Notes to Accounts of Lahoti Overseas Ltd.

Mar 31, 2024

Note No. 31 : Note on Corporate Social Responsibility (CSR):

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

Profit has decreased due to increase in closing stock in the current financial year also the debt has increased as the company has taken fresh loans from banks.

.... During current year, there is higher closing stock as compared to previous financial year due to which the profit declined in the current year. Futher, there is no significant change in equity except change in reserves due to profits.

(iii) Increase in market demand has lead to an increase in stock holding position through out the year

(iv) Revenue Growth along with higher efficiency on working capital has resulted in an improvement in this ratio

_(v) Comparatively higher increase in purchases as compared to increase in revenue from operations. Also, there is higher closing stock as compared to previous financial year due to which the profit declined in the current year.

(_vi) Purchases increased at a higher rate than revenue from operations. Furthermore, the closing stock is larger than the prior fiscal year, resulting in a lower profit in the current year.

Significant increase in debtors due to increase in revenue from operations has led to increase in debtor turnover

^(vii) _ratio.

, .... Purchases have significantly increased in current year increase in revenue from operations comparatively there is no significant increase in trade payables.

The loans from DBS Bank Ltd., HDFC Bank Ltd., Shinhan Bank Co. Ltd., YES Bank Ltd., Federal Bank Ltd. RBL Bank Ltd. Woori Bank Ltd. are secured against Hypothecation of Stock and Book Debts of the Company with pari pasu clause. However the Company is required to file monthly stock statements with HDFC Bank Ltd. only.

Note No. 34A : Related Party Disclosure (with whom transactions exist):

Disclosure requirements as per Ind-AS-24 “Related Party Disclosure” and terms and conditions of transactions are as follows:

The sales & services provided and received from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured, interest free and will be settled in cash. There have been no guarantees received or provided for any related party receivables or payables.

Note No. 36A : Segment Reporting

Segment wise disclosure information as per Ind-AS-108 on “Operating Segment” is as below:

A. General Information

1. Segments have been identified in line with the Ind-AS-108.

2 Business segment have been identified on the basis of nature of the products/services, the risk-return profile on individual basis.

Company has disclosed Business Segment as the primary segment. The risk-return profile of the company’s 3. business is determined predominantly by the nature of its products and services. Accordingly, business segments constitute the primary segment for disclosure of segment information.

5 The Segment Revenue, Results, Assets and liabilities include the respective amounts identifiable and amounts allocated on reasonable basis.

The Managing Director of the Company, Mr. Umesh Lahoti, acts as the Chief Operating Decision Maker 6. (“CODM”) The CODM evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by operating segments.

Defined Benefit Plan:

a. Gratuity:

The liability in respect of employees is provided in the books based on the actuarial valuation. At the time of actual payment of Gratuity, the gratuity payable account is credited.

b. Leave encashment:

The Company provides for estimated leave encashment liability each year on the basis of accumulated leave due to each employee at the year end, value based on salaries including allowances of the last month of the Accounting Year.

Reconciliation of Defined Benefit Obligation and fair value of plan assets is as under: a. Actuarial Assumptions

The financial and demographic assumptions on annual basis used for valuation as at the Valuation Date are shown below. The assumptions as at the Valuation Date are used to determine the Present Value of Defined Benefit Obligation at that date.

Note No. 40 : Provisions, Contingent Liabilities And Contingent Assets:

i. Provisions:

The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists and it is probable that an outflow of resources embodying economic benefits will be required to settle such obligation and the amount of such obligation can be reliably estimated. If the effect of time value of money is material, provisions are discounted using a current pretax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

ii. Contingent liabilities:

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.

iii. Contingent Assets:

Company doesn’t have any Contingent assets, hence are not recognized.

Note No. 41 : Foreign Currency Transactions

a. Initial Recognition:

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.

b. Conversion:

At the year-end, monetary items in foreign currencies are converted into rupee equivalents at the year-end exchange rates.

c. Exchange Differences:

All exchange differences arising on settlement and conversions of foreign currency transactions are included in Other Comprehensive Income.

d. Forward Exchange Contracts:

In respect of transactions covered by forward exchange contracts, the difference between the forward rate and the spot rate is recognized as gain/loss. The gain by way of premium on open forward contracts as on the reporting date is amortized over the period of contract on pro-rata basis. The mark to market gain or loss on open forward contracts being the difference between forward contracts booked at spot rate and rate prevailing at the year- end date is recognized in Other Comprehensive Income.

Note No. 44 : Leases: a. Lease Expense

Ind AS 116 is effective from April 2019, Ind AS 116 replaces the existing standard Ind AS 17 and specifies how an entity will recognize, measure, present and disclose leases.

