Notes to Accounts of Gini Silk Mills Ltd.

Mar 31, 2025

N PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company recognizes provisions when there is present obligation as a result of past event and it is probable that there
will be an outflow of resources and reliable estimate can be made of the amount of the obligation. Provisions are determined
based on management estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each
Balance Sheet date and adjusted to reflect the current management estimates. A disclosure for Contingent Liabilities is
made in the Notes on accounts when there is a possible obligation or present obligations that may, but probably will not,
require an outflow of resources. Contingent Assets are neither recognized nor disclosed in the Financial Statement.

O SEGMENT REPORTING

Segments have been identified in line with the Indian Accounting Standard on Segment reporting (Ind AS 108) taking into
account the organisation structure as well as the differential risk in returns of segments.

P GOVERNMENT GRANTS

Grants and subsidies from the Government are recognized when there is reasonable assurance that (i) the Company will
comply with the conditions attached to them, and (ii) the grant/subsidy will be received. Grants received against specific
Fixed Assets are adjusted to the cost of the assets & those in the nature of Promoter''s contibution are credited to Capital
Reserve. Revenue Grants are recognised in the Statement of Profit and Loss in accordance with related scheme.

Q EARNINGS PER SHARE

Basic Earnings Per Share

Basic Earnings Per share is calculated by dividing:

i) the profit attributable to owners of the Company

ii) by the weighted average number of Equity Shares outstanding during the financial year, adjusted for bonus elements
in Equity Shares issued during the year and excluding treasury shares.

Diluted Earnings Per Share

Diluted earnings per share adjusts figures used in the determination of basic earnings per share to take into account:

i) the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

ii) the weighted average number of additional Equity Shares that would have been outstanding assuming the conversion
of all dilutive potential Equity Shares.

The fair values 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:

1) Fair value of Cash and Short Term Deposits, Trade and other Short Term Receivables, Trade Payables, Other Current
Liabilities, Short Term Loans from Banks and other Financial Institutions approximate their carrying amounts largely due to
short term maturities of these instruments.

2) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such
as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken to
account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from
their carrying amounts.

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

Level 1: Quoted (unadjusted) price in active markets for identical Assets or Liabilities

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

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

The Company contributes to the following post-employment plans in India.

Defined Contribution Plans:

The Company pays Provident Fund Contributions to publicly administered Provident Funds as per local regulations and are
recognised as expense in the Statement of Profit and Loss during the period in which the employee renders the related service.
There are no further obligations other than the contributions payable to the appropriate authorities.

The Company recognised Rs. 14.75 Lakhs for the year ended March 31, 2025 (March 31, 2024 Rs. 15.57 lakhs) towards
Provident Fund Contribution.

iii. Sensitivity Analysis

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

NOTE 46 - FINANCIAL RISK MANAGEMENT
A Financial Risk Management objectives and policies

The Company''s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit
risk. The Company has the overall responsibility for the establishment and oversight of the Company''s risk management
framework. The Company''s risk management policies are established to identify and analyse the risks faced by the
Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies
and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Risk Management policy of the Company provides assurance that the Company''s financial risk activities are governed
by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with
the Company''s policies and risk objectives. The Finance department activities are designed to:

- protect the Company''s financial results and position from financial risks ;

- maintain market risks within acceptable parameters, while optimising returns; and

- protect the Company''s financial investments, while maximising returns.

B Market Risk

Market risk is the risk that the fair value of future Cash Flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk. Financial
instruments affected by market risk includes borrowings, investments, trade payables, trade receivables and loans.

1) Interest Rate Risk

Interest rate risk is the risk that the fair value or future Cash Flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates
primarily to the Company''s total debt obligations with floating interest rates.

Interest rate sensitiviy

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of
loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected
through the impact on floating rate borrowings, as follows :

3) Equity Price Risk

Equity price risk is related to the change in market reference price of the investments in quoted equity securities. The
fair value of some of the Company''s investments exposes the Company to Equity Price risks. At the reporting date, the
Companies Equity Shares are carried at fair value.

C Credit Risk

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit
risk management. Credit quality of a customer is assessed based on customer profiling, credit worthiness and market
intelligence.

Financial Assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a
repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in
enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income
in the statement of Profit and Loss.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical
trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit
loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no
additional provision considered.

E Capital Management

The Company considers that capital includes net debt and equity attributable to the equity holders.

The primary objective of the Company''s capital management is to ensure that it maintains a strong credit rating and healthy
credit ratios in order to support its business and maximise shareholders value.

The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To
maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to
shareholders or issue new shares.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,
2025 and March 31, 2024.

The Company monitors capital using a gearing ratio which is total capital divided by Net debt. The Company includes
within Net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents excluding
discontinued operations.

NOTE 47 - EVENTS OCCURRING AFTER BALANCE SHEET

According to the management''s evaluation at events subsequent to the balance sheet date, there were no significant adjusting
events that occurred other than those disclosed/given effect to, in these Financial Statements as of 31 March, 2025.

NOTE 48 - Section 135 of Companies Act,2013 on Corporate Social Responsibility is not applicable to the company for F.Y
2024-25.

Remark for variance more than 25%:

Current ratio : Increase in the ratio due to decrease in Current Liabilities during the current year F.Y. 2024-25 mainly due to
repyament of borrowings

Debt Equity Ratio: Decrease in the ratio due to Repayment of Borrowings

Debts service coverage ratio : Decrease in the ratio due to repayment of Borrowings

Return on Equity (%): Decrease in ratio due to decrease in net profit during the current year FY 24-25 .

