Notes to Accounts of Ganesha Ecosphere Ltd.

Mar 31, 2025

o) Provisions and contingent liabilities

Provisions are recognized when the Company
has a present legal or constructive obligation
as a result of past events, it is probable that an
outflow of resources will be required to settle
the obligation and the amount can be reliably
estimated. Provisions are not recognized for
future operating losses.

Provisions are measured at the present value of
management''s best estimate of the expenditure
required to settle the present obligation at the
end of the reporting period. The discount rate
used to determine the present value is a pre-tax
rate that reflects current market assessments of
the time value of money and the risks specific
to the liability.

Contingent liabilities are disclosed in respect of
possible obligations that arise from past events

but their existence will be confirmed by the
occurrence or non-occurrence of one or more
uncertain future events not wholly within the
control of the Company or where any present
obligation cannot be measured in terms of
future outflow of resources or where a reliable
estimate of the obligation cannot be made.
The Company does not recognize a contingent
liability but discloses its existence in the financial
statements unless the probability of outflow of
resource is remote.

Provisions and contingent liabilities are reviewed
at each balance sheet date.

p) Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including
non-monetary benefits, that are expected to
be settled wholly within 12 months after the
end of the period in which the employees
render the related service, are recognized in
respect of employees'' services up to the end
of the reporting period and are measured at
the amounts expected to be paid when the
liabilities are settled.

(ii) Other long-term employee benefit

The liabilities for earned leave, that are
not expected to be settled wholly within 12
months, are measured as the present value
of expected future payments to be made in
respect of services provided by employees
up to the end of the reporting period
using the projected unit credit method.
The benefits are discounted using the market
yields at the end of the reporting period
on Government bonds that have terms
approximating to the terms of the related
obligation. Remeasurements as a result of
experience adjustments and changes in
actuarial assumptions are recognized in the
statement of profit and loss.

(iii) Post-employment obligations

The Company operates the following
post-employment schemes:

(a) defined benefit plans such
as gratuity; and

(b) defined contribution plans such as
provident fund, family pension fund and
employee''s state insurance

(a) Gratuity obligations

The liability or asset recognised
in the balance sheet in respect
of defined benefit gratuity plan is
the present value of the defined
benefit obligation at the end of
the reporting period. The defined
benefit obligation is calculated
annually by independent actuary
using the projected unit credit
method. The present value of
the defined benefit obligation is
determined by discounting the
estimated future cash outflows
by reference to market yields at
the end of the reporting period
on Government bonds that have
terms approximating to the terms
of the related obligation.

The net interest cost is calculated
by applying the discount rate to the
net balance of the defined benefit
obligation. This cost is included in
employee benefits expenses in the
statement of profit and loss.

Re-measurement gains and
losses arising from experience
adjustments and changes
in actuarial assumptions are
recognised in the period in which
they occur, directly in other
comprehensive income. They are
included in retained earnings in
the statement of changes in equity
and in the balance sheet.

(b) Defined contribution plans
Defined contribution plans such
as contributions to provident
fund, family pension fund and

employee''s state insurance are
made to the funds administered by
the Government of India, and are
recognized as an expense when
employees have rendered service
entitling them to the contributions.

(iv) Employee share based payments

The Company operates equity settled
share-based plan for the employees
(referred to as employee stock option
scheme (ESOS). ESOS granted to the
employees are measured at fair value
of the stock options at the grant date.
Such fair value of the equity settled share
based payments is expensed on a straight
line basis over the vesting period, based
on the Company''s estimate of equity
shares that will eventually vest, with a
corresponding increase in other equity
(share based payment reserve). At the end
of each reporting period, Company revises
its estimate of number of equity shares
expected to vest. The impact of the revision
of the original estimates, if any, is recognized
in the Statement of profit and loss such that
cumulative expense reflects the revision
estimate, with a corresponding adjustment
to the share based payment reserve.

The fair value of employee stock options is
measured using the Black-Scholes model.
Measurement inputs include share price
on grant date, exercise price of the option,
expected volatility (based on weighted
average historical volatility), expected
life of the options, expected dividends
and the risk free interest rate (based on
government bonds).

q) Cash and cash equivalents

For the purpose of presentation in the statement
of cash flows, cash and cash equivalents includes
cash at banks and on hand, bank overdrafts and
short-term deposits with an original maturities
of three months or less, which are subject to an
insignificant risk of changes in value.

r) Investment in subsidiaries

A subsidiary is an entity controlled
by the Company.

Non-current investment in equity shares of
subsidiaries is recognized at cost, unless there
are indications of a permanent diminution
in the value of investment, as per Ind AS 27.
The cost comprises price paid to acquire
investment and directly attributable cost.
Non-current investments in preference shares
and compulsory convertible debentures of
subsidiaries is recognized at fair value through
profit and loss.

s) Investment in joint ventures and associates

A joint venture is a type of joint arrangement
whereby the parties that have joint control of the
arrangement have rights to the net assets of the
joint venture. Joint control is the contractually
agreed sharing of control of an arrangement,
which exists only when decisions about the
relevant activities require unanimous consent
of the parties sharing control. An associate
is an entity over which the Company has
significant influence.

The investment in joint ventures and associates
are carried at cost. The cost comprises price
paid to acquire investment and directly
attributable cost.

t) Financial instruments

A financial instrument is any contract that
gives rise to a financial asset of one entity
and a financial liability or equity instrument of
another entity.

(i) Financial assets

Initial recognition and measurement

Financial assets are classified, at initial
recognition, as subsequently measured
at amortized cost, fair value through other
comprehensive income (OCI), and fair value
through profit or loss.

In order for a financial asset to be classified
and measured at amortized cost or fair
value through OCI, it needs to give rise to
cash flows that are ''solely payments of
principal and interest (SPPI)'' on the principal
amount outstanding. This assessment is
referred to as the SPPI test and is performed
at an instrument level. Financial assets with
cash flows that are not SPPI are classified
and measured at fair value through profit or
loss, irrespective of the business model.

All financial assets are recognized initially at
fair value plus, in the case of financial assets
not recorded at fair value through profit or
loss, transaction costs that are attributable
to the acquisition of the financial asset.
Transaction costs of financial assets carried
at fair value through profit or loss are
expensed to statement of profit and loss.
Purchases or sales of financial assets that
require delivery of assets within a time frame
established by regulation or convention
in the marketplace (regular way trades)
are recognized on the trade date, i.e., the
date on which the Company commits to
purchase or sell the asset.

Subsequent measurement

Subsequent measurement of financial
assets depends on the Company''s business
model for managing the asset and the cash
flow characteristics of the asset. For the
purposes of subsequent measurement,
financial assets are classified in
four categories:

- Financial assets at amortized cost
(debt instruments)

- Financial assets at fair value through
other comprehensive income (FVTOCI)
with recycling of cumulative gains and
losses (debt instruments)

- Financial assets designated at fair
value through OCI with no recycling

of cumulative gains and losses upon
derecognition (equity instruments); and

- Financial assets at fair value
through profit or loss

Financial assets at amortized cost (debt
instruments)

A ''financial asset'' is measured at the
amortized cost if both the following
conditions are met:

a) The asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and

b) Contractual terms of the asset give
rise on specified dates to cash flows
that are solely payments of principal
and interest (SPPI) on the principal
amount outstanding.

After initial measurement, such
financial assets are subsequently
measured at amortized cost using the
effective interest rate (EIR) method.
Amortized cost is calculated by
taking into account any discount or
premium on acquisition and fees or
costs that are an integral part of the
EIR. The EIR amortization is included
in finance income in the statement
of profit and loss. The losses arising
from impairment are recognized in the
statement of profit and loss.

Financial assets at FVTOCI (debt
instrument)

A ''financial asset'' is classified as at the FVTOCI
if both of the following criteria are met:

a) The objective of the business model
is achieved both by collecting
contractual cash flows and selling the
financial assets, and

b) The asset''s contractual cash flows
represent SPPI.

Debt instruments included within the
FVTOCI category are measured initially
as well as at each reporting date at
fair value. Fair value movements are
recognized in the other comprehensive
income (OCI). However, the Company
recognizes interest income, impairment
losses & reversals and foreign exchange
gain or loss in the statement of profit
and loss. On derecognition of the asset,
cumulative gain or loss previously
recognized in OCI is reclassified from
the equity to the statement of profit
and loss. Interest earned whilst holding
FVTOCI debt instrument is reported as
interest income using the EIR method.

Financial assets designated at fair value
through OCI (equity instruments)

In the case of equity instruments which
are not held for trading and where the
Company has taken irrevocable election
to present the subsequent changes in fair
value in other comprehensive income, these
elected investments are initially measured
at fair value plus transaction costs and
subsequently, they are measured at fair
value with gains and losses arising from
changes in fair value recognized in other
comprehensive income and accumulated
in the ''Equity instruments through other
comprehensive income'' under the head
''Other Equity''. The cumulative gain or
loss is not reclassified to profit or loss on
disposal of the investments. The Company
makes such election on an instrument -by¬
instrument basis.

If the Company decides to classify an
equity instrument as at FVTOCI, then all
fair value changes on the instrument,
excluding dividends, are recognized in the
OCI. There is no recycling of the amounts
from OCI to statement of profit and loss,
even on sale of investment. However, the

Company may transfer the cumulative gain
or loss within equity.

Dividends are recognized as other income
in the statement of profit and loss when
the right of payment has been established,
except when the Company benefits from
such proceeds as a recovery of part of the
cost of the financial asset, in which case, such
gains are recorded in OCI. Equity instruments
designated at fair value through OCI are not
subject to impairment assessment.

A financial asset is held for trading if:

• it has been acquired principally for the
purpose of selling it in the near term; or

• on initial recognition it is part of a portfolio
of identified financial instruments
that the Company manages together
and has a recent actual pattern of
short-term profit-taking; or

• i t is a derivative that is not designated
and effective as a hedging instrument
or a financial guarantee.

Financial assets at FVTPL (equity
instruments)

Financial assets at fair value through
profit or loss are carried in the balance
sheet at fair value with net changes in
fair value recognized in the statement of
profit and loss.

In case of equity instruments which are held
for trading are initially measured at fair value
plus transaction costs and subsequently,
they are measured at fair value with gains
and losses arising from changes in fair value
recognized in statement of profit and loss.

This category includes derivative
instruments and listed equity investments
which the Company had not irrevocably
elected to classify at fair value through
OCI. Dividends on listed equity investments
are recognized in the statement of profit

and loss when the right of payment has
been established.

Investment in Subsidiaries

i nvestment in subsidiaries is carried at cost
in the separate financial statements.

Investment in joint ventures and associates

Investment in joint ventures and associates
is carried at cost.

Derecognition

A financial asset (or, where applicable, a
part of a financial asset or part of a group
of similar financial assets) is primarily
derecognized when:

- The rights to receive cash flows from
the asset have expired, or

- The Company has transferred its rights
to receive cash flows from the asset
or has assumed an obligation to pay
the received cash flows in full without
material delay to a third party under
a ''pass-through'' arrangement; and
either (a) the Company has transferred
substantially all the risks and rewards
of the asset, or (b) the Company
has neither transferred nor retained
substantially all the risks and rewards
of the asset, but has transferred
control of the asset.

Impairment of financial assets

The Company applies the expected credit
loss model for recognizing impairment loss
on financial assets measured at amortized
cost, debt instruments at FVTOCI, trade
receivables and other contractual rights to
receive cash or other financial asset.

Expected credit losses are the weighted
average of credit losses with the respective
risks of default occurring as the weights.
Credit loss is the difference between all
contractual cash flows that are due to the

Company in accordance with the contract
and all the cash flows that the Company
expects to receive (i.e. all cash shortfalls),
discounted at the original effective interest
rate (or credit-adjusted effective interest
rate for purchased or originated credit
impaired financial assets). The Company
estimates cash flows by considering all
contractual terms of the financial instrument
(for example, prepayment, extension, call
and similar options) through the expected
life of that financial instrument.

The Company measures the loss allowance
for a financial instrument at an amount
equal to the lifetime expected credit
losses if the credit risk on that financial
instrument has increased significantly
since initial recognition. If the credit risk on
a financial instrument has not increased
significantly since initial recognition, the
Company measures the loss allowance
for that financial instrument at an amount
equal to 12-month expected credit losses.
12-month expected credit losses are portion
of the life-time expected credit losses and
represent the lifetime cash shortfalls that will
result if default occurs within the 12 months
after the reporting date and thus, are not
cash shortfalls that are predicted over the
next 12 months.