The company has certain operating leases with subsidiary/associate company not of material value for office facilities. Such leases are generally with the option of renewal, with termination at short notice and there exist no formal agreement to categorize it as a Right of Use asset (“RoU Asset”) for long term basis and accordingly capitalizing the same on Discounted Cash Flow (DCF) basis is not practical. Rental expenses of ? 19.20 Lakhs (31st March, 2023: ? 19.20 Lakhs) in respect of obligation under operating leases have been recognized in Statement of Profit and Loss for the year.

b. Lease Income:

The company has certain investment properties let out under lease/right-to-use agreements. The said agreements are in the nature of operating leases, which generates a material value in the form of lease rents.

As per Ind-AS-116 “Leases”, in case of operating leases, the company “lessor” is required to recognise the income generated from the lease on a systematic basis. The company recognises the lease income as and when the payments are due and received on the basis of the lease agreement. As on 31st March, 2024, the company has following investment properties:

Note No. 45 : Note on Revenue Recognition of the Solar Division

The Company owns and operates a Solar Power Plant at Pali District, Rajasthan. The existing PPA (Purchase power Agreement) between the Company and Jodhpur Vidyut Vitran Nigam Ltd. (Jodhpur Discom) expired on 31/03/2019. Thereafter the company approached Jodhpur Discom for the renewal of the PPA, however the application of the Company was rejected by Jodhpur Discom. Jodhpur Discom has rejected the application of all other similar solar power generating units in the said district.

Despite of the non-renewal of the PPA, the Company generated 37,58,466 k/wh and 37,99,999 k/wh of power during the financial year 2019-20 and 2020-21 respectively and continued to recognize the revenue on the basis of the rate mentioned in the expired PPA i.e. ? 3.14 per kilowatt.

Since the PPA was not renewed and it was uncertain at what rate per kilowatt will the Company receive revenue, the conditions for recognising revenue as laid down in Ind AS 119-”Revenue Recognition” were not fulfilled. Therefore, the Company had decided not to recognize any revenue for financial year 2021-2022 and 2022-23.

The suplementary PPA was executed on 04.09.2023 in FY 2023-24, therefore the company has decided to recognize the revenue for FY 2021-22, 2022-23 and 2023-24 at the rate specified in the PPA i.e. Rs 2.24 and Differential amount of FY 2019-20 was also recognised in FY 2023-24

Note No. 46 : Micro, Small And Medium Enterprises:

i. As at 31st March, 2024, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, and Medium Enterprises Development Act, 2006, to whom the group owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.

ii. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

Note No. 47 : Re-classification of previous year figures:

Previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amount

and other disclosures for the preceding year are included as an integral part of the current year financial statements

and are to be read in relation to the amounts and other disclosures relating to the current year.

Note No. 48 : Proposed Dividend

The Board of Directors in its AGM had proposed dividend of Rs 58,34,300 on 30/09/2023 and paid on 06/10/2023

for the financial year 2022-23.

The Board of Directors in its meeting has not proposed any dividend for the financial year 2023-24.

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Mar 31, 2018

1. In the opinion of Directors, Current Assets, Loans and Advances have the value at which these are stated in the Balance Sheet, if realized in the ordinary course of business and the provision for all known liabilities is adequate and not in excess of or less than the amount reasonably necessary.

2. Contingent Liabilities:

a) Contingent Liabilities not provided for in respect of Bills Discounted Rs.1604.40 lakhs (Previous Year Rs. 2929.74 lakhs).

3. Earning in Foreign Exchange:

FOB value of export: Rs.44,379.76 Lakhs (Previous Year Rs.52,884.71 Lakhs).

4. The Management is of the view of that the fixed assets of the Company are capable of generating adequate returns over their useful lives in the course of business. Therefore the assets are not impaired and do not call for providing any loss.

5. The company has taken effort to verify the closing balances of the sundry creditors / Debtors subject to pending confirmations.

6. Additional Disclosure pursuant to clause 32 of Listing Agreement, (Excepting for employees) is not applicable as there are no transactions in that nature.

7. The previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amount and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

8. As per Ind AS 108 on “Segment Reporting”, segment information has been provided under the Notes to Consolidated Financial Statements

Financial instruments - Fair values and risk management

A. Accounting classification and fair values

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

b) Segment Reporting : Segment identification, reportable segments

i) Primary/secondary segment reporting format:

The risk-return profile of the company’s business is determined predominantly by the nature of its products and services. Accordingly, business segments constitute the primary segments for disclosure of segment information.

ii) Segment Identification:

Business segment have been on the basis of nature of product/services, the ri-return profile of individual business.

iii) Reportable Segment:

Reportable segment has been identified as per the criteria specified in Ind AS 108 “Segment Reporting Issued by the Institute of Chartered Accountants of India.

