors and promoter group, equitable mortgage of an immovable property owned by SMc Yarns Pvt Ltd (related party) and personal guarantees of the promoter directors alongwith corporate guarantee of SMc Yarns Pvt Ltd (related party) to the extent of value of property on pari-passu basis. these loans are further secured by second pari passu basis charge by way of hypothecation of inventory of raw material, finished goods, semi-finished goods, stores & spares, book debts and other receivables (both present and future). the loan bears floating interest 6/12 Months Libor plus 0.72% - 2.30% p.a. & Euribor plus 0.12% - 0.40% p.a

IV. From a non banking financial institution

a) Rs.889.04 Lakhs (net of transaction cost Rs.4.10 Lakhs) [Previous year Rs.950.66 Lakhs (net of transaction cost Rs.5.02 Lakhs)] is collaterally secured by mortgage created by way of deposit of title deeds in respect of the immovable property belonging to promoters group, and are further secured by corporate guarantee of azimuth Investment Limited, Promoter’s group company (related party) restricted upto the value of property. the loan carries floating interest rate of RFRR - 9.20% i.e 11.00% p.a. presently and repayable in 120 equated monthly installments that started from May, 2016.

b) Rs.2,483.82 lakhs (net of transaction cost Rs.16.18 Lakhs) [previous year Rs.2,374.75 lakhs (net of transaction cost Rs.25.25 Lakhs)] is collaterally secured by mortgage created by way of deposit of tittle deeds in respect of immovable property belonging to Elevate Developers Private Limited, (Related party) and are further secured by pledge of 3,400,000 equity shares held by the promoter group companies. the loan carries floating interest rate of base rate plus 0.30% i.e 13.25% p.a presently and is repayable in 11 equal quarterly installments starting from October 2018 after a moratorium of 15 months.”

V. Unsecured Loans - From body corporates carrying interest @ 9% - 14% p.a. and are payable after 15 months to 36 months from the date of receipt.

i) The tax rate used for calculating deferred tax for FY 2017-18 is 34.9440% and for FY 2016-17 is 34.608% payable by corporate entities in india on taxable profits under the indian tax law.

ii) The indian Companies have to pay taxes based on the higher of income-tax profit of the Company or MAT at 21.3416% of book profit for the year 2017-18 and 2016-17.

I. Working capital loans from consortium member banks are secured by first charge by way of hypothecation of inventory of raw materials, finished goods, semi finished goods, stores and spares, book debts and other receivables (both present and future) on pari passu basis and are further secured by way of second charge on block of fixed assets of the Company save & except vehicles and plant & machinery acquired out of specific loan(s). These facilities are further secured by pledge of 7,472,679 equity shares of the face value of Rs.10/- each of the Company held by promoter and promoter group, equitable mortgage of an immovable property owned by sMC Yarns Pvt Ltd (related party) and personal guarantees of promoter directors alongwith corporate guarantee of sMC yarns Pvt Ltd (related party) to the extent of value of property i.e Rs.434.00 lakhs on pari passu basis. These loans are repayable on demand. Rupee working capital loan carry an interest at MCLR plus 2.10% to 3.95% p.a and foreign currency working capital loan carry an interest at 6M libor 3.50% to 3.65% p.a.

II. short term borrowing

short term borrowing obtained from Union Bank of India, on sole banking and is secured by first charge by way of hypothecation of inventory of raw materials, finished goods, semi finished goods, stores and spares, book debts, GsT receivable and other receivables (both present and future) on pari passu basis and are further secured by way of second charge on block of fixed assets of the Company save & except vehicles and plant & machinery acquired out of specific loan(s). These facilities are further secured by pledge of 7,472,679 equity shares of the face value of Rs.10/- each of the Company held by promoter and promoter group, equitable mortgage of an immovable property owned by sMC yarns Pvt Ltd (related party), equitable mortgage of an immovable property owned by Ms Vrinda Bhageria (related party) and personal guarantees of promoter directors alongwith corporate guarantee of sMC yarns Pvt Ltd (related party) to the extent of value of property i.e Rs.434.00 lakhs on pari passu basis and personal guarantee of Ms. Vrinda Bhageria (related party) to the extent of value of property i.e. Rs.336.00 lakhs. These loans are repayable on demand. rupee working capital loan carry an interest at MCLR plus 2.10% to 3.95% p.a and foreign currency working capital loan carry an interest at 6M libor 3.50% to 3.65% p.a.

III. Bill Discounting: The above does not include bill discounting of Rs.277.74 Lakhs (previous year Rs.949.19 lakhs) from bank against confirmed letter of credit which has been reduced from Trade Receivables (refer note 12).

Basic EPS is calculated by dividing the profit for the year attributable to equity holders of the company by the weighted average number of equity shares outstanding during the year. Diluted EPs is calculated by dividing the profit attributable to equity holders of the company by the weighted average number of equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

The Company does not expect any reimbursement in respect of the above contingent liabilities and it is not practicable to estimate the timings of the cash flows, if any. In respect of the matters pending resolution of the arbitration/ appellate proceedings and it is not probable that an outflow of resources will be required to settle the above obligations/ claims.

Based on the discussion with the solicitors and as advised, The Company believes that there are fair chances of decisions in its favor (in respect of the items listed in A (a) to A (d) above). Hence, no provision is considered necessary against the same.

ii) Capital & other commitments

a) Estimated amount of contracts remaining to be executed on capital account, net of advances and not provided in the books are as follows:

b) Other commitments :

Export obligation of Rs.16,392.35 lakhs (previous year (Rs.1,860.78 lakhs) on account of duty saved on import of plant & machinery under EPCG scheme.

3. In light of section 135 of the Companies Act, 2013, The Company has incurred expenses on Corporate social responsibility (CsR) aggregating to Rs.63.48 Lakhs (previous year Rs.19.38 Lakhs).

Disclosure in respect of CsR expenditure is as follows:

The information has been given in respect of such vendor to the extent they could be identified as Micro and small Enterprises as per MsMED Act, 2006 on the basis of information available with The Company and in cases of confirmation from vendors, interest for delayed payments has not been provided.

4. Segment Information

The Company is primarily engaged in manufacture and trading of synthetic yarn and textiles which is considered as the only reportable business segment. The Company’s Chief Operating Decision Maker (CODM) is the Managing Director. He evaluates The Company’s performance and allocates resources based on analysis of various performance indicators by geographical areas only.

c. Information about major customer :

There are no major customers contributing to more than 10% of the total revenue.

# Net worth as on 31st March, 2017 (previous year as on 31st March, 2016)

*Property jointly held by related parties and valuation of property as per valuation report dated 14th April, 2014

Grant of stock options during the previous year to key managerial personnel namely, (1) Mr. Ashok Chauhan - 50,000 Shares, (2) Mr. R.P

Gupta - 40,000 Share and (3) Mr. Raman Jha - 15,000 Share (refer note no. 50).

No amount has been written off or provided for in respect of transactions with related parties.

4. Leases

(a) Operating Lease: Company as a lessee

General Description of leasing agreements:

The Company has various operating leases under cancellable operating lease arrangements for plant and machinery, accommodation for employees and other assets which are renewable by mutual consent on mutually agreeable terms and range between 11 months to 10 years. The Company has given interest free refundable security deposit in accordance with the agreed terms. There are no restrictions imposed by these arrangements. There are no sub leases. The Company has not entered into any non cancellable lease.

(b) Finance Lease:

The Company has entered into finance leases for leasehold land. These leases are generally for a period of 99 years. The land at Dahej, Gujrat can be extended for a further period of 99 years. No part of the land has been sub leased. Except for the initial payment, there are no material annual payments for the aforesaid leases. Refer Note 4 for carrying value.

5. Employee Benefits

Refer note 2.12 for accounting policy on Employee Benefits

A. Defined contribution plans

i. Provident Fund/Employees’ Pension Fund

ii. Employees’ state Insurance

B. Defined Benefit Plan

Gratuity: The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

(i) Balance Sheet

The assets, liabilities and surplus/(deficit) position of the defined benefit plans at the Balance sheet date were:

Notes:-

(i) The actuarial valuation of plan assets and the present value of the defined benefit obligation were carried out as at March 31, 2018. The present value of the defined benefit obligation and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

(ii) Discount rate is based on the prevailing market yields of Indian Government securities as at the Balance sheet date for the estimated term of the obligations.

(iii) The salary escalation rate is arrived after taking into consideration the inflation, seniority, promotion and other relevant factors on long term basis.

The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the year and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate the liability recognised in the Balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous year.