Net Capital Turnover (times): Decrease is on account of the significant decrease in sales during the current year as
compared to last year..

Net Profit/(Loss) Margin (%): Decrease by 35.01 % in the current year due to decrease in profitability during the year.

Return on Capital employed (%): Decrease in the ratio is on account of the increase in the capital employed due to change
in the other equity on account of merger.

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

c The Company is not declared as willful 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 willful defaulters issued by the Reserve
Bank of India.

d The Company does not have any transactions with struck-off companies.

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

f The Company does not have any transactions which is not recorded in the books of accounts but 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).

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

h The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013

read with Companies (Restrictions on number of Layers) Rules, 2017.

i The company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign
entities(intermediaries),with the understanding that the intermediary shall directly or indirectly lend or invest in other persons
or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries), or Provide any
guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

j The Company has not received any funds 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 directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate beneficiaries),
or Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

k The Company has neither declared nor paid any dividend during the year.

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

NOTE 51 - Confirmation letters have been sent in respect of sundry debtors / loans and advances / sundry creditors of which
certain confirmations have been received which are accordingly accounted and reconciled. The remaining balances have been
shown as per books of accounts and are subject to reconciliation adjustments, if any. In the opinion of the management, the
realizable value of the current assets, loans and advances in the ordinary course of business will not be less than the value at
which they are stated in the balance sheet .

NOTE 52 - The financial statements are approved for issue by the Audit Committee and by the Board of Directors at its meeting
held on 29th May, 2025

NOTE 53 - Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s
classification/ disclosure.

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

For Vatsaraj & Co.

Ch^artered ^countante Deepak Harlalka Managing Director

Firm Registration No. : 11327W DIN_: 00170335

CA Nitesh K Dedhia Pranav Harlalka Whole Time Director

Partner DIN:08290863

Membership No. : 114893

Mumbai, 29th May, 2025 Prasad Nagvekar Chief Financial Officer

PAN: ACAPN5618D

Ashwini Somkumar Company Secretary

M. No. A71790

---

Mar 31, 2024

N PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company recognizes provisions when there is present obligation as a result of past event and it is probable that there will be an outflow of resources and reliable estimate can be made of the amount of the obligation. Provisions are determined based on management estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimates. A disclosure for Contingent Liabilities is made in the Notes on accounts when there is a possible obligation or present obligations that may, but probably will not, require an outflow of resources. Contingent Assets are neither recognized nor disclosed in the Financial Statement.

O SEGMENT REPORTING

Segments have been identified in line with the Indian Accounting Standard on Segment reporting (Ind AS 108) taking into account the organisation structure as well as the differential risk in returns of segments.

P GOVERNMENT GRANTS

Grants and subsidies from the Government are recognized when there is reasonable assurance that (i) the Company will comply with the conditions attached to them, and (ii) the grant/subsidy will be received. Grants received against specific Fixed Assets are adjusted to the cost of the assets & those in the nature of Promoter''s contibution are credited to Capital Reserve. Revenue Grants are recognised in the Statement of Profit and Loss in accordance with related scheme.

Q EARNINGS PER SHARE Basic Earnings Per Share

Basic Earnings Per share is calculated by dividing:

i) the profit attributable to owners of the Company

ii) by the weighted average number of Equity Shares outstanding during the financial year, adjusted for bonus elements in Equity Shares issued during the year and excluding treasury shares.

Diluted Earnings Per Share

Diluted earnings per share adjusts figures used in the determination of basic earnings per share to take into account:

i) the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

ii) the weighted average number of additional Equity Shares that would have been outstanding assuming the conversion of all dilutive potential Equity Shares.

The fair values 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:

1) Fair value of Cash and Short Term Deposits, Trade and other Short Term Receivables, Trade Payables, Other Current Liabilities, Short Term Loans from Banks and other Financial Institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The Company contributes to the following post-employment plans in India.

Defined Contribution Plans:

The Company pays Provident Fund Contributions to publicly administered Provident Funds as per local regulations and are recognised as expense in the Statement of Profit and Loss during the period in which the employee renders the related service. There are no further obligations other than the contributions payable to the appropriate authorities.

The Company recognised Rs. 15.57 Lakhs for the year ended March 31, 2024 (March 31, 2023 Rs. 16.74 lakhs) towards Provident Fund Contribution.

Defined Benefit Plan:

The Employees'' Gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

NOTE 43 - FINANCIAL RISK MANAGEMENT A Financial Risk Management objectives and policies

The Company''s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company has the overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Risk Management policy of the Company provides assurance that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Finance department activities are designed to:

- protect the Company''s financial results and position from financial risks

- maintain market risks within acceptable parameters, while optimising returns; and

- protect the Company''s financial investments, while maximising returns.

B Market Risk

Market risk is the risk that the fair value of future Cash Flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables and loans.

1) Interest Rate Risk

Interest rate risk is the risk that the fair value or future Cash Flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s total debt obligations with floating interest rates.

Interest rate sensitiviy

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings as follows "

C Credit Risk

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on customer profiling, credit worthiness and market intelligence.

Financial Assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of Profit and Loss.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

E Capital Management

The Company considers that capital includes net debt and equity attributable to the equity holders.