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Mar 31, 2016

1. Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

2. Contingent Liability is disclosed in case of:

3. A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation.

4 a present obligation arising from past events, when no reliable estimate is possible; and

5. Contingent assets are neither recognized, nor disclosed.

6. Provisions, Contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

7. IMPAIRMENT OF ASSETS

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss except in case of revalued assets.

8. Particulars of Security :

9. Primary: Exclusive charge on all the assets of the project including cost of Land.

10. Collateral: a) Hypothecation of a Wind Mill located at Dharmapuri District, Tamil Nadu

11. Personal guarantee of Umesh Lahoti, Ujwal Lahoti and Aadhitiya Lahoti of the above, Installment of Year 2014-15 has been considered as current maturities of long term debts and re-grouped accordingly under Other Current Liabilities in March 2014 financials.

12. In the opinion of Directors, Current Assets, Loans and Advances have the value at which these are stated in the Balance Sheet, if realized in the ordinary course of business and the provision for all known liabilities is adequate and not in excess of or less than the amount reasonably necessary.

13. Contingent Liabilities:

14. Contingent Liabilities not provided for in respect of Bills Discounted Rs. 3507.89 lakhs (Previous Year Rs. 2,907.02 lakhs).

15. Claims not acknowledged by the Company relating to cases contested by the Company:

16. Earning in Foreign Exchange:

FOB value of export: Rs. 43,102.60 Lakhs (Previous Year Rs. 55,399.12/- Lakhs).

17. The information as required under Micro, Small and Medium Enterprises Development Act, 2006 was called from relevant parties. In view of no response, no such information is furnished.

18. The Management is of the view of that the fixed assets of the Company are capable of generating adequate returns over their useful lives in the course of business. Therefore the assets are not impaired and do not call for providing any loss.

19. Related Party Disclosure: -

20. The Company has identified following parties for the purpose of Related Party Disclosure:

Subsidiary Companies: Holding (%)

Lahoti Spintex & Energy Limited 100

21. Varadan Limited 100

Entities in which KMP / relatives of KMP have significant influence:

PSWare Information Pvt.Ltd.

Bauble Investment Pvt.Ltd.

Bhalchandram Clothing Pvt.Ltd.

Step By Step Export Pvt.Ltd Parvati Textiles Pvt.Ltd.

Key Management Personnel (KMP):

Shri Umesh R. Lahoti - Managing Director Shri Ujwal R Lahoti - Executive Director Shri Aadhitya Lahoti - Director Shri Pradeep Bachhuka-Chief Financial Officer Smt.Gayahtri S.Iyer - Company Secretary Ms.Mrunal Vaidya- Company Secretary

22.. The company has taken effort to verify the closing balances of the sundry creditors / Debtors subject to pending confirmations.

23. Additional Disclosure pursuant to clause 32 of Listing Agreement, (Excepting for employees) is not applicable as there are no transactions in that nature.

24. Segment Reporting

25. Information about business segments (information provided in respect of revenue items for the year ended March 31, 2016 and in respect of assets/liabilities as at March 31, 2016)

26. Segment Reporting : Segment identification, reportable segments

27 Primary/secondary segment reporting format:

The risk-return profile of the company''s business is determined predominantly by the nature of its products and services. Accordingly, business segments constitute the primary segments for disclosure of segment information.

28. Segment Identification:

Business segment have been on the basis of nature of product/services, the ri-return profile of individual business.

29. Reportable Segment:

Reportable segment has been identified as per the criteria specified in Accounting Standard (AS) 17 "Segment Reporting Issued by the Institute of Chartered Accountants of India.

30. The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amount and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

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Mar 31, 2015

1. In the opinion of Directors, Current Assets, Loans and Advances have the value at which these are stated in the Balance Sheet, if realized in the ordinary course of business and the provision for all known liabilities is adequate and not in excess of or less than the amount reasonably necessary.

2. Contingent Liabilities:

a) Contingent Liabilities not provided for in respect of Bills Discounted Rs. 2907.02 lakhs (Previous YearRs.6,045.35 lakhs).

b) Claims not acknowledged by the Company relating to cases contested by the Company :

(Rs. In lakhs)

Sr. Particulars As at As at No. March March 31, 2015 31, 2014

(I) Income Tax Matter 269.10 252.24 (Pending before Appellate Authorities in respect of which the Company is in appeal)

3. The information as required under Micro, Small and Medium Enterprises Development Act, 2006 was called from relevant parties. In view of no response, no such information is furnished.