Grants relating to property, plant and equipment relate to duty saved on import of capital goods and spares under the EPCG scheme. Under such scheme, The Company is committed to export prescribed times of the duty saved on import of capital goods over a specified period of time. In case such commitments are not met, The Company would be required to pay the duty saved along with interest to the regulatory authorities.

Pending export obligations attached to above grant amounts to Rs 16,392.35 lakhs (previous year Rs. 1,860.78 lakhs) b. Related to an expense item:

Grant on account of interest subvention amounting to Rs. 625.90 Lakhs (including Rs. 294.14 lakhs upto March 31, 2017 relating to previous years but recognised in the current year in accordance with the accounting policy) recognised during the year has been deducted from the related interest expense.

6. SHARE BASED PAYMENTS

(I) Employee Stock Option Plans (ESOP)

(Refer Note No 2.13 of accounting policy)

The Board of Directors of The Company had at its meeting held on February 12, 2016, Approved grant of 9,50,000 stock options (“options”) to the eligible Employees of The Company under the Filatex Employee Stock Option Scheme 2015 (Filatex ESOS -2015),at an exercise price of Rs. 37 per option (being the closing price at BSE on February 11,2016 i.e immediately preceding the grant date),each option being convertible in to one Equity Share of The Company upon vesting subject to the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and the terms and conditions of the Filatex ESOS 2015.

The terms and conditions of the grant as per the Filatex Employee Stock Option Scheme, 2015 (Filatex ESOS 2015) are as under:

A. Vesting period

On completion of 3 Years from the date of grant of options for 60%

On completion of 4 Years from the date of grant of options for 20%

On completion of 5 Years from the date of grant of options for remaining 20%

B. Exercise period

The exercise period will commence from the date of vesting itself and shall be exercised in such period as may be decided and communicated by the Nomination & Remuneration Committee. The options, which have been vested and not exercised within such period, can be carried forward till the last vesting and can be exercised, either partially or wholly, within a period upto one year from last vesting or within such other period and at such time as may be decided and communicated by the Nomination and remuneration committee, however, the options not so exercised with the period available for exercising of last vesting shall lapse and will not be available for exercise by the employee.

The expected life of the stock option is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome.

During the year ended, The Company recorded an employee compensation expense of Rs.28.74 Lakhs (PY Rs.28.74 Lakhs) in the statement of Profit & Loss.

7. Particulars of investment made/sold during the year as mandated by the provisions of the section 186 of the Companies Act, 2013: refer note 6 & 8 for the details of investments made by The Company as at the reporting dates.

8. FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT POLICIES AND OBJECTIVES

I. Financial Instruments - Accounting classification, fair values and fair value hierarchy :

The category wise details as to the carrying value and fair value of The Company’s financial assets and financial liabilities including their levels in the fair value hierarchy are as follows:

Methods and assumptions used to estimate the fair values are consistent with those used for the year ended 31st March, 2017. The following methods / assumptions were used to estimate the fair values:

1. The carrying value of Cash and cash equivalents, trade receivables, trade payables, short-term borrowings, other current financial assets and financial liabilities approximate their fair value mainly due to the short-term maturities of these instruments.

2. The fair values of investment in quoted investment in equity shares is based on the quoted price in the active market of respective investment as at the Balance Sheet date.

3. Derivative financial instruments - The fair value of forward foreign exchange contracts is determined using the forward exchange rates at the balance sheet date using valuation techniques with inputs that are directly or indirectly observable in the marketplace. The derivatives are entered into with the banks/ counterparties with investment grade credit ratings.

4. Description of significant unobservableinputs to valuation (Level3):The following table shows the valuation techniques and inputs used for Non-current financial instruments that are not carried at fair value:

a. Security deposits given against lease and finance lease obligations: Discounted cash flow method using appropriate discounting rate.

b. Non-current Financial assets/liabilities other than above: Expected Cash Flow for the financial instruments

5. Unquoted equity instruments : where most recent information to measure fair value is insufficient and where the fair value of these investments cannot be reliably measured, or if there is a wide range of possible fair value measurements, cost has been considered as the best estimate of fair value.

6. There has been no change in the valuation methodology for Level 3 inputs during the year. There were no transfers between Level 1 and Level 2 during the year and no transfer into and out of Level 3 fair value measurements.

II. Financial Risk Management Objectives and Policies

The Company’s activities expose it to a variety of financial risks namely market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyze the risks faced by The Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same.

Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and The Company’s activities. The Board of Directors and the Audit Committee is responsible for overseeing The Company’s risk assessment and management policies and processes.

The Company’s financial risk management policy is set by the management. Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. The Company manages market risk which evaluates and exercises independent control over the entire process of market risk management. The management recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee.

a) Credit Risk

Credit risk is the risk of financial loss to The Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from The Company’s receivables from customers. Credit risk arises from cash held with banks as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors. The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade and other receivables. The management uses a simplified approach for the purpose of computation of expected credit loss for trade receivables.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country, in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits, continuously monitoring the credit worthiness of customers to which The Company grants credit terms in the normal course of business and through regular monitoring of conduct of accounts. The Company also holds security deposits for outstanding trade receivables which mitigate the credit risk to some extent.

An impairment analysis is performed at each reporting date on an individual basis for major customers. The history of trade receivables shows a negligible provision for bad and doubtful debts. The management believes that no further provision is necessary in respect of trade receivables based on historical trends of these customers. Further, The Company’s exposure to customers is diversified and no single customer has significant contribution to trade receivable balances.

In respect of financial guarantees provided by The Company to banks & financial institutions, the maximum exposure which The Company is exposed to is the maximum amount which The Company would have to pay if the guarantee is called upon. Based on the expectation at the end of the reporting period, The Company considers that it is more likely than not that such an amount will not be payable under the guarantees provided.

The movement in the loss allowance in respect of trade and other receivables during the year was as follows:

The credit risk on liquid funds such as banks in current and deposit accounts and derivative financial instruments is limited because the counterparties are banks with high credit-ratings.

b) Liquidity Risk

Liquidity risk is the risk that The Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of The Company’s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and committed borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities and by monitoring rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that The Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

* The table has been drawn up based on the undiscounted contractual maturities of the financial liabilities including interest that will be paid on those liabilities upto the maturity of the instruments, ignoring the call and refinancing options available with the Company, if any. The amounts included above for variable interest rate instruments for non-derivative liabilities is subject to change if changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period. Interest accrued but not due has been included in other financial liabilities.

The above excludes any financial liabilities arising out of financial guarantee contract. In respect of Financial guarantees provided by The Company to banks & financial institutions, the maximum exposure which The Company is exposed to is the maximum amount which The Company would have to pay if the guarantee is called upon. Based on the expectation at the end of the reporting period, The Company considers that it is more likely than not that such an amount will not be payable under the guarantees provided.

Financing facilities:

The Company has access to financing facilities as described in below Note. The Company expects to meet its obligations from operating cash flows and proceeds of maturing financial assets.

c) Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments and all short term and long-term debt. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTPL investments, trade payables, trade receivables, derivative financial instruments and other financial instruments. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, The Company’s exposure to market risk is a function of investing and borrowing activities.

i) Foreign exchange risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s foreign exchange risk arises from its foreign currency borrowings and trade receivables and trade payables denominated in foreign currencies. The results of The Company’s operations can be affected as the rupee appreciates/depreciates against these currencies. The Company enters into derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures The Company has a treasury team which monitors the foreign exchange fluctuations on a continuous basis and advises the management of any material adverse effect on The Company.

a. Foreign currency sensitivity analysis:

The following tables demonstrate the sensitivity to a reasonably possible change in exchange rates of UsD, JPY and Euro with INR, with all other variables held constant. The impact on The Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities including non-designated foreign currency derivatives. The Company’s exposure to foreign currency changes for all other currencies is not material.

b. Derivative financial instruments :

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rate on foreign currency exposure. The counterparty for these contracts is generally a Bank or a Financial Institution. These derivative financial instruments are valued based on inputs that is directly or indirectly observable in the marketplace.

ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to The Company’s long-term debt obligations with floating interest rates.

The Company’s investments in term deposits (i.e., margin money) with banks are for short durations, and therefore do not expose The Company to significant interest rates risk.

a. Interest rate risk exposure

The exposure of The Company’s borrowing to interest rate changes at the end of the reporting period are as follows:

b. Interest rate sensitivity:

The sensitivity analysis below have been determined based on exposure to interest rates for borrowings at the end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in case of borrowings that have floating rates.