The primary objective of the Company''s capital management is to ensure that it maintains a strong credit rating and healthy credit ratios in order to support its business and maximise shareholders value.

Remark for variance more than 25%:

Debt Service Coverage Ratio : improvement in ratio due to increase in the profit for the year

Return on Equity: Increase in ratio due to increase in net profit during the current year FY 23-24 mainly due to exceptional items, resulting in an increase in variance.

Net Profit/(Loss) ratio , Return on Capital employed and return on investment : Increase in the ratio on account of improvement in profitability in current year.

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

c "The Company has not been sanctioned working capital limits in excess of Rs 5 crore, in aggregate, at any points of time during the year, from banks or financial institutions on the basis of security of current assets"

d The Company is not declared as willful 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 willful defaulters issued by the Reserve Bank of India.

e The Company does not have any transactions with struck-off companies.

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

g The Company does not have any transactions which is not recorded in the books of accounts but 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).

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

i The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013

read with Companies (Restrictions on number of Layers) Rules, 2017.

j The company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities(intermediaries),with the understanding that the intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries), or Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

k The Company has not received any funds 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 directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate beneficiaries), or Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

l The Company has neither declared nor paid any dividend during the year.

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

NOTE 48 - Confirmation letters have been sent in respect of sundry debtors / loans and advances / sundry creditors of which certain confirmations have been received which are accordingly accounted and reconciled. The remaining balances have been shown as per books of accounts and are subject to reconciliation adjustments, if any. In the opinion of the management, the realizable value of the current assets, loans and advances in the ordinary course of business will not be less than the value at which they are stated in the balance sheet .

NOTE 49 - The financial statements are approved for issue by the Audit Committee and by the Board of Directors at its meeting held on 29th May, 2024

NOTE 50 - Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

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

For Vatsaraj & Co.

Ch^{artered A}cc^oun^tants Deepak Harlalka Managing Director

Firm Registration No. : 11327W DIN_: 00170335

CA Nitesh K Dedhia Pranav Harlalka Whole Time Director

Partner DIN:08290863

Membership No. : 114893

Mumbai, 29th May, 2024 Prasad Nagvekar Chief Financial Officer

PAN: ACAPN5618D

Ashwini Somkumar Company Secretary

M. No. A71790

---

Mar 31, 2018

1. CORPORATE INFORMATION

Gini Silk Mills Limited is a Public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange Limited, Mumbai. The Company is engaged in the manufacturing and selling of Shirting and Suiting with reputed brand name "GINI" and processing fabric on jobwork basis.

Estimation of fair value :

The fair valuation is based on current price in active market for similar properties. The main inputs used are quantum, area, location, demand, restrictive entry to the complex, age of building and trend of fair market in respective area.

Ind AS 101 Exemption : The Company has availed the exemption available under Ind AS 101, whereas the carrying value of property plant and equipment has been carried forward at the amount as determined under the previous GAAP netting off Ind AS adjustments such as government grants. Considering the FAQ issued by the ICAI, regarding application of deemed cost, the company has disclosed the cost as at 1st April, 2016 net off accumalated depreciation.

Aggregated amount of unquoted investments as at March 31, 2018 Rs. 9.11 Lakh (P.Y. Rs.9.11 Lakh)

Aggregated amount of quoted investments as at March 31, 2018 Rs. 495.24 Lakh, Market value Rs. 495.24 Lakh (P.Y. Rs. 42.57 Lakh Market value Rs. 42.57 Lakh)

# Held as lien by bank against Bank Gurantee amounting to Rs. 35,00,000/- to the Maharashtra Pollution Control Board for compliance for consent conditions/ direction for providing adequate and satisfactory pollution control device.

# In respect of Demand raised by Central Excise department under Rule 8 of Central Excise Valuation Rule, 2000 for Deemed Credit (15% Profit),Order has been passed in our favour by the Tribunal under section 35(1) of the central Excise Act, 1944, Section 129(B) of the Customs Act, 1962 and Finance Act, 1994.Order no.A/86296/17/EB Dated 10.03.2017 and Order No. A/89829-89831/17/SMB

iv) Rights, Preference and Restrictions attached to Equity Shares

The Company has only one class of equity shares referred to as equity shares of Rs. 10/- each. Each holder of equity shares is entitiled to the same rights in all respects.

Nature of Security, Terms of Repayment and Interest rate

The Term loan from Kotak Mahindra Bank (in P.Y. Outstanding term loan of State Bank of India taken over by Kotak Mahindra Bank Ltd as on 15.03.2017) are primary secured by entire Plant and Machinery at Tarapur plant acquired out of this loan and entire stock of trading goods. The Company has provided collateral security of equitable mortgage of leasehold Factory land & Building at Tarapur. The Director Mr. Vishwanath S. Haralalka and Mr. Deepak V. Harlalka has provided personal guarantee for the said loan. The rates of interest for these loans vary between 9% to 10%, with a repayment period of 4-5 yea'' Rate of interest vary based on the credit risk assessment of the company. (Rate of Interest is without considering interest subsidy available under State and Central Government Scheme.)

(There are no dues to Micro & Small Enterprises as on 31st March 2018. This information as required to be disclosed under the Micro, Small & Medium Enterprise Development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.)

NOTE 2 - RELATED PARTY DISCLOSURES :

As per Ind AS 24, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below. List of related parties where control exists and related parties with whom transactions have taken place and relationships :

(a) Key Management Personnel (KMP)

Vishwanath Harlalka

Deepak Harlalka Anjali Harlalka

(b) Partnership Firm Shree Enterprises Gini Construction Co.