For trade receivables, the Company follows
"simplified approach for recognition
of impairment loss. The application of
simplified approach does not require the
Company to track changes in credit risk.

Further, for the purpose of measuring
lifetime expected credit loss allowance for
trade receivables, the Company has used a
practical expedient as permitted under Ind
AS 109. This expected credit loss allowance
is computed based on a provision matrix
which takes into account historical credit
loss experience and adjusted for forward
looking information.

(ii) Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings,
payables, or as derivatives. All financial
liabilities are recognized initially at fair value
and, in the case of loans and borrowings
and payables, net of directly attributable
transaction costs. The Company''s financial
liabilities include trade and other payables,
loans and borrowings including derivative
financial instruments.

Subsequent measurement

The measurement of financial liabilities
depends on their classification, as
described below:

Financial liabilities at fair value through
profit or loss

Financial liabilities at fair value through
profit or loss (FVTPL) include financial
liabilities held for trading and financial
liabilities designated upon initial recognition
as at FVTPL. Financial liabilities are
classified as held for trading if they are
incurred for the purpose of repurchasing
in the near term. This category also
includes derivative financial instruments
entered into by the Company that are not
designated as hedging instruments in
hedge relationships as defined by Ind AS 109
''Financial instruments''.

Gains or losses on liabilities held for
trading are recognized in the statement of
profit and loss.

Financial liabilities at amortized cost
(Loans and borrowings)

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

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

Derecognition

A financial liability is derecognized when the
obligation under the liability is discharged
or cancelled or expires. When an existing
financial liability is replaced by another
financial liability from the same lender on
substantially different terms, or the terms
of an existing liability are substantially
modified, such an exchange or modification
is treated as the derecognition of the original
liability and the recognition of a new liability.
The difference in the respective carrying
amounts is recognized in the statement of
profit and loss.

Offsetting of financial instruments

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

) Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by
dividing the net profit or loss for the year
attributable to the equity shareholders of

the Company by the weighted average
number of equity shares outstanding
during the year.

(ii) Diluted earnings per share

For the purpose of calculating diluted
earnings per share, the net profit or loss for
the year attributable to equity shareholders
of the Company and weighted average
number of equity shares outstanding during
the year are adjusted for the effect of all
potentially dilutive equity shares.

v) Recent pronouncements

Ministry of Corporate Affairs (''MCA'') notifies
new standard or amendments to the existing
standards under Companies (Indian Accounting
Standards)Rulesasissuedfromtimetotime.Forthe
year ended March 31, 2025, MCA has amended/
notified certain accounting standards, which are
effective for annual reporting period beginning
on or after April 1, 2024. MCA vide notification
dated September 9, 2024 and September 28,
2024 notified the Companies (Indian Accounting
Standards) Second Amendment Rules, 2024 and
the Companies (Indian Accounting Standards)
Third Amendment Rules, 2024 respectively:

Ind AS 117 - Insurance Contracts, this new
standard enacted for insurance contracts.
Said enactment does not have any impact on
the financial statements of the Company; and

Ind AS 116 - Leases, Amendment relates to
subsequent accounting for seller-lessee in
respect of the sale and lease back transactions
accounted for as sale under Ind AS 115- Revenue
from Contracts with customers. The amendment
does not have any impact on the financial
statements of the Company.

Nature and purpose of reserves
Capital redemption reserve

Capital redemption reserve was created for redemption of preference share capital and it is a
non-distributable reserve.

Capital reserve

Capital reserve represent capital subsidy received and amount received on forfeiture of shares of the
Company. Capital reserve is utilized in accordance with the provisions of the Companies Act, 2013.

Share based payment reserve

Share based payment reserve represents the fair value of the stock options granted by the Company under
the Employees Stock Option Plan accumulated over the vesting period. 2,131 options have been exercised
during the year. The remaining reserve will be utilised on exercise of the remaining options already granted
by the Company.

Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utilized in accordance
with the provisions of the Companies Act, 2013.

Application money against convertible share warrants

The Company had allotted 14,49,000 convertible share warrants during the financial year 2023-24 to a
promoter group company upon receipt of upfront payment being 25% of total consideration receivable.
During the year, Company has allotted 1,10,000 equity shares upon conversion of 1,10,000 share warrants and
remaining application money represents 25% upfront payment for remaining share warrants.

General reserve

General reserve is used to transfer profits from retained earnings for general purposes. The reserve is utilized
in accordance with the provisions of the Companies Act, 2013.

31.0 Leases - short term leases

The Company has certain operating leases primarily consisting of leases for office premises, guest houses
and warehouses having different lease terms. Such leases are generally with the option of renewal against
increased rent and premature termination clause. Rental expense recorded for short-term leases and low
value asset leases is '' 137.13 Lakh for the year ended March 31, 2025 (March 31, 2024: '' 133.78 Lakh).

The Company has taken certain land on long term lease for factory purposes (disclosed under "Right of
use assets"). Since entire lease payments have been prepaid, the Company does not have any future lease
liability towards the same.

For details pertaining to the carrying value of right of use asset and amortization charged thereon during the
year, refer note 3.3 of the financial statements.

The Company does not have any lease liability and thus there are no liquidity risks.

Note: The Company has not incurred any expenditure on construction/acquisition of any asset.

33.0 Segment information

33.1 Primary segment (by business segment):

Ind AS 108 establishes standards for the way that the Company report information about operating segments
and related disclosures about products and services, geographic areas and major customers. The Company''s
operations comprises of only one segment i.e. sale of polyester staple fibre and polyester yarn which are
mainly having similar risks and returns. Based on the "management approach" as defined in Ind AS 108, the
management also reviews and measure the operating results taking the whole business as one segment
(synthetic textile). In view of the same, separate primary segment information is not required to be given as
per the requirements of Ind AS 108 on "Operating Segments".

33.2 Secondary segment (by geographical demarcation):

Considering the nature of the business in which the Company operates, the Company deals with
various customers in multiple geographies. The details of segment revenue based on geographical
demarcation is as under:

35.0 Financial instruments

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

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

A. The fair values of derivatives such as forward/ derivative contracts are on mark to market basis as per bank.

B. The Company has adopted effective interest rate for calculating interest expense. Processing fees and
transaction costs relating to each loan has been considered for calculating effective interest rate. The fair
values of non-current borrowings are classified as level 3 in the fair value hierarchy due to the use of
unobservable inputs including own credit risk.

C. Loans, investments (other than quoted investments in market) and other non-current financial assets are
evaluated by the Company based on parameters such as interest rates and individual credit worthiness
of the counterparty. Based on this evaluation, allowances are taken into account for expected losses of
these receivables. The fair value of loans, investments and other non-current financial assets has been
considered as equal to their carrying amount. These fair values are classified as level 3 in the fair value
hierarchy due to the inclusion of unobservable inputs including counter party credit risk.

D. The fair value of investments, which are quoted in market, are on mark to market basis.

E. Fair values of cash and cash equivalents, trade receivables, bank balances, current investments, current
loans, other current financial assets, trade payables, current borrowings and other financial liabilities are
considered to be the same as their carrying amount due to short-term maturities of these instruments.

Fair value hierarchy

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

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

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

36.0 Financial risk management

The Company realizes that risks are inherent and integral aspect of any business. The primary focus is to
foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial
performance. The Company''s financial risk management is an integral part of how to plan and execute its
business strategies. The Company''s senior management oversees the management of these risks.

The Company has exposure to the following risks (arising from financial instruments):

- Credit risk

- Liquidity risk

- Market risk

A. Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations
as agreed. The Company is exposed to credit risk mainly from trade receivables, loans given and other
financial assets.

The Company considers the probability of default upon initial recognition of asset and whether there has
been a significant increase in credit risk on an ongoing basis through each reporting period. To assess
whether there is a significant increase in credit risk, the Company compares the risk of default occurring
on assets as at the reporting date with the risk of default as at the date of initial recognition.

Trade receivables are typically unsecured and derived from revenue earned from customers located
in India and abroad. Credit risk is managed by the Company through customer assessment, credit
approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to
which the Company grants credit terms in the normal course of business. The Company measures the
expected credit loss of trade receivables based on historical trend, industry practice and the business
environment in which the entity operates. The maximum exposure to credit risk at the reporting date is
the carrying value of trade receivables, loans given and other financial assets.

B. Liquidity risk

Liquidity risk is the risk that the Company will encounter in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach
to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities
when they are due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Company''s reputation.

36.0 Financial risk management (contd.)

i) Financing arrangements

The Company believes that it has sufficient working capital to meet its current requirements.
Accordingly, no liquidity risk is perceived. Further, the Company is having cash credit facilities from
banks of '' 14,750.00 Lakh (March 31, 2024: '' 19,150.00 Lakh), repayable on demand which carry floating
rate of interest.

C. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of fluctuation in market prices. These comprise three types of risk i.e., currency rate, interest
rate and other price related risks. Financial instruments affected by market risk include borrowings, loans
given, deposits, foreign currency receivables and payables and derivative financial instruments such as
forward contracts. Foreign currency risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in foreign exchange rates. 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. Regular interaction with bankers, intermediaries and the market participants help us to
mitigate such risk.

i) Foreign currency risk

The Company is exposed to foreign currency risk through operating and financing activities in
foreign currency. The Company uses derivative financial instruments, such as foreign currency sale
and purchase forward contracts and currency and interest rate swap contracts, to reduce foreign
currency risk exposure and follows its risk management policies.

37.0 Capital risk management

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern
and to optimise returns to its shareholders. The capital structure of the Company is based on management''s
judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs.
The Company considers the amount of capital in proportion to risk and manage the capital structure in light
of changes in economic conditions and the risk characteristics of the underlying assets. The Company''s
policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain
investor''s, creditor''s and market''s confidence and to sustain future development and growth of its business.
The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure in
consonance with its long term strategic plans.

41.0 Ganesha Ecosphere Employees'' Stock Option Scheme-2021

The Company had introduced Ganesha Ecosphere Employees'' Stock Option Scheme 2021 ("ESOP
Scheme") to provide Employee Stock Options ("options") to all the eligible employees of the Company
and its subsidiaries. The ESOP Scheme is administered by the Nomination and Remuneration Committee
(nrc) of the Company and implemented through Ganesha Employees'' Welfare Trust ("Trust"). The Trust
had acquired 39,194 Equity Shares of the Company, in aggregate, from the secondary market under
the ESOP Scheme.

The NRC at its meeting held on March 7, 2024 had granted 39,194 options to the eligible employees of the
Company and its Subsidiaries. Each option granted under the scheme entitles the holder to one equity
share of the Company at an exercise price of '' 543/- per share. Options granted under the Scheme shall
be exercisable within 3 years from the date of vesting. No fresh options were granted during the financial
year ended March 31, 2025.

43.0 Disclosures as per Section 186(4) of the Companies Act, 2013

The details of the loans, guarantees and investments under Section 186 of the Companies Act, 2013
are as follows:

(i) Details of investments made and loans given are provided under the respective heads.

(ii) The Company has given corporate guarantees of '' 39,770.34 Lakh (March 31, 2024: '' 39,063.65 Lakh)
to various banks for securing the amounts lent by them to Subsidiaries of the Company.

44.0 On March 31, 2025, the Company has made an allotment of 1,10,000 Fully Paid-up Equity Shares having
face value of '' 10/- each, at an issue price of '' 1,035/- per share (including a premium of '' 1,025/- per
share), to the Promoter Group, pursuant to the exercise of the right of conversion of 1,10,000 warrants into
equity shares, out of 14,49,000 warrants earlier allotted on preferential basis under Chapter V of the SEBI
(Issue of Capital & Disclosure Requirements) Regulations, 2018. On January 18, 2024, the Company has
made an allotment of 14,49,000 Fully Convertible Equity Warrants at an issue price of '' 1,035/- (including
a premium of '' 1,025/-) per Equity Share aggregating to approx. '' 150 Crore, on receipt of an upfront
amount of S37.50 Crore, to a member belonging to Promoter and Promoter Group of the Company, on
Preferential Basis under Chapter V of the SEBI (Issue of Capital & Disclosure Requirements) Regulations,
2018, as amended. The warrants so issued and allotted shall be convertible within a period of 18 months
from the date of allotment of Warrants.