If the interest rates had been 50 basis points higher or lower and all the other variables, in particular foreign currency exchange rates, were held constant, the effect on Interest expense for the respective financial years and consequent effect on Company’s profit in that financial year would have been as below:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

iii.) Price risk

The Company invests its surplus funds in various mutual funds (debt fund, equity fund, liquid schemes and income funds etc.), short term debt funds, listed or unlisted equity shares, government securities and fixed deposits. The price risk arises due to uncertainties about the future market values of these investments. In order to manage its price risk arising from investments, The Company diversifies its portfolio in accordance with the limits set by the risk management policies.

Capital Risk Management Policies and Objectives

The Company’s objective while managing capital is to safeguard its ability to continue as a going concern (so that it is enabled to provide returns and create value for its shareholders, and benefits for other stakeholders), support business stability and growth, ensure adherence to the covenants and restrictions imposed by lenders and / or relevant laws and regulations, and maintain an optimal and efficient capital structure so as to reduce the cost of capital and to maximise shareholders value. In order to maintain or adjust the capital structure, The Company may adjust the dividend payment to shareholders, return capital to shareholders, issue new shares, obtain new borrowings or sell assets to reduce debt, etc.

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

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Net debt is calculated as interest bearing loans and borrowings less cash and cash equivalents.

In order to achieve this overall objective, The Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowings in the current period.

IV Changes in liabilities arising from financing activities

With effect from 01.04.2017, the Company adopted the amendments to Ind AS 7 - Statement of cash flows. The amendments require entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. To the extent necessary to satisfy this requirement, an entity discloses the following changes in liabilities arising from financing activities:

- Changes from financing cash flows

- Changes arising from obtaining or losing control of subsidiaries or other businesses

- The effect of changes in foreign exchange rates

- Changes in fair values

- Other changes

Paragraph 44C ofIndAS 7 states that liabilities arising from financing activities are liabilities for which cash flows were, or future cash flows will be, classified in the statement of cash flows as cash flows from financing activities. In addition, the disclosure requirement in paragraph 44A also applies to changes in financial assets (for example, assets that hedge liabilities arising from financing activities) if cash flows from those financial assets were, or future cash flows will be, included in cash flows from financing activities.

The Company disclosed information about its interest-bearing loans and borrowings. There are no obligations under finance lease and hire purchase contracts.

The amendments suggest that the disclosure requirement may be met by providing a reconciliation between the opening and closing balances in the statement of financial position for liabilities arising from financing activities. Where an entity discloses such a reconciliation, it shall provide sufficient information to enable users of the financial statements to link items included

in the reconciliation to the statement of financial position and the statement of cash flows. The Company decided to provide information in a reconciliation format. The major changes in the Company’s liabilities arising from financing activities are due to financing cash flows and accrual of financial liabilities. The Company did not acquire any liabilities arising from financing activities during business combinations effected in the current period or comparative period.

* represents Interest expenses including interest capitalised as per IndAs 23 amounting Rs.160.13 Lakhs

The ‘Other’ column includes the effect of reclassification of non-current portion of interest-bearing loans and borrowings to current due to the passage of time, and the effect of accrued but not yet paid interest on interest bearing loans and borrowings.

9. Capitalisation of Expenditure

The Company has capitalised the following expenses of revenue nature to the cost of capital work in progress (CWIP)/ Property, Plant & Equipment (PPE). Consequently the expenses disclosed under the respective notes are net of amounts capitalised by

* Interest comprises of

1 Rs.585.02 Lakhs (Previous year Rs.Nil) on specific borrowings taken for Plant & machinery

2 Rs.360.51 Lakhs (Previous year Rs.78.03 Lakhs) on general borrowings taken for other qualifying assets.

10. Use of estimates and judgements

The preparation of financial statements in conformity with the recognition and measurement principles of Ind As requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, historical experience and other factors, including expectations of future events that are believed to be reasonable, actual results could differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

A. Judgements in applying accounting policies

The judgements, apart from those involving estimations (see note below), that the Company has made in the process of applying its accounting policies and that have a significant effect on the amounts recognised in these financial statements pertain to:

Leasehold land:

The Company has entered into several arrangements for lease of land from government entities and other parties. significant judgment is involved in assessing whether such arrangements are in the nature of finance or operating lease. In making such an assessment, the Company considers various factors which includes whether the present value of minimum lease payments amount to at least substantially all of the fair value of lease assets, renewal terms, purchase option, sub-lease options etc. Based on evaluation of above factors, leases are evaluated on case to basis for the purpose of treating as in the nature of finance lease.

B. Key sources of estimation uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year :

(i) Impairment of trade receivables:

The impairment provisions for trade receivables are based on based on lifetime expected credit loss based on a provision matrix. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and the rates used in the provision matrix.

The Company uses judgment in making assumptions about risk of default and expected loss rates and selecting the inputs to the impairments calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

(ii) Fair value measurements of financial instruments:

In estimating the fair value of a financial asset or a financial liability, the Company uses market-observable data to the extent it is available. Where active market quotes

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Mar 31, 2016

b. Terms / rights attached to equity shares

1. The company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees.

2. In the event of liquidation of the company, the holders of equity shares 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 shares held by the shareholders.

c. Issue of convertible warrants and conversion into equity shares

1. During the year the company has allotted 11,500,000 Convertible Warrants on preferential basis to the promoters/others to be converted at the option of warrant holders in one or more tranches, within 18 months

from the date of allotment (i.e. March 16, 2016) of warrants into equivalent number of fully paid equity shares of the company of the face value of Rs. 10/- per share at an exercise price of Rs. 45/- per share (including premium of Rs. 35/- per share).

2. The company received Rs. 1,293.75 lacs as application money being 25% of the issue price against 11,500,000 convertible warrants.

3. If the warrant holders fails to exercise the option as mentioned in (1) above, the right attached to the warrants shall expire and any amount paid on such warrants shall stand forfeited in accordance with chapter VII of SEBI (issue of Capital and Disclosure Requirements, 2009)

The proceeds of the same have been utilized for the intended purpose of promoters contribution in the company''s expansion project.

I. Term loans

a) From banks under consortium arrangement Rs. 16,883.53 lacs (previous Year Rs. 17,228.43 lacs), are secured by first equitable mortgage created by way of deposit of title deeds on pari passu basis in respect of immovable properties, both present and future, and first charge by way of hypothecation of company''s all movable assets (save & except inventories, book debts, vehicles, plant & machinery acquired through specific loans). These loans are further secured by second charge by way of hypothecation of inventory of raw material, finished goods, semi-finished goods, stores & spares, book debts and other receivables (both present and future), pledge of 5,472,679 equity shares of the face value of Rs.10/- each of the company held by the promoter group and mortgage of an immovable property owned by SMC Yarns Pvt Ltd (related party), personal guarantees of the promoter directors alongwith corporate guarantee of SMC Yarns Pvt Ltd (related party) upto value of the mortgage property. Rupee loan bear floating interest rate ranging from Base Rate plus 3.25% - 4.25% p.a. while Foreign Currency Term Loan (FCTL) bear interest rate of 6 /12 Months Libor 4.00% to 5.50% P.A. The loans are repayable in quarterly installments.

b) External Commercial Borrowings (ECB) From Foreign Consortium Banks Rs. 7,238.28 lacs (previous Year Rs. NIL lacs), are secured by first priority charge over Fully Drawn Yarn spinning machinery. The loan is repayable in 16 half yearly installments commencing from December 2016 and bear Interest at 6M Euribor 1.55% P.A.

II. Vehicle loans are secured by hypothecation of specific vehicles acquired out of proceeds of the Loans. The said loans carry interest rate which varies 9.20% to 13.00% and repayable in 36 - 60 Equated Monthly installments.

III. Buyers'' Credit for capital goods amounting to Rs. 164.70 (Previous Year Rs. NIL lacs) secured by Letters of Undertaking (LOUs) / Letter of Comfort (LOCs) issued by consortium of banks. LOUs / LOCs facility is secured by first mortgage created by way of deposit of title deeds on pari passu basis in respect of immovable properties, both present and future, and first charge by way of hypothecation of company''s all movable assets (save & except inventories, book debts, vehicles, plant & machinery acquired through specific loans). These loans are further secured by second charge by way of hypothecation of inventory of raw material, finished goods, semi-finished goods, stores & spares, book debts and other receivables (both present and future), pledge of 5,472,679 equity shares of the face value of Rs.10/- each of the company held by the promoter directors, mortgage of an immovable property owned by SMC Yarns Pvt Ltd (related party) and personal guarantees of the promoter directors alongwith corporate guarantee of SMC Yarns Pvt Ltd (related party) on pari-passu basis. The loan bears floating interest 6/12 Months Libor plus 1.25% - 1.75% p.a.