Gini Citicorp Reality LLP

(c ) Other Related Parties ( Enterprises in which KMP having significant influence)

Gini Tex Private Limited Gini Constructions Pvt Ltd Shreem Reality Private Limited

Notes:

i) Parties identified by the Management and relied upon by the Auditors.

ii) No amount in respect of the related parties have been written off/back or are provided for during the year

NOTE 3 - The Company is engaged only in Textile business and there are no separate reportable segments as per Ind AS 108.

NOTE 4 - Operating Lease

a) Premises Taken on Operating Lease:

The company has significant operating lease for premises. These lease arrangements range for a period of 5 years.

The leases are renewable for a further period on mutually agreeable terms

NOTE 5 - PROVISION FOR EMPLOYEE BENEFIT OBLIGATION

The Company contributes to the following post-employment plans in India.

Defined Contribution Plans:

The Company pays Provident Fund Contributions to publicly administered Provident Funds as per local regulations and are recognised as expense in the Statement of Profit and Loss during the period in which the employee renders the related service. There are no further obligations other than the contributions payable to the appropriate authorities.

The Company recognised 23.48 Lakhs for the year ended March 31, 2018 (March 31, 2017 Rs. 16.67 lakhs) towards Provident Fund Contribution.

Defined Benefit Plan:

The employees'' gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The rate of escalation in salary considered in actuarial calculation is estimated taking into account inflation, seniority, promotion and other relevant factors.

iii. Sensitivity Analysis

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

6) FAIR VALUE MEASUREMENT

The fair values 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:

1) Fair value of Cash and Short Term Deposits, Trade and other Short Term Receivables, Trade Payables, Other Current Liabilities, Short Term Loans from Banks and other Financial Institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

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

Level 1: Quoted (unadjusted) price in active markets for identical Assets or Liabilities

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

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

ii) Financial instrument measured at amortised cost

The carrying amount of financial assets and liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be recieved or settled.

Note 7 Financial instruments - Fair values

A Financial Risk Management objectives and policies

In the course of business, the Company is exposed to certain financial risk that could have considerable influence on the Company''s business and its performance. These include market risk ( including currency risk, interest risk and other price risk), credit risk and liquidity risk. The Board of Directors review and approves risk management structure and policies for managing risks and monitors suitable mitigating actions taken by the management to minimise potential adverse effects and achieve greater predictability to earnings.

In line with the overall risk management framework and policies, the treasury function provides service to the business, monitors and manages through an analysis of the exposures by degree and magnitude of risks. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Company uses derivative financial instruments to hedge risk exposures in accordance with the Company''s policies as approved by the board of directors.

B Market Risk

Market risk is the risk that the fair value of future Cash Flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables and loans.

1) Interest Rate Risk

Interest rate risk is the risk that the fair value or future Cash Flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s total debt obligations with floating interest rates.

Interest rate sensitiviy

The following table demonstrates the sensitiviy to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows :

2) Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. At the reporting date, company does not have any foreign currency exposure.

3) Equity Price Risk

Equity price risk is related to the change in market reference price of the investments in quoted equity securities. The fair value of some of the Company''s investments exposes the company to equity price risks. At the reporting date, the companies equity shares are carried at fair value.

C Credit Risk

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on customer profiling, credit worthiness and market intelligence. Trade receivables consist of a large number of customers, spread across geographical areas. Outstanding customer receivables are regularly monitored.

The average credit period is 30 days. The Company''s Trade receivables consist of a large number of customers, across geographies hence the Company is not exposed to concentration risk.

D Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained term loan from banks and working capital loans from directors.

8 Section 135 of Companies Act,2017 on Corporate Social Responsibility is not applicable to the company for F.Y 2017-18.

9 Balances of Trade Receivables, Loans and advances and Trade Payables, Advances from Customers and to Suppliers have been taken as per books awaiting respective confirmation.

10 Income Tax assessment is completed up to the Assessment Year 2015- 2016

11 The Company is in process of appointing the Company Secretary and Chief Financial Officer, however during the year under audit the company unable to appoint the same.

12 Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

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Mar 31, 2016

1. Balances of Trade Receivables, Loans and advances and Trade Payables, Advances from Customers and to Suppliers have been taken as per books awaiting respective confirmation.

2. Income Tax assessment is completed up to the Assessment Year 2013-2014

3. The Company is in process of appointing the Company Secretary and Chief Financial Officer, however during the year under audit the Company unable to appoint the same.

4. The Company’s operation fall under single segment namely “Textile" therefore, separate business segment is not disclosed

5. Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s classification/ disclosure

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Mar 31, 2015

CORPORATE INFORMATION

Gini Silk Mills Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange Limited, Mumbai. The company is engaged in the manufacturing and selling of shirting and suiting with reputed brand name "GINI".

b) Rights, Preference and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per shares. Each holder of equity shares is entitled to one vote per shares. The Company declares and pay dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaning assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

During the year ended 31 March 2015, the amount of per share dividend recognized as distribution of equity shareholders was Rs. 27,96,300/- (31st March 2014 : Rs. 27,96,300/- ).