*Proposed dividends on equity shares are subject to approval of the shareholders of the Company at the ensuing annual
general meeting and hence is not recognised as a liability as at March 31, 2025. The actual dividend amount will be
dependent on the share capital outstanding on the relevant record date/book closure.

46.0 Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or
pending against the Company for holding any Benami property under the Benami Transactions
(Prohibition) Act, 1988 and the Rules made thereunder.

(ii) The Company does not have any transactions with struck off companies under Section 248 of the
Companies Act, 2013 or Section 560 of the Companies Act, 1956.

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

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

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

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

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

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

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

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

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

(viii) The Company is regular in paying its dues and has not been declared as wilful defaulter by any bank
or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other
lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(ix) The Company is in compliance with the number of layers for its holding in downstream companies
prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with the Companies
(Restrictions on number of Layers) Rules, 2017.

(x) The Company has not entered into any scheme of arrangement, during the year, which has any
impact on financial results or position of the Company.

(xi) The Company has not revalued any of its property, plant and equipment (including right-of-use
assets) or intangible assets during the year.

(xii) The Company has not granted any loans or advances in the nature of loans to promoters, directors,
KMPs and the related parties (as defined under Companies Act, 2013) either severally or jointly with any
other person that are repayable on demand or without specifying any terms or period of repayment.

(xiii) The Company has used the borrowings from banks for the purpose for which it was taken.

47.0Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to

current year''s classification.

As per our report of even date attached

For Narendra Singhania & Co. For and on behalf of the Board of Directors

Chartered Accountants
Firm Reg. No. 009781N

Sharad Sharma Shyam Sunder Sharmma

Managing Director Chairman

Narendra Singhania DIN: 00383178 DIN: 00530921

Partner

Membership No.: 087931

Bharat Kumar Sajnani Gopal Agarwal

Company Secretary Chief Financial Officer

FCS: 7344 FCA: 075080

Place: New Delhi Place: Kanpur

Date: May 24, 2025 Date: May 24, 2025

---

Mar 31, 2024

o) Provisions and contingent liabilities

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. The Company does not recognize a contingent liability but discloses its existence in the financial statements unless the probability of outflow of resource is remote.

Provisions and contingent liabilities are reviewed at each balance sheet date.

p) Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits, that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service, are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

(ii) Other long-term employee benefit

The liabilities for earned leave, that are not expected to be settled wholly within 12 months, are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period on Government bonds that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognized in the statement of profit and loss.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity; and

(b) defined contribution plans such as provident fund, family pension fund and employee’s state insurance

(a) Gratuity obligations

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of the defined benefit obligation at the end of the reporting period. The defined benefit obligation is calculated annually by independent actuary using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on Government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation. This cost is included in employee benefits expenses in the statement of profit and loss.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

(b) Defined contribution plans

Defined contribution plans such as contributions to provident fund, family pension fund and employee’s state insurance are made to the funds administered by the Government of India, and are recognized as an expense when employees have rendered service entitling them to the contributions.

(iv) Employee share based payments

The Company operates equity settled share-based plan for the employees (referred to as employee stock option scheme (ESOS). ESOS granted to the employees are measured at fair value of the stock options at the grant date. Such fair value of the equity settled share based payments is expensed on a straight line basis over the vesting period, based on the Company’s estimate of equity shares that will eventually vest, with a corresponding increase in other equity (share based payment reserve). At the end of each reporting period, Company revises its estimate of number of equity shares expected to vest. The impact of the revision of the original estimates, if any, is recognized in the Statement of profit and loss such that cumulative expense reflects the revision estimate, with a corresponding adjustment to the share based payment reserve.

The fair value of employee stock options is measured using the Black-Scholes model. Measurement inputs include share price on grant date, exercise price of the option, expected volatility (based on weighted average historical volatility), expected life of the options, expected dividends and the risk free interest rate (based on government bonds).

q) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash at banks and on hand, bank overdrafts and short-term deposits with an original maturities of three months or less, which are subject to an insignificant risk of changes in value.

r) Investment in subsidiaries

Non-current investment in equity shares of subsidiaries is recognized at cost, unless there are indications of a permanent diminution in the value of investment, as per Ind AS 27. Noncurrent investments in preference shares and compulsory convertible debentures of subsidiaries is recognized at fair value through profit and loss.

s) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(i) Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.

In order for a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model.

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed to statement of profit and loss. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on the trade date, i.e., the date on which the Company commits to purchase or sell the asset.

Subsequent measurement

Subsequent measurement of financial assets depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. For the purposes of subsequent measurement, financial assets are classified in four categories:

- Financial assets at amortized cost (debt instruments)

- Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative gains and losses (debt instruments)

- Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments); and

- Financial assets at fair value through profit or loss

Financial assets at amortized cost (debt instruments)

A ‘financial asset’ is measured at the amortized cost if

both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the statement of profit and loss. The losses arising from impairment are recognized in the statement of profit and loss.

Financial assets at FVTOCI (debt instrument)

A ‘financial asset’ is classified as at the FVTOCI if both of

the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

b) The asset’s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the Company recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the statement of profit and loss. On derecognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified from the

equity to the statement of profit and loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.

Financial assets designated at fair value through OCI (equity instruments)

In the case of equity instruments which are not held for trading and where the Company has taken irrevocable election to present the subsequent changes in fair value in other comprehensive income, these elected investments are initially measured at fair value plus transaction costs and subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in the ‘Equity instruments through other comprehensive income’ under the head ‘Other Equity’. The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments. The Company makes such election on an instrument -by-instrument basis.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to statement of profit and loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

Dividends are recognized as other income in the statement of profit and loss when the right of payment has been established, except when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

A financial asset is held for trading if:

> it has been acquired principally for the purpose of selling it in the near term; or

> on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking; or

> it is a derivative that is not designated and effective as a hedging instrument or a financial guarantee.

Financial assets at FVTPL (equity instruments)

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair value recognized in the statement of profit and loss.

In case of equity instruments which are held for trading are initially measured at fair value plus transaction costs and subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognized in statement of profit and loss.

This category includes derivative instruments and listed equity investments which the Company had not irrevocably elected to classify at fair value through OCI. Dividends on listed equity investments are recognized in the statement of profit and loss when the right of payment has been established.

Investment in Subsidiaries

Investment in subsidiaries is carried at cost in the separate financial statements.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized when:

- The rights to receive cash flows from the asset have expired, or

- The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Impairment of financial assets

The Company applies the expected credit loss model for recognizing impairment loss on financial assets measured at amortized cost, debt instruments at FVTOCI, trade receivables and other contractual rights to receive cash or other financial asset.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit impaired financial assets). The Company estimates cash flows by considering all contractual terms

of the financial instrument (for example, prepayment, extension, call and similar options) through the expected life of that financial instrument.

The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. 12-month expected credit losses are portion of the lifetime expected credit losses and represent the lifetime cash shortfalls that will result if default occurs within the 12 months after the reporting date and thus, are not cash shortfalls that are predicted over the next 12 months.

For trade receivables, the Company follows “simplified approach for recognition of impairment loss. The application of simplified approach does not require the Company to track changes in credit risk.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience and adjusted for forward looking information.

(ii) Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables, loans and borrowings including derivative financial instruments

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss (FVTPL) include financial liabilities held for trading and financial liabilities designated upon initial recognition

as at FVTPL. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109 ‘Financial instruments’.

Gains or losses on liabilities held for trading are recognized in the statement of profit and loss.

Financial liabilities at amortized cost (Loans and borrowings)

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in statement of profit and loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss. This category generally applies to borrowings.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another financial liability from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit and loss.

Offsetting of financial instruments

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

t) Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to the equity

shareholders of the Company by the weighted average number of equity shares outstanding during the year.

(ii) Diluted earnings per share

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders of the Company and weighted average number of equity shares outstanding during the year are adjusted for the effect of all potentially dilutive equity shares.

u) Recent pronouncements

The Company had applied the amendments of Ind AS 8, Ind AS 1 and Ind AS 12 and there is no material impact on financials.

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules from time to time. However, for 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 Capital redemption reserve

Capital redemption reserve was created for redemption of preference share capital and it is a non-distributable reserve.

Capital reserve

Capital reserve represent capital subsidy received and amount received on forfeiture of shares of the Company. Capital reserve is utilized in accordance with the provisions of the Companies Act, 2013.

Share based payment reserve

Share based payment reserve represents the fair value of the stock options granted by the Company under the Employees Stock Option Plan accumulated over the vesting period. The reserve will be utilised on exercise of the options.

Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of the Companies Act, 2013.

Application money against convertible share warrants

Application money represents receipt of upfront payment being 25% of total consideration against the allotment of 14,49,000 convertible share warrants during the year to a promoter group company.

General reserve

General reserve is used to transfer profits from retained earnings for general purposes. The reserve is utilized in accordance with the provisions of the Companies Act, 2013.

29.0 Gratuity and other post-employment benefit plans (Contd.)

29.2 Defined contribution plans

The Company also has certain defined contribution plans, such as provident fund, family pension fund and employee’s state insurance for benefit of employees. Contributions are made to funds administered by the Government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognized during the year towards contribution to defined contribution plans is H329.78 Lakh (March 31, 2023: H275.28 Lakh).

29.3 Leave obligation

The Company provides for leave obligations based on actuarial valuation carried at the year end using the projected unit credit method.

31.0 Leases - short term leases

The Company has certain operating leases primarily consisting of leases for office premises, guest houses and warehouses having different lease terms. Such leases are generally with the option of renewal against increased rent and premature termination clause. Rental expense recorded for short-term leases and low value asset leases is H 133.78 Lakh for the year ended March 31, 2024 (March 31, 2023: H110.44 Lakh).

33.0 Segment Information

33.1 Primary segment (by business segment):

Ind AS 108 establishes standards for the way that the Company report information about operating segments and related disclosures about products and services, geographic areas and major customers. The Company’s operations comprises of only one segment i.e. sale of polyester staple fibre and polyester yarn which are mainly having similar risks and returns. Based on the “management approach” as defined in Ind AS 108, the management also reviews and measure the operating results taking the whole business as one segment (synthetic textile). In view of the same, separate primary segment information is not required to be given as per the requirements of Ind AS 108 on “Operating Segments”.

35.0 Financial Instruments

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

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

A. The fair values of derivatives such as forward/ derivative contracts are on mark to market basis as per bank.

B. The Company has adopted effective interest rate for calculating interest expense. Processing fees and transaction costs relating to each loan has been considered for calculating effective interest rate. The fair values of non-current borrowings are classified as level 3 in the fair value hierarchy due to the use of unobservable inputs including own credit risk.

C. Loans, investments and other non-current financial assets are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken into account for expected losses of these receivables. The fair value of loans, investments and other non-current financial assets has been considered as equal to their carrying amount. These fair values are classified as level 3 in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.

D. Fair values of cash and cash equivalents, trade receivables, bank balances, current investments, current loans, other current financial assets, trade payables, current borrowings and other financial liabilities are considered to be the same as their carrying amount due to short-term maturities of these instruments.

Fair value hierarchy

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

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

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

36.0 Financial Risk Management

The Company realizes that risks are inherent and integral aspect of any business. The primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s senior management oversees the management of these risks.

The Company has exposure to the following risks (arising from financial instruments):

- Credit risk

- Liquidity risk

- Market risk

A. Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. The Company is exposed to credit risk mainly from trade receivables, loans given and other financial assets.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of default occurring on assets as at the reporting date with the risk of default as at the date of initial recognition.

Trade receivables are typically unsecured and derived from revenue earned from customers located in India and abroad. Credit risk is managed by the Company through customer assessment, credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business. The Company measures the expected credit loss of trade receivables based on historical trend, industry practice and the business environment in which the entity operates. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables, loans given and other financial assets.

C. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation in market prices. These comprise three types of risk i.e., currency rate, interest rate and other price related risks. Financial instruments affected by market risk include borrowings, loans given, deposits, foreign currency receivables and payables and derivative financial instruments such as forward contracts. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. 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. Regular interaction with bankers, intermediaries and the market participants help us to mitigate such risk.