IV. From a non banking financial institution of Rs. 1,004.00 lacs is collaterally secured by mortgage created by way of deposit of title deeds in respect of the immoveable property situated at (i) Ground floor and Third floor of plot no. 43, New Friends Colony, New Delhi 110025, belonging to promoters group, and are further secured by corporate guarantee of Azimuth Investment Limited, Promoter''s group company restricted up to the value of property. The loan carries interest rate of 12.80% p.a. and repayable in 120 equated monthly installments starting from May, 2016.

V. Unsecured Loans - From body corporate carry interest @ 9% - 11% p.a. and are payable after 15 months to three years from the date of receipt.

I. Working capital loans from consortium member banks are secured by first charge by way of hypothecation of inventory of raw materials, finished goods, semi finished goods, stores and spares, book debts and other receivables (both present and future) and are father secured by way of second charge on block of fixed assets of the company save & except vehicles and plant & machinery acquired out of specific loan(s). These are further secured by pledge of 5,472,679 equity shares of the face value of Rs.10/- each of the company held by promoter group, mortgage of an immovable property owned by SMC Yarns Pvt Ltd (related party) and personal guarantees of promoter directors alongwith corporate guarantee of SMC Yarns Pvt Ltd (related party) on pari passu basis. These loans are repayable on demand. Rupee working capital loan carry an interest at Base rate plus 2.75% to 3.75% P.A and Foreign currency working capital loan carry an interest at 6/12 Months libor 4.00% to 4.50% P.A.

II. Buyers'' Credit for raw material are secured by LOUs / LOCs issued by consortium of banks. The LOUs / LOCs facility is sanctioned to the Company as a sub limit of Non Fund (LCs) based facility. The facility is secured by first charge by way of hypothecation of inventory of raw materials, finished goods, semi finished goods, stores and spares, book debts and other receivables (both present and future) and are further secured by way of second charge in respect of entire block of fixed assets of the company save and except vehicles and specific plant & machinery acquired out of specific loan(s). These are further secured by pledge of 5,472,679 equity shares of the face value of Rs.10/- each of the company held by promoter group, mortgage of an immovable property owned by SMC Yarns Pvt Ltd (related party) and personal guarantees of promoter directors alongwith corporate guarantee of SMC Yarns Pvt Ltd (related party) on pari passu basis. The loans bear interest @ 3/6 Months Libor plus 0.44%- 0.94% p.a and are repayable on respective due dates following between 8th Apr, 2016 to 24th July, 2016.

# Includes vehicles taken on hire purchase amounting to Rs. 119.92 lacs (previous year Rs. 124.71 lacs) and plant & machinery taken on hire purchase amounting to Rs. Nil lacs (previous year Rs.85.11 lacs)

*1. Plant & Machinery Includes cost of Rs.342.93 lacs (previous year Rs.342.93 lacs) of water supply connection from GIDC and Rs. 101.00 lacs (Previous Year Rs. 101.00 lacs) being cost of electricity transmission lines not owned by the company.

2. Foreign Exchange fluctuation aggregating Rs. 250.07 lacs (Previous year Rs. 17.82) lacs capitalized during the year.

$ Preoperative expenses Rs. 270.98 lacs (previous year Rs. 66.37 lacs) and borrowing cost Rs. 957.26 lacs (previous year Rs. Nil) has been capitalized. (Refer note no. 41)

@ Capital Work in Progress (CWIP) includes preoperative expenses Rs. Nil (previous year Rs. 66.37 lacs) and borrowing cost Rs. 36.66 lacs (previous year Rs. Nil). (Refer note no. 41)

Based on the discussion with the solicitors and as advised, the company believes that there are fair chances of decisions in its favor (in respect of the items listed in (c ) to (f) above). Hence, no provision is considered necessary against the same.

ii) Commitments

Capital contracts remaining to be executed (net of payments) and not provided for Rs. 2,151.00 lacs (previous year Rs. 6,351.64 lacs).

4. Subsequent to the auditors'' qualification relating to treatment of foreign exchange difference during FY 2012-13 onwards, SEBI/QARC vide its letter dated November 05, 2015 advised the company to give effect to Auditors'' said Qualification for the Financial Years beginning from FY 2012-13. The company filed an appeal before the Securities Appellate Tribunal (SAT) at Mumbai, which vide its order dated 29^th March, 2016 has quashed the orders of SEBI and hence the company is no more required to take any action on the said qualification.

5. In light of Section 135 of the Companies Act, 2013, the company has incurred expenses on Corporate Social responsibility (CSR) aggregating to Rs. 4.50 lacs (previous year Rs. 4.68 lacs).

The information has been given in respect of such vendor to the extent they could be identified as Micro and Small Enterprises as per MSMED Act, 2006 on the basis of information available with the company.

6. Segment reporting as defined in Accounting Standard 17 is not applicable as the Company is engaged in manufacture and trading of Synthetic Yarn & Textiles.

7. FORWARD EXCHANGE CONTRACTS AND UNHEDGED FOREIGN CURRENCY EXPOSURE:

iii) Premium for forward contracts for unexpired period of Rs. 566.40 lacs has been carried over to next year (Previous year Rs. 364.43 lacs) and will be charged to Profit & Loss Account as and when the underlying transaction will crystallize.

8. EMPLOYEE STOCK OPTION SCHEME:

The Board of Directors of the Company had at its meeting held on February 12, 2016 ,approved grant of 9,50,000 stock options (“options”) to the eligible Employees of the Company under the Filatex Employee Stock Option Scheme 2015 (Filatex ESOS -2015),at an exercise price of Rs. 37 per option (being the closing price at BSE on February 11,2016 i.e. immediately preceding the grant date),each option being convertible in to one Equity Share of the company upon vesting subject to the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and the terms and conditions of the Filatex ESOS 2015.

The terms and conditions of the grant as per the Filatex Employee Stock Option Scheme, 2015 (Filatex ESOS 2015) are as under:

A) Vesting period

On completion of 3 Years from the date of grant of options for 60%

On completion of 4 Years from the date of grant of options for 20%

On completion of 5 Years from the date of grant of options for remaining 20%

B) Exercise period

The exercise period will commence from the date of vesting itself and shall be exercised in such period as may be decided and communicated by the Nomination & Remuneration Committee. The options, which have been vested and not exercised within such period, can be carried forward till the last vesting and can be exercised, either partially or wholly, within a period up to one year from last vesting or within such other period and at such time as may be decided and communicated by the Nomination and Remuneration committee, however, the options not so exercised with the period available for exercising of last vesting shall lapse and will not be available for exercise by the employee.

Based on the Guidance note on “Employee Share-Based Payments” issued by The Institute of Chartered Accountant of India, the company has adopted the intrinsic method for accounting for ESOP.

9. SUBSIDIARY AND CONSOLIDATION OF FINANCIAL STATEMENT.

The company namely “Filatex Global PTE Limited” was incorporated on 3^rd Nov, 2015 as its wholly owned subsidiary company. No transaction/ business has taken place during the financial year ended 31^st March, 2016 except for incorporation expenses. Therefore, the subsidiary''s financial statement has not been prepared and consolidated with the annual accounts of the company.

10. EMPLOYEE BENEFITS

a) Provident Fund

Contribution to recognized provident fund

The Company contributed Rs. 135.01 Lacs towards provident fund during the year ended March 31, 2016 (previous year Rs. 99.71 Lacs)

b) Gratuity Plan

The Company has a defined benefit gratuity plan. Gratuity is computed at 15 days salary, for every completed year of service or part thereof in excess of six months and is payable on retirement/ termination/resignation. The benefit vests on the employees after completion of five years of service. The company makes provisions of such gratuity liability in the books of account on the basis of actuarial valuation as per projected unit credit method (PUCM)

11. During the financial year 2014-15, the company had proposed to put up manufacturing facility for manufacture of 100 MT/day of Polyester Fully Drawn Yarn, 30 MT/day additional spinning of polyester yarn along with 203 MT/day of Polyester Textured Yarn at its existing plant in Dahej, Gujrat.

The expenditure incurred on start-up and commissioning of the project along with certain revenue expenses attributable to assets under construction have been capitalized as an indirect element of the construction cost during the current year. The trial run for FDY was carried out successfully during the year, and the FDY plant was commissioned and the assets are put to use. The assets for D-Tex machine and building are under construction and the expenses related to them have been carried forward for next year.

12. The company has taken various residential, office and warehouse premises under operating lease agreements. These are generally cancelable and are renewable by mutual agreed terms. There are no restrictions imposed under the lease agreement and there are no subleases. The company has paid Rs. 120.55 lacs (previous year Rs. 119.01 lacs) towards operating lease rentals.