Nature of Security

The Term Loan from State Bank of India are primary secured by entire Plant and Machinery at Tarapur plant acquired out of this loan and entire stock of trading goods. The Company has provided collateral security of equitable mortgage of leasehold factory land & building at Tarapur. The Director Mr. Vishwanath S. Harlalka and Mr. Deepak V. Harlalka has provided personal guarantee for the said loan.

Terms of Repayment and Interest Rate

Repayable in 70 monthly installment staring from June 2015 having moratorium period of 12 months from June 2014 to May 2015. Rate of interest 3.90% margin above base rate which is presently 10.00%. Effective rate is 13.90% p.a. as at year end. (P.Y. Nil). Rate of margin vary based on the credit risk assessment of the company.

During the year, Company has taken term loan of Rs.6.67 Corers under the Technology Up-gradation Fund Scheme (TUFS). Under this Scheme Company will receive the 10% capital subsidy in some items and reimbursement of 5% of interest cost. Scheme's Benefits would available on the approval of the Department of Textile, Central Government. The Capital Subsidy benefit and interest benefits under the scheme would be accounted on the receipt of the approval.

Nature of Security

The Cash Credit from State Bank of India are primary secured by entire Plant and Machinery at Tarapur plant acquired out of this loan and entire stock of trading goods. The Company has provided collateral security of equitable mortgage of leasehold factory Land & Building at Tarapur. The Director Mr. Vishwanath S. Harlalka and Mr. Deepak V. Harlalka has provided personal guarantee for the said loan.

Terms of Repayment and Interest rate

Repayable on demand rate of interest 2.75% margin above base rate which is presently 10.00%. Effective rate is 12.75% p.a. as at year end.( P.Y. Nil). Rate of margin vary based on the credit risk assessment of the company.

# The Company had entered in to partnership with Gini Construction Co for development and construction of residential building. The share of profit / loss of each partner are Gini Silk Mills Limited is 9%, Gini Tex Private Limited is 9%, Shree Gini Textunsing Private Limited 2%, Shri Vishwanath S. Harlalka 15%, Shri Deepak V. Harlalka 15%, Shri Gautam Vinod Harlalka 20%, Shri Manish Vinod Harlalka 20% and Shri Vinod S. Harlalka 10%. The fixed capital of the partnership firm is Rs. NIL

#Commissioner of Central Excise, Thane II has demanded of Rs. 3, 38,418/- on Deemed Credit. The Company has deposited Rs. 1,00,000/- ( Previous year Rs. 1,00,000/-)to Asst. Registrar the Customs Excise Service Tax Applellate Tribunal W.Z.B. (Previous year Rs. 3,38,418/-)

The employees' gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

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

Central Excise duty Demand of Rs. 215,820 /-for Interest and Penalty on differential amount of Excise duty [The Company has gone in appeal to the Commissioner (Appeal)] ( Previous year Rs. 215,820/-).

Liability if any, arising on account of an undertaking given by the company to Excise authorities on account of purchase of land & building from GINI TEX PVT LTD. Of which amount cannot be ascertained.

Commissioner of Central Excise, Thane 11 has demanded of Rs.. 3, 38,418/- on Deemed Credit. The Company has deposited Rs. 1,00,000/- ( Previous year Rs. 1,00,000/-) to Asst. Registrar the Customs Excise Service Tax Appellate Tribunal W.Z.B. ( Previous year Rs. 3,38,418/-).

Textile Committee has demanded Rs. 2,99,150/- on collection of Cess under the Textile Committee Act & Cess Rules Reg. ( Previous year Rs. 2,99,150/-).

Central Excise duty demand for Rs. 1,85,09,688/- for excise duty and interest on differential amount on excise duty. (The Central Excise Department has made Special Leave Petition in Supreme Court).( Previous Year Rs. 1,85,09,688/-).

Bank Guarantees of Rs. 1,75,000/- given to the commissioner of custom on account of bond for availing duty exemption under EPCG scheme.

Bank Guarantee of Rs. 200,000/- given to the Maharashtra Pollution Control Board for compliance of directions issued by Board.

Disputed Demand in respect of Income -Tax for FY 2011-12 of Rs. 14,51,720/-.

b COMMITMENTS

Commitment for Capital Expenditure is Rs.11,93,625/- (P.Y Rs. 39,000,000/-), advance paid Rs. 11,93,625/- (P.Y. Rs. 58,42,500 ).

Other Commitment of Rs. 25,60,000/- (P.Y. Nil) towards capital contribution to Tarapur Enviornment Protection Society, advance paid Rs. 8,57,600/- (P.Y. Nil)

3 Balances of Trade Receivables, Loans and Advances and Trade Payables, Advances from Customers and to Suppliers have been taken as per books awaiting respective confirmation and Reconciliation if any.

4 Income Tax assessment is completed up to the Assessment Year 2012- 2013.

5 The Company is in process of appointing the Company Secretary, however during the year under audit the company unable to appoint the same.

6 The Company's operation fall under single segment namely "Textile" therefore, separate business segment is not disclosed.

7 Previous year's figures have been regrouped/ reclassified wherever necessary to correspond with the current year's classification/ disclosure.

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Mar 31, 2014

CORPORATE INFORMATION

Gini Silk Mills Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange Limited, Mumbai. The company is engaged in the manufacturing and selling of shirting and suiting with reputed brand name "GINI".

