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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Hindoostan Mills Ltd.

Mar 31, 2025

2.21 Provisions:

Provisions (legal and constructive) are
recognised when the Company has a present
obligation (legal or constructive) as a result of
a past event, it is probable that the Company
will be required to settle the obligation, and a
reliable estimate can be made of the amount of
the obligation.

The amount recognised as a provision is the
best estimate of the consideration required to
settle the present obligation at the end of the
reporting period, taking into account the risks
and uncertainties surrounding the obligation.
When a provision is measured using the cash
flows estimated to settle the present obligation,
its carrying amount is the present value of
those cash flows (when the effect of the time
value of money is material).

When some or all of the economic benefits
required to settle a provision are expected to
be recovered from a third party, a receivable is
recognised as an asset if it is virtually certain
that reimbursement will be received and the
amount of the receivable can be measured
reliably.

Onerous contracts

If the Company has a contract that is onerous,
the present obligation under the contract is

recognised and measured as a provision.
However, before a separate provision for an
onerous contract is established, the Company
recognises any impairment loss that has
occurred on assets dedicated to that contract

An onerous contract is a contract under which
the unavoidable costs (i.e., the costs that the
Company cannot avoid because it has the
contract) of meeting the obligations under the
contract exceed the economic benefits expected
to be received under it. The unavoidable costs
under a contract reflect the least net cost of
exiting from the contract, which is the lower of
the cost of fulfilling it and any compensation
or penalties arising from failure to fulfil it.

2.22 Contingent liabilities

A contingent liability is a possible obligation
that arises from past events whose existence
will be confirmed by the occurrence or nonÂ¬
occurrence of one or more uncertain future
events beyond the control of the Company
or a present obligation that is not recognized
because it is not probable that an outflow
of resources will be required to settle the
obligation. A contingent liability also arises in
extremely rare cases where there is a liability
that cannot be recognized because it cannot
be measured reliably. The Company does not
recognize a contingent liability but discloses
its existence in the financial statements.

2.23 Commitments:

Commitments are future liabilities for
contractual expenditure. The commitments are
classified and disclosed as follows:

(a) The estimated amount of contracts
remaining to be executed on capital
account and not provided for; and

(b) Other non-cancellable commitments,
if any, to the extent they are considered
material and relevant in the opinion of
the Management.

(B) Significant Accounting Judgements, Estimates
and Assumptions:

The preparation of the Companyâs financial
statements requires management to makejudgements,
estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities,
and the Company disclosures, and the disclosure of
contingent liabilities. Management believes that the
estimates used in the preparation of the financial
statements are prudent and reasonable. Uncertainty
about these assumptions and estimates could result
in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in
future periods. Difference between actual results and
estimates are recognised in the periods in which the
results are known / materialised.

Estimates, Assumptions and Judgements:

The key assumptions concerning the future and
other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing
a material adjustment to the carrying amounts of
assets and liabilities within the next financial year,
are described below. The Company has based its
assumptions and estimates on parameters available
when the financial statements were prepared.
Existing circumstances and assumptions about
future developments, however, may change due to
market changes or circumstances arising that are
beyond the control of the Company. Such changes
are reflected in the assumptions when they occur.

In the process of applying the Companyâs accounting
policies, management has made the following
judgements, which have the most significant effect on
the amounts recognised in the financial statements:

(i) Useful life of Property, Plant and
Equipment:

useful lives, usage pattern and residual values
of Company''s assets are determined by
management at the time the asset is acquired
and reviewed periodically, including at each
financial year end. The lives are based on
historical experience with similar assets as
well as anticipation of future events, which
may impact their life, such as changes in
technology etc.

(ii) Inventories:

The Company writes down inventories to
net realisable value based on an estimate of
the realisability of inventories. Write downs
on inventories are recorded where events
or changes in circumstances indicate that
the carrying value may not be realised. The
identification of write-downs requires the use
of estimates of net selling prices of the downÂ¬
graded inventories. Where the expectation
is different from the original estimate, such
difference will impact the carrying value of
inventories and write-downs of inventories in
the periods in which such estimate has been
changed.

(iii) Defined Benefit Obligation:

The Companyâs obligation on account
of gratuity and compensated absences is
determined based on actuarial valuations. An
actuarial valuation involves making various
assumptions that may differ from actual
developments in the future. These include
the determination of the discount rate, future
salary increases and mortality rates. Due to the
complexities involved in the valuation and its
long-term nature, these liabilities are highly
sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting
date.

The parameter most subject to change is the
discount rate. In determining the appropriate
discount rate, the management considers
the interest rates of government bonds in
currencies consistent with the currencies of the
post-employment benefit obligation.

The mortality rate is based on publicly available
mortality tables. Those mortality tables tend
to change only at interval in response to
demographic changes. Future salary increases
and gratuity increases are based on expected
future inflation rates.

Further details about gratuity obligations are
given in Note 32 (IIl).

(iv) Current Tax expense and Deferred Tax:

The Companyâs tax jurisdiction is India.
Significant judgements are involved in
estimating budgeted profits for the purpose of
paying advance tax, determining the provision
for income taxes, including amount expected to
be paid/recovered for uncertain tax positions.
A tax assessement can involve complex issues,
which can only be resolved over extended
time periods. The recognisation of taxes that
are subject to certain legal or economic limits
or uncertainties is assessed individually by
the managment based on the specific facts and
circumstances.

(v) Recognition of Deferred Tax Assets/
Liabilities:

The recognition of deferred tax assets/
liabilities is based upon whether it is more
likely than not that sufficient and suitable
taxable profits will be available in the future
against which the reversal of temporary
differences can be deducted. To determine the
future taxable profits, reference is made to the
latest available profit forecasts.

(vi) Provisions & Contingent Liabilities:

Provisions and liabilities are recognized in the
period when it becomes probable that there
will be a future outflow of funds resulting from
past operations or events that can reasonably
be estimated. The timing of recognition
requires application of judgement to existing
facts and circumstances, which may be subject
to change. The amounts are determined by
discounting the expected future cash flows
at a pre-tax rate that reflects current market
assessments of the time value of money and
the risks specific to the liability.

In the normal course of business, contingent
liabilities may arise from litigation and
other claims against the Company. Potential
liabilities that are possible but not probable of
crystallising or are very difficult to quantify
reliably are treated as contingent liabilities.
Such liabilities are disclosed in the notes but
are not recognized.

(vii) Financial Instruments:

When the fair values of financial assets and
financial liabilities recorded in the balance
sheet cannot be measured based on quoted
prices in active markets, their fair value is
measured using valuation techniques including
the DCF model. The inputs to these models
are taken from observable markets where
possible, but where this is not feasible, a
degree of judgement is required in establishing
fair values. Judgements include considerations
of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these
factors could affect the reported fair value of
financial instruments. See Note 32 (VII) &
(VIII) for further disclosures.

(viii) Allowance for uncollected accounts
receivable and advances

Trade receivables do not carry any interest
and are stated at their normal value as reduced
by appropriate allowances for estimated
irrecoverable amounts. Individual trade
receivables are written off when management
seems them not collectible. Impairment is
made on the expected credit losses, which are
the present value of the cash shortfall over the
expected life of the financial assets.

The impairment provisions for financial assets
are based on assumption about risk of default
and expected loss rates. Judgement in making
these assumption and selecting the inputs to
the impairment calculation are based on past
history, existing market condition as well as
forward looking estimates at the end of each
reporting period.

(ix) Impairment reviews

An impairment exists when the carrying value
of an asset or cash generating unit (âCGUâ)
exceeds its recoverable amount. Recoverable
amount is the higher of its fair value less costs
to sell and its value in use. The value in use
calculation is based on a discounted cash
flow model. In calculating the value in use,
certain assumptions are required to be made in
respect of highly uncertain matters, including
managementâs expectations of growth in
EBITDA, long term growth rates; and the
selection of discount rates to reflect the risks
involved.

(C) Application of new Revised Ind AS

The Ministry of Corporate Affairs (âMCAâ)
notifies new standards or amendment to the existing
standards under Companies (Indian Accounting
Standards) Rules, 2015 as issued and amended
from time to time. For the year ended March
31, 2025, MCA has notified Ind AS - 21 âThe
Effects of Changes in Foreign Exchange Ratesâ,
which introduces refinements to the definition of
exchangeable currency and the methodology for
estimating spot rates. Corresponding changes have
also been made in Ind AS 101 âFirst-time Adoption
of Indian Accounting Standardsâ, applicable to the
Company w.e.f. May 7, 2025. The Company has
reviewed the new pronouncements based on its
evaluation it has determined that it does not have any
significant impact in its financial statements.

Note 12.1:

Short term fixed deposits are varying between three months and twelve months, depending on the immediate cash requirements and
earn interest at the respective short term deposit rate. Interest rate is between 6.8% - 7.40%.

Note 12.2:

For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand and in banks, net of outstanding
bank overdrafts. Cash and cash equivalents at the end of the reporting period as shown in the statement of cash flows can be
reconciled to the related items in the balance sheet as above.

Note 12.3:

The Company has obtained overdraft facilities of Rs. 245.93 Lakhs against the bank deposits issued by bank. The Company has not
utilised the said credit facilities any time during the year and prior year and hence, none of the bank deposits have been lien marked
by any bank(except as stated in Note 12) for the said credit facility.

Nature and Purpose of the Reserves :

Note 16.1 :

Persuant to the amalgamation in the earlier years, Capital Reserve, Capital Redemption Reserve and Securities premium have been
incorporated in the Company. This reserves will be utilised in accordance with the provisions of the Companies Act, 2013.

Note 16.2 :

General Reserves is created pursuant to the scheme of amalgamation and transfer profits from Retained earnings for appropriation
purpose. This reserve will be utilised in accordance with the provisions of the Companies Act, 2013.

Note 16.3 :

The Company has elected to recognise changes in the fair value of certain investments in equity securities and changes in actuarial
gains and losses on re-measurement of defined benefit plan.

B. Details of the carrying amount of Right to use assets and movement during the year is disclosed under Note 3(B).

C. Maturity analysis of the lease liability are disclosed in Note 32(VII)(C).

D. The effective interest rate for lease liabilities is 7.30 % with maturity between 3 to 5 years.

III. Employee Benefits :

A. Defined Contribution Plans:

The Company offers its employees defined contribution plans in the form of Provident Fund (PF) and Superannuation
with the government and certain state plans such as Employeesâ State Insurance (ESI). PF cover substantially all regular
employees and the Superannuation plan covers mainly executive directors. Contributions are made to the Governmentâs
administered funds. While both the employees and the Company pay predetermined contributions into the Provident Fund
and the ESI Scheme, and contributions into the Superannuation plan is made only by the Company. The contributions are
normally based on a certain proportion of the employeeâs salary.

(a) Contributions to Provident Fund for employees at the rate of 12% p.a. of basic salary (as per regulations), are made
to registered Provident Fund administered by the government.

B. Defined Benefit Plan:

In respect of Gratuity, a defined benefit plan, is governed by the Payment of Gratuity Act, 1972. Under the Gratuity Act,
employees are entitled to specific benefit at the time of retirement or termination of the employment or on completion
of five years or death while in employment. The level of benefit provided depends on the memberâs length of service
and salary at the time of retirement/termination age. Provision for gratuity is based on actuarial valuation done by an
independent actuary as at the year end.

The following table sets out the status of the gratuity plan and the amounts recognised in the Companyâs financial
statements as at March 31, 2025:

B.6 Risks associated with defined benefit plan:

Gratuity is a defined benefit plan and Company is exposed to the following Risks:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of
the liability requiring higher provision.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of
members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.
Asset Liability Matching (ALM) Risk: The plan faces the ALM risk as to the matching cash flow. Entity has to
manage pay out based on pay as you go basis from own fund.

Mortality Risk: Since the benefits under the plan is not payable for life time and payable till retirement age only,
plan does not have any longevity risk.