13. Particulars in respect of goods dealt with by the Company:

14. Figures have been rounded off to rupees in lacs and previous year figures have been regrouped / rearranged to the extent necessary to correspond with the figures for the current year.

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Mar 31, 2015

1. Nature of Operation

Filatex India Limited (hereinafter referred to as "the Company") is a manufacturer of Polyester Chips, Polyester/ Nylon/Polypropylene Multi & Mono Filament Yarn and Narrow fabrics.

2. In respect of fire at companies POY manufacturing unit at Dadra in Financial Year 2012-13, the company has received claim under fire policy during FY 2013-14 and claim under loss of profit policy amounting to Rs. 536.59 lacs is under consideration of insurer.

3. In terms of the Notification No.G.S.R. 225(E) dated March 31, 2009 as amended till date by the Ministry of Corporate Affairs (MCA) on Accounting Standard (AS-11), the Company had exercised option to adjust the foreign exchange difference on long term foreign currency loans including Foreign Currency Loan obtained under buyers credit with maturity of less than one year and considered as long term liabilities, as the same are to be rolled over for a period of three years from the date of origination) to the cost of qualifying capital assets. Accordingly during the year, the company has added Rs. 17.82 lacs on account of foreign exchange difference to the cost of qualifying assets which are being amortized over the remaining life of such assets upon capitalization.

The company has received letter dated 26th December, 2014 from National Stock Exchange (NSE) advising the company to restate its Financial Statements for the financial year 2012-13 subsequent to the auditors qualification relating to treatment of foreign exchange difference during FY 2012-13. The company has taken up the matter with NSE/SEBI to explain and substantiate the accounting treatment by the company is justified. Considering the companies request the Securities & exchange board of India (SEBI) has informed the company for providing an opportunity of being heard and make submissions/representations before Qualified Audit Review Committee (QARC). As the matter is under consideration of SEBI/QARC, any effect with respect to restated of financial statement for FY 2012-13 will be accounted for on receipt of final decision in the matter.

4. The company has incurred an expenditure of Rs. 4.68 lacs on Education, toilets and providing medical facilities under Corporate Social responsibility during FY 2014-15 & the same has been shown in Other Expenses Schedule No. 28.

5. Related Party Disclosure:

(i) Names of related parties and nature of relationships:

a) Key managerial personnel:

i) Shri Madhu Sudhan Bhageria

ii) Shri Purrshottam Bhaggeria

iii) Shri Madhav Bhageria

iv) Shri Ashok Chauhan

v) Shri Rajendra Prasad Gupta

vi) Shri Raman Jha

b) Relative of key managerial personnel:

i) Shri Ram Avtar Bhageria (Father of related parties mentioned at [a)(i) to a)(iii) above].

ii) Ms. Vrinda Bhageria (Daughter of related party mentioned at a(i) above).

iii) Mr Yaduraj Bhageria (Son of related party mentioned at a(ii) above).

iv) Mr. Vedansh Bhageria (Son of related party mentioned at a(iii) above).

c) Enterprises owned or significantly influenced by key managerial personnel:

i) Madhu Sudhan Bhageria (HUF)

ii) Purrshottam Bhaggeria (HUF)

iii) Madhav Bhageria (HUF)

iv) Nouvelle Securities Pvt Ltd v) SMC Yarns Pvt Ltd

vi) Vrinda Farms Pvt. Ltd.

vii) Dahej Energy Pvt. Ltd.

viii) Hill Estate Pvt. Ltd.

6. Employee Benefits

a) Provident Fund

Contribution to recognized provident fund

The Company contributed Rs. 99.71 Lacs towards provident fund during the year ended March 31, 2015 (previous year Rs. 81.02 Lacs)

b) Gratuity Plan

The Company has a defined benefit gratuity plan. Gratuity is computed at 15 days salary for every completed year of service or part thereof in excess of six months and is payable on retirement/ termination/ resignation. The benefit vests on the employees after completion of five years of service. The company makes provisions of such gratuity liability in the books of account on the basis of actuarial valuation as per projected unit credit method (PUCM).

The following table summarizes the components of net benefit expenses recognized in the profit and loss account and amount recognized in the balance sheet for gratuity.

7. The company has taken various residential, office and warehouse premises under operating lease agreements. These are generally cancelable and are renewable by mutual agreed terms. There are no restrictions imposed under the lease agreement and there are no subleases. The company has paid Rs. 119.01 lacs (previous year Rs. 123.84 lacs) towards operating lease rentals.

8. Figures have been rounded off to rupees in lacs and previous year figures have been regrouped / rearranged to the extent necessary to correspond with the figures for the current year.

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Mar 31, 2014

1. Nature of Operation

Filatex India Limited (hereinafter referred to as "the Company") is a manufacturer of Polyester Chips, Polyester/ Nylon/Polypropylene Multi & Mono Filament Yarn and Narrow fabrics.

a. Terms / rights attached to equity shares

1. The company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees.

2. In the event of liquidation of the company, the holders of equity shares 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 shares held by the shareholders.

b. Issue of convertiable warrants and conversion into equity shares

1. During the year the company had alloted 8,000,000 convertiable warrants on preferential basis to the promoters/ others to be converted at the option of warrant holders in one or more tranches, within 18 months from the date of allotment (September 20,2013) of warrants into equivalent num- ber of fully paid equity shares of the company of the face value of Rs. 10/- each at an exercise prce of Rs. 25/- per share (including premium of Rs. 15/- per share).

2. The company received Rs. 500/- lacs as application money being 25% of the issue price from 8,000,000 warrant holders. it has further received Rs. 795/- Lacs towards balance amount of 75% of the issue price from the holders of 4,240,000 warrants for which the warrant holders exercised the option to convert them into equity shares. The company issued 4,240,000 equity shares of Rs. 10/- each at a premium of Rs. 15 per share on preferential basis upon conversion on February 12, 2014. (Previous Year NIL)

3. If the warrant holders fails to exercise the option as metioned in (1) above, the right attached to the warrants shall expire and any amount paid on such warrants shall stand forfeited in accordance with chapter VII of SEBI (issue of capital and Disclosure Requirements), 2009

The proceeds of the same have been utilised for the intended purpose of meeting part project cost including over run.

* During the previous year dividend was partly written back as the share holders in their meeting approved 5% dividend as against 10% recommended by the Board of Directors

I. Term loans

a) From banks under consortium arrangement Rs.14184.80 lacs (previous Year Rs. 3,809.73 lacs), are secured by first equitable mortgage created by way of deposit of title deeds on pari passu basis in respect of immovable properties, both present and future, and first charge by way of hypothecation of company''s all movable assets (save & except inventories, book debts, vehicles, plant & machinery acquired through specific loans). These loans are further secured by second charge by way of hypothecation of inventory of raw material, finished goods, semi-finished goods, stores & spares, book debts and other receivables (both present and future), pledge of 30 lacs equity shares of the face value of Rs.10/- each of the company held by the promoter directors and mortgage of an immovable property owned by SMC Yarns Pvt Ltd (related party), personal guarantees of the promoter directors alongwith corporate guarantee of SMC Yarns Pvt Ltd (related party). These loans bear floating interest rate ranging from Base Rate plus 2.00% - 4.25% p.a. and are repayable in quarterly installments upto March, 2022.

b) From State Bank of India Rs.1579.28 lacs (Previous year Rs.1,812.99 lacs) is collateraly secured by mortgage created by way of deposit of title deeds in respect of the immoveable property situated at (i) Ground floor and Third floor of Plot no. 43, New Friends Colony, New Delhi 110025, belonging to promoters group, (ii) pledge of 35 lacs equity shares of the Company having face value of Rs.10/- each held by the promoters directors and are further secured by personal guarantee of Promoter Directors and the property owners. The loan bears floating interest at base rate plus 6.85% p.a. and is repayable in 8 structured quarterly installments starting from December, 2014 upto September, 2016.

II. Vehicle loans are secured by hypothecation of specific vehicles acquired out of proceeds of the Loans. The said loans carry interest rate which varies 7.79% to 10.86% repayables in 36 - 60 monthly instalments.