1 SEGMENT REPORTING

The Company''s operation fall under single segment namely "Textile" therefore, separate business segment is not disclosed

b) Terms/rights attached to equity shares

The Compnay has only one class of equity shares having a par value of Rs. 10 per shares. Each holder of equity shares is entitiled to one vote per shares. The Company declares and pay dividends in Indian rupees. The dividend prpoposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended 31 March 2014, the amount of per share dividend recognized as distribution of equity shareholders was Rs. 27,96,300/- (31 st March 2013 : Rs. 27,96,300/-).

2 RELATED PARTY DISCLOSURES

As per Accounting Standard 18, the disclosures of transections with the related parties are given below:

List of related parties where control exists and related parties with whom transactions have taken place and relationship

Name of the Related Party Relationship

Vishwanath Harlalka Key Managerial Personal

Deepak Harlalka Key Managerial Personal

Gini Tex Private Limited Associates

Shree Enterprises Partner

Gini Construction Co. Partner

Gini Constructions Pvt Ltd Associates

Gini Citicorp Reality LLP Partner

3 CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS Contingent Liability Not Provided For In Respect Of Central Excise duty Demand of Rs. 215,820 /-for Interest and Penalty on differential amount of Excise duty [The Company has gone in appeal to the Commissioner (Appeal)] ( Previous year Rs. 215,820/-)

Liability if any, arising on account of an undertaking given by the company to Excise authorities on account of purchase of land & building from GINI TEX PVT LTD. Of which amount cannot be ascertained.

Commissioner of Central Excise, Thane II has demanded of Rs. 3, 38,418/-on Deemed Credit. The Company has deposited Rs. 1,00,000/- ( Previous year Rs. 1,00,000/-)to Asst. Registrar the Customs Excise Service Tax Applellate Tribunal W.Z.B. ( Previous year Rs. 3,38,418/-)

Textile Committee has demanded Rs. 2,99,150/- on collection of Cess under the Textile Committee Act & Cess Rules Reg. ( Previous year Rs. 2,99,150/-)

Central Excise duty demand for Rs. 1,85,09,688/- for excise duty and interest on differential amount on excise duty ( The Central Excise Department has made Special Leave Petition in Supreme Court).( Previous YearRs. 1,85,09,688/-)

Bank Gurantees of Rs. 1,75,000/- given to the commissioner of custom on account of bond for availing duty exemption under EPCG scheme Bank Guarantee of Rs. 200,000/- given to the Maharashtra Pollution Control Board

4 Previous year''s fgures have been regrouped/ reclassifed wherever necessary to correspond with the current year''s classifcation/ disclosure.

5 Balances of Trade Receivables, Loans and advances and Trade Payables, Advances from Customers and to Suppliers have been taken as per books awaiting respective confrmation and Reconciliation.

6 There are no dues to Micro & Small Enterprises as on 31st March'' 2014. This information as required to be disclosed under the Micro, Small & Medium Enterprise Development Act,2006 has been determined to the extent such parties have been identifed on the basis of information available with the Company.

7 The company is in process of appointing the Company Secretary, however during the year under audit the company unable to appoint the same.

8 Income Tax assessment is completed up to the Assessment year 2011- 2012.

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Mar 31, 2013

CORPORATE INFORMATION

Gini Silk Mills Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1 Its shares are listed on Bombay Stock Exchange Limited, Mumbai. The company is engaged in the manufacturing and sellii shirting and suiting with reputed brand name "GINI",

1 CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS Contingent Liability Not Provided For In Respect Of

Central Excise duty Demand of Rs.. 215,820 /-for Interest and Penalty on differential amount of Excise duty [The Company has gone in appeal to the Commissioner (Appeal)] ( Previous year Rs.. 215,820/-)

Liability if any, arising on account of an undertaking given by the Company to Excise authorities on account of purchase of land & building from GINI TEX PRIVATE LIMITED of which amount cannot be ascertained.

Commissioner of .Central Excise, Thane II has demanded of Rs.. 3,38,418/-on Deemed Credit. The Company has deposited Rs.. 1,00,000/- ( Previous year Rs.. 1,00,000/-) to Asst. Registrar the Customs Excise Service Tax Applellate Tribunal W.Z.B. (Previous yearRs.. 3,38,418/-)

Textile Committee has demanded Rs.. 2,99,150/- on collection of Cess under the Textile Committee Act & Cess Rules Reg. (Previous year Rs.. 2,99,150/-)

Central Excise duty demand for Rs.. 1,85,09,688/- for excise duty and interest on differential amount on excise duty ( The Central Excise Department has made Special Leave Petition in Supreme Court).( Previous YearRs. 1,85,09,688/-) Bank Gurantees of Rs. 1,75,000/- given to the commissioner of custom on account of bond for availing duty exemption under EPCG scheme

Bank Guarantee of Rs. 200,000/- given to the Maharashtra Pollution Control Board

2 Estimated amount of contracts remaining to be executed on capital account and not provided for Tangible assets

3 Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

4 Balances of Trade Receivables, Loans and advances and Trade Payables, Advances from Customers and to Suppliers have been taken as per books awaiting respective confirmation and Reconciliation.

5 There are no dues to Micro & Smail Enterprises as on 31st March'' 2013. This information as required to be disclosed under the Micro, Small & Medium Enterprise Development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6 The company is in process of appointing the Company Secretary, however during the year under audit the company unable to appoint the same

7 Income Tax assessment is completed up to the Assessment year 2011 - 2012

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Mar 31, 2012

CORPORATE INFORMATION

Gini Silk Mills Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange Limited, Mumbai. The company is engaged in the manufacturing and selling of shirting and suiting fabrics with reputed brand name "GINI".

a) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs 10 per shares. Each holder of equity shares is entitled to one vote per shares. The Company declares and pay dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2012, the amount of per share dividend recognized as distribution of equity shareholders wasRs27,96,300/-(31 st March 2011 41,94,450/-).