B.7 Curtailment Gain :

The operations of Textile Division (âDivisionâ) of the Company was under suspension. On April 15, 2025,
considering the outlook and scenario of the Textile business, the Board of Directors have decided to close down
the Division, subject to approval of Government Authorities. Due to this development, which significantly
reduces the future tenure of eligible members compared to March 31, 2024, we have recorded a curtailment gain
for the reporting period.

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, which is the same method
as applied in calculating the projected benefit obligation as recognized in the balance sheet.

There was no change in the method and assumptions used in preparing the sensitivity analysis as compared to prior year.

C. Compensated Absences :

The Companyâs employees are entitled for compensated absences which are allowed to be accumulated and encashed as
per the Companyâs rule. The liability of compensated absences, which is non-funded, has been provided based on report
of independent actuary using âProjected Unit Credit Methodâ.

The obligation for compensated absences (other than sick leaves) (non-funded) is recognized using the projected unit
credit method and accordingly the long-term paid absence has been valued. The Liability towards leave encashment for
the year ended March 31, 2025 as per actuarial valuation is Rs. 66.46 lakhs (P.Y Rs. 108.43 lakhs).

The Company has made provision for sick leave based on the expected utilisation of leaves as at the year ended March
31, 2025 of Rs. 3.36 Lakhs (P.Y.Rs. 4.59 Lakhs). The total leave provision as at the year ended March 31, 2025 stands at
Rs. 69.82 lakhs (P.Y. Rs. 113.02 lakhs).

Notes:

a. The above figures are exclusive of GST wherever applicable.

b. The amount outstanding are unsecured and will be settled in cash or receipt of goods or services. No guarantee
have been given. No expense has been recognized in the current period or prior years for bad or doubtful debts in
respect of the amounts owed by related parties.

c. The remuneration of the directors and key management personnel is determined by the remuneration committee
having regard to the performance of individual and market trends.

d. Key Management Personnel (KMP) who are under the employment of the Company are entitled to post employment
benefits and other long term employee benefits recognised as per Ind AS 19 - âEmployee Benefitsâ in the financial
statements. As these employee benefits are provided on the basis of actuarial valuation, for the Company as a
whole, hence the details in respect of long term benefits to KMP and their relatives are not disclosed. Further there
is no Share-based payments to Key Management Personnel of Company.

VI. Capital Management

The Company''s objective for capital management is to maximise shareholder value, safeguard business continuity and
support growth of the Company. Capital includes, Equity Capital, Securities Premium, and other reserves and surplus,
attributable to the equity shareholders of the Company. The Company determines the capital requirement based on
annual plans and long term and strategic investment and capital expenditure plans. The funding requirements are met
through mix of equity, operating cash flows generated and debt. The operating management, supervised by the Board of
Directors of the Company regularly monitors its key gearing ratio and other financial parameters and takes corrective
actions wherever necessary. The Company is not subject to any externally imposed capital requirements.

VII. Financial Risk Management

Companyâs Board of Directors has overall responsibility for the establishment and oversight of the Companyâs risk
management framework. Management has identified the following risk.

â¢ Credit Risk

â¢ Market Risk

â¢ Liquidity Risk

â¢ Currency Risk

Companyâs Audit Committee oversees how Management monitors compliance with the Companyâs risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by
the Company.

A Credit Risk

Credit risk is the risk of financial loss arising from counter party failure to repay according to the contractual
terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of
creditworthiness as well as concentration of risks. Before accepting any new customer, the Company evaluates the
credit worthiness of the potentional customers based on external inquiries as deemed appropriate. The Company
only deals with parties which has good credit ratings / worthiness based on Companyâs internal assessment. Credit
risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the
credit has been granted after necessary approvals for credit. The Company has not acquired any credit impaired
asset. There was no modification in any financial assets.

(i) Trade Receivable

Customer credit is managed by each business division subject to the Companyâs established policy procedures
and control related to customer credit risk management.

Export customers are mainly against Letter of Credit. Each outstanding customer receivables are regularly
monitored and if outstanding is above due date the further shipments are controlled and can only be released
if there is a proper justification.

Credit risk on trade receivables and contract assets are managed by each business unit subject to the Companyâs
established policy, procedures and control relating to customer credit risk management. Credit quality of a
customer is assessed and individual credit limits are defined in accordance with this assessment. Moreover,
given the diverse nature of the Companyâs businesses, trade receivables and contract assets are spread over a
number of customers with no significant concentration of credit risk. No single customer accounted for 10%
or more of the trade receivables and contracted assets in any of the years presented.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers
are located in several jurisdictions and industries and operate in largely independent markets and their credit
worthiness are monitored at periodical intervals. The maximum exposure to credit risk at the reporting date
is the carrying value of each class of financial assets.

The Company has written off trade receivables amounting to Rs. Nil during the year (March 31, 2024 Rs.
25.98 lakhs) as there was no reasonable expectations of recovery and were outstanding for more than 720
days from becoming due.

(ii) Other Financial Assets

Credit risk from balances with banks is in accordance with the Company policy. Investment of surplus funds
are made only in approved Mutual Funds or bank deposits. The other financial assets are from various forum
of Government authorities and are released by Government authorities on completion of relevant terms and
conditions for the release of outstanding.

B Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes
in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the
price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is
attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short
term and long-term debt. The Company is exposed to market risk, primarily related to foreign exchange rate risk, interest
rate risk and commodity price risk. Thus, the Companyâs exposure to market risk is a function of investment activities
and revenue generating and operating activities in foreign currencies.

The Company has designed risk management frame work to control various risks effectively to achieve the business
objectives. This includes identification of risk, its assessment, control and monitoring at timely intervals.

The sensitivity analyses in the following sections relates to the outstanding balance as at March 31, 2025 and March 31,
2024.

The sensitivity analysis have been prepared on the basis that the proportion of financial instruments in foreign currencies
are all constant in place at March 31, 2025. The sensitivity of the relevant profit or loss item is the effect of the assumed
changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2025
and March 31, 2024.

(i) Interest Rate Risk:

The Companyâs investments are primarily in fixed rate interest bearing investments. Hence, the Company is not
significantly exposed to interest rate risk.

(ii) Foreign Currency risk:

The Company is also exposed to foreign currency risk on certain transactions that are denominated in a currency
other than the Companyâs functional currency; hence exposures to exchange rate fluctuations arise. The risk is that
the functional currency value of cash flows will vary as a result of movements in exchange rates. The Companyâs
foreign exchange risk arises from foreign currency revenues and expenses, (primarily in US Dollars and Euros). As
a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Companyâs revenues
and expenses measured in Indian rupees may decrease or increase and vice-versa. The exchange rate between
the Indian rupee and these foreign currencies have changed substantially in recent periods and may continue to
fluctuate substantially in the future.

Foreign Currency Sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD and EUR exchange
rates, with all other variables held constant. The impact on the Companyâs profit before tax is due to changes in
the fair value of monetary assets and liabilities. The Company evaluates exchange rate exposure arising from
foreign currency transactions. The Company follows established risk management policies and standard operating
procedures. The Companyâs exposure to foreign currency changes for all other currencies is not material.

C Liquidity Risk

(i) Liquidity risk management

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral
obligations without incurring unacceptable losses. The Companyâs objective is to, at all times maintain optimum
levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position
and deploys a robust cash management system. It maintains adequate sources of financing including bilateral
loans, debt, and overdraft from banks at an optimised cost. Working capital requirements are adequately addressed
by internally generated funds. Trade receivables are kept within manageable levels. Further, the Company has an
undrawn balance of Rs. 245.93 Lakhs against the overdraft facility sanctioned by the bank.

(ii) Maturities of financial liabilities

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities
with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial
liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest
and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be
required to pay.

VIII. Fair Value Measurement

The significant accounting policies, including the criteria of recognition, the basis of measurement and the basis on
which income and expenses are recognised, in respect of each class of financial asset, financial liability, and equity
instrument are disclosed in note 2.8 of the Ind AS financial statement.

Carrying amounts of cash and cash equivalents, trade receivables and trade payable as at March 31, 2025 and
March 31, 2024 approximate the fair value because of their short term nature. Difference between the carrying
amount and fair values of other financial liabilities subsequently measured at amortized cost is not significant in
each of the yearâs presented.

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following
methods and assumptions were used to estimate the fair values:

(i) Receivables are evaluated by the Company based on parameters such as interest rates and individual credit
worthiness of the customer. Based on this evaluation, allowances are taken into account for the expected
credit losses of these receivables.

(ii) The fair value of financial liabilities, security deposit, as well as other financial liabilities is estimated
by discounting future cash flows using rates currently available for debt on similar terms, credit risk and
remaining maturities.

Fair Value Hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are
either observable or unobservable and consist of the following three levels:

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

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

Level 3: Inputs are based non observable market data. Fair value is determined in whole or in part using a
valuation model based on assumptions that are neither supported by prices from observable current market
transactions in the same instrument nor are they based on available market data.

The following table summarizes financial assets and liabilities measured at fair value on a recurring basis and
financial assets that are not measured on fair value on recurring basis (but fair value disclosures are required).

X. Events after the reporting period

As on March 31, 2025, Textile Division has the liabilities amounting to Rs. 931.68 lakhs and carrying value of the
assets of Rs. 1114.67 lakhs. There is a contingent liability of Rs. 253.77 lakhs in respect of the Division. As it is non
adjusting event, it has not been considered as Discontinued Operations as on March 31, 2025. An estimated adverse
impact on assets and liabilities (including workersâ liabilities) of this Division has been recognised in the Financial
Statements for the year ended March 31, 2025. The Company has other operations which is continued to be pursued
by the management.

Figures in bracket denotes previous year.

Note:

The amounts shown above represents the best possible estimates arrived at on the basis of available information.
The uncertainties are dependent on the outcome of the different legal processes. The timing of future cash flows will
be determinable only on receipt of judgments / decisions pending with various forums/authorities. The Company
does not expect any reimbursements against the above.

XII In respect of a joint property development transaction of earlier year, which was subject matter of arbitration award, an
appeal is filed before the division bench of Honâble Bombay High Court by both the parties against decision of single
bench of Honâble Bombay High Court and the same is pending as on date. The Company has already made provision
of Rs.63.98 lakhs in terms of arbitration award in the FY 2016-17 against the claim of Rs.1597.39 lakhs plus interest. In
view of management no further liability is expected.

XV Interest Subsidy:

(a) Recognition of interest subsidy: Company has been recognising interest subsidy in terms of its eligibility under the
New Textile Policy 2012 as Other Income from May 2014 to September 2019.

(b) Recovery of subsidy from Government: The aggregate subsidy of Rs. 127.73 lakhs recognized by the Company
for the period from October 2016 to September 30, 2019, has remained outstanding as on March 31, 2025. The
technical issues faced on government portal has been resolved and the same are pending for processing by the
Government authorities.

Accordingly, the subsidy of Rs. 127.73 lakhs shown under the head Current Assets - Other Financial Assets, has been

considered as good and recoverable in nature.

XVI Income Tax:

(a) The Company has decided to opt for concessional income tax rate of 22 percent as per section 115 BAA of the
Income Tax Act, 1961 effective from Assessment Year 2021 - 22 (Financial Year 2020-21).

(b) Nature of Deferred Tax Assets / (Liabilities)

XVIII Additional Regulatory Information

i. Loan and advances to specified persons:

The Company has not granted any loans or advances in the nature of loans to any promoters, directors, KMPs, and
the related parties.

ii. Details of benami property held:

The Company does not have any Benami property, where any proceedings have been initiated on or are pending
against the Company for holding any Benami Property.

iii. Borrowings secured against current assets:

The Company is not required to submit any quarterly returns or statements of current assets. (Refer Note 12.3).

iv. Wilful defaulter:

The Company has not been declared as wilful defaulter by any bank or financial institutions or other lenders.

v. Relationship with struck off companies:

The Company has no transactions with the companies struck off under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956 during the year ended March 31, 2025 and March 31, 2024.

vi. Registration of charges or satisfaction of charges with the Registrar of Companies (ROC):

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period. (Refer Note 12.3).

vii. Compliance with number of layer of companies:

The Company does not have any subsidiaries and hence the disclosure clause is not applicable.

viii. Ratio:

For Ratio as required is given in Annexure A attached to the Financial Statement.

ix. Compliance with approved scheme of arrangements:

The Company has not entered into scheme of arrangements in terms of section 230 to section 237 of the Companie
Act, 2013 which has an accounting impact during the year ended March 31, 2025 and previous year ended March
31, 2024.

x. Utilisation of borrowed funds and share premium:

(A) The Company has not advanced or loaned invested funds (either borrowed funds or share premium or
any other sources or kind of funds) to any other persons or entities, including foreign entities with the
understanding that the Intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manners 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.