41.0 Ganesha Ecosphere Employees’ Stock Option Scheme-2021

The Company had introduced Ganesha Ecosphere Employees’ Stock Option Scheme 2021 (“ESOP Scheme”) to provide Employee Stock Options (“options”) to all the eligible employees of the Company and its subsidiaries. The ESOP Scheme is administered by the Nomination and Remuneration Committee (NRC) of the Company and implemented through Ganesha Employees’ Welfare Trust (“Trust”). The Trust had acquired 39,194 Equity Shares of the Company, in aggregate, from the secondary market under the ESOP Scheme.

During the year ended March 31, 2024, the NRC at its meeting held on March 7, 2024 has granted 39,194 options to the eligible employees of the Company and its Subsidiaries. Each option granted under the scheme entitles the holder to one equity share of the Company at an exercise price of H543/- per share. The entire granted options shall vest on March 7, 2025, i.e. after one year from the grant date. Options granted under the Scheme shall be exercisable within 3 years from the date of vesting.

44.0 On January 18, 2024, the Company has made an allotment of 14,49,000 Fully Convertible Equity Warrants at an issue price of H1,035/-(including a premium of H1,025/- per Equity Share aggregating to H14,997.15 Lakhs, on receipt of an upfront amount of H3,750.00 Lakhs, to an entity belonging to Promoter and Promoter Group of the Company, on preferential basis under Chapter V of the SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2018, as amended. The warrants so issued and allotted shall be convertible within a period of 18 months from the date of allotment of Warrants. An expenditure of H13.20 lakh was incurred towards issue of Equity Warrants, which has been adjusted from security premium. The proceeds received against such allotment have entirely been utilized towards stated purpose of the issue.

45.0 On February 02, 2024, the Company has made an allotment of 35,17,587 Equity Shares of face value of H10/- each at a price of H995/-per share (including premium of H985/- per share) aggregating to H34,999.99 Lakhs, to eligible Qualified Institutional Buyers under Chapter VI of the SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2018, as amended. Consequent to the said allotment, the total paid up Equity Share Capital of the Company stands increased to H2,534.70 Lakhs comprising of 2,53,46,984 Equity Shares. The Equity Shares issued & allotted as aforesaid rank pari-passu with the existing equity shares of the Company in all respect. An expenditure of H989.75 lakh was incurred towards issue and allotment of aforesaid equity shares, which has been adjusted from security premium. Out of the issue proceeds of H34,999.99 lakhs, H24,947.00 lakhs have been utilized towards the stated purposes and remaining H10,052.99 lakhs have been deposited with banks in fixed deposits.

46.0 Events occurring after the balance sheet date

The Board of Directors of the Company have recommended dividend of H3.00 per fully paid up equity share of H10 each, aggregating to H760.41 Lakh for the financial year 2023-24 (March 31, 2023: H2.00 per fully paid up equity share of H10 each, aggregating H436.59 Lakh). This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting and the actual dividend amount will be dependent on the share capital outstanding as on the relevant record date/ book closure.

47.0 The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further no instance of audit trail feature being tampered with was noted in respect of accounting software.

48.0 The Uttar Pradesh State GST Authorities (‘the SGST department’) had conducted search activity during the month of March, 2024 at some of factory premises of the Company. The Company extended full co-operation to the SGST officials during the search and provided required details, clarifications, and documents. The Company deposited Rs 350.00 Lakh under protest with SGST authorities As on the date of adoption of these financial statements, the Company has not received any demand or show cause notice from the SGST department regarding any demand or liability as a result of the search, therefore, the consequent impact on the standalone financial statements, if any, is not ascertainable. The Management, after considering all available records and facts known to it, is of the view that there is no material adverse impact on the financial position of the Company for the year ended March 31, 2024 in this regards..

49.0 Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and the Rules made thereunder.

(ii) The Company does not have any transactions with struck off companies under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

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

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

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

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

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

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

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

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

(vii) The Company has no such transactions which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income tax Act, 1961).

(viii) The Company is regular in paying its dues and has not been declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(ix) The Company is in compliance with the number of layers for its holding in downstream companies prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restrictions on number of Layers) rules, 2017.

(x) The Company has not entered into any scheme of arrangement, during the year, which has any impact on financial results or position of the company.

(xi) The Company has not revalued any of its property, plant and equipment (including right-of-use assets) or intangible assets during the year.

(xii) The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013) either severally or jointly with any other person that are repayable on demand or without specifying any terms or period of repayment.

(xiii) The Company has used the borrowings from banks for the purpose for which it was taken.

50.0 Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current year’s classification.

As per our report of even date attached

For Narendra Singhania & Co. For and on behalf of the Board of Directors

Chartered Accountants Firm Reg. No. 009781N

Sharad Sharma Shyam Sunder Sharmma

Managing Director Chairman

Narendra Singhania DIN: 00383178 DIN: 00530921

Partner

Membership No.: 087931

Bharat Kumar Sajnani Gopal Agarwal

Company Secretary Chief Financial Officer

FCS:7344 FCA: 075080

Place: New Delhi Place: Kanpur

Date: 23^rd May, 2024 Date: 23^rd May, 2024

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Mar 31, 2023

1) Trade receivable represents the amount of consideration, in exchange for goods or services transferred to the customers, that is unconditional. There are no contract assets and contract liabilities.

2) No trade receivables are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade receivable are due from firms or private companies in which any director of the Company is a partner, a director or a member.

3) Trade receivables include H0.04 Lakh (March 31, 2022: Nil) due from a subsidiary company.

4) Refer note 35.0 & 36.0 for information about fair value measurement, credit risk and market risk of trade receivables.

5) Refer note 38.0 for ageing schedule of trade receivables.

ii) The rights, preferences and restrictions attached to each class of shares including restrictions on the distribution of dividends and the repayment of capital:

The Company has only one class of equity shares having par value of H10 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

Nature and purpose of reserves Capital redemption reserve

Capital redemption reserve was created for redemption of preference share capital and it is a non-distributable reserve.

Capital reserve

Capital reserve represent capital subsidy received and amount received on forfeiture of shares of the Company. Capital reserve is utilized in accordance with the provisions of the Companies Act, 2013.

Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of the Companies Act, 2013.

General reserve

General reserve is used to transfer profits from retained earnings for general purposes. The reserve is utilized in accordance with the provisions of the Companies Act, 2013.

i) Refer note 13.1 for the details of effective interest rate, repayment terms and security details for the borrowings.

ii) The carrying amount of financial and non financial assets as security for secured borrowings is disclosed in note 27.0.

iii) Refer note 36.0 for liquidity risk.

iv) Loans discounted to their present value using the average interest rate on borrowings and the differential loan amount has been disclosed as government grant.

29.0 Gratuity and other post-employment benefit plans29.1 Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the numbers of years of services. The gratuity plan is an unfunded plan.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period. There is no change in the method of valuation for the prior periods.

Fair value and changes in fair value of plan assets during the year ended March 31, 2023:

Gratuity obligations are not funded.

As per the policy of the Company, no gratuity is payable to the executive directors of the Company.

The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

29.2 Defined contribution plans

The Company also has certain defined contribution plans, such as provident fund, family pension fund and employee’s state insurance for benefit of employees. Contributions are made to funds administered by the Government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognized during the year towards contribution to defined contribution plans is H275.28 Lakh (March 31, 2022: H246.19 Lakh).

29.3 Leave obligation

The Company provides for leave obligations based on actuarial valuation carried at the year end using the projected unit credit method.

30.0 Commitments and contingencies (to the extent not provided for)

30.1 Commitments		(H in Lakh)
Particulars	As at March 31, 2023	As at March 31, 2022
a) Estimated amount of contracts remaining to be executed on capital account (net of advances)	6.47	-
b) Corporate guarantees given to banks for securing the amounts lent by them to the subsidiary companies	36,490.94	37,075.00
c) Undertaking given by the Company to fulfil quantified exports in respect of capital goods imported under the Export Promotion Capital Goods Scheme of the Government of India.	10.63
Total	36,508.04	37,075.00
30.2 Contingent liabilities		(H in Lakh)
Particulars	As at March 31, 2023	As at March 31, 2022
a) Matters with tax authorities
- Income-tax matters	35.92	35.92
- GST matters	188.96	-
- VAT matters	2.61	2.61
b) Demand as environmental compensation has been raised by Uttarakhand Pollution Control Board (‘UPCB’) on Company’s Rudrapur Unit in pursuance of a general order of Hon’ble National Green Tribunal (‘NGT’) dated November 14, 2019 (‘Order’). The operation of the said Order has been stayed by the Hon’ble Supreme Court vide its order dated March 18, 2020. The management believes that this demand has erroneously been raised on the Company by UPCB and not suistanable.	100.00	100.00
c) Bills discounted under letters of credit and outstanding	81.35	234.48
d) Claims against the Company not acknowledged as debt (interest thereon not ascertainable at present)	52.96	49.23
Total	461.80	422.24

31.0 Leases - short term leases

The Company has certain operating leases primarily consisting of leases for office premises, guest houses and warehouses having different lease terms. Such leases are generally with the option of renewal against increased rent and premature termination clause. Rental expense recorded for short-term leases and low value asset leases is H110.44 Lakh for the year ended March 31, 2023 (March 31, 2022: H106.32 Lakh).

The Company has taken certain land on long term lease for factory purposes (disclosed under “Right of use assets”). Since entire lease payments have been prepaid, the Company does not have any future lease liability towards the same.

For details pertaining to the carrying value of right of use asset and amortization charged thereon during the year, refer note 3.3 of the financial statements.

The Company does not have any lease liability and thus there are no liquidity risks.

33.0 Segment information33.1 Primary segment (by business segment):

Ind AS 108 establishes standards for the way that the Company report information about operating segments and related disclosures about products and services, geographic areas and major customers. The Company’s operations comprises of only one segment i.e. sale of polyester staple fibre and polyester yarn which are mainly having similar risks and returns. Based on the “management approach” as defined in Ind AS 108, the management also reviews and measure the operating results taking the whole business as one segment (synthetic textile). In view of the same, separate primary segment information is not required to be given as per the requirements of Ind AS 108 on “Operating Segments”.

35.0 Financial instruments

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

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

A. The fair values of derivatives such as forward/ derivative contracts are on mark to market basis as per bank.

B. The Company has adopted effective interest rate for calculating interest expense. Processing fees and transaction costs relating to each loan has been considered for calculating effective interest rate. The fair values of non-current borrowings are classified as level 3 in the fair value hierarchy due to the use of unobservable inputs including own credit risk.

C. Loans, investments and other non-current financial assets are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken into account for expected losses of these receivables. The fair value of loans, investments and other non-current financial assets has been considered as equal to their carrying amount. These fair values are classified as level 3 in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.

D. Fair values of cash and cash equivalents, trade receivables, bank balances, current investments, current loans, other current financial assets, trade payables, current borrowings and other financial liabilities are considered to be the same as their carrying amount due to short-term maturities of these instruments.

Fair value hierarchy

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

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

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

36.0 Financial risk management

The Company realizes that risks are inherent and integral aspect of any business. The primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s senior management oversees the management of these risks.

The Company has exposure to the following risks (arising from financial instruments):

- Credit risk

- Liquidity risk

- Market risk

A. Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. The Company is exposed to credit risk mainly from trade receivables, loans given and other financial assets.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of default occurring on assets as at the reporting date with the risk of default as at the date of initial recognition.

Trade receivables are typically unsecured and derived from revenue earned from customers located in India and abroad. Credit risk is managed by the Company through customer assessment, credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business. The Company measures the expected credit loss of trade receivables based on historical trend, industry practice and the business environment in which the entity operates. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables, loans given and other financial assets.

B. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

a) Financing arrangements

The Company believes that it has sufficient working capital to meet its current requirements. Accordingly, no liquidity risk is perceived. Further, the Company is having cash credit facilities from banks of H16,000.00 Lakh (March 31, 2022: H12,500.00 Lakh), repayable on demand which carry floating rate of interest.

C. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation in market prices. These comprise three types of risk i.e., currency rate, interest rate and other price related risks. Financial instruments affected by market risk include borrowings, loans given, deposits, foreign currency receivables and payables and derivative financial instruments such as forward contracts. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. 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. Regular interaction with bankers, intermediaries and the market participants help us to mitigate such risk.

i) Foreign currency risk

The Company is exposed to foreign currency risk through operating and financing activities in foreign currency. The Company uses derivative financial instruments, such as foreign currency sale and purchase forward contracts and currency and interest rate swap contracts, to reduce foreign currency risk exposure and follows its risk management policies.

37.0 Capital risk management

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders. The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. The Company considers the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor’s, creditor’s and market’s confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure in consonance with its long term strategic plans.

41.0 Company’s claim to the insurance company against damage due to fire of H3,009.85 lakh at its Kanpur Polyester Staple Fibre (PSF) manufacturing unit on June 4, 2021 has been settled by the insurance company at H2,500.21 lakh during May, 2023. Accordingly, the Company has provided for the short recovery of insurance claim of H509.64 lakh.

42.0Ganesha Ecosphere Employees’ Stock Option Scheme-2021

Pursuant to the “Ganesha Ecosphere Employees’ Stock Option Scheme - 2021”, Ganesha Emplyees’ Welfare Trust purchased 19,859 equity shares of the Company during the year from the secondary open market at cost of H597.63 per share (March 31, 2022: 19,335 equity shares at cost of H485.42 per share). However, no offer was made to eligible employees under the scheme till March 31, 2023.

43.0 Disclosures as per Section 186(4) of the Companies Act, 2013

The details of the loans, guarantees and investments under Section 186 of the Companies Act, 2013 are as follows:

(i) Details of investments made and loans given are provided under the respective heads.

(ii) The Company has given corporate guarantees of H36490.94 Lakh (March 31, 2022: H37,075.00 Lakh) to various banks for securing the amounts lent by them to Subsidiaries of the Company.

45.0 Events occurring after the balance sheet date

The Board of Directors of the Company have recommended dividend of H2.00 per fully paid up equity share of H10 each, aggregating to H436.59 Lakh for the financial year 2022-23 (March 31, 2022: H2.00 per fully paid up equity share of H10 each, aggregating H436.59 Lakh). This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting and the actual dividend amount will be dependent on the share capital outstanding as on the relevant record date/ book closure.

46.0 Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property. under the Benami Transactions(Prohibition) Act 1988 and rules made thereunder.

(ii) The Company does not have any transactions with struck off companies under Section 248 of the Companies Act, 2013 or Section 560 of the Companuies Act, 1956.

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

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

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

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

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

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether reorded 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 to or on behalf of the Ultimate Beneficiaries.

(vii) The Company has no such transactions which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income tax Act, 1961).

(viii) The Company is regular in paying its dues and has not been declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordaance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(ix) The Company is in compliance with the number of layers for its holding in downstream companies prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restrictions on number of Layers) Rules, 2017.

(x) The Company has not entered into any scheme of arrangement, during the year, which has any impact on financial results or position of the company.

(xi) The Company has not revalued any of its property, plant and equipment (including right-of-use assets) or intangible assets during the year.

(xii) The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013) either severally or jointly with any other person that are repayable on demand or without specifying any terms or period of repayment.

(xiii) The Company has used the borrowings from banks for the purpose for which it was taken.

47.0 Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current year’s classification.

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Mar 31, 2018

1. Corporate information

Ganesha Ecosphere Limited ("the Company") is a public limited company, incorporated and domiciled in India, listed on the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited. The address of the registered office is Raipur (Rania), Kalpi Road, Distt. Kanpur Dehat (U.P.). The Company is a leading PET Waste recycling company in India and is engaged in the manufacturing of Recycled Polyester Staple Fibre (RPSF), Spun Yarn and Dyed Texturised yarn.

2. The Company has elected to measure all its property plant and equipment at the Indian GAAP carrying amount on March 31, 2016 as its deemed cost (gross block value) on the date of transition to Ind AS i.e. April 1, 2016.

3. All property, plant and equipment are charged as security for the term loan and working capital loan facilities from banks and others, to secure their respective dues (refer notes 12.1 and 27).

4. Refer note 30.1 for contractual commitment for the acquisition of property, plant and equipment.

5 Capitalized borrowing costs

The amount of borrowing costs capitalized in buildings and plant & equipment during the year ended March 31, 2018 was Rs.377.50 Lakhs (March 31, 2017: Nil, April 1, 2016: Nil). The rate used to determine the amount of borrowing costs eligible for capitalization is the actual rate on specific loan as well as weighted average interest rate applicable to the Company''s general borrowings during the year.

Notes:

1) No trade receivables are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade receivable are due from firms or private companies in which any director is a partner, a director or a member.

2) No trade receivables are due from any other related party.

3) Refer note 37 for information about credit risk and market risk of trade receivables.

ii) The rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital:

The Company has only one class of equity shares having par value of H10/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

Nature and purpose of reserves Capital redemption reserve

Capital redemption reserve was created for redemption of preference share capital and it is a non-distributable reserve.

Capital reserve

Capital reserve represent capital subsidy received and amount received on forfeiture of shares of the Company. Capital reserve is utilized in accordance with the provisions of the Companies Act, 2013.

Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of the Companies Act, 2013.

General reserve

General reserve is used to transfer profits from retained earnings for general purposes. The reserve is utilized in accordance with the provisions of the Companies Act, 2013.

Notes:

i) Refer note 12.1 for the details of effective interest rate, repayment terms and security details for the borrowings.

ii) The carrying amount of financial and non financial assets as security for secured borrowings is disclosed in note 27.

iii) Refer note 37 for liquidity risk.

iv) Loans discounted to their present value using the average interest rate on borrwoings and the differential loan amount has been disclosed as government grant.

*Sale of products includes excise duty collected from customers of Rs.380.64 Lakhs (March 31, 2017: Rs.1,177.66 Lakhs). Sale of products net of excise duty is Rs.74,743.17 Lakhs ( March 31, 2017: Rs.66,797.76 Lakhs). Revenue from operations for periods up to June 30, 2017 includes excise duty. From July 1, 2017 onwards the excise duty and most indirect taxes in India have been replaced by Goods and Services Tax (''GST''). The Company collects GST on behalf of the Government and hence, GST is not included in revenue from operations. In view of the aforesaid change in indirect taxes, revenue from operations for year ended March 31, 2018 and March 31, 2017 are not comparable.

6. FIRST-TIME ADOPTION OF IND AS

These financial statements, for the year ended March 31, 2018, are the first financial statements, the Company has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, the Company had prepared its financial statements in accordance with accounting standards notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (''Indian GAAP''). For the purpose of transition from Indian GAAP to Ind AS, the Company has followed the guidance prescribed under the Ind AS 101, ''First-time Adoption of Indian Accounting Standards'', with effect from April 1, 2016 (''transition date'').

The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements as at and for the year ended March 31, 2017 and in preparation of the opening Ind AS balance sheet as at April 1, 2016. This note explains how the transition from Indian GAAP to Ind AS has affected the Company''s balance sheet and financial performance.

Exemptions/ exception availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from Indian GAAP to Ind AS:

(i) Ind AS optional exemptions Deemed Cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38, ''Intangible Assets''.

Accordingly, the Company has elected to measure all of its property, plant and equipment as well as intangible assets at their Indian GAAP carrying value. There are no decommissioning liabilities of the Company.

(ii) Ind AS mandatory exceptions Estimates

As per Ind AS 101, 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 the previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with Indian GAAP. Reconciliations between Indian GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flow for prior periods. The presentation requirements under Indian GAAP differs from Ind AS, and hence, Indian GAAP information has been regrouped for ease of reconciliation with Ind AS. The regrouped Indian GAAP information is derived from the financial statements of the Company prepared in accordance with Indian GAAP. The following tables represent the reconciliations from Indian GAAP to Ind AS.

Notes to the reconciliation of equity as at April 1, 2016 and March 31, 2017 and total comprehensive income for the year ended March 31, 2017:

a. Property, plant and equipment

i. Recognition of Government grant

For the subsidy received from the Government for capital expenditure which has been reduced from the value of the fixed asset capitalized in earlier years, the WDV amount as at April 1, 2016 has been added in the value of the assets and deferred Government grant is recognized. The deferred Government grant is taken to profit and loss on a straight line basis over the remaining useful life of the assets. This has resulted in an increase in net block of property, plant and equipment by Rs.197.24 Lakhs and Rs.186.00 Lakhs as at April 1, 2016 and March 31, 2017 respectively and an increase in deferred Government grant by Rs.197.24 Lakhs and Rs.185.25 Lakhs as at April 1, 2016 and March 31, 2017 respectively. Correspondingly, depreciation for the year ended March 31, 2017 has increased by Rs.11.24 Lakhs and Government grant income has increased by Rs.11.99 Lakhs.

ii. Reclass of leasehold land

Leasehold land has been considered as an operating lease since the Company does not have the option to buy the land after the completion of the initial lease period of 90 years but is having a renewal option as per the lease agreement. Accordingly, the leasehold land has been removed from the block of property, plant and equipment and has been added to prepaid rental expense. The net block of property, plant and equipment has been reduced by Rs.131.43 Lakhs and Rs.129.82 Lakhs as at April 1, 2016 and March 31, 2017 respectively with a corresponding increase in the prepaid rental expense of respective years. The depreciation for the year ended March 31, 2017 has reduced by Rs.1.61 Lakhs with a corresponding increase in other expense.

b. Fair valuation of forward contracts

Under the Ind AS 109, forward contracts are carried at fair value and the resultant gains and losses are recorded in the statement of profit and loss. Accordingly, this has resulted in an increase in other financial assets by Rs.21.83 Lakhs as at April 1, 2016 with a corresponding credit to the opening retained earnings and an increase in other financial assets by Rs.9.55 Lakhs as at March 31, 2017. This has also resulted in a net decrease in foreign exchange fluctuation gain by Rs.12.28 Lakhs during the year ended March 31, 2017.

c. Proposed dividend

Under Indian GAAP, till March 31, 2016, proposed dividends and related dividend distribution tax was recognized as a provision in the year to which they relate, irrespective of when they are declared. Under Ind AS, dividends and related dividend distribution tax are recognized as a liability in the year in which it is approved by the shareholders in the annual general meeting of the Company or paid. In the case of the Company, the declaration of dividend occurs after period end. Therefore, the liability of Rs.276.97 Lakhs as at April 1, 2016 recorded for dividend has been derecognized against retained earnings.

d. Reclass of prior period items

Under Indian GAAP, prior period items (net) as at March 31, 2017 had been taken to other expenses. Under Ind AS, it has been adjusted to opening retained earnings, which has resulted in decrease in retained earnings as at April 1, 2016 by Rs.5.57 Lakhs and an increase in other current liabilities as at April 1, 2016 by similar amount.

e. Measurement of financial assets and financial liabilities - interest free loan

Under Indian GAAP, the Company had accounted for financial liability related to interest free loan which is repayable in the year 2023-24 at the undiscounted amount whereas under Ind AS, such financial liability are recognized at present value with a corresponding credit to the Government grant. This has resulted in a decrease in financial liabilities and increase in deferred Government grant by Rs.11.26 Lakhs as at March 31, 2017. The financial liability is then increased by Rs.0.62 Lakhs with corresponding increase in interest expense and deferred Government grant is reduced by Rs.0.84 Lakhs with a corresponding credit to statement of profit and loss during the year ended March 31, 2017.

f. Defined benefit liabilities

Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to the statement of profit and loss. Under Ind AS, remeasurements comprising of actuarial gains and losses on defined benefit obligations are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI. Accordingly, actuarial gain of Rs.3.38 Lakhs during the year ended March 31, 2017 has been removed from employee benefit expenses and Rs.2.21 Lakhs (net of deferred tax of Rs.1.17 Lakhs) has been recognized in OCI.

g. Excise duty

Excise duty of Rs.1,177.66 Lakhs on account of sale of goods has been included in revenue for the year ended March 31, 2017 and is separately disclosed as an expense since it is liability of the manufacturer which forms part of the production, irrespective of whether goods are sold or not.

h. Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ''other comprehensive income'' includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under Indian GAAP.

i. Deferred tax

Under Ind AS deferred tax has been recognized on the adjustments made on transition to Ind AS.

j. Cash flow statement

The Ind AS adjustments are either non-cash adjustments or are regrouping among the cash flows from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended March 31, 2017 as compared with Indian GAAP.

7. GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

7.1 Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the numbers of years of services. The gratuity plan is an unfunded plan.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period. There is no change in the method of valuation for the prior periods.

Fair value and changes in fair value of plan assets during the year ended March 31, 2018

Gratuity obligations are not funded.

As per the policy of the Company, no gratuity is payable to the executive directors of the Company.

The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

7.2 Defined contribution plans

The Company also has certain defined contribution plans, such as provident fund, family pension fund and employee''s state insurance for benefit of employees. Contributions are made to funds administered by the Government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognized during the year towards contribution to defined contribution plans is Rs.172.58 Lakhs (March 31, 2017: Rs.169.40 Lakhs).

7.3 Leave obligation

The Company provides for leave obligations based on actuarial valuation carried at the year end using the projected unit credit method

8. Leases

The Company has taken guest houses and warehouses on operating lease basis which are cancellable by either party. Most of the leases are renewable for further period on mutually agreeable terms. The total operating lease expense debited to statement of profit and loss during the year is Rs.95.70 Lakhs (March 31, 2017: Rs.83.83 Lakhs).

9. Segment information

9.1 Primary segment (by business segment):

Ind AS 108 establishes standards for the way that the Company report information about operating segments and related disclosures about products and services, geographic areas and major customers. The Company''s operations comprises of only one segment i.e. manufacture and sale of polyester staple fibre and polyester yarn which are mainly having similar risks and returns. Based on the "management approach" as defined in Ind AS 108, the management also reviews and measure the operating results taking the whole business as one segment (synthetic textile). In view of the same, separate primary segment information is not required to be given as per the requirements of Ind AS 108 on "Operating Segments".

9.2 Secondary segment (by geographical demarcation):

Considering the nature of the business in which the Company operates, the Company deals with various customers in multiple geographies. The details of segment revenue based on geographical demarcation is as under:

10. Dues to micro and small enterprises

There are no dues to micro and small enterprises as at March 31, 2018 (March 31, 2017: Nil, April 1, 2016: Nil). The information as required to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified based on the information available with the Company.

11. The Company has not given/ provided any guarantee/ collaterals for and on behalf of the aforementioned related parties.

12. No amount has been written off or written back during the year in respect of debts due from or to related parties.

13. Financial instruments

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

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

A. The fair values of derivatives such as forward contracts are on mark to market basis as per bank.

B. The Company has adopted effective interest rate for calculating interest expense. Processing fees and transaction costs relating to each loan has been considered for calculating effective interest rate. The fair values of non-current borrowings are classified as level 3 in the fair value hierarchy due to the use of unobservable inputs including own credit risk.

C. Loans and other non-current financial assets are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken into account for expected losses of these receivables. Accordingly, the fair value of loans is equal to their carrying amount. These fair values are classified as level 3 in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.

D. Fair values of cash and cash equivalents, trade receivables, bank balances, current loans, other current financial assets, trade payables, current borrowings and other financial liabilities are considered to be the same as their carrying amount due to short-term maturities of these instruments.

Fair value hierarchy

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

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

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

14. Financial risk management

The Company realizes that risks are inherent and integral aspect of any business. The primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s senior management oversees the management of these risks.

The Company has exposure to the following risks (arising from financial instruments):

- Credit risk

- Liquidity risk

- Market risk

A. Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. The Company is exposed to credit risk mainly from trade receivables, loans given and other financial assets.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of default occurring on assets as at the reporting date with the risk of default as at the date of initial recognition.

Trade receivables are typically unsecured and derived from revenue earned from customers located in India and abroad. Credit risk is managed by the Company through customer assessment, credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business. The Company measures the expected credit loss of trade receivables based on historical trend, industry practice and the business environment in which the entity operates. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables, loans given and other financial assets.

Loans given and other financial assets are considered to be of good quality and there is no significant credit risk.

B. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

a. Financing arrangements

The Company believes that it has sufficient working capital to meet its current requirements. Accordingly, no liquidity risk is perceived. Further, the Company is having cash credit facilities from banks of Rs.12,500.00 Lakhs (March 31, 2017: Rs.10,500.00 Lakhs and April 1, 2016: Rs.10,500.00 Lakhs), repayable on demand which carry floating rate of interest.

C. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation in market prices. These comprise three types of risk i.e., currency rate, interest rate and other price related risks. Financial instruments affected by market risk include borrowings, loans given, deposits, foreign currency receivables and payables and derivative financial instruments such as forward contracts. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. 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. Regular interaction with bankers, intermediaries and the market participants help us to mitigate such risk.

i) Foreign currency risk

The Company is exposed to foreign currency risk through operating and financing activities in foreign currency. The Company uses derivative financial instruments, such as foreign currency forwards, to reduce foreign currency risk exposure and follows its risk management policies.

15. Capital risk management

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders. The capital structure of the Company is based on management''s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. The Company considers the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor''s, creditor''s and market''s confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure in consonance with its long term strategic plans.

16. Events occurring after the balance sheet date

16.1 The Company, on May 9, 2018, has made an allotment of 26,52,520 equity shares of face value of Rs.10/- each at a price of Rs.377/- per share (including premium of Rs.367/- per share) aggregating to Rs.10,000 Lakhs, to eligible Qualified Institutional Buyers under Chapter VIII of SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2009. Consequent to the said allotment, the total paid up equity share capital of the Company stands increased to Rs.2,182.94 Lakhs comprising of 21,829,397 equity shares.

16.2 The board of directors of the Company have recommended dividend of Rs.1.50/- per fully paid up equity share of Rs.10/- each, aggregating Rs.394.75 Lakhs, including dividend distribution tax of Rs.67.31 Lakhs, for the financial year 2017-18 (March 31, 2017: Rs.1.20/- per fully paid up equity share of Rs.10/- each, aggregating Rs.276.97 Lakhs including dividend distribution tax of Rs.46.85 Lakhs), which is inclusive of dividend on 26,52,520 equity shares allotted as mentioned at note no. 39.1 above. This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting and the actual dividend amount will be dependent on the share capital outstanding as on the relevant record date/ book closure.

17. Previous year figures have been regrouped/rearranged, wherever considered necessary to conform to current year''s classification.

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Mar 31, 2016

1. The Company is having only one class of equity shares having par value of H10/-per share. Each Shareholder is eligible for one vote per share. Equity shareholders are having the right of dividend, proposed by the Board of Directors subject to the approval of shareholders except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their holding.

2. Compulsorily Convertible Preference Shareholders did not have the voting rights except as provided under section 47(2) of the Companies Act, 2013. These shares were having the preferential rights over equity shareholders, for getting the fixed dividend of H12/- per share, i.e., @ 12% on a pro-rata basis from the date of allotment on non-cumulative basis and also repayment of Capital in the event of liquidation. These shares were converted in to 2,725,877 (Twenty Seven Lakhs Twenty Five Thousand Eight Hundred Seventy Seven Only) Equity Shares of H10/- each of the Company at the Price of H114/- per Equity Share (including Premium of H104/- per Share), on 3^rd August,2015.

3. The Company has neither issued shares for a consideration other than cash/ bonus shares nor bought back any shares during the period of 5 years immediately preceding the reporting date.

4. Represents dividend payment relating to previous year in respect of 2,725,877 equity shares (Previous Year Nil), which were allotted to MCAP India Fund Ltd. on conversion of Compulsory Convertible Preference Shares after 31^st March 2015 but before 12^th September 2015 (record date).

5. During the year, 250,000 (Previous Year 1,015,000) Warrants have been converted into equal number of Equity Shares of Rs.10/- each at a premium of Rs.104/- (Previous Year 54/-) per share.

Nature of Security and Terms of Repayment:

a. Rupee Term Loans from Banks & Financial Institution:

i) Rupee Term Loans and Foreign Currency Loan from Banks & FI, including Buyers credit from Banks, aggregating to Rs.948,702,129 (Previous Year Rs.1,089,505,569) are secured by way of first charge, on pari-passu basis among lending banks & FI, over entire fixed assets (present & future) (except the assets exclusively charged/ hypothecated against specific loan) including equitable mortgage of entire properties of the Company. These loans are further secured by way of extension of first charge on pari-passu basis, on current assets of the Company and personal guarantees of executive directors and others. These loans are repayable in monthly/ quarterly installments as per following maturity profile:

ii) Loans aggregating to Rs. Nil (Previous Year Rs.3,009,982) relate to vehicle purchased and are secured by way of hypothecation & exclusive charge of specified vehicles.

b. Rupee term loans from Others aggregating to Rs.18,943,787 (Previous Year Rs.31,098,598) relate to assets purchased under hire purchase/ financing arrangements with finance companies and are secured by way of hypothecation of the specified assets. These loans are further secured by personal guarantees of some of the executive directors, repayable in monthly installments and maturity profile is as under:

c. Repayment of Rupee term loans of Rs.1,176,871 (Previous Year Rs.20,476,202) from other parties have been guaranteed by executive directors. Out of above, Loan of Rs. Nil (Previous Year Rs.1.50 Crore) is additionally secured by pledge of shares owned by executive directors and others. These loans are repayable entirely during 2016-17 in monthly installments.

d. Unsecured Loans from Director and Directors'' relatives aggregating to Rs.71,275,000 (Previous Year Nil) are repayable during 2020-21 after the repayment of Banks'' term loans as per terms of sanction.

a. Working capital loans from Banks except Buyers'' Credit arrangements of Rs. Nil (Previous Year Rs.92,680,394/-) are secured by hypothecation of current assets of the Company both present and future, ranking pari-passu inter-se. These loans are further secured by way of extension of pari-passu 1st charge on fixed assets (except the assets exclusively charged/ hypothecated against specific loan) of the Company and also guaranteed by the Executive Directors and others.

b. Buyers'' credit arrangements of Rs. Nil (Previous Year Rs.92,680,394/-) from banks are secured by way of pledge of fixed deposit receipts

# There are no outstanding dues to be paid to Investor Education and Protection Fund.

* Dues payable to employees and accrued expenses.

6. Pursuant to the Companies (Accounting Standards) Amendment Rules, 2011, Company has exercised the option of capitalizing the exchange differences arising on foreign currency long term loans for purchase of depreciable capital assets, in respect of accounting periods commencing from 1^st April, 2011, which were hitherto recognized as income or expense in the period in which they arose. Accordingly, gain/ (loss) on account of foreign exchange fluctuations amounting to Rs.16,181,509/- [Previous Year (Rs.8,037,980)] has been adjusted with the cost of capital assets, to be depreciated over the balance useful life of respective assets.

7. Current year''s depreciation includes Rs. Nil [Previous Year Rs.3,035,446] being the written down value of Fixed Assets whose lives have expired as at 1^st April 2014.

* Includes Loans to Employees.

# Fixed deposits with banks include deposits of Rs.2,898,006/- (Previous Year Rs.2,798,626/-) with maturity of more than 12 months.

* Own manufacturing as well as conversion of own manufactured Polyester Staple Fibre into Spun yarn on job work from an outside party.

8. Disclosures in accordance with Accounting Standard - 15 on Employee benefits

a. Defined Contribution Plans

Contribution towards Defined Contribution Plans, recognized as expenses for the year is Rs.15,994,298 (Previous Year Rs.14,712,225), excluding H Nil (Previous Year Rs.108,843) transferred to Preoperative Expenses.

b. Defined benefit Plans

As per Actuarial Valuation on 31st March,2016

iv. Fair value & changes in fair value of Plan Assets during the year ended 31st March, 2016:

Gratuity & Leave encashment obligations are not funded

c. Employees benefits in the form of defined contribution plans and defined benefit plans (Gratuity & Leave Encashment) are not payable to the Executive Directors of the Company.

d. The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

Note 9: Segment Information

a. Primary Segment (by Business Segment):

Based on the guiding principles given in the Accounting Standard on Segment Reporting (AS-17), Company is primarily in the business of manufacture and sale of Polyester Staple Fibre and Polyester Yarn which are mainly having similar risks and returns. Since Company''s business activity falls within a single business segment (synthetic textile), hence it has no other primary reportable segments.