# The Company had entered in to partnership with Gini Construction Co for development and construction of residential building. The share of profit / loss of each partner are Gini Silk Mills Limited is 9%, Gini Tex Private Limited is 9%, Shree Gini Texturising Private Limited 2%, Shri Vrhwanath S. Harlalka 15%, Shrj Deepak V. Harlalka 15%, Shri Gautam Vinod Harlalka 20%, Shri Manish Vinod Harlalka 20% and Shri Vinod S. Harlalka 10%. The fixed capital of the partnership firm is Rs NIL

# Commissioner of Central Excise, Thane Ii has demanded of Rs 3, 38,418/- on Deemed Credit. The Company has deposited Rs 1,00,000/- ( Previous year Rs 1,00,000/-)to Asst. Registrar the Customs Excise Service Tax Appellate Tribunal W.Z.B. (Previous yearRs 3,38,418/-)

Defined Benefit Plan

The employees' gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

2 CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS

Contingent Liability Not Provided For In Respect Of

Central Excise duty Demand of Rs 215,820 /-for Interest and Penalty on differential amount of Excise duty [The Company has gone in appeal to the Commissioner (Appeal)] ( Previous year Rs 215,820/-)

Liability if any, arising on account of an undertaking given by the company to Excise authorities on account of purchase of land & building from GINI TEX PVT LTD. Of which amount cannot be ascertained.

Commissioner of Central Excise, Thane II has demanded of Rs 3, 38,418/- on Deemed Credit. The Company has deposited Rs 1,00,000/- ( Previous year Rs 1,00,000/-)to Asst. Registrar the Customs Excise Service Tax Applellate Tribunal W.Z.B. (Previous year Rs 3,38,418/-) .

Textile Committee has demanded Rs 2,99,150/- on collection of Cess under the Textile Committee Act & Cess Rules Reg. ( Previous yearRs 2,99,150/-)

3 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/ reclassified wherever necessary to correspond with the current year's classification/ disclosure.

4 Balances of Sundry Debtors, Loans and advances and Sundry creditors have been taken as per books awaiting respective confirmation and Reconciliation.

5 There are no dues to Micro & Small Enterprises as on 31st March' 2012. This information as required to be disclosed under the Micro, Small & Medium Enterprise Development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6 The company is in process of appointing the Company Secretary, however during the year under audit the company ' unable to appoint the same

7 Income Tax assessment is completed up to the Assessment year 2009 - 2010

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Mar 31, 2011

1) CONTINGENT LIABILITY NOT PROVIDED FOR IN RESPECT OF

i) Central Excise duty Demand of Rs. 215,820 /-for Interest and Penalty on differential amount of Excise duty. [The Company has gone in appeal to the Commissioner (Appeal)] (Previous year Rs. 215,820/-)

ii) Liability if any, arising on account of an undertaking given by the company to Excise authorities on account of purchase of land & building from GINI TEX PVT LTD. Of which amount cannot be ascertained.

iii)Commissioner of Central Excise, Thane II has demanded of Rs. 3, 38,418/- on Deemed Credit. The Company has deposited Rs. 1,00,000/- (Previous year Rs. 1,00,000/-)to Asst. Registrar the Customs Excise Service Tax Applellate Tribunal W.Z.B. (Previous year Rs. 3,38,418/-)

iv) Textile Committee has demanded Rs. 2,99,150/- on collection of Cess under the Textile Committee Act & Cess Rules Reg. (Previous year Rs. 2,99,150/-)

v) Central Excise duty demand for Rs. 1,85,09,688/- for excise duty and interest on differential amount on excise duty (The Central Excise Department has made Special Leave Petition in Supreme Court). (Previous YearRs. 1,85,09,688/-)

2) SUNDRY DEBTORS AND LOANS & ADVANCES INCLUDES DEBTS DUE FROM

i) FIRMS IN WHICH DIRECTORS ARE INTERESTED

Shree Enterprises (Nil) (Previous Year Rs. 54,549/-)(Maximum balance outstanding on any day during the year Rs? 16,69,133/- (Previous Year Rs. 20,51,320/-)

ii) COMPANIES UNDER THE SAME MANAGEMENT

Gini Tex Private Limited. (Rs. Nil) ( Previous Year Rs. Nil )(Maximum balance outstanding on any day during the year ? 3,538,395/-) (Previous YearRs. 1,33,38,802/-)

Gini Constructions Co Private Limited. On Account of Share Application Money (? Nil) (Previous Year ? Nil) (Maximum balance outstanding on any day during the year Rs. 87,00,000/-) (Previous Year Rs. 2,25,50,128/-)

4) As per Accounting Standard 15 "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below: Defined Contribution Plan Contribution to Defined Contribution Plan, recognized as expense for the year are as under:

Defined Benefit Plan

The Eployees' gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

Principal actuarial assumptions at the Balance Sheet date are as follows:

Mortality Table (LIC) 1994-96

Discount rate per annum 8.00%

Withdrawal rate 1% to 3% depending on age

Retirement age 58 years

The rate of escalation in salary considered in actuarial calculation is estimated taking into account inflation, seniority, promotion and other relevant factors.