(B) The Company has not received any fund from any persons or entities, including foreigh entities (funding
party) with the understanding (whether recorded in writing or otherwise) that the company shall :

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

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

xi. Utilisation of borrowings availed from banks and financial institutions:

The Company does not have any borrowings hence the disclosure clause is not applicable.

xii. Corporate Social Responsibiliy :

The Company does not meet any of the criteria specified u/s 135 of the Act, hence the provisions are not applicable.

xiii. Undisclosed Income:

There is no income surrendered or disclosed as income during the year ended March 31, 2025 and previous year
ended March 31, 2024 in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the
books of accounts.

ix. Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the year ended March 31,
2025 and March 31, 2024.

XIX The Companyâs financial statements are authorized for issue in accordance with a resolution of the Board of Directors
on May 14, 2025 in accordance with the provisions of the Companies Act, 2013 and are subject to the approval of the
shareholders at the ensuing Annual General Meeting.

XX The figures in the financial statements are rounded off to the nearest lakhs and indicated in lakhs of Rupees.

Signatures to Notes â1â to â32â

As per our report of even date attached

For and on behalf of the Board of Directors

For S H R & Co.

Chartered Accountants. Khushaal C. Thackersey Abhimanyu J. Thackersey

Firm''s Registration No.: 120491W Joint Managing Director Joint Managing Director

DIN- 02416251 DIN- 00349682

Deep N Shroff Shraddha P. Shettigar Kaushik N. Kapasi

Partner Chief Financial Officer Company Secretary

Membership No. : 122592

Place : Mumbai Place : Mumbai

Date : May 14, 2025 Date : May 14, 2025

Mar 31, 2024

2.23 Provisions:

The amount recognised as a provision is the
best estimate of the consideration required to
settle the present obligation at the end of the

reporting period, taking into account the risks
and uncertainties surrounding the obligation.
When a provision is measured using the cash
flows estimated to settle the present obligation,
its carrying amount is the present value of those
cash flows (when the effect of the time value of
money is material).

When some or all of the economic benefits
required to settle a provision are expected to
be recovered from a third party, a receivable is
recognised as an asset if it is virtually certain that
reimbursement will be received and the amount
of the receivable can be measured reliably.

Onerous contracts

If the Company has a contract that is onerous,
the present obligation under the contract is
recognised and measured as a provision.
However, before a separate provision for an
onerous contract is established, the Company
recognises any impairment loss that has occurred
on assets dedicated to that contract

2.24 Contingent liabilities

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond the
control of the Company or a present obligation
that is not recognized because it is not probable
that an outflow of resources will be required to
settle the obligation. A contingent liability also
arises in extremely rare cases where there is a
liability that cannot be recognized because it
cannot be measured reliably. The Company does
not recognize a contingent liability but discloses
its existence in the financial statements.

2.25 Commitments:

Commitments are future liabilities for

contractual expenditure. The commitments are
classified and disclosed as follows:

(a) The estimated amount of contracts
remaining to be executed on capital
account and not provided for; and

(b) Other non-cancellable commitments,

if any, to the extent they are considered
material and relevant in the opinion of
the Management.

2.26 Cash dividend and non-cash distribution to

equity holders:

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

Non-cash distributions are measured at the fair
value of the assets to be distributed with fair
value re-measurement recognised directly in
equity.

Upon distribution of non-cash assets, any
difference between the carrying amount of the
liability and the carrying amount of the assets
distributed is recognised in the statement of
profit and loss.

(B) Significant Accounting Judgements, Estimates
and Assumptions:

Estimates, Assumptions and Judgements:

(i) Useful life of Property, Plant and
Equipment:

Property, Plant and Equipment represent a
significant proportion of the asset base of the
Company. The charge in respect of periodic
depreciation is derived after determining an
estimate of an assetâs expected useful life,
its expected usage pattern and the expected
residual value at the end of its life. The
useful lives, usage pattern and residual values
of Company''s assets are determined by
management at the time the asset is acquired
and reviewed periodically, including at each
financial year end. The lives are based on
historical experience with similar assets as
well as anticipation of future events, which
may impact their life, such as changes in
technology etc.

(ii) Inventories:

is different from the original estimate, such
difference will impact the carrying value of
inventories and write-downs of inventories in
the periods in which such estimate has been
changed.

(iii) Defined Benefit Obligation:

Further details about gratuity obligations are
given in Note 33 (III).

(iv) Current Tax expense and Deferred Tax:

(v) Recognition of Deferred Tax Assets/
Liabilities:

(vi) Provisions & Contingent Liabilities:

(vii) Financial Instruments:

(VIII) for further disclosures.

(viii) Allowance for uncollected accounts
receivable and advances

(ix) Impairment reviews

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

NOTES:

3.1 Impairment losses recognised in the year

During the year ended March 31, 2024 and March 31, 2023, no impairment indicators existed for any of its Cash Generating
Unit (CGU) and accordingly no provision for impairment has been recognised, except certain specific assets for which Rs.
22.48 lakhs have been provided as impairment loss during the year.

3.2 Contractual Commitments

Refer Note no. 33(IX) for disclosure of contractual commitments for the acquisition of PPE.

3.3 Asset Held for Sale

a. Refer Note no. 33(XIX) for Assets held for Sale.

b. The Company has received an advance of Rs. 33.90 lakhs for transfer of its rights in the certain portion of the lease land
held by it. The portion of the lease land for which advance have been received are shown as Asset held for disposal. The
Deeds of Assignment for the same has been registered on May 6, 2024.

3.4 Change due to Revaluation

During the year ended March 31, 2024 and March 31, 2023, there is no adjustments due to Revaluation of PPE by the
Company.

3.5 Capitalised borrowing cost :

No borrowing costs are capitalised on property, plant and equipment.

3.6 Title deeds :

Title deeds of Leasehold land are in the name of the Company.

III. Employee Benefits :

A. Defined Contribution Plans:

(a) Contributions to Provident Fund for employees at the rate of 12% p.a. of basic salary (as per regulations), are made
to registered Provident Fund administered by the government.

(b) Contributions are made to Superannuation plan at the rate of 15% p.a. of basic salary, up to a maximum limit of Rs.
1 lakh p.a. per employee. The obligation of the Company is Limited to the amount contributed and it has no further
contractual or constructive obligation.

B.6 Risks associated with defined benefit plan:

Gratuity is a defined benefit plan and Company is exposed to the following Risks:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of
the liability requiring higher provision.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of
members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.
Asset Liability Matching (ALM) Risk: The plan faces the ALM risk as to the matching cash flow entity has to
manage pay out based on pay as you go basis from own fund.

Mortality Risk: Since the benefits under the plan is not payable for life time and payable till retirement age only,
plan does not have any longevity risk.

C. Compensated Absences :

The obligation for compensated absences (other than sick leaves) (non-funded) is recognized using the projected unit
credit method and accordingly the long-term paid absence has been valued. The Liability towards leave encashment for
the year ended March 31, 2024 as per actuarial valuation is Rs. 108.43 lakhs (P.Y. Rs. 104.77 lakhs).

The Company has made provision for sick leave based on the expected utilisation of leaves as at the year ended March
31, 2024 of Rs. 4.59 Lakhs (P.Y. Rs. 5.11 Lakhs). The total leave provision as at the year ended March 31, 2024 stands at
Rs. 113.02 lakhs (P.Y. Rs. 109.88 lakhs).

Notes:

a. The above figures are exclusive of GST wherever applicable.

c. The remuneration of the directors and key management personnel is determined by the remuneration committee
having regard to the performance of individual and market trends.

VI. CAPITAL MANAGEMENT

Gearing Ratio : As the Company does not have any debt, the gearing Ratio has not been given.

VII. Financial Risk Management

Companyâs Board of Directors has overall responsibility for the establishment and oversight of the Companyâs risk
management framework. Management has identified the following risk.

â¢ Credit Risk

â¢ Market Risk

â¢ Liquidity Risk

â¢ Currency Risk

A Credit Risk

Customer credit is managed by each business division subject to the Companyâs established policy procedures
and control related to customer credit risk management.

The Company has written off trade receivables amounting to Rs. 25.98 Lakhs during the year (March 31,
2023 Rs. 7.75 lakhs) as there was no reasonable expectations of recovery and were outstanding for more than
720 days from becoming due.

(ii) Other Financial Assets

B Market Risk

The sensitivity analyses in the following sections relates to the outstanding balance as at March 31, 2024 and March 31,
2023.

The sensitivity analyses have been prepared on the basis that the proportion of financial instruments in foreign currencies
are all constant in place at March 31, 2024. The sensitivity of the relevant profit or loss item is the effect of the assumed
changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2024
and March 31, 2023.

(i) Interest Rate Risk:

The Companyâs investments are primarily in fixed rate interest bearing investments. Hence, the Company is not
significantly exposed to interest rate risk.

(ii) Foreign Currency risk:

Foreign Currency Sensitivity

Exposure to market risk with respect to commodity prices primarily arises from the Companyâs purchases and
sales mainly of Fabric, Yarns, steel and other textile related products including the raw material components for
such Frabics, Yarns, etc, i.e Cotton. These are commodity products, whose prices fluctuate significantly over
short periods of time. The prices of the Companyâs raw materials generally fluctuate in line with commodity
cycles, although the prices of raw materials used in the Companyâs business are generally more volatile. Cost of
raw materials forms the largest portion of the Companyâs cost. Commodity price risk exposure is evaluated and
managed through operating procedures and sourcing policies wherever possible based on market condition.

(iv) Mutual Fund Price Risk

The Company is exposed to mutual fund price risks arising from mutual fund investments. Mutual fund investments
are held for strategic rather than trading purposes. The Company does not actively trade these investments.

C Liquidity Risk

(i) Liquidity risk management

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral
obligations without incurring unacceptable losses. The Companyâs objective is to, at all times maintain optimum
levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position
and deploys a robust cash management system. It maintains adequate sources of financing including bilateral
loans, debt, and overdraft from banks at an optimised cost. Working capital requirements are adequately addressed
by internally generated funds. Trade receivables are kept within manageable levels. Further, the Company has an
undrawn balance of Rs. 235.93 Lakhs against the overdraft facility sanctioned by the bank.

(ii) Maturities of financial liabilities

Carrying amounts of cash and cash equivalents, trade receivables and trade payable as at March 31, 2024 and
March 31, 2023 approximate the fair value because of their short term nature. Difference between the carrying
amount and fair values of other financial liabilities subsequently measured at amortized cost is not significant in
each of the yearâs presented.

Fair Value Hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are
either observable or unobservable and consist of the following three levels:

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

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

XI During lock down due to Covid-19, the textile factory was closed during the period April 1 to May 8 2020. The Company
has paid on account advances (subject to adjustment against wages) to workers for this closure period, which is equivalent
to about 50% of their wages. A final decision will be taken in this matter depending upon the negotiations with the Union.
In view of the management no further liability is estimated. (Refer Note 19)

XII The Company has initiated disciplinary action against certain employees, out of which some of the employees have been
terminated after following certain formal inquiries and procedures under the Industrial Dispute Act and some matters
are still under inquiry. The Company will make necessary provision of any liabilities that may arise on account of the
action initiated by it upon the outcome and completion of such inquiries and procedures. (Refer Note 19)

XIII The Memorandum of Settlement between Hindoostan Mills Limited and the Karad Taluka Girani Kamagar Sangh,
Karad (Sangh) expired on December 31, 2019. Pending settlement, provision on an estimated basis has been made by
the Company. (Refer Note 19)

XIV The Company had entered into an Agreement with a Property Developer (Developer) in 1993 pursuant to which the
development rights for construction of Residential Flats on the plot of Land belonging to the Company were transferred
for consideration comprising of monetary compensation and allotment of specified constructed area to the Company
subject to payment of the Cost of construction for such allotted area. (Refer Note 19)

The settlement of accounts between the Company and the Developer under the said Agreement had been a subject of
Arbitration since the year 2002 as there were claims and counter claims. The Company had provided Rs. 63.98 lakhs in
the Financial Statements for the year ended 31st March, 2017 as the sum payable to Caprihans in terms of the Arbitration
Award dated October 31, 2016. Thereafter, the said Caprihans challenged the said Arbitration Award before the Hon.
High Court at Mumbai, claiming Rs. 1597.39 lakhs and interest.