III. Buyers'' Credit for capital goods

a) Buyers'' credit amounting to Rs. 6300.58 lacs (Previous Year Rs.14,705.23 lacs) secured by Letters of Undertaking (LOUs) / Letter of Comfort (LOCs) issued by consortium of banks. LOUs / LOCs facility is secured by first mortgage created by way of deposit of title deeds on pari passu basis in respect of immovable properties, both present and future, and first charge by way of hypothecation of company''s all movable assets (save & except inventories, book debts, vehicles, plant & machinery acquired through specific loans). These loans are further securied by second charge by way of hypothecation of inventory of raw material, finished goods, semi-finished goods, stores & spares, book debts and other receivables (both present and future), pledge of 30 Lac equity shares of the face value of Rs.10/- each of the company held by the promoter directors, mortgage of an immovable property owned by SMC Yarns Pvt Ltd (related party). and personal guarantees of the promoter directors alongwith corporate guarantee of SMC Yarns Pvt Ltd (related party). The loan bears floating interest @ US Libor / Euribor plus 0.40% - 0.57% p.a.

b) LOCs / LOUs facilities are sanctioned to the company as a sub limit of term loan. Liability towards Buyers'' Credit under LOCs/ LOUs will be liquidated out of the proceeds of term loans that are repayable over a period upto March, 2022.

IV. From a non banking financial institution of Rs. 214.54 lacs (previous year Rs. 342.43 lacs) and is secured by way of first and

exclusive charge over specific plant & machinery acquired from the loan and personel guarantees of two promotor directors. The loan carries interest rate of 14% p.a. and repayble in 36 monthly installments from October, 2012.

V. Unsecured Loans - From body corporates carry interest @ 9% p.a. and are payable after three years from the date of receipt.

I. Working Capital :

a) Working capital loans from consortium member banks are secured by first charge by way of hypothecation of inventory of raw materials, finished goods, semi finished goods, stores and spares, book debts and other receivables (both present and future) and are futher secured by way of second charge on block of fixed assets of the company except vehicles and plant & machinery acquired out of specfic loans(s). These are further secured by pledge of 30 lacs equity shares of the face value of Rs.10/- each of the company held by promoter directors, mortgage of an immovable property owned by SMC Yarns Pvt Ltd (related party) and personal guarantees of promoter directors alongwith corporate guarantee of SMC Yarns Pvt Ltd (related party) on pari passu basis.

b) The working capital loans from banks are repayable on demand and carry interest at Base Rate plus 2.00% to 3.75% p.a.

II. Buyers'' Credit for raw material are secured by LOUs / LOCs issued by consortium of banks. The LOUs / LOCs facility is sanctioned to the Company as a sub limit of Non Fund (LCs) based facility. The facility is secured by first charge by way of hypothecation of inventory of raw materials, finished goods, semi finished goods, stores and spares, book debts and other receivables (both present and future) further secured by way of second charge in respect of entire block of fixed assets of the company except vehicles and specific plant & machinery acquired out of specfic loans(s). These are further secured by pledge of 30 lacs equity shares of the face value of Rs.10/- each of the company held by promoter directors, mortgage of an immovable property owned by SMC Yarns Pvt Ltd (related party) and personal guarantees of promoter directors alongwith corporate guarantee of SMC Yarns Pvt Ltd (related party) on pari passu basis. The loan bears floating interest @ US Libor / Euribor plus 0.43% - 0.47% p.a.

* # Includes vehicles taken on hire purchase amounting to Rs. 196.60 lacs (previous year Rs.213.99 lacs) and plant & machinery taken on hire purchase amounting to Rs. 102.73 lacs (previous year Rs.102.73 lacs)

** Plant & Machinery i) Includes cost of Rs.342.93 lacs (previous year Rs.342.93 lacs) of water supply connection from GIDC and Rs. 101.00 lacs (Previous Year Rs. Nil) being cost of electricity transmission lines not owned by the company.

i) Amount of borrowing cost aggregating Rs. Nil (previous year 1,121.16 lacs) have been capitalised to:

Building Rs. Nil (previous Year Rs. 125.06 lacs) Plant & Machinery Rs. Nil (previous year Rs. 996.10 lacs)

ii) Sale/deletion of plant & machinery of Dadra unit include Rs. 360.70 lacs (previous year Rs. 298.85 lacs) net of accumulated depreciation, damaged under fire and Rs. 916.31 lacs (previous year Nil) net of accumulated depreciation for Gas based Gensets being assets held for sale. It also includes liability written back against plant & machinery at Dahej unit for Rs. 462.15 lacs (previous year Rs. Nil).

iii) In terms of the Notification No.G.S.R. 225(E) dated March 31, 2009 as amended till date by the Ministry of Corporate Affairs (MCA) on Accounting Standard (AS-11), the Company had exercised option to adjust the foreign exchange difference on long term foreign currency loans (including foreign currency loans obtained under buyers credit with maturity of less than one year and considered as long term liabilities, as the same are to be rolled over for a period of three years from the date of origination) to the cost of qualifying capital assets (plant & machinery). Accordingly, the company has added Rs.1996.66 lacs for the year ended March 31, 2014 (previous year Rs. 852.02 lacs) on account of foreign exchange difference to the cost of qualifying assets (plant & machinery).

* These balance are not available for the use by the Company as they represent corresponding unpaid dividend liabilities.

** Deposits are in the nature of Margin Money pledged with bank against Bank Guarantee given/Letter of Credit established by the bank

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

i) Contingent Liabilities

(Rs. In lacs)

PARTICULARS For the year ended For the year ended March 31, 2014 March 31, 2013

a) Letters of Credits 2,779.95 2,853.80

b) Unexpired Bank Guarantees 645.40 999.74

c) Excise / Custom duty 1,404.67 1,469.87 (Mainly relating to reversal of cenvat credit of NCCD & valuation of texturised yarns)

d) Sales Tax demand 0.80 0.80

e) Income Tax demand on account of :

* Penalty for the period AY 2001-02 to 2005-06 33.37 33.37

* Additions for AY 2008-09 2.20 2.20

f) Claims against the company not acknowledged as debts 251.95 55.87

g) Amount of duty saved on import of plant & machinery 1,666.58 2869.83 under EPCG scheme - corresponding export

obligation pending Rs. 13,497.21 lacs, previous year Rs. 20,168.00 lacs

ii) Commitments

Capital contracts remaining to be executed (net of payments) and not provided for Rs. 264.40 lacs (previous year Rs. 427.28 lacs).

2. During the previous financial Year a fire broke at company''s POY manufacturing unit at Dadra which affected functioning of some of the POY lines. Some lines which suffered partial damages were repaired and put to use again by March 2013. In respect of the lines which had major damages, in view of the substantial amount of expenditure required to be incurred to restore such machines, it is thought prudent to take the insurance claim on depreciated value without reinstating such assets. The company has accounted for claim amount of Rs. 1830.46 lacs (which includes interim claim of Rs. 500.00 Lacs, already received by the company and is net off Rs. 146.82 lacs by disposal of the salvage).

The company has also accounted for the claim recoverable under loss of profit policy amounting to Rs. 536.59 Lacs (Rs. 411.55 Lacs upto 31st Mar, 2013), computed on the basis of the best estimate of the management and the same has been shown under other operating revenue.

3. Segment reporting as defined in Accounting Standard 17 is not applicable as the Company is primarily engaged in manufacture of Synthetic Yarn & Textiles.

4. Forward Exchange Contracts and Unhedged Foreign Currency Exposure:

5. Subsidiary and consolidation of financial statement.

The Company namely ''Filatex Synthetics Private Limited'' was incorporated on 9th March, 2012 as a subsidiary company and no transaction / business has taken place since its incorporation. During the year ended 31st March, 2013, the company sold its shares in the said company and consequently it is no more a subsidiary company.

6. Employee Benefits

a) Provident Fund

Contribution to recognized provident fund

The Company contributed Rs.81.02 Lacs (previous year Rs. 78.29 Lacs) towards provident fund during the year ended March 31, 2014.

b) Gratuity Plan

The Company has a defined benefit gratuity plan. Gratuity is computed at 15 days salary, for every completed year of service or part thereof in excess of six months and is payable on retirement/ termination/ resignation. The benefit vests on the employees after completion of five years of service. The company makes provisions of such gratuity liability in the books of account on the basis of actuarial valuation as per projected unit credit method (PUCM)

The following table summarizes the components of net benefit expenses recognized in the profit and loss account and amount recognized in the balance sheet for gratuity.

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Mar 31, 2013

1. Nature of Operation

Filatex India Limited (hereinafter referred to as "the Company") is a manufacturer of Polyester Chips, Polyester/ Nylon/Polypropylene Multi & Mono Filament Yarn and Narrow fabrics.