* Previous year figure. Note : Related party relationship is as identified by the Company & relied upon by the Auditors

6) The Company had entered in to partnership with Gini Construction Co for development and construction of residential building. The share of profit / loss of each partner are Gini Silk Mills Limited is 9%, Gini Tex Private Limited is 9%, Shree Gini Texturising Private Limited 2%, Shri Vishwanath S. Harlalka 15%, Shri Deepak V. Harlalka 15%, Shri Gautam Vinod Harlalka 20%, Shri Manish Vinod Harlalka 20% and Shri Vinod S. Harlalka 10%. The fixed capital of the partnership firm is Rs. NIL

The Company's share in the profit / loss of the partnership firm, Gini Construction Co. Of Rs. 75 lacs is accounted as per the unaudited accounts of the Partnership firm.

7) The Company had entered in to partnership with Gini Citicorp Realty LLP for development and construction of residential building. The share of profit / loss of each partner are Gini Silk Mills Limited is 1%, Gini Tex Private Limited is 1%, Shri Vishwanath S. Harlalka 16%, Shri Deepak V. Harlalka 16%, Shri Pranav Deepak Harlalalka 16%, Shri Gautam Vinod Harlalka 20%, Shri Manish Vinod Harlalka 20% and Shri Vinod S. Harlalka 10%. The fixed capital of the partnership firm is Rs. NIL

8) In compliance with Accounting Standard 20 '"EARNING PER SHARE" issued by the Institute of Chartered Accountants of India, basic earning per share has been calculated by dividing net profit after tax and prior period Adjustments with the weighted average number of Equity Shares outstanding during the year as per details given below:

10) The Company has taken Group/Master insurance Policy with Life Insurance Corporation of India for the future payments of retiring employee's gratuities. The premium thereon has been so adjusted as to cover the liability under scheme in respect of eligible employees at the end of their future anticipated service with the company.

11) Balances of Sundry Debtors, Loans and advances and Sundry creditors have been taken as per books awaiting respective confirmation and Reconciliation,

12) There are no dues to Micro & Small Enterprises as on 31st March' 2011. This information as required to be disclosed under the Micro, Small & Medium Enterprise Development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

13) The company is in process of appointing the Company Secretary, however during the year under audit the company unable to appoint the same

14) Income Tax assessment is completed up to the Assessment year 2008 - 2009.

15) ADDITIONAL INFORMATION REQUIRED TO BE FURNISHED PURSUANT TO PARA 3 & 4 (c) & (d) OF THE PART II OF SCHEDULE VI OF THE COMPANIES ACT, 1956.

16) Other additional information required to be furnished under Part II of Schedule VI are either NIL or NOT APPLICABLE

17) Previous year figures have been reworked, reclassified, regrouped / re-arranged, wherever necessary.

18) Figures have been rounded off to the nearest rupee.

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Mar 31, 2010

1) CONTINGENT LIABILITY NOT PROVIDED FOR IN RESPECT OF

i) Central Excise duty Demand of Rs. 215,820 /-for Interest and Penalty on differential amount of Excise duty [The Company has gone in appeal to the Commissioner (Appeal)] (Previous year Rs. 215,820/-)

ii) Liability if any, arising on account of an undertaking given by the company to Excise authorities on account of purchase of land & building from GINI TEX PVT LTD. Of which amount cannot be ascertained.

iii) Commissioner of Central Excise, Thane II has demand of Rs. 3,38,418/- on Deemed Credit. The Company has deposited Rs. 1,00,000/- (Previous year Rs. 1,00,000/-)to Asst. Registrar the Customs Excise Service Tax Applellate Tribunal W.Z.B. (Previous year Rs. 3,38,418/-)

iv) Textile Committee has demanded Rs. 2,99,150/- on collection of Cess under the Textile Committee Act & Cess Rules Reg. (Previous year Rs. 2,99,150/-)

v) Central Excise duty demand forRs.1,85,09,688/- for excise duty and interest on differential amount on excise duty (The Central Excise Department has made Special Leave Petition in Supreme Court). (Previous yearRs Nil/-)

2) The Company had entered in to partnership with Gini Construction Co for development and construction of residential building. The share of profit / loss of each partner are Gini Silk Mills Limited is 9%, Gini Tex Private Limited is 9%, Shree Gini Texturising Private Limited 2%, Shri Vishwanath S. Harlalka 15%, Shri Deepak V. Harlalka 15%, Shri Gautam Vinod Harlalka 20%, Shri Manish Vinod Harlalka 20% and Shri Vinod S. Harlalka 10%. The fixed capital of the partnership firm is Rs. NIL

3) The Company has taken Group/Master insurance Policy with Life Insurance Corporation of India for the future payments of retiring employees gratuities. The premium thereon has been so adjusted as to cover the liability under scheme in respect of eligible employees at the end of their future anticipated service with the company.

4) Balances of Sundry Debtors, Loans and advances and Sundry creditors have been taken as per books awaiting respective confirmation and Reconciliation.

5) There are no dues to Micro & Small Enterprises as on 31 st March 2010. This information as required to be disclosed under the Micro, Small & Medium Enterprise Development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6) Other additional information required to be furnished under Part II of Schedule VI are either NIL or NOT APPLICABLE

7) Previous year figures have been reworked, reclassified, regrouped / re-arranged, wherever necessary.

8) Figures have been rounded off to the nearest rupee.