Since then, the Single Judge of the Hon. High Court at Mumbai decided the challenge filed by the said Caprihans vide
its judgment dated June 3, 2019 interalia holding that:-

(a) the majority award rejecting Caprihans claim for cost of construction at ? 3,100 per sq. ft. is set aside;

(b) the liability of the Company to pay interest on the unpaid cost of construction is subject matter of fresh Arbitration;

(c ) the cost of litigation claimed by the said Caprihans being discretionary, the decision of the Arbitrators rejecting the
same is not required to be interfered..

Against the said judgment of the Learned Single Judge of the Hon. High Court at Mumbai, the Company has filed
an appeal before the Division Bench of the Hon. High Court. The said Caprihans have also filed an appeal before
the Division Bench of the Hon. High Court challenging the judgment of the Learned Single Judge. The Appeals will
come up in due course for hearing. The Company is of the view that, at this juncture, since the matter is sub judice, the
provision of Rs. 63.98 lakhs will be adjusted in the year in which finality is reached. In view of the Company, no further
provision is required considering the merits.

XV Provisions :

A. Disputed Matters :

Provision for disputed matters in respect of known contractual risks, litigation cases, duties and other levies / claims, the
actual outflow of which will depend on the outcome of the respective proceedings.

XVII Interest Subsidy:

(a) Recognition of interest subsidy: Company has been recognising interest subsidy in terms of its eligibility under the
New Textile Policy 2012 as Other Income from May 2014 to September 2019.

(b) Recovery of subsidy from Government: The aggregate subsidy of Rs. 127.73 lakhs recognized by the Company
for the period from October 2016 to September 30, 2019, has remained outstanding as on March 31, 2024. The
technical issues faced on government portal has been resolved and the same are pending for processing by the
Government authorities.

Accordingly, the subsidy of Rs. 127.73 lakhs shown under the head Current Assets - Other Financial Assets, has been

considered as good and recoverable in nature.

XVIII Income Tax:

(a) The Company has decided to opt for concessional income tax rate of 22 percent as per section 115 BAA of the
Income Tax Act, 1961 effective from Assessment Year 2021 - 22 (Financial Year 2020-21).

(b) Nature of Deferred Tax Assets / (Liabilities)

XX Additional Regulatory Information

i. Loan and advances to specified persons:

The Company has not granted any loans or advances in the nature of loans to any promoters, directors, KMPs, and
the related parties.

ii. Details of benami property held:

The Company does not have any Benami property, where any proceedings have been initiated on or are pending
against the Company for holding any Benami Property.

iii. Borrowings secured against current assets:

The Company is not required to submit any quarterly returns or statements of current assets. (Refer Note 12.3).

iv. Wilful defaulter:

The Company has not been declared as wilful defaulter by any bank or financial institutions or other lenders.

v. Relationship with struck off companies:

vi. Registration of charges or satisfaction of charges with the Registrar of Companies (ROC):

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period. (Refer Note 12.3).

vii. Compliance with number of layer of companies:

The Company does not have any subsidiaries and hence the disclosure clause is not applicable.

viii. Ratio:

For Ratio as required is given in Annexure A attached to the Financial Statement.

ix. Compliance with approved scheme of arrangements:

x. Utilisation of borrowed funds and share premium:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manners whatsoever by
or on behalf of the Company (ultimate beneficiaries) or

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

(B) The Company has not received any fund from any persons or entities, including foreig entities (funding
party) with the understanding (whether recorded in writing or otherwise) that the company shall :

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

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

xi. Utilisation of borrowings availed from banks and financial institutions:

The Company does not have any borrowings hence the disclosure clause is not applicable.

xii. Undisclosed Income:

There is no income surrendered or disclosed as income during the year ended March 31, 2024 and previous year
ended March 31, 2023 in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the
books of accounts.

xiii. Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the year ended March 31,
2024 and March 31, 2023.

XXI The Companyâs financial statements are authorized for issue in accordance with a resolution of the Board of Directors
on May 23, 2024 in accordance with the provisions of the Companies Act, 2013 and are subject to the approval of the
shareholders at the ensuing Annual General Meeting.

XXII The figures in the financial statements are rounded off to the nearest lakhs and indicated in lakhs of Rupees.

XXIII Figures for the previous year have been rearranged/recompanyed as and when necessary in terms of current yearâs
companying.

Signatures to Notes â1â to â33â

As per our report of even date attached

For and on behalf of the Board of Directors

For S H R & Co.

Chartered Accountants. Khushaal C. Thackersey Abhimanyu J. Thackersey

Firm''s Registration No.120491W Joint Managing Director Joint Managing Director

DIN- 02416251 DIN- 00349682

Deep N Shroff Shraddha P. Shettigar Kaushik N. Kapasi

Partner Chief Financial Officer Company Secretary

Membership No. : 122592

Place : Mumbai Place : Mumbai

Date : May 23, 2024 Date : May 23, 2024

Mar 31, 2018

Note 1: Corporate Information:

Hindoostan Mills Limited (âThe Companyâ) is a Public Limited Company, incorporated under the provision of the Companies Act, 1956 (as amended by the Companies Act, 2013). Its Shares is listed on Bombay Stock Exchange. The Company is engaged in the business of Manufacture and Sale of Fabric and Yarn, Technical Fabric and Refiling of Elastic Calendar Bowls. The Company has its the Registered Office and principal place of business at SIR VITHALDAS CHAMBERS,16 MuMBAI SAMACHAR MARG, FORT, MuMBAI - 400001

The Companyâs financial statements are reported in Indian Rupees, which is also the Companyâs functional currency.

Note 2.1 : For investment property existing as on 1st April 2016, i.e., its date of transition to Ind AS, the company has used Indian GAAP carrying value as deemed cost.

Note 2.2 : Estimation of Fair Value :

The fair value ought to be based on current prices in the active market for similar properties. The main inputs to be used are quantum, area, location, demand, restrictive entry, age of builidng and the trend of the fair market rent.

The investment property held by the company has certain handicaps like it being part of larger property, lack of active market for this property and long term protected tenants in part occupation in this property. In view of these limitations, reliable measurement of fair value is not possible.

Inventory write down is accounted, considering the nature of inventory, age, liquidation plan and net realisable value. Write down of inventories during the year amount to Rs.51.98 lacs (Previous year - Rs.47.66 lacs). The effect of these write down were recognised in cost of materials consumed, and changes in value of inventories of work-in-progress, stock-in-trade and finished goods in the Statement of Profit and Loss.

The Company has issued only one class of shares referred to as Equity Shares having a par value of Rs.00/-. Each holder of Equity Shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining Assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

9,58,708 Equity Shares of Rs.00/- each are allotted on 27th June 2011 as fully paid up without payment being received in cash pursuant to the scheme of Amalgamation Sanctioned by the High Court of Bombay dated 1st April 2011.

Note 3.1: Details of terms and conditions of repayment and security provided for in respect of the Long- Term Borrowings as follows:

(a) Term Loan from Axis Bank is payable in 60 monthly installments of Rs.40.80 Lakhs each commencing from 31st May, 2015. Interest rate is base rate 2.75% i.e. 11.70%.

(b) Security :

Primary Security :

(i) The above Term Loan is secured by first charge on Factory Land , Building & Other Structures and Plant & Machinery (Present & Future) of the companyâs Textile Unit at Plot no. D-1, MIDC Industrial Area, Village - Taswade, Tal-Karad, Satara

Collateral Security:

(ii) Second charge on all the Stocks, Book Debts (Present & Future) & Other Current Assets.

Note 4. 1 : Details of terms and conditions of repayment and security provided for in respect of the Short- Term Borrowings as follows:

(a) Secured Loan from HDFC Bank :Interest rate is MCLR 2.85% i.e. 11.1% for Cash Credit and 7.25% on packing credit

(b) Security :

Primary Security :

(i) The above Loan is secured by first charge on all the Stocks, Book Debts (Present & Future) & Other Current Assets Collateral Security :

(ii) Second Charge on Plant & Machinery (Present & Future) of the Companyâs Textile Unit at Plot no. D-1, MIDC Industrial Area, Village - Taswade, Tal-Karad, Satara.

III. There was an incident of fire in the month of December 2016 in one of the production departments causing damage to stocks of value Rs.48.60 lakhs. The incident also led to certain damage to machinery and infrastructure entailing repairs at an estimated expense of Rs.037.84 lakhs. The Company has filed a claim for the amounts with the Insurance Company. Provision has been made aggregating to Rs.03.17 lakhs (in the financial statements for the year ended 31.03.2017 of Rs.9.32 lakhs and Rs.3.85 lakhs for the year ended 31.03.2018) for the loss to be borne by the Company. The same is shown an âExceptional Itemâ. During the year, the Company has received an âon accountâ payment of Rs.77.31 lakhs. Adjustment, if any, in the final claim amount admitted by the Insurance Company will be accounted for as and when the same is settled.

IV. Investments :

The Investment of 42 Shares in Yeshwant Sahakari Sakhar Karkhana Ltd. (Society), are held in the names of two Directors of the Company, being its nominees, as required by the bye-laws of the Society.

V. The Company had entered into an Agreement with a Property Developer (Developer) in 1993 pursuant to which the development rights for construction of Residential Flats on the plot of Land belonging to the Company were transferred for consideration comprising of monetary compensation and allotment of specified constructed area to the Company subject to payment of the Cost of construction for such allotted area.

The settlement of accounts between the Company and the Developer under the said Agreement had been a subject of Arbitration since the year 2002 as there were claims and counter claims. The Company has made a provision of Rs.63.98 lakhs in the financial results for the year ended 31.03.2017, as the amount payable to the Developer in terms of the âMajority Arbitration Awardâ dated October 20, 2016 and the same was presented as an âExceptional Itemâ.

The property developer has challenged the said Arbitration Award in the Honâble Bombay High Court. As per legal advice, the Company does not consider that any further provision needs to be made in this regard.

VII. The Company has recognized interest subsidy, as per New Textile Policy 2012, as Other Income of Rs.221.47 lakhs on accrual basis for the period July, 2015 to 31^st March, 2018 (Including Rs.58.31 lakhs for the current year). The Government Resolution in this regard dated 12^th April, 2018 for release of subsidy is received for Rs.024.70 lakhs and for the balance â.96.77 lakhs is awaited.

VIII.Current Tax :

In view of losses for the year ended 31^st March 2018, no provision for Income Tax and Minimum Alternate Tax under Section 115JB of Income Tax Act, 1961 is required to be made.

X. Employee Benefits : As per Ind AS-19, âEmployee Benefits", the disclosure of employee benefits is given below:

A. Defined Contribution Plans:

The Company has certain defined contribution plans, such as provident fund and superannuation plan for benefits of employees. Contributions are made to provident fund for employees at the rate of 12% of basic salary as per regulations. The Contribution are made to registered provident fund 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 defined contribution plan in Rs.010.23 lakhs( Previous year Rs.000.43 lakhs ).

B. Defined Benefit Plan

The company provides gratuity benefits to its employees as per the statute. Present value of gratuity obligation (Non-Funded) based on actuarial valuation done by an independent valuer 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 compensated absences (Non-funded) is recognized in the same manner as gratuity.

The estimates of rate of escalation in salary considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is extracted from the report obtained from Actuary.

B.6 There is no contribution under defined benefit plan in respect of Key Management Personnel.