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

i) Contingent Liabilities

(Rs. In lacs)

PARTICULARS For the year ended For the year ended March 31, 2013 March 31, 2012

a) Letters of Credit 2853.80 384.77

b) Unexpired Bank Guarantees 999.74 234.87

c) Excise / Customs (Mainly relating to reversal of 1469.87 1,426.61 cenvat credit of NCCD & valuation of texturised yarns).

d) Sales Tax demand 0.80 18.48

e) Income Tax demand on account of :

- Additions for the period AY 2001-02 to 2005-06 33.37 33.37

- Penalty for the period AY 2001-02 to 2005-06 33.37 33.37

- Additions for AY 2008-09 2.20 2.20

f) Claims against the company not acknowledged as debts 55.87 55.87

ii) Commitments

a) The company carries an export obligation of Rs.20,168.00 lacs (previous year Rs.22,129.83 lacs) under EPCG Scheme against duty free import of plant and machinery.

b) Capital contracts remaining to be executed (net of payments) and not provided for - Rs.427.28 lacs (previous year Rs.765.37 lacs).

3. The Company''s project for Polyester Poly-Condensation cum POY at GIDC Dahej, Gujarat which had started on 20th March, 2012 has been completed and become fully operational. Pre-operative expenses related to buildings and plant & machinery put to use, as detailed below, have been capitalized (refer note 13):-

4. During the financial year, a fire broke at company''s POY manufacturing unit at Dadra which affected functioning of some of the POY lines. The company is adequately insured and the insurers are in the process of assessing the quantum of loss. Some lines having partial damages have been repaired and were put to use again by March, 2013. Some lines which have major damages are expected to be replaced / restored by December, 2013. The loss caused by the fire is under determination, however, the Management is of the opinion that the company would be able to recover the loss as it has obtained insurance covers on reinstatement basis. However, the loss on repair / replacement, if any, would be accounted for upon settlement of the claim.

The company has lodged claim under Loss of Profit policy and has accounted for partial claim of Rs.411.55 lacs for the period upto March 31, 2013 calculated on the basis of best estimate by the management which has been separately shown as "Revenue from operations".

5. Segment reporting as defined in Accounting Standard 17 is not applicable as the Company is primarily engaged in manufacture of Synthetic Yarn & Textiles.

6. Subsidiary and consolidation of financial statement.

The Company namely ''Filatex Synthetics Private Limited'' was incorporated on 9th March, 2012 as a subsidiary company and no transaction / business has taken place since its incorporation. During the year, the company has sold its shares in the said company and consequently it is no more a subsidiary company.

7. Related Party Disclosure:

(i) Names of related parties and nature of relationships:

a) Key managerial personnel:

i) Shri Madhu Sudhan Bhageria

ii) Shri Purrshottam Bhaggeria

iii) Shri Madhav Bhageria

b) Relative of key managerial personnel:

i) Shri Ram Avtar Bhageria (Father of related parties mentioned at (a) above).

ii) Smt. Satyabhama Bhageria (Mother of related parties mentioned at (a) above).

iii) Ms. Vrinda Bhageria (Daughter of related party mentioned at a(i) above).

iv) Mr Yaduraj Bhageria (Son of related party mentioned at a(ii) above).

v) Mr. Vedansh Bhageria (Son of related party mentioned at a(iii) above).

c) Subsidiary Company:

Filatex Synthetics (P) Ltd. (Upto 16.12.2012, refer note 37)

d) Enterprises owned or significantly influenced by key managerial personnel:

i) M/s Ram Avtar Bhageria (hUf)

ii) M/s Madhu Sudhan Bhageria (HUF)

iii) M/s Purrshottam Bhaggeria (HUF)

iv) M/s Madhav Bhageria (HUF)

v) M/s Nouvelle Securities Pvt Ltd

vi) M/s SMC Yarns Pvt Ltd

vii) M/s Azimuth Investments Ltd

viii) M/s Hill Estate Pvt. Ltd.

8. Employee Benefits

a) Provident Fund

Contribution to recognized provident fund

The Company contributed Rs.78.29 lacs (previous year Rs. 46.50 lacs) towards provident fund during the year ended March 31, 2013.

b) Gratuity Plan

The Company has a defined benefit gratuity plan. Gratuity is computed at 15 days salary, for every completed year of service or part thereof in excess of six months and is payable on retirement/ termination/ resignation. The benefit vests on the employees after completion of five years of service. The company makes provisions of such gratuity liability in the books of account on the basis of actuarial valuation as per projected unit credit method (PUCM).

The following table summarizes the components of net benefit expenses recognized in the profit and loss account and amount recognized in the balance sheet for gratuity.

9. Figures have been rounded off to rupees in lacs and previous year figures have been regrouped / rearranged to the extent necessary to correspond with the figures for the current year.

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Mar 31, 2012

1. Nature of Operation

Filatex India Limited (hereinafter referred to as "the Company") is a manufacturer of Polyester, Nylon, Polypropylene Multi & Mono Filament Yarns and Narrow fabrics.

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

i) Contingent Liabilities

(Rs. In lacs)

PARTICULARS For the year ended For the year ended March 31, 2012 March 31, 2011

a) Letters of Credit 384.77 9,593.03

b) Unexpired Bank Guarantees 234.87 353.86

c) Excise / Customs (Mainly relating to reversal of 1,426.61 809.50 cenvat credit of NCCD & valuation of texturised yarns).

d) Sales Tax demand (Emerging from rejection of 18.48 18.48 consignment sales due to different interpretation)

e) Income Tax demand on account of :

- Additions for the period AY 2001-02 to 2005-06 33.37 33.37

- Penalty for the period AY 2001-02 to 2005-06 33.37 33.37

- Additions for AY 2008-09 2.20 2.20

f) Claims against the company not acknowledged as debts 55.87 55.87

ii) Commitments

a) The company carries an export obligation of Rs.22,129.83 lacs (previous year Rs.5,192.85 lacs) under EPCG Scheme against duty free import of plant and machinery.

b) Capital contracts remaining to be executed (net of payments) and not provided for - Rs.765.37 lacs (previous year Rs.2,510.43 lacs).

3. The Company's project for Polyester Poly-Condensation cum POY at GIDC Dahej, Gujarat has been partly commissioned and production of POY has started on 20th March, 2012 and accordingly pre-operative expenses related to plant & machinery and buildings put to use, have been capitalized.

4. The Company has received an amount of Rs.3,029.30 lacs towards issuance of fresh Equity and conversion of Warrants and the same has been utilized towards part financing of acquisition of land, construction of building, procurement of plant & machinery for the project of Polyester Poly-Condensation cum POY.

5. Segment reporting as defined in Accounting Standard 17 is not applicable as the Company is primarily engaged in manufacture of Synthetic Yarn & Textiles.

iii) Premium for forward contracts for unexpired period of Rs.82.59 lacs has been carried over to next year (Previous year Rs.20.52 lacs) and will be charged to Profit & Loss Account as and when the underlying transaction will mature.

6. Subsidiary and consolidation of financial statement.

The Company namely 'Filatex Synthetics Private Limited' was incorporated on 9th March, 2012 as its subsidiary Company and no transaction / business has taken place during the financial year 2011-12. Therefore, the subsidiary's financial statement has not been prepared and consolidated with the annual accounts of the Company.

7. Related Party Disclosure:

(i) Names of related parties and nature of relationships:

a) Key managerial personnel:

- Shri Madhu Sudhan Bhageria

- Shri Purrshottam Bhaggeria

- Shri Madhav Bhageria

b) Relative of key managerial personnel:

- Shri Ram Avtar Bhageria (Father of related parties mentioned at (a) above.

- Smt. Satyabhama Bhageria (Mother of related parties mentioned at (a) above.

c) Subsidiary Company:

- Filatex Synthetics (P) Ltd.

d) Enterprises owned or significantly influenced by key managerial personnel:

- M/s Ram Avtar Bhageria (HUF)

- M/s Madhu Sudhan Bhageria (HUF)

- M/s Purrshottam Bhaggeria (HUF)

- M/s Madhav Bhageria (HUF)

- M/s Nouvelle Securities Pvt Ltd

- M/s SMC Yarns Pvt Ltd

- M/s Azimuth Investments Ltd

8. Employee Benefits

a) Provident Fund

Contribution to recognized provident fund

The Company contributed Rs.46.50 lacs (previous year Rs.39.08 lacs) towards provident fund during the year ended March 31, 2012

b) Gratuity Plan

The Company has a defined benefit gratuity plan. Gratuity is computed at 15 days salary, for every completed year of service or part thereof in excess of six months and is payable on retirement/ termination/ resignation. The benefit vests on the employees after completion of five years of service. The company makes provisions of such gratuity liability in the books of account on the basis of actuarial valuation as per projected unit credit method (PUCM)

The following table summarize the component of net benefit expenses recognized in the profit and loss account and amount recognized in the balance sheet for gratuity.