10. No amount has been written off or written back during the year in respect of debts due from or to related parties. (Previous Year Nil).

11. The Company has not given/provided any guarantee/collaterals for and on behalf of the aforementioned related parties.

12. Previous year figures have been given in brackets.

Note 13: Financial & Derivatives Instruments

Nominal value of Forward Contracts entered into by the Company for hedging foreign currency risks and outstanding as on 31^st March, 2016 amounting to Rs.109,685,947 (Previous Year Rs.23,657,797)

Un-hedged Foreign Currency exposure that are not hedged by derivative instruments or forward contracts as at 31^st March, 2016 amounting to Rs.146,162,871 (Previous Year Rs.421,783,596).

Note 14: Dues to Micro, Small and Medium Enterprises

There are no dues to Micro, Small and Medium Enterprises as at 31^st March, 2016 (Previous Year Nil). The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified based on the information available with the Company.

Note 15: Previous Year figures has been reclassified to conform to this year''s classification.

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Mar 31, 2015

1. Equity shares are having par value of Rs.10/-per share. Each Shareholder is eligible for one vote per share. Equity shareholders are having the right of dividend, proposed by the Board of Directors subject to the approval of shareholders except in case of interim dividend.

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

2. Compulsorily Convertible Preference Shareholders do not have the voting rights except as provided under section 47(2) of the Companies Act, 2013. These shares are having the preferential rights over equity shareholders, for getting the fixed dividend of Rs.12/- per share, i.e., @ 12% on a pro-rata basis from the date of allotment on non-cumulative basis and also repayment of Capital in the event of liquidation. These shares are convertible in to 27,25,877 (Twenty Seven Lacs Twenty Five Thousand Eight Hundred Seventy Seven Only) Equity Shares of Rs.10/- each of the Company at the Price of Rs.114/- per Equity Share (including Premium of Rs.104/- per Share), on or before 2nd October, 2015.

3. The Company has neither issued shares for a consideration other than cash/ bonus shares nor bought back any shares during immediately preceding 5 years.

# Dividend proposed to be distributed to Equity Shareholders Rs.1.20 (Previous Year Rs.1.20) per share.

* Dividend proposed to be distributed on Compulsorily Convertible Preference Shares 12% per annum (Previous Year Not Applicable).

4. During the year, 10,15,000 Warrants have been converted into equal number of Equity Shares of Rs.10/- each at a premium of Rs.54/- per share.

5. During the year 2,50,000 Warrants were issued convertible into equal number of Equity Shares of Rs.10/- each at a premium of Rs.104/- per share, at any time, in one or more tranches, on or before 2nd April, 2016.

6. Nature of Security and Terms of Repayment:

a) Rupee Term Loans from Banks & Financial Institution:

i) Rupee Term Loans and Foreign Currency Loan from Banks & FI, including Buyers credit from Banks, aggregating to Rs.108,95,05,569 (Previous Year Rs.127,79,66,749) are secured by way of first charge, on pari-passu basis among lending banks & FI, over entire fixed assets (present & future) (except the assets exclusively charged/ hypothecated against specific loan) including equitable mortgage of entire properties of the Company. These loans are further secured by way of extension of first charge on pari-passu basis, on current assets of the Company and personal guarantees of executive directors and others. These loans are repayable in monthly/ quarterly installments as per following maturity profile:

c) Repayment of Rupee term loans of Rs.2,04,76,202 (Previous year Rs.8,35,69,186) from other parties have been guaranteed by executive directors. Out of above, Loan of Rs.1.50 crores (Previous Year Rs.5.50 crores) is additionally secured by pledge of shares owned by executive directors and others. These loans are repayable in monthly/ quaterly installments as per following maturity profile:

a) Working capital loans from Banks except Buyers' Credit arrangements of Rs.9,26,80,394/- (Previous Year Rs.9,63,79,566/-) are secured by hypothecation of current assets of the Company both present and future, ranking pari-passu inter-se. These loans are further secured by way of extension of pari-passu 1st charge on fixed assets (except the assets exclusively charged/ hypothecated against specific loan) of the Company and also guaranteed by the Executive Directors and others.

b) Buyers' credit arrangements of Rs.9,26,80,394/- (Previous Year Rs.9,63,79,566/-) from banks are secured by way of pledge of fixed deposit receipts.

# There are no outstanding dues to be paid to Investor Education and Protection Fund.

* Dues payable to employees and accrued expenses.

7. Pursuant to the Companies (Accounting Standards) Amendment Rules, 2011, Company has exercised the option of capitalizing the exchange differences arising on foreign currency long term loans for purchase of depreciable capital assets, in respect of accounting periods commencing from 1st April, 2011, which were hitherto recognized as income or expense in the period in which they arose. Accordingly, gain/ (loss) on account of foreign exchange fluctuations amounting to Rs.80,37,980 [Previous year (Rs.16,11,426)] has been adjusted with the cost of capital assets, to be depreciated over the balance useful life of respective assets.

8. Current year's depreciation includes Rs.3,035,446/- (Previous Year Nil) being the written down value of Fixed Assets whose lives have expired as at 1st April 2014.

9. Disclosures in accordance with Accounting Standard - 15 on Employee benefits

a) Defined Contribution Plans

Contribution towards Defined Contribution Plans, recognized as expenses for the year is Rs.147,12,225 (Previous Year Rs.100,72,637), excluding Rs.1,08,843 (Previous Year Rs.7,96,026) transferred to Preoperative Expenses.

b) Defined benefit Plans

As per Actuarial Valuation on 31st March, 2015

iv) Fair value & changes in fair value of Plan Assets during the year ended 31st March, 2015:

Gratuity & Leave encashment obligations are not funded

c) Employees benefits in the form of defined contribution plans and defined benefit plans (Gratuity & Leave Encashment) are not payable to the Executive Directors of the Company.

d) The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

10. SEGMENT INFORMATION

a) Primary Segment (by Business Segment):

Based on the guiding principles given in the Accounting Standard on Segment Reporting (AS-17), Company is primarily in the business of manufacture and sale of Polyester Staple Fibre and Polyester Yarn which are mainly having similar risks and returns. Since Company's business activity falls within a single business segment (synthetic textile), hence it has no other primary reportable segments.

11. RELATED PARTY DISCLOSURES

Names of related parties & description of relationship:

A. Key Management Personnel:

1. Shri Shyam Sunder Sharmma Chairman cum Managing Director

2. Shri Vishnu Dutt Khandelwal Executive Vice Chairman

3. Shri Sharad Sharma Joint Managing Director

4. Shri Rajesh Sharma Executive Director

5. Shri Gopal Singh Shekhavat Director Administration

B. Relatives of Key Management Personnel:

1. Smt. Vimal Sharma Wife of Shri Shyam Sunder Sharmma

2. Smt. Nirmal Khandelwal Wife of Shri Vishnu Dutt Khandelwal

3. Smt. Seema Sharma Wife of Shri Sharad Sharma

4. Smt. Ratna Sharma Wife of Shri Rajesh Sharma

5. Shri Sandeep Khandelwal Son of Shri Vishnu Dutt Khandelwal

6. Shri Yash Sharma Son of Shri Sharad Sharma

C. Companies & Concerns Controlled by Key Management Personnel/ Relatives:

1. Sandeep Yarns Pvt. Ltd.

2. GPL Finance Limited

12. No amount has been written off or written back during the year in respect of debts due from or to related parties. (Previous Year Nil).

13. The Company has not given/provided any guarantee/collaterals for and on behalf of the aforementioned related parties.

14. Previous year figures have been given in brackets.

(Amount in Rs.)

As at 31.03.20 As at 31.03.2014

15. CONTIGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

i) Contingent Liabilities

a) Bills Discounted under Letters 63,484,109 87,246,962 of Credit and outstanding

b) Claims against the Company 2,247,938 2,205,938 not acknowledged as debt

c) Disputed Tax matters under appeal:

- Income Tax Demand 2,818,417 250,000

- Entry Tax Liability 2,787,849 2,787,849

- Excise Duty Liability - 1,557,031

- Service Tax 295,722 -

d) Appeal filed against the Company before Hon'ble Supreme - 8,097,600 Court in respect of amount received by the Company under an award decided in favour of the Company

e) Service Tax Refund disputed by Customs, Central Excise and - 228,259 Service Tax Department in CESTAT

ii) Commitments

a) Estimated amount of contracts remaining to be executed on 12,498,082 66,695,616 capital account and not provided for (net of advances)

b) Undertakings given by the Company to fulfil quantified 208,027,786 207,233,062 exports in respect of capital goods imported under the Export Promotion Capital Goods Scheme of the Government of India (Net of obligations fulfilled)

16. Nominal value of Forward Contracts entered into by the Company for hedging foreign currency risks and outstanding as on 31st March, 2015 amounting to Rs.2,36,57,797 (Previous Year Rs.3,92,07,720)

Un-hedged Foreign Currency exposure that are not hedged by derivative instruments or forward contracts as at 31st March, 2015 amounting to Rs.42,17,83,596 (Previous Year Rs.46,61,58,454).

17. DUES TO MICRO,SmALL AND MeDIUM ENTERPRiSeS

There are no dues to Micro, Small and Medium Enterprises as at 31st March, 2015 (Previous year Nil). The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified based on the information available with the Company.

18. Previous year figures have been reclassified to conform to this year's classification.

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Mar 31, 2014

1.1 Disclosures in accordance with Accounting Standard - 15 on Employee benefits

a) Defined Contribution Plans

Contribution towards Defined Contribution Plans, recognized as expenses for the year is Rs.10,072,637 (Previous Year Rs.7,585,237), excluding Rs.796,026 (Previous Year Nil) transferred to Pre-operative expenses.

b) Defined benefit Plans

As per Actuarial Valuation on 31st March,2014

iv) Fair value & changes in fair value of Plan Assets during the year ended 31st March, 2014:

Gratuity & Leave encashment obligations are not funded

c) Employees benefits in the form of defined contribution plans and defined benefit plans (Gratuity & Leave Encashment) are not payable to the Executive Directors of the Company.

d) The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

Note SEGMENT INFORMATION ~

a) Primary Segment (by Business Segment):

Based on the guiding principles given in the Accounting Standard on Segment Reporting (AS-17), Company is primarily in the business of manufacture and sale of Polyester Staple Fibre and Polyester Yarn which are mainly having similar risks and returns. Since Company''s business activity falls within a single business segment (synthetic textile), hence it has no other primary reportable segments.

Note RELATED PARTY DISCLOSURES ~

2.1 Names of related parties & description of relationship:

A. Key Management Personnel

1. Mr. Shyam Sunder Sharmma Chairman cum Managing Director

2. Mr. Vishnu Dutt Khandelwal Executive Vice Chairman

3. Mr. Sharad Sharma Joint Managing Director

4. Mr. Rajesh Sharma Executive Director

5. Mr. Gopal Singh Shekhavat Director (Administration)

B. Relatives of Key Management Personnel:

1. Mrs. Vimal Sharma Wife of Shri Shyam Sunder Sharmma

2. Mrs. Nirmal Khandelwal Wife of Shri Vishnu Dutt Khandelwal

3. Mrs. Seema Sharma Wife of Shri Sharad Sharma

4. Mrs. Ratna Sharma Wife of Shri Rajesh Sharma

5. Mr. Sandeep Khandelwal Son of Shri Vishnu Dutt Khandelwal

6. Mr. Yash Sharma Son of Shri Sharad Sharma

C. Companies & Concerns Controlled by Key Management Personnel/Relatives:

1. Sandeep Yarns Pvt. Ltd.

2. GPL Finance Limited

3.1 No amount has been written off or written back during the year in respect of debts due from or to related parties. (Previous Year Nil).

3.2 The Company has not given/provided any guarantee/collaterals for and on behalf of the aforementioned related parties.