B.7 Risks associated with defined benefit plan:

Gratuity is a defined benefit plan and company is exposed to the following Risks:

Interest rate risk: A fall in the discount rate which is linked to the Government Securities Rate will increase the present value of the liability requiring higher provision.

Asset Liability Matching (ALM) Risk: The plan faces the ALM risk as to the matching cash flow. Company has to manage payout based on pay as you go basis from our own funds.

Mortality Risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

B.9 Expected future benefit payments:

The following is the maturity profile of the benefit expected to be paid for each of the next five years and the aggregate five years thereafter:

The Sensitivity analysis has been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation 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 projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

C. Other long-term benefits:

The obligation for leave benefits (non-funded) is also recognised using the projected unit credit method and accordingly the long-term paid absence has been valued. The Liability towards leave encashment for the year ended 31^st March, 2018 as per actuarial valuation is Rs.96.65 lakhs ( P.Y.? 96.85 lakhs) (Including liability aggregating to Rs.07.58 lakhs in relation to employees who have resigned on or before 31^st March, 2018, which is reflected under other financial liabilities pending full and final settlement of their account)

XIV. The balances relating to Sundry Debtors, Sundry Creditors and Loans and Advances as on 31st March, 2018 are subject to confirmation and adjustments, if any on reconciliation of accounts. Since the extent to which these balances are subject to confirmation is not ascertainable, the resultant impact of the same on the accounts cannot be ascertained and the same will be adjusted in the accounts in the year in which reconciliation is completed.

XV. Financial Risk Management

Financial risk management objectives and policies

The Companyâs financial risk management is an integral part of how to plan and execute its business strategies. The Companyâs financial risk management policy is set by the Board of Directors. Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.

A. Interest rate risk:

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Companyâs position with regards to interest income and interest expenses and to manage the interest rate risk, Board of Directors perform a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio. The Companyâs interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents managementâs assessment of the reasonably possible change in interest rates.

B. Market Risk- Foreign Currency risk:

The Company has international operations and portion of the business is transacted in USD/EURO and consequently the Company is exposed to foreign exchange risk through its sales to foreign customers and purchases of goods and purchase of services from overseas suppliers.

C. Equity Price Risk

The company does not have material investment in equity instruments and hence equity price risk does not materially affect the company.

D. Liquidity Risk

The principal sources of liquidity of the Company are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet its requirements. Accordingly, liquidity risk is perceived to be low. The following table shows the maturity analysis of financial liabilities of the Company based on contractually agreed undiscounted cash flows as at the Balance Sheet date:

XVI. Capital risk management (a) 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 managementâs judgment of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider 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. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Companyâs policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market 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.

XVII. Financial Instrument:

The significant accounting policies, including the criteria of recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability, and equity instrument are disclosed in note 2.12 of the Ind AS financial statement.

(a) Financial assets and liabilities

The carrying value of financial instruments by categories as at 31^st March, 2018 are as follows:

Carrying amounts of cash and cash equivalents, trade receivables, loans and trade payable as at 31^st March, 2018, 31^st March, 2017 and 1^st April, 2016 approximate the fair value because of their short term nature. Difference between the carrying amount and fair values of other financial liabilities subsequently measured at amortized cost is not significant in each of the yearâs presented.

Fair Value Hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consist of the following three levels:

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

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

Level 3: Inputs are not based on observable market data unobservable inputs. Fair value are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

The following table summarizes financial assets and liabilities measured at fair value on a recurring basis and financial assets that are not measured on fair value on recurring basis (but fair value disclosures are required)

C. Material adjustments made during transition from previous GAAP to Ind AS

C.1 Proposed Dividend

Under the previous GAAP, dividend proposed by the board of directors after the balance sheet date but before the approval of the Financial Statements were considered as adjusting events and accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the Shareholders in the general meeting. Accordingly, the liability for proposed dividend as at 1^st April, 2016 included under the Provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity has been increased by an equivalent amount.

C.2 Security Deposit at Fair Value

Under Indian GAAP, the deposits are valued at cost less provision for impairment. Ind AS requires certain categories of financial assets and liabilities to be measured at amortized cost using the effective interest rate method. Deposit is a Financial Asset as the lease agreement gives a contractual right to the company to receive cash. Deposit satisfies the contractual cash flow characteristic test and it also satisfies the business model test as there is intention of holding to collect contractual cash flows. Thus the deposits given for rentals have to be valued at amortized cost.

C.3 Bank Borrowings recorded at fair value as per EIR method

Ind AS 109 requires borrowings and financial liabilities to be carried at amortised cost. Accordingly, any transaction cost incurred towards origination of borrowings is to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the statement of profit and loss over the tenure of the borrowing as part of the interest expense by applying the EIR method. Under Ind AS, loans are valued at present value as against cost in the previous GAAP. The difference between the present value and cost is recognised in the opening retained earnings.

C.4 Depreciation on Investment Property

As per Ind AS 40, investment property is also subject to depreciation. The company did not provide depreciation upto 1^st April, 2016 on investment property. Under Ind AS financials, the company has provided depreciation with retrospective effect.

C.5 Investments recorded at FVTPL

Investments in Debt Mutual Fund, i.e. Investment in HDFC MF and UTI MF, are recorded at FVTPL. In previous GAAP, the same was measured at cost.

C.6 Investments recorded at FVTOCI

Companyâs investment in Siemens Ltd was earlier recognised at cost under previous GAAP. Under Ind AS 109, the same is recognised as FVTOCI.

C.7 Provision for ECL on Financial Assets

As per Ind AS 109, the financial assets are subject to expected credit loss. Under previous GAAP, there was no such provision. In compliance with Ind AS 109, the company has made provision of ECL on Trade Receivables following simplified approach.

C.8 Deferred Tax Adjustments on Ind AS Adjustments

Under Previous GAAP, deferred tax was recognized based on the profit and loss method. Under Ind-AS 12, deferred tax is recognized based on the balance sheet method for all differences between the accounting and tax base. Consequentially, deferred tax has been recognised for the adjustments made on transition to Ind AS, wherever applicable.

C.9 Disclosures as required by Indian Accounting Standard (Ind-AS) 101 First Time Adoption Standard:

The Company has adopted Ind AS with effect from 1st April, 2017 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening Retained Earnings as at 1st April, 2016 and all the periods presented have been restated accordingly.

D. Exemptions availed on first time adoption of Ind AS 101:

On first time adoption of Ind AS, Ind AS 101 allows certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has availed the following exemptions:

a) Under Ind AS 109, at initial recognition of a financial asset, an entity may make an irrevocable election to present subsequent changes in the fair value of an investment in an equity instrument in other comprehensive income. Ind AS 101 allows such designation of previously recognized financial assets, as âfair value through other comprehensive incomeâ or âfair value through profit or lossâ on the basis of the facts and circumstances that existed at the date of transition to Ind AS.

Accordingly, the Company has designated its investments in certain equity instruments at fair value through other comprehensive income and fair value through profit or loss on the basis of the facts and circumstances that existed at the date of transition to Ind AS.

b) The Company has opted to continue with the carrying values measured under the previous GAAP, use that carrying value as the deemed cost for property, plant and equipment, intangible assets and Investment Property on the date of transition.

E. Mandatory Exemptions

The following mandatory exemptions have been applied in accordance with Ind AS 101 in preparing the financial statements:

a) Estimates:

(i) Impairment of financial assets based on the expected credit loss model; and

(ii) Investments in equity instruments carried as FVTPL or FVTOCI.

b) Classification and movement of financial assets and liabilities:

The Company has classified the financial assets and liabilities in accordance with Ind AS 109 on the basis of facts and circumstances that existed at the date on transition to Ind AS.

XIX. The Companyâs financial statements were authorized for issue in accordance with a resolution of the Board of Directors on 16^th May, 2018 in accordance with the provisions of the Companies Act, 2013 and are subject to the approval of the shareholders at the Annual General Meeting.

XX. The figures in the financial statements are rounded off to the nearest lakhs and indicated in lakhs of Rupees.

XXI. Previous yearâs figures have been regrouped/re-arranged wherever necessary in order to conform to those of the Current Year.

Mar 31, 2017

Note 1 : Share Capital

The Company has issued only one class of shares referred to as Equity Shares having a par value of '' 10/-. Each holder of Equity Shares is entitled to one vote per share.

9,58,708 Equity Shares of Rs. 10/- each are allotted on 27th June 2011 as fully paid up without payment being received in cash pursuant to the scheme of Amalgamation Sanctioned by the High Court of Bombay dated 1st April 2011.

Reconciliation of No. of Shares outstanding at the beginning and at the end of the Year

Note 2: Details of terms and conditions of repayment and security provided for in respect of the Long- Term Borrowings as follows:

(a) Term Loan from Axis Bank is payable in 60 monthly installments of Rs.40.80 Lakhs each commencing from 31st May, 2015. Interest rate is base rate 2.75% i.e. 12.00%.

(b) Security :

Primary Security :

(i) The above Term Loan is secured by first charge on Factory Land , Building & Other Structures and Plant & Machinery (Present & Future) of the company''s Textile Unit at Plot no. D-1, MIDC Industrial Area, Village - Taswade, Tal-Karad, Satara

Collateral Security:

(ii) Second charge on all the Stocks, Book Debts (Present & Future) & Other Current Assets.

Note 3 : Details of terms and conditions of repayment and security provided for in respect of the Short- Term Borrowings as follows:

(a) Secured Loan from HDFC Bank : Interest rate is base rate 2% i.e. 11% for Cash Credit and 7.25% on packing credit

(b) Security :

Primary Security :

(i) The above Loan is secured by first charge on all the Stocks, Book Debts (Present & Future) & Other Current Assets

Collateral Security :

(ii) Second Charge on Plant & Machinery (Present & Future) of the Company''s Textile Unit at Plot no. D-1, MIDC Industrial Area, Village - Taswade, Tal-Karad, Satara.

I. Corporate Information :

IV. There was an incident of fire in the month of December 2016 in one of the production departments causing damage to stocks of value Rs.48.60 lakhs. The incident also led to certain damage to machinery and infrastructure entailing repairs at an estimated expense of Rs.137.84 lakhs. The Company has filed a claim for the amounts with the Insurance Company. Provision has been made in the financial results for the Year ended 31.03.2017 of '' 9.32 lakhs for the minimum amount of loss to be borne by the Company, being 5% of the claim amount, as per policy terms. The same is shown as ''extraordinary item''. Adjustment, if any, in the final claim amount admitted by the Insurance Company will be accounted for as and when the same is settled.

V. The Memorandum of Settlement between Hindoostan Mills Limited and the Karad Taluka Girani Kamagar Sangh, Karad (Sangh) expired on 31^st December, 2015. The âCharter of Demandsâ has been submitted by the union to the Management. The negotiations between the Management and the Sangh are in progress and accordingly, the Company has made a provision on an estimated basis which will be adjusted in the year in which negotiations are concluded.

VI. Fixed Assets and Depreciation :

Consequent to the enactment of the Companies Act, 2013 (the Act) and its applicability for accounting periods commencing on or after 1^st April, 2014, the Company has re-worked depreciation with reference to the useful lives of Fixed Assets prescribed by Part âCâ of Schedule II to the Act. Where the remaining useful life of an Asset is nil, the carrying amount of the Asset after retaining the residual value, as at 1^st April, 2014 has been adjusted to the General Reserve. In other cases the carrying values have been depreciated over the remaining useful lives of the Assets and recognized in the Statement of Profit and Loss.

Since then, as per the amendment dated 20^th August, 2014, the useful life specified in Part C- of Schedule II has been defined to mean that if the cost of a Part of Asset is significant to the total cost of the Assets and useful life of that part is different from the useful life of the remaining Assets, useful life of that significant part shall be determined separately and depreciated accordingly.

In the opinion of the Management, the Companyâs Assets are such that there are no significant parts thereof whose life is different than the useful life of the whole Asset (The management opinion on component accounting being technical in nature, the same is relied upon by the Auditors). Consequently, the Company has continued to provide depreciation in respect of all its Assets on the basis as was followed in the financial year 2014-15, i.e. based on useful lives of the respective Assets.