9. Figures have been rounded off to rupees in lacs.

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Mar 31, 2011

I. NATURE OF OPERATION

Filatex India Ltd. is a manufacturer of Polyester, Nylon, Polypropylene Multi & Mono Filament Yarns and Narrow fabrics.

1. (i) Contingent liabilities not provided for in respect of: (Rs. in Lacs)

PARTICULARS Year Ended Year Ended March 31, 2011 March 31, 2010

a) Letters of Credit 9593.03 4473.99

b) Unexpired Bank Guarantees 353.86 234.87

c) Excise / Customs (mainly relating to reversal of 809.50 879.68 cenvat credit of NCCD & valuation of texturised yarns).

d) Sales Tax demand (emerging from rejection of 19.13 19.13 consignment sales due to different interpretation)

e) Income Tax demand on account of :

- MAT for AY 2004-05 due to different interpretation 34.94 34.94 of brought forward losses

- Additions for the period AY 2001-02 to 2005-06 33.37 33.37

- Penalty for the period AY 2001-02 to 2005-06 33.37 -

- Additions for AY 2008-09 2.20 -

f) Claims against the company not acknowledged as debts 55.87 55.87

(ii) The company carries an export obligation of Rs.5192.85 lacs (Previous year Rs.2836.39 lacs) under EPCG against duty free import of plant & machinery.

2. Capital contracts remaining to be executed (net of payments) and not provided for :-Rs. 2510.43 lacs (Previous year- Rs.9712.19 lacs).

3. The company had initiated implementation of a project for Continuous Poly-condensation cum POY capacity at Village Nani Tambadi, Valsad, Gujarat and has incurred an amount of Rs.810.00 lacs for acquisition of land and construction of building thereon, which had to be suspended due to unavoidable circumstances. The expenditure incurred on construction of building has been shown under CWIP. The management intends to sell / use the same for an alternative purpose. Subsequently, the project has been shifted to a new land which has been allotted by GIDC at Dahej, Gujarat on deferred payment basis. The Lease Deed for the same is pending execution. However, the company has been given possession of the land and has started construction activities thereon.

4. The company had issued 40,00,000 Convertible Warrants to be converted at the option of warrant holders in one or more tranches within 18 months from March 04, 2010 i.e. the date of allotment of warrants into equivalent number of fully paid up equity shares of the company of the face value of Rs.10/- each at an exercise price of Rs.40.00 per share (including premium of Rs.30.00 per share) to the Promoters / persons belong to Promoters Group on preferential basis.

The company has received an amount of Rs.1320.00 lacs (including Rs.800.00 lacs received during 2009-10) and the same has been utilized towards part financing of acquisition of land, construction of building and payment of advances to suppliers of plant & machinery for the companys proposed project for setting up a unit for continuous poly-condensation facility and expansion of POY capacity.

5. Managerial Remuneration:

Vice Chairman & Managing Director & the Joint Managing Directors are covered under the companys Gratuity and Leave encashment rules with the other employees of the company. Combined gratuity and leave encashment liabilities have been determined for all the employees on an independent actuarial valuation. Such liabilities for these Directors cannot be ascertained separately and therefore the same has not been included in the above.

6. Segment reporting as defined in Accounting Standard 17 is not applicable as the Company is primarily engaged in manufacture of Synthetic Yarn & Textiles.

7. Derivative Instruments and Unhedged Foreign Currency Exposure:

iii) Premium for forward contracts for unexpired period of Rs.20.52 lacs has been carried over to next year (Previous year Rs.27.52 lacs) and will be charged to Profit & Loss Account as and when the underlying transaction will mature.

8. Related Party Disclosure:

(i) Names of related parties and nature of relationships:

a) Key managerial personnel:

- Shri Madhu Sudhan Bhageria

- Shri Purrshottam Bhaggeria

- Shri Madhav Bhageria

b) Relative of key managerial personnel:

- Shri Ram Avtar Bhageria (Father of related parties mentioned at (a)above.

c) Enterprises owned or significantly influenced by key managerial personnel:

- M/s Ram Avtar Bhageria (HUF)

- M/s Madhu Sudhan Bhageria (HUF)

- M/s Purrshottam Bhaggeria (HUF)

- M/s Madhav Bhageria (HUF)

- M/s Nouvelle Securities Pvt. Ltd.

- M/s SMC Yarns Pvt. Ltd.

- M/s Azimuth Investments Ltd.

95. The company has adopted Accounting Standard 15 (Revised 2005) Employee Benefits. Accordingly, the company has provided long term employee benefits on the basis of actuarial valuation done as per "Projected Unit Credit Method".

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

10. The company has taken various residential, office and warehouse premises under operating lease agreements. These are generally not non- cancelable and are renewable by mutual consent. There is no restriction imposed by lease agreements. There are no sub leases.

11. Figures have been rounded off to rupees in lacs.

12. Previous year figures have been re-grouped and/or rearranged wherever considered necessary.

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Mar 31, 2010

I.NATURE OF OPERATION

Filatex India Ltd. is a manufacturer of Polyester, Nylon, Poly propylene Multi & Mono Filament Yarn and Narrow fabrics.

1. (i) Contingent liabilities not provided for in respect of: (Rs/Lacs)

PARTICULARS Year Ended Year Ended

March 31, 2010 March 31, 2009

a) Letters of Credit 4473.99 195.88

b) Unexpired Letter of Guarantees 234.87 188.00

c) Excise / Customs (mainly relating to reversal of 879.68 874.93 cenvat credit of NCCD & valuation of texturised yarns).

d) Sales Tax demand (emerging from rejection of consignment 19.13 18.67 sales due to different interpretation)

e) Income Tax demand (Demand of MAT for AY 2004-05 due to 34.94 49.81 different interpretation of brought forward losses)

f) Claims not acknowledged as debts 55.87 55.87

(ii) The company carries an export obligation of Rs.2836.39 lacs (Previous year - Rs.2219.80 lacs) under EPCG against duty free import of plant & machinery.

2. Capital contracts remaining to be executed (net of payments) and not provided for:-Rs. 9712,19 lacs (Previous year- Rs.Nil)

3. There was a fire at companys Monofilament Yarn unit at Noida (UP) on April 18, 2009 which affected some of its production lines and factory buildings. The affected production lines and factory building have been repaired and production has been restored. The company has lodged its claim with the insurers and has decided to carry forward Rs.128.68 lacs, net of Rs.25.00 lacs on account of non-recoverables, which accordingly have been charged to Profit & Loss Account.

4. During the year, the company has issued 40,00,000 Convertible Warrants to be converted at the option of warrant holders in one or more tranches within 18 months from March 04, 2010 i.e. the date of allotment of warrants into equivalent number of fully paid up equity shares of the company of the face value of Rs.10/- each at an exercise price of Rs.40.00 per share (including premium of Rs.30.00 per share) to the Promoters / persons belong to Promoters Group on preferential basis.

The said amount has been utilized towards procurement of land and payment of advances to suppliers of plant & machinery for the companys proposed project for setting up a unit for continuous poly-condensation facility and expansion of POY capacity.

5. Segment reporting as defined in Accounting Standard 17 is not applicable as the Company is primarily engaged in manufacture of Synthetic Yarn & Textiles.

6. Related Party Disclosure:

(i) List of related parties with whom transactions have taken place and relationships:

a) Key managerial personnel:

- Shri Madhu Sudhan Bhageria

- Shri Purrshottam Bhaggeria

- Shri Madhav Bhaggeria

b) Relative of key managerial personnel:

- Shri Ram Avtar Bhageria (Father of related parties mentioned at (a) above.

c) Enterprises owned or significantly influenced by key managerial personnel:

- M/s Ram Avtar Bhageria (HUF)

- M/s Madhu Sudhan Bhageria (HUF)

- M/s Purrshottam Bhaggeria (HUF)

- M/s Madhav Bhageria (HUF)

- M/s Azimuth Investments Limited

- M/s Fargo Estates Pvt. Ltd.

- M/s Elevate Developers Pvt. Ltd.

- Nouvelle Securities Pvt. Ltd.

7. An amount of Rs.334.91 lacs representing unabsorbed cenvat and service tax credits generated in the previous years due to excess of excise /service tax suffered on purchases is lying to the credit of the company in excise records, though the same had been charged to Profit & Loss Account of the relevant year as per prudent account- ing norms. The same is recognized to the extent utilized during the relevant year.

8. Figures have been rounded off to rupees in lacs.

9. Previous year figures have been re-grouped and/or rearranged wherever considered necessary.