3.3 Previous Year figures have been given in brackets.

(Amount in H)

As at 31.03.2014 As at 31.03.2013

4 CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

i) Contingent Liabilities

a) Bills Discounted under Letters of Credit and outstanding 87,246,962 58,121,917

b) Claims against the Company not acknowledged as debt 2,205,938 1,980,303

c) Disputed Tax matters under appeal:

- Income Tax demand 250,000 250,000

- Entry Tax Liability 2,787,849 2,787,849

- Excise Duty Liability 1,557,031 1,557,031

- RTO Tax liability in respect of Company''s old vehicle - 552,960

d) Appeal filed against the Company before Hon''ble Supreme 8,097,600 8,097,600

Court in respect of amount received by the Company under an award decided in favour of the Company

e) Service Tax Refund disputed by Customs, Central Excise and 228,259 228,259

Service Tax Department in CESTAT

Note FINANCIAL & DERIVATIVES INSTRUMENTS ~

Value of Forward Contracts entered into by the Company for hedging foreign currency risks and outstanding as on 31st March, 2014 amounting to H39,207,720 (Previous Year H38,091,248)

Un-hedged Foreign Currency exposure that are not hedged by derivative instruments or forward contracts as at 31st March, 2014 amounting to H466,158,454 (Previous Year H207,832,014).

Note EM DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES ~

There are no dues to Micro, Small and Medium Enterprises as at 31st March, 2014 (Previous Year Nil). The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified based on the information available with the Company.

Note EB PREVIOUS YEAR FIGURES HAVE BEEN RECLASSIFIED TO CONFORM TO THIS YEAR''S CLASSIFICATION.

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Mar 31, 2013

1.1 Disclosures in accordance with Accounting Standard - 15 on Employee benefits

a) Defined Contribution Plans

Contribution towards Defined Contribution Plans, recognized as expenses for the year is Rs.75,85,237 (Previous Year Rs.70,96,041).

b) Defined benefit Plans

As per Actuarial Valuation on 31st March, 2013

Note 2 SEGMENT INFORMATION

a) Primary Segment (by Business Segment):

Based on the guiding principles given in the Accounting Standard on Segment Reporting (AS-17), Company is primarily in the business of manufacture and sale of Polyester Staple Fibre and Polyester Yarn which are mainly having similar risks and returns. Since Company''s business activity falls within a single business segment (synthetic textile), hence it has no other primary reportable segments.

Note 3 RELATED PARTY DISCLOSURES

3.1. Names of related parties & description of relationship:

A. Key Management Personnel:

1. Shri Shyam Sunder Sharmma Chairman cum Managing Director

2. Shri Vishnu Dutt Khandelwal Executive Vice Chairman

3. Shri Sharad Sharma Joint Managing Director

4. Shri Rajesh Sharma Executive Director

B. Relatives of Key Management Personnel:

1. Smt. Vimal Sharma Wife of Shri Shyam Sunder Sharmma

2. Smt. Nirmal Khandelwal Wife of Shri Vishnu Dutt Khandelwal

3. Smt. Seema Sharma Wife of Shri Sharad Sharma

4. Smt. Ratna Sharma Wife of Shri Rajesh Sharma

5. Shri Sandeep Khandelwal Son of Shri Vishnu Dutt Khandelwal

C. Companies & Concerns Controlled by Key Management Personnel/Relatives:

1. Sandeep Yarns Pvt. Ltd.

2. GPL Finance Limited

3.2 No amount has been written off or written back during the year in respect of debts due from or to related parties. (Previous Year Nil).

3.3 The Company has not given/provided any guarantee/collaterals for and on behalf of the aforementioned related parties.

3.4 Previous Year figures have been given in brackets.

Note 4 FINANCIAL & DERIVATIVES INSTRUMENTS

Nominal value of Forward Contracts entered into by the Company for hedging foreign currency risks and outstanding as on 31st March, 2013 amounting to Rs.38,091,248 (Previous Year Rs.51,650,664).

Un-hedged Foreign Currency exposure that are not hedged by derivative instruments or forward contracts as at 31st March, 2013 amounting to Rs.207,832,014 (Previous Year Rs.167,944,856).

Note 5 DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES

There are no dues to Micro, Small and Medium Enterprises as at 31st March, 2013 (Previous Year Nil). The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified based on the information available with the Company.

Note 6

Previous Year figures have been reclassified to conform to this year''s classification.

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Mar 31, 2012

1.1 There is no change in Preference Share Capital during the year.

1.2 Equity shares are having par value of Rs. 10/-per share. Each Shareholder is eligible for one vote per share. Equity shareholders are having the right of dividend, proposed by the Board of Directors subject to the approval of shareholders except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their holding.

1.3 Preference Sharesholders do not have the voting rights but are having the preferential rights over equity shareholders, for getting the fixed dividend on cumulative basis and also redemption of Capital in the event of liquidation. Preference Shares of Series I are redeemable at a premium of Rs. 200/- each on 30.09.2013 and those of Series II are redeemable at par on 31.07.2012.

1.4 For terms of Optionally Convertible Debentures, please refer Note No. 5.

1.5 The Company has neither issued shares for a consideration other than cash/ bonus shares nor bought back any shares during immediately preceding 5 years.

2.1 During the year, 15,16,000 warrants (out of 27,00,000 warrants outstanding as at the beginning of the year) have been converted into equal number of equity shares of Rs. 10/- each at a premium of Rs. 30/- per share. Remaining 11,84,000 Warrants were cancelled due to non exercise of conversion option by the holders thereof and upfront money received have been forefeited.

Nature of Security and Terms of Repayment:

a) Rupee Term Loans from Banks:

i) Rupee Term Loans from Banks, including Buyers credit from Banks, aggregating to Rs. 29,49,01,761 (Previous Year Rs. 27,73,93,358) are secured by way of first charge, on pari-passu basis among lending banks, over entire fixed assets (present Et future) (except the assets exclusively charged/ hypothecated against specific loan) including equitable mortgage of entire properties of the Company. These loans are further secured by way of extension of first charge on pari-passu basis, on current assets of the Company and personal guarantees of executive directors and others.

Rs. 2,95,34,678 are repayable in 4 quarterly installments, 10,27,14,526 are repayable in 11 quarterly installments, Rs. 6,41,83,757 are repayable in 12 quarterly installments and Rs. 9,84,68,800 are repayable in 20 quarterly installments.

ii) Corporate term loan from bank ofRs. 4,50,00,000 (Previous year Rs. 6,00,00,000) is secured by way of extension of first charge, on pari-passu basis with other working capital lending banks, over entire current assets (present and future) of the company. Corporate loan is further secured by way of extension of first pari-passu charge over fixed assets, excluding assets specifically charged/ hypothecated for specific loan, of the company and personal guarantees of executive directors and others.

This loan is repayable in 6 quarterly installments.

iii) Loans aggregating to Rs. 9,42,421 (Previous year Rs. 7,27,892) relate to vehicle purchased and are secured by way of hypothecation of specified vehicles.

Rs. 3,63,421 are repayable in 12 monthly installments and Rs. 5,79,000 are repayable in 36 monthly installments.

b) Rupee term loans from Others aggregating to Rs. 2,37,02,024 (Previous year Rs.1,98,60,417) relate to assets purchased under hire purchase/ financing arrangements with finance companies and are secured by way of hypothecation of the specified assets. These loans are further secured by personal guarantees of some of the executive directors. Repayable in monthly installments and maturity profile is as under:

c) Repayment of Optionally Convertible Debentures ofRs. 13,50,00,000 (Previous year Rs. 13,50,00,000) has been guaranteed by executive directors and others personally as well as pledge of shares owned by them.

These Debentures are having the option, to be exercised, in full or in part, till 11th September, 2012 by the holder, of conversion into 15,00,000 equity shares of Rs. 10/- each at a premium of Rs. 80/- per share. These Debentures are redeemable in three equal half yearly installments, commencing from 12th March, 2013 along with premium @ 22% p.a., if the option of conversion is not exercised by the holder thereof.

d) Repayment of Rupee term loans ofRs. 70,18,170 (Previous year Rs. 46,88,837) from other parties have been guaranteed by some of the executive directors and are repayable in monthly installments as per following maturity profile:

a) Working capital loans from Banks except Buyers' Credit arrangements are secured by hypothecation of current assets of the Company both present and future, ranking pari-passu inter-se. These loans have further secured by way of extension of pari-passu 1st charge on fixed assets (except the assets exclusively charged/ hypothecated against specific loan) of the Company and also guaranteed by the Executive Directors and others.

b) Buyers' credit arrangements from banks are secured by way of pledge of fixed deposit receipts.

Note Rs. SEGMENT INFORMATION ~

a) Primary Segment (by Business Segment):

Based on the guiding principles given in the Accounting Standard on Segment Reporting (AS-17), Company is primarily in the business of manufacture and sale of Polyester Staple Fibre and Polyester Yarn which are mainly having similar risks and returns. Since Company's business activity falls within a single business segment (synthetic textile), hence it has no other primary reportable segments.

3.1. Names of related parties £t description of relationship:

A. Key Management Personnel:

1. Shri Shyam Sunder Sharmma Chairman cum Managing Director

2. Shri Vishnu Dutt Khandelwal Executive Vice Chairman

3. Shri Sharad Sharma Joint Managing Director

4. Shri Rajesh Sharma Executive Director

B. Relatives of Key Management Personnel:

1. Smt.Vimal Sharma Wife of Shri Shyam Sunder Sharmma

2. Smt. Nirmal Khandelwal Wife of Shri Vishnu Dutt Khandelwal

3. Smt. Seema Sharma Wife of Shri Sharad Sharma

4. Smt. Ratna Sharma Wife of Shri Rajesh Sharma

5. Shri Sandeep Khandelwal Son of Shri Vishnu Dutt Khandelwal

C. Companies £t Concerns Controlled by Key Management Personnel/Relatives:

1. Sandeep Yarns Pvt. Ltd.

2. GPL Finance Limited.

3.2 No amount has been written off or written back during the year in respect of debts due from or to related parties. (Previous Year Nil).

3.3 The Company has not given/provided any guarantee/collaterals for and on behalf of the aforementioned related parties.

3.4 Previous year figures have been given in brackets.

(Amounting) As at 31.03.2012 As at 31.03.2011 Note CONTINGENT LIABILITIES AND COMMITMENTS

(to the extent not provided for)

i) Contingent Liabilities

a) Bills Discounted under Letters of Credit and outstanding 94,299,280 112,571,200

b) Claims against the Company not acknowledged as debt 1,581,338 2,018,653

c) Disputed Tax matters under appeal:

- Custom Duty demand - 778,780

- Income Tax demand 250,000

- EntryTax Liability 2,787,849 2,787,849

- RTO Tax liability in respect of Company's old vehicle 552,960 552,960

d) Appeal filed against the Company before Hon'ble Supreme Court in respect of amount received by the Company under an award decided in favour of the Company 8,097,600 8,097,600

e) Service Tax Refund disputed by Customs, Central Excise and Service Tax Department in CESTAT 228,259 228,259

ii) Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) 136,278,910 3,550,000

b) Undertakings given by the Company to fulfil quantified exports in respect of capital goods imported under the Export Promotion Capital Goods Scheme of the Government of India 8,998,694 140,584,206

Note 4 UNANCIAL a DERIVATIVES INSTRUMENTS

Nominal value of Forward Contracts entered into by the Company for hedging Foreign Currency Risks and outstanding as on 31st March, 2012 amounting to Rs.5,16,50,664 (Previous Year Rs.20,78,94,646)

Un-hedged Foreign Currency exposure that are not hedged by derivative instruments or forward contracts as at 31st March, 2012 amounting to Rs.16,79,44,856 (Previous Year Rs.13,81,66,179).

Note 5 EXCISE DUTY PROVISION

During the year 2010-11, Excise duty was imposed by Excise authorities on one of the Company's product through a Circular issued on 29th June, 2010. As per the legal opinion obtained, the Circular was not legally tenable as it was against the legal provisions as well as settled judicial position by CESTAT in company's own case. Company had disputed the imposition of excise duty through the Circular and taken the legal recourse. Pending the legal case, Company had, however, started paying excise duty, under dispute, since December 6, 2010. Liability of excise duty (net of Cenvat) for the period from 29th June, 2010 to December 5, 2010 is Rs. 88,91,127 (Previous Year Rs. 97,01,566), which has already been provided for in the books.

Note 6 MICRO, SMALL AND MEDIUM ENTERPRISES

There are no dues to Micro, Small and Medium Enterprises as at 31st March, 2012 (Previous Year Nil). The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified based on the information available with the Company.

Note

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