VII. Investments :

The Investment of 42 Shares in Yeshwant Sahakari Sakhar Karkhana Ltd. (Society), are held in the names of two Directors of the Company, being its nominees, as required by the bye-laws of the Society.

VIII. The Company had entered into an Agreement with a Property Developer (Developer) in 1993 pursuant to which the development rights for construction of Residential Flats on the plot of Land belonging to the Company were transferred for consideration comprising of monetary compensation and allotment of specified constructed area to the Company subject to payment of the Cost of construction for such allotted area.

The settlement of accounts between the Company and the Developer under the said Agreement had been a subject of Arbitration since the year 2002 as there were claims and counter claims. The Company has made a provision of Rs.63.98 lakhs, as the amount payable to the Developer in terms of the âMajority Arbitration Awardâ dated October 20, 2016 and the same is included under an âExceptional Itemâ.

Note : Dues to Micro and Small enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Company and relied upon by the Auditors.

X. The Company has recognized interest subsidy, as per New Textile Policy 2012, as Other Income of Rs.163.47 lakhs on accrual basis for the period July, 2015 to 31^st March, 2017 (Including Rs.82.71 lakhs for the current Year). The Government Resolution in this regard for release of subsidy is awaited.

XI. Current Tax :

In view of losses for the year ended 31^st March 2017, no provision for Income Tax and Minimum Alternate Tax under Section 115JB of Income Tax Act, 1961 is required to be made.

Deferred Tax :

In accordance with Accounting Standard 22 on âAccounting for Taxes on Incomeâ ( AS - 22) as prescribed under Section 133 of Companies Act, 2013 (âActâ) read with Rule 7 of the Companies (Accounts) Rules, 2016, Deferred Tax Assets consist of substantial amounts of carry forward losses and unabsorbed depreciation under the Income Tax Act, 1961. However, since the availability of sufficient future taxable income against which the said benefits can be set off is not possible to be ascertained with virtual certainty, the Deferred Tax Assets have not been recognized as a measure of abundant caution.

Note:

The estimates of rate escalation in salary considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors including supply and demand in employment market. The above information is certified by the actuary.

B. Leave Encashment (Non Fund based) :

The liability towards leave encashment for the year ended 31^st March, 2017 as per actuarial valuation is Rs.96.85 lakhs (P.Y. Rs.86.56 lakhs), which has been duly provided for.

History of Defined benefit obligation, Asset values, Surplus / Deficit and Experience Gains / Losses

Notes:

a. The above excludes payment of Dividend.

b. Related Party information is as identified by the Company and relied upon by the Auditors.

c. The above figures are exclusive of Service Tax wherever applicable.

XX. The balances relating to Sundry Debtors, Sundry Creditors and Loans and Advances as on 31st March, 2017 are subject to confirmation and adjustments, if any on reconciliation of accounts. Since the extent to which these balances are subject to confirmation is not ascertainable, the resultant impact of the same on the accounts cannot be ascertained and the same will be adjusted in the accounts in the year in which reconciliation is completed.

XXI. The figures in the financial statements are rounded off to the nearest lakhs and indicated in lakhs of Rupees.

XXII. Previous yearâs figures have been regrouped/re-arranged wherever necessary in order to conform to those of the Current Year.

Mar 31, 2016

Notes:

1 Cash and Cash equivalents denote Cash and Bank balances at the year end. Earmarked Balance with Banks includes Balance in Current Account for Unpaid Dividend & Employee Deposit.

2 The Cash flow Statement has been prepared under the "Indirect Method" as set out in Accounting Standard 3- ''Cash Flow Statement'' (AS -3) issued by the Institute of Chartered Accountants of India.

3 Direct Taxes paid (Net of refunds) is treated as arising from operating activities and is not bifurcated between investing and financing activities.

4 Previous yearâs figures have been regrouped/re-arranged wherever necessary in order to conform to those of the Current Year.

a) The Company has issued only one class of shares referred to as Equity Shares having a par value of '' 10/-. Each holder of Equity Shares is entitled to one vote per share.

9,58,708,Equity Shares of ''10/- each are alloted on 27th June 2011 as fully paid up without payment being received in cash pursuant to the scheme of Amalgamation Sanctioned by the High Court of Bombay dated 1st April 2011.

b) Reconciliation of No. of Shares outstanding at the beginning and at the end of the Year

Note 3.1: Details of terms and conditions of repayment and security provided for in respect of the Long- Term Borrowings as follows:

(a) Term Loan from Axis Bank is payable in 60 monthly installments of '' 40.80 Lakhs each commencing from 31st May, 2015. Interest rate is base rate 2.75% i.e. 12.25%.

(b) Security :

Primary Security :

Collateral Security:

(ii) Second charge on all the Stocks, Book Debts (Present & Future) & Other Current Assets.

(iii) Investment in UTI Short Term Fund of Rs, 253.08 lakhs is kept in form of liquid security under Bank lien.

Note 5. : Details of terms and conditions of repayment and security provided for in respect of the Short- Term Borrowings as follows:

(a) Secured Loan from HDFC Bank :Interest rate is base rate 2% i.e. 11.85% for Cash Credit and 7.25% on packing credit

(b) Security :

Primary Security :

(i) The above Loan is secured by first charge on all the Stocks, Book Debts (Present & Future) & Other Current Assets and Collateral Security :

(ii) Second Charge on Plant & Machinery (Present & Future) of the Company''s Textile Unit at Plot no. D-1, MIDC Industrial Area,Village - Taswade, Tal-Karad, Satara.

Note:

B. LEAVE ENCASHMENT (NON FUND BASED):

The liability towards leave encashment for the year ended 31^st March, 2016 as per actuarial valuation is Rs,86.56 lakhs (P.Y. '' 74.80 lakhs), which has been duly provided for.

XVIII.RELATED PARTY INFORMATION:

A. LIST OF RELATED PARTIES WITH WHOM TRANSACTION HAVE TAKEN PLACE DURING THE YEAR

Associates/Companies where Thackersey Moolji & Co., Delta Investments Ltd,

control exists_Parnakuti & Allied Estate Development Corporation_

Key Management Personnel Mr. Hrishikesh Thackersey - Executive Director (KMP) Mr. Abhimanyu Thackersey - Executive Director

Ms. Heena Shah - Chief Financial Officer

Mr. Devanand Mojidra - Company Secretary (Resigned on 6.10.2015)

Mr. Jagat Reshamwala - Company Secretary (w.e.f. 16.11.2015)

Relative of KMP_Mr. Jagdish Thackersey_

Notes:

a. The above excludes payment of Dividend.

b. In capacity of Director of Hindoostan Technical Fabrics Ltd. upto 10.10.2014.

c. Related Party information is as identified by the Company and relied upon by the Auditors.

d. The above figures are exclusive of Service Tax wherever applicable.

XIX. LEASES :

The Company has entered into lease agreement for its Research & Development unit premises. The future minimum rentals payable under Accounting Standard 19â Leaseâ (AS 19) as required to be disclosed are as follows:

XXI. The balances relating to Sundry Debtors, Sundry Creditors and Loans & Advances as on 31st March, 2016 are subject to confirmation and adjustments, if any on reconciliation of accounts. Since the extent to which these balances are subject to confirmation is not ascertainable, the resultant impact of the same on the accounts cannot be ascertained and the same will be adjusted in the accounts in the year in which finality is reached.

XXII The figures in the financial statements are rounded off to the nearest lakhs and indicated in lakhs of Rupees.

XXIII. Previous yearâs figures have been regrouped/re-arranged wherever necessary in order to conform to those of the Current Year.

Mar 31, 2015

1 Cash and Cash equivalents denote Cash and Bank balances at the year end. Earmarked Balance with Bank includes Margin Money Deposit, Balance in Current Account for Unpaid Dividend and Employee Deposit.

2 The Cashflow Statement has been prepared under the "Indirect Method" as set out in Accounting Standard 3- 'Cash Flow Statement' (AS -3) issued by the Institute of Chartered Accountants of India.

3 Direct Taxes paid (Net of refunds) is treated as arising from operating activities and is not bifurcated between investing and financing activities

4 Previous year's figures have been regrouped/re-arranged wherever necessary in order to conform to those of the Current Year.

a) The Company has issued only one class of shares referred to as Equity Shares having a par value of Rs.10/-. Each holder of Equity Shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining Assets of the Company, after distribution of all preferential amounts. The distribution will be in the proportion to the number of Equity Shares held by the shareholders.

9,58,708,Equity Shares of Rs.10/- each are alloted on 27th June 2011 as fully paid up without payment being received in cash pursuant to the scheme of Amalgamation Sanctioned by the High Court of Bombay dated 1st April 2011.

(a) Term Loan from Axis Bank is payable in 60 monthly installments of Rs. 40.80 Lakhs each commencing from 31st May, 2015. Interest rate is base rate 2.75% i.e. 12.90% as on 31.03.2015

(b) Security :

Primary Security :

(i) The above Term Loan is secured by first charge on Factory Land , Building & Other Structures and Plant & Machinery (Present & Future) of the company's Textile Unit at Plot no. D-1, MIDC Industrial Area,Village - Taswade, Tal-Karad, Satara and

Collateral Security:

(ii) Second charge on all the Stocks, Book Debts (Present & Future) & Other Current Assets.

(iii) Investment in UTI Fixed Income Fund Series XVIII of Rs. 250 lakhs (P. Y. Nil) is kept in form of liquid security under Bank lien.

(a) Secured Loan from HDFC Bank :Interest rate is base rate 2% i.e. 12% as on 31.03.2015 for Cash Credit and Libor 2.5 for Pre- Shippment Credit.

(b) Security :

Primary Security :

(i) The above Loan is secured by first charge on all the Stocks, Book Debts (Present & Future) and Other Current Assets Collateral Security :

(ii) Second Charge on Plant & Machinery (Present & Future) of the Company's Textile Unit at Plot no. D-1, MIDC Industrial Area,Yihage - Taswade, Tal-Karad, Satara.

II. CONTINGENT LIABILITIES IN RESPECT OF: Rs.in lakhs

Particulars Current Year Previous Year

A Claims against the Company not acknowledged as debts [including disputed demands of 711.91 695.44 Central Excise for Rs 116.07 (P.Y. Rs 116.07 lakhs), Sales Tax Rs 27.02 lakhs (P.Y Rs. 27.02 lakhs) and Works Contract Tax Rs. 21.14 lakhs (P.Y, Rs 36.03 lakhs)

B The Income-Tax demands in respect 49.44 49.44 of earlier years under dispute are pending in appeal before higher authorities.

C Demand for payment of electricity 228.20 228.20 duty by Government of Maharashtra matter resting with Supreme Court

D Concessional Custom duty on Machinery Imported 726.87 215.73

III. DEPRECIATION:

A. Consequent to the enactment of the Companies Act, 2013 (the Act) and its applicability for accounting periods commencing on or after 1st April, 2014, the Company has re-worked depreciation with reference to the useful lives of Fixed Assets prescribed by PART 'C' of Schedule II to the Act. Where the remaining useful life of an Asset is nil, the carrying amount of the Asset after retaining the residual value, as at 1st April, 2014 amounting to Rs. 58.59 Lakhs has been adjusted to the General Reserve. In other cases the carrying values have been depreciated over the remaining useful lives of the Assets and recognized in the Statement of Profit and Loss. As a result the charge for depreciation is higher by Rs. 200.91 Lakhs for the year ended 31st March 2015.

B. Net Block as on 31.03.2015 of Plant and Machinery includes Reeds amounting to Rs. 10.91 Lakhs (P.Y. Rs. 25.62 Lakhs). The Management based on internal technical evaluation has estimated useful life of Reeds as two years. Hence the Cost of Reeds are written off over a period of two years.

IV. The Board of Directors has recommended a Dividend of Rs.4/- per share on 1,664,548 Equity Shares of Rs. 10/- each aggregating to Rs. 79.90 lakhs (Inclusive of Dividend Distribution Tax of Rs.13.32 lakhs)

V. INVESTMENTS:

The Investment of 42 Shares in Yeshwant Sahakari Sakhar Karkhana Ltd. (Society), are held in the names of two Directors of the Company, being its nominees, as required by the bye-laws of the Society.

VI. Property under Development reflected as Stock-in-Trade was written down to Rs.1 lakh in the earlier year as a measure of prudence. The settlement of account is a matter of dispute between the company (owner) and developer and there are claims and counter claims. The matter has been referred to arbitration in 2002 which is pending resolution. Accordingly, impact of Arbitration Award will be recognised in the Books of accounts as and when finality in the matter is reached.

VII. Current Tax:

In view of losses for the year ended 31st March 2015, no provision for Income Tax and Minimum Alternate Tax under Section 115JB of Income Tax Act, 1961 is required to be made.

Deferred Tax :

In accordance with Accounting Standard 22 on "Accounting for Tax on Income" ( AS - 22) as prescribed under Section 133 of Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, Deferred Tax Assets consist of substantial amounts of carry forward losses and unabsorbed depreciation under the Income Tax Act, 1961. However, since the availability of sufficient future taxable income against which the said benefits can be set off is not possible to be ascertained with virtual certainty, the Deferred Tax Assets have not been recognized as a measure of abundant caution.

VIII. RELATED PARTY INFORMATION:

A. LIST OF RELATED PARTIES WITH WHOM TRANSACTION HAVE TAKEN PLACE DURING THE YEAR

Associates/Companies where control exists Thackersey Moolji & Co., Delta Investments Ltd., Art Leather Ltd., Bintex

Investments Ltd., Parnakuti & Allied Estate Development Corporation Key Management Personnel (KMP) Mr. Hrishikesh Thackersey - Executive Director

Mr. Abhimanyu Thackersey - Executive Director Ms. Heena Shah - Chief Financial Officer Mr. Devanand Mojidra - Company Secretary Relative of KMP Mr. Sudhir Thackersey

Mr. Raoul Thackersey Mr. Chandrahas Thackersey Mr. Jagdish Thackersey Mr. Khushaal Thackersey

Notes:

a. The above excludes payment of Dividend.

b. In capacity of Director of Hindoostan Technical Fabrics Ltd upto 10.10.2014.

c. Related Party information is as identified by the Company and relied upon by the Auditors.

d. The above figures are exclusive of Service Tax wherever applicable.

IX. LEASES

The Company has entered into lease agreement for its Research and Development unit premises. The future minimum rentals payable under Accounting Standard 19 "Lease" (AS 19) as required to be disclosed are as follows:

X. Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The CSR Activities fall within the guidelines referred under Section 135 and specified in Schedule VII of the Companies Act, 2013. During the year Company has made donation to Vithaldas Damodar Thackersey Charitable Trust amounting to Rs. 6.27 lakhs to carry out the said activities at Karad.

XI. The figures in Balance Sheet and Statement of Profit and Loss are rounded off to the nearest lakhs and indicated in lakhs of Rupees.

XII. Previous year's figures have been regrouped/re-arranged wherever necessary in order to conform to those of the Current Year.

Mar 31, 2014

I. CONTINGENT LIABILITIES IN RESPECT OF:

A Claims against the Company not acknowledged as debts [including disputed demands of Central Excise for Rs. 116.07 lakhs (P.Y. Rs. 116.07 lakhs), Sales Tax Rs. 27.02 lakhs (P.Y Rs. 78.90 lakhs) and Works Contract Tax Rs. 36.03 lakhs (P.Y. Rs. 36.03 lakhs)

B The Income-Tax demands in respect of earlier years under dispute are pending in appeal before higher authorities.

C Demand for payment of electricity duty by Government of Maharashtra matter resting with Supreme Court

D Concessional Custom duty on Machinery Imported

II. The Board of Directors has recommended a dividend ofRs. 10/- per share on 1,664,548 Equity Shares of Rs.10/- each aggregating to Rs. 199.74 lakhs (Inclusive of Dividend Distribution Tax ofRs. 33.29 lakhs)

III. INVESTMENTS:

The Investment of 42 Shares in Yeshwant Sahakari Sakhar Karkhana Ltd.(Society), are held in the names of two Directors of the Company, being its nominees, as required by the bye-laws of the Society.

IV. Property under Development reflected as Stock-in-Trade was written down to Rs. 1 lakh in the earlier year as a measure of prudence. The settlement of account is a matter of dispute between the company (owner) and developer and there are claims and counter claims. The matter has been referred to arbitration in 2002 which is pending resolution. Accordingly, impact of Arbitration Award will be recognised in the Books of accounts as and when finality in the matter is reached.

V. Current Tax:

In view of carry forward losses under Income Tax Act 1961, no provision for Income Tax is required to be made. However, the company has provided for Minimum Alternate Tax under section 115JB of the Income Tax Act, 1961.

Deferred Tax :

In accordance with Accounting Standard 22 on "Accounting for Tax on Income" ( AS - 22) as prescribed by the Companies (Accounting Standards) Rules,2006 , Deferred Tax Assets consist of substantial amounts of carry forward losses and unabsorbed depreciation under the Income Tax Act, 1961. However, since the availability of sufficient future taxable income against which the said benefits can be set off is not possible to be ascertained with virtual certainty, the Deferred Tax Assets have not been recognized as a measure of abundant caution.

Note:

The estimates of rate escalation in salary considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors including supply and demand in employment market. The above information is certified by the actuary.

B. LEAVE ENCASHMENT (NON FUND BASED):

The liability towards leave encashment for the year ended 31st March, 2014 as per actuarial valuation is Rs. 62.20 lakhs (P.Y. Rs. 45.20 lakhs), which has been duly provided for.

VI. RELATED PARTY INFORMATION:

A. LIST OF RELATED PARTIES WITH WHOM TRANSACTION HAVE TAKEN PLACE DURING THE YEAR

Associates/Companies where control exists Thackersey Moolji & Co., Delta Investments Ltd., Art Leather Ltd.,

Bintex Investments Ltd.

Key Management Personnel (KMP)/ Relative of Mr.Chandrahas Thackersey

KMP

Mr.Raoul Thackersey

Mr.Hrishikesh Thackersey

Mr.Abhimanyu Thackersey

Mr.Sudhir Thackersey

Mr.Jagdish Thackersey

Mr.Khushaal Thackersey

Notes:

a. The above excludes payment of Dividend.

b. Related Party information is as identified by the Company and relied upon by the Auditors.

c. The above figures are exclusive of Service Tax wherever applicable

VII. Leases

The Company has entered into lease agreement for its Research & Development unit premises. The future minimum rentals payable under Accounting Standard 19" Lease" (AS 19) as required to be disclosed are as follows:

VIII. The figures in Balance Sheet and Statement of Profit and Loss are rounded off to the nearest lakhs and indicated in lakhs of Rupees.

IX. a. The figures of the current year are consolidated figures due to the Amalgamation, hence not comparable with the previous year.

b. During the previous year, due to labour strike at the Company''s Karad Textile Plant, the manufacturing operations were suspended for three and a half months from August 18, 2012 to November 28, 2012. Therefore, the Company''s operating cycle during the previous year was a period of eight and a half months as against twelve months during the year under review, which reflects normal level of operations. As a result, certain items in the financial statements for the current year appear to be significantly higher than the corresponding figures for the previous year and therefore, the figures for the previous year are not strictly comparable to those of the current year.

c. Previous year''s figures have been regrouped/re-arranged wherever necessary in order to conform to those of the Current Year.

Mar 31, 2013

I. With a view to consolidate its manufacturing activities at one centralized place, the company has setup a new factory for manufacture of Calender Rolls at Karad, Maharashtra. The new factory has started functioning from December, 2012 and the Company has decided to shift its Roll manufacturing activities along with employees of Ambernath factory to the aforesaid new factory at Karad.

II. Reserves and Surplus as on 1 st April, 2009 included Reserve under Section 45 IC of Reserve Bank of India Act, aggregating to Rs. 48.47 lakhs. Since the Company is engaged in manufacturing activities, the Company is of the view that there is no obligation to maintain the Reserve and accordingly, the amount ofRs. 48.47 lakhs is transferred to Surplus.

III. The Board of Directors has recommended a dividend of Rs. 7.50 per share on 1,664,548 Equity Shares of Rs. 10/- each aggregating to Rs.145.09 lakhs (Inclusive of Dividend Distribution Tax of Rs. 20.251akhs)

IV. INVESTMENTS:

A. The investments in unquoted shares of Hindoostan Technical Fabrics Ltd., (Wholly owned subsidiary) have been acquired at par. Though their present book value is lower than their cost of acquisition, keeping in view their long term business synergies and potential, the management is of the opinion that no provision for fall in their values is required to be made.

B. The Investment of 42 Shares in Yeshwant Sahakari Sakhar Karkhana Ltd. (Society), are held in the names of two Directors of the Company, being its nominees, as required by the bye-laws of the Society.

V. Property under Development reflected as stock in trade was written down to Rs. 1 lakh in the previous year as a measure of prudence. The settlement of account is a matter of dispute between the Company (owner) and developer and there are claims and counter claims. The matter has been referred to arbitration in 2002 which is pending resolution. Accordingly, impact of Arbitration Award will be captured in the Books as and when it will be crystallized.

VI. The Company has granted interest free unsecured loan to its Subsidiary which is repayable on demand. Hence, although the loan is outstanding for more than twelve months as on 31st March, 2013, it is presented as Short Term Loan.

VII. During the year 2003-04, in terms of Sanctioned Scheme, the secured lenders dues were transferred to the SPVs in full settlement of their dues from the Company. All secured lenders except Union Bank of India (UBI) have released their charge on the assets of Karad unit. With respect to UBI, the charge will be released shortly.

VIII. Current Tax: In view of carry forward losses under Income Tax Act, 1961, no provision for Income Tax is required to be made. However, the Company has provided for Minimum Alternate Tax under section 115JB of the Income Tax Act, 1961.

Deferred Tax: In accordance with Accounting Standard 22 on "Accounting for Tax on Income" (AS - 22) as prescribed by the Companies (Accounting Standards) Rules,2006 , Deferred Tax Assets consist of substantial amounts of carry forward losses and unabsorbed depreciation under the Income Tax Act, 1961. However, since the availability of sufficient future taxable income against which the said benefits can be set off is not possible to be ascertained with virtual certainty, the Deferred Tax Assets have not been recognized as a measure of abundant caution.

B. LEAVE ENCASHMENT fNON FUND BASED):

The liability towards leave encashment for the year ended 31st March, 2013 as per actuarial valuation is Rs. 45.20 lakhs (Includes Rs. 0.79 lakh due to workers pending settl ement of account) (P.Y. Rs. 49.59 lakhs), which has been duly provided for.

IX.The figures in Balance Sheet and Statement of Profit and Loss are rounded off to the nearest lakhs and indicated in lakhs of Rupees.

X.Previous Year''s figures have been regrouped wherever necessary.

Mar 31, 2012

I. ContIngent LIaBILItIes In ResPeCt oF:

A The Income-Tax demands in respect of earlier years under dispute are pending in appeal 131.47 3.12 before higher authorities.

B Claims against the Company not acknowledged as debts [including disputed demands 748.45 748.85 of Central Excise for Rs.116.07 lakhs (P.Y. Rs.116.07 lakhs), Sales Tax Rs.78.90 lakhs (P.Y Rs. 79.30 lakhs) and Works Contract Tax Rs. 36.03 lakhs (P.Y. Rs. 36.03 lakhs)

C Demand for payment of electricity duty by Government of Maharashtra matter resting with 228.20 228.20 Supreme Court

D Concessional Custom Duty on Machinery Imported 538.69 715.40

II. With a view to consolidate its manufacturing activities at one centralized place, the company has setup a new factory for manufacture of Calender Rolls at Karad, Maharashtra. The new factory has started functioning from December, 2012 and the Company has decided to shift its Roll manufacturing activities along with employees of Ambernath factory to the aforesaid new factory at Karad.

III. Reserves and Surplus as on 1st April, 2009 included Reserve under Section 45 IC of Reserve Bank of India Act, aggregating to Rs. 48.47 lakhs. Since the Company is engaged in manufacturing activities, the Company is of the view that there is no obligation to maintain the Reserve and accordingly, the amount of Rs. 48.47 lakhs is transferred to Surplus.

IV. The Board of Directors has recommended a dividend of Rs. 7.50 per share on 1,664,548 Equity Shares of Rs. 10/- each aggregating to Rs.145.09 lakhs (Inclusive of Dividend Distribution Tax of Rs. 20.25lakhs)

V. InVestMents:

A. The investments in unquoted shares of Hindoostan Technical Fabrics Ltd., (Wholly owned subsidiary) have been acquired at par. Though their present book value is lower than their cost of acquisition, keeping in view their long term business synergies and potential, the management is of the opinion that no provision for fall in their values is required to be made.

B. The Investment of 42 Shares in Yeshwant Sahakari Sakhar Karkhana Ltd. (Society), are held in the names of two Directors of the Company, being its nominees, as required by the bye-laws of the Society.

VI. Property under Development refected as stock in trade was written down to Rs. 1 lakh in the previous year as a measure of prudence. The settlement of account is a matter of dispute between the Company (owner) and developer and there are claims and counter claims. The matter has been referred to arbitration in 2002 which is pending resolution. Accordingly, impact of Arbitration Award will be captured in the Books as and when it will be crystallized.

VII. The Company has granted interest free unsecured loan to its Subsidiary which is repayable on demand. Hence, although the loan is outstanding for more than twelve months as on 31st March, 2013, it is presented as Short Term Loan.

VIII. During the year 2003-04, in terms of Sanctioned Scheme, the secured lenders dues were transferred to the SPVs in full settlement of their dues from the Company. All secured lenders except Union Bank of India (UBI) have released their charge on the assets of Karad unit. With respect to UBI, the charge will be released shortly.

IX. Current tax: In view of carry forward losses under Income Tax Act, 1961, no provision for Income Tax is required to be made. However, the Company has provided for Minimum Alternate Tax under section 115JB of the Income Tax Act, 1961.

Deferred tax: In accordance with Accounting Standard 22 on ''Accounting for Tax on Income'' (AS - 22) as prescribed by the Companies (Accounting Standards) Rules,2006 , Deferred Tax Assets consist of substantial amounts of carry forward losses and unabsorbed depreciation under the Income Tax Act, 1961. However, since the availability of suffcient future taxable income against which the said benefts can be set off is not possible to be ascertained with virtual certainty, the Deferred Tax Assets have not been recognized as a measure of abundant caution.

Mar 31, 2011

1 a) The scheme of Amalgamation of The Hindoostan Spinning and Weaving Mills Limited (transferor company) with the Company (transferee company) has been sanctioned by the Hon'ble High Court of Bombay vide its Order dated 1st April,2011 with effect from 1st April,2010, being the appointed date. Accordingly, pursuant to the said Order all assets and liabilities (including reserves) of the said transferor Company have been recorded in the transferee Company at their respective book value.

b) The Amalgamation has been accounted for under the "Pooling of Interest Method" as prescribed by Accounting Standard (AS 14) "Accounting for Amalgamation" issued under the Companies (Accounting Standards) Rules, 2006 . The assets, liabilities and reserves of the transferor Company as at 1st April, 2010 have been taken over at their respective book values subject to adjustments as follows:-

i) A sum of Rs.26.50 lacs has been debited to Capital Reserve due to the cancellation of 28,00,044 equity shares held by the transferee company with the transferor company.

ii) A sum of Rs. 1102.51 lacs has been credited to Capital Reserve Account on account of reduction in the capital while issuing the shares to the shareholders of the transferor company as per the ratio prescribed in the Scheme of Amalgamation, which has been sanctioned by the Hon'ble High Court'of Bombay.

2 Contingent Liabilities in respect of: Previous Year

Rupees Rupees In lac In lac

(a) The Income-tax demands in respect of 210.01 - earlier years under dispute and are pending in appeal before higher authorities. In respect of some of the assessment years, the higher authorities have decided the matters fully/partially in favour of the company and are pending before the assessing officer for giving effect thereto

(b) Claims against the Company not 763.75 132.31 acknowledged as debts [including disputed demands of Central Excise for Rs. 136.44 lakhs (P. Y - Nil),Sales Tax under Works Contract Act Rs. 111 lacs (P. Y. - Rs. 111 lacs)

(c) Government of Maharashtra had served - - a demand notice for payment of electricity duty @ P15/Unit on power consumption generated in the company's captive power plant at Karad for the period: 1.4.2000 to 30.4.2005, together with penal interest thereon amounting to Rs.228.20 lakhs. The company's writ petition against this levy was decided by the Bombay High Court on 7.11.2009 in favour of the company. The State of Maharashtra has however filed a special leave petition (SLP) in the Supreme Court of India, challenging the High Court order.

3 a) The Investment of 42 Shares in Yeshwant Sahakari Sakhar Karkhana Ltd., are held in the names of two Directors of the Company, being its nominees, as required by the bye-laws of the Society. Yeshwant Sahakari Sakhar Karkhana in the earlier year appropriated the deposits /amount payable to the company towards the increased cost of face value of shares and issued the certificate of holding.

b) During the year the Company had sold 3,50,000 Equity shares of Lexicon Finance Limited which was acquired by the earstwhile subsidiaries of the Company during the year 1994-95. The said Company has not declared any dividend for the last several years and there is a substantial erosion in the net worth. Since the shares were not quoted, the Company had to sell the shares lower than the purchase cost as per the valuation report of a Chartered Accountant and accordingly inurred a loss of Rs.28 lacs.

4. The Property under Development refelected in stock in trade is valued at Rs.500 lakhs. The construction work of the residential complex has been completed but settlement of account is pending with the Developer.

Settlement of accounts is a matter of dispute between the Company (Owner) and Developer and there are claims and counter claims. The matter has been referred to arbitration, pending resolution since 2002.

As a measure of prudence, the Company has adopted a conservative approach and has written down the value of inventory by Rs.499 lac however reserving its claim in arbitration.

Accordingly , surplus if any will be accounted in the year in which the arbitration award is finalised.

5. The Company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and hence the disclosures relating to amount unpaid as at the end of the year together with interest paid / payable as required under the said Act have not been furnished and therefore provision for interest,if any, on delayed payments, is not ascertainable at this stage.

6. During the year 2003-04,in terms of Sanctioned Scheme of the erstwhile The Hindoostan Spinning and Weaving Mills Ltd. secured lenders dues were transferred to the SPVs in full settlement of their dues from the company. All secured lenders except Union Bank of India (UBI) have released their charge on the assets of Karad unit. In respect of UBI, the SPV is yet to settle their dues and hence, they continue to hold the charge on the assets of the Karad Unit by way of equitable mortgage.

7. ( i) Deferred tax : In accordance with Accounting Standard (AS - 22) on Accounting for Tax on Income notified by the Companies (Accounting Standards) Rules,2006 , Deferred Tax Assets consist of substantial amounts of carry forward losses and unabsorbed depreciation under the Income Tax Act, 1961. However, since the availability of sufficient future taxable income against which the said benefits can be set off is not possible to be ascertained with virtual certainty, the Deferred Tax Assets have not been recognised as a measure of abundant caution.

(ii) Current Tax : In view of the unabsorbed Business Losses and Depreciation of the earlier years, provision for normal tax has not been made. However , Provision for Minimum Alternate Tax u/s 115 JB of the Income Tax Act on the Book Profit of the Company has been made for the year ended 3 lst March 2011.

8. Employee Benefits:

A Leave Encashment

The liability towards leave encashment for the year ended 3 lst March, 2011 as per acturial valuation is Rs.48.89 lacs which has been duly provided for.

9. Related Party Information:

Associates / companies where Capricon Realty Limited , control exists Bhishma Realty Limited ,Delta Investments Ltd, Thackersey Moolji & Co

Key Managerial Persons (KMP) Hrishikesh J.Thackersey

Abhimanyu J.Thackersey (Executive Directors)

Relative of Key Managerial Jagdish U.Thackersey Person

Subsidiary Company Hindoostan Technical Fabrics Ltd.

10. The figures of the current year are consolidated figures due to the Amalgamation, hence not comparable with the previous year.

11. The figures of the previous year have been reclassified, where ever necessary to correspond to the figures of the current year.

12. The amounts in Balance Sheet and Profit and Loss Account are rounded off to the nearest thousand and indicated in lac of Rupees.

Mar 31, 2010

1. Amalgamation of Six Wholly owned Subsidiaries with the Company:

a) The scheme of Amalgamation between 1) Assured Investments Limited, 2) Earnest Holdings Limited, 3) Prudential Holdings Limited, 4) Aristocrat Investments Limited, 5) Western Holdings Limited, 6) Sukta Investment Limited (wholly owned Subsidiaries of the Company) with the Company has been sanctioned by the Honble High Court of Bombay vide its Order dated 16th April,2010 with effect from 1st April,2009, being the appointed date. Accordingly, pursuant to the said Order all assets and liabilities of the said Six transferor Companies have been merged with the assets and liabilities of The Sirdar Carbonic Gas Company Limited, the transferee Company.

b) The Amalgamation has been accounted for under the "Pooling of Interest Method" as prescribed by Accounting Standard (AS 14) "Accounting for Amalgamation" issued under the Companies (Accounting Standards) Rules, 2006 . The assets, liabilities and reserves of the Six Subsidiaries as at 1st April, 2009 have been taken over at their respective book values subject to adjustments made as specified in the Scheme of Amalgamation. Accordingly Rs.9,12,682/- has been credited to the General Reserve.

c) Pursuant to the scheme referred to in (a) above, 12,018 equity shares held by the Three Subsidiaries in the Company have been cancelled, and thereby the Share Capital of the Company has been reduced from Rs.82,60,200/- divided into 82,602 Shares to Rs.70,58,400/- divided into 70,584 Shares on account of holding of Shares by the transferor Companies in the transferee Company. The inter company loans, advances, investments and other obligations between the transferor Company and the transferee Company have been cancelled.

d) The figures of the current year include figures of the Six Subsidiaries and are therefore, not comparable with those of the previous year,

2. Contingent liabilities:

Current Year Previous Year Rupees Rupees

(a) Sales tax demands under Works Contract Act for which the

Company has gone in appeal 1,10,99,508 1,10,99,508

(b) Claims against the Company not acknowledged as debts 21,31,652 21,31,652

3. Estimated amount of contracts remaining to be executed on capital account and not provided for amounts to Rs. Nil (Previous Year: Rs. Nil).

4. The Company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence the disclosures relating to amount unpaid as at the end of the year together with interest paid/payable as required under the said Act have not been furnished and provision for interest, if any, on delayed payments, is not ascertainable at this stage.

(b) Information about Secondary Business Segments

The geographical segmentation is insignificant, as exports are less than 10% of the Companys turnover.

(c) Notes:

i) The Company is organized into two main business segments, namely;

a) Manufacturing and refilling - of Elastic Calendar Bowls and other related activities.

b) Leasing - Represents leasing of Plant and Machinery and Business Centre Services.

ii) Segments have been identified and reported taking into account, the nature of products and services, the differing risks and returns, the organisation structure and the internal financial reporting systems.

iii) Segment revenue, assets and liabilities includes respective amounts identifiable to each segments and amounts allocated on a reasonable basis.

iv) Figures in brackets are in respect of the previous year.

4. Related Party Disclosures:

A. Name and nature of relationship of the party where control exists Subsidiary companies: None

B. Parties with whom transactions have taken place:

(a) Subsidiary companies : None

(b) Associates:

i) The Hindoostan Spinning & Weaving Mills Limited ii) Delta Investments Limited

(c) Key Management Personnel (KMP):

i) Shri Chandrahas K. Thackersey - Chairman .

(d) Relative of Key Management Personnel:

i) Shri Sudhir K. Thackersey (brother)

ii) Smt. Nina S. (brothers wife)

5. Previous years figures have been regrouped wherever necessary.

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