4. The Management is of the view of that the fixed assets of the Company are capable of generating adequate returns over their useful lives in the course of business. Therefore the assets are not impaired and do not call for providing any loss.

5. Related Party Disclosure: -

i) The Company has identified following parties for the purpose of Related Party Disclosure:

Subsidiary Companies: Holding (%)

Lahoti Spintex Limited 100

G. Varadan Limited 100

Entities in which KMP / relatives of KMP have significant influence:

PSWare Information Pvt.Ltd.

Bauble Investment Pvt.Ltd.

Bhalchandram Clothing Pvt.Ltd.

Step By Step Export Pvt.Ltd..

Parvati Textiles Pvt.Ltd.

Key Management Personnel (KMP):

Shri Umesh R. Lahoti - Managing Director

Shri Ujwal R Lahoti - Executive Director

Shri Aadhitya Lahoti - Director

Shri Pradeep Bachhuka-Chief Financial Officer

Smt.Gayahtri S.Iyer - Company Secretary

6. The company has taken effort to verify the closing balances of the sundry creditors / Debtors subject to pending confirmations.

7. Additional Disclosure pursuant to clause 32 of Listing Agreement, (Excepting for employees) is not applicable as there are no transactions in that nature.

8. Segment Reporting : Segment identification, reportable segments

I) Primary/secondary segment reporting format:

The risk-return profile ofthe company's business is determined predominantly by the nature of its products and services. Accordingly, business segments constitute the primary segments for disclosure of segment information.

ii) Segment Identification:

Business segment have been on the basis of nature of product/services, the ri-return profile of individual business.

iii) Reportable Segment:

Reportable segment has been identified as per the criteria specified in Accounting Standard (AS) 17 "Segment Reporting Issued by the Institute of Chartered Accountants of India.

9. The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amount and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

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Mar 31, 2014

A) Particulars of Security :

i) Primary: Exclusive charge on all the assets of the project including cost of Land.

ii) Collateral: a) Hypothecation of a Wind Mill located at Dharmapuri District, Tamil Nadu

b) Personal guarantee of Umesh Lahoti, Ujwal Lahoti and Aadhitiya Lahoti Of the above, Installment of Year 2014-15 has been considered as current maturities of long term debts and re-grouped accordingly under Other Current Liabilities in March 2014 financials.

The loans from SBI, ICICI Bank, CITI Bank and DBS Bank are secured against Hypothecation of Stock and Book Debts of the Company with pari pasu clause.

1. In the opinion of Directors, Current Assets, Loans and Advances have the value at which these are stated in the Balance Sheet, if realized in the ordinary course of business and the provision for all known liabilities is adequate and not in excess of or less than the amount reasonably necessary.

2. Contingent Liabilities:

a) Contingent Liabilities not provided for in respect of Bills Discounted Rs. 6,045.35 lakhs (Previous Year Rs. 4,958.36lakhs).

b) Claims not acknowledged by the Company relating to cases contested by the Company:

(Rs. In Lakhs)

As at As at March March 31, 2014 31, 2013

Income Tax Matter 252.24 252.24 (Pending before Appellate Authorities in respect of which the Company is in appeal)

3. Earning in Foreign Exchange:

FOB value of export: Rs. 67,667.24/- Lakhs (PreviousYear Rs. 49,419.14/- Lakhs).

4. The information as required under Micro, Small and Medium Enterprises Development Act, 2006 was called from relevant parties. In view of no response, no such information is furnished.

5. The Management is of the view of that the fixed assets of the Company are capable of generating adequate returns over their useful lives in the course of business. Therefore the assets are not impaired and do not call for providing any loss.

6. Company has not been able to appoint a Company Secretary during the year, In spite of its best efforts.

7. The company has taken effort to verify the closing balances of the sundry creditors / debtors subject to pending confirmations.

8. Additional Disclosure pursuant to clause 32 of Listing Agreement, (Excepting for employees) is not applicable as there are no transactions in that nature.

9. Segment Reporting

a) Information about business segments (information provided in respect of revenue items for the year ended March 31, 2014 and in respect of assets/liabilities as at March 31,2014)

b) Segment Reporting : Segment identification, reportable segments

i) Primary/secondary segment reporting format:

The risk-return profile of the company''s business is determined predominantly by the nature of its products and services. Accordingly, business segments constitute the primary segments for disclosure of segment information.

ii) Segment Identification:

Business segment have been on the basis of nature of product/services, the ri-return profile of individual business.

iii) Reportable Segment:

Reportable segment has been identified as per the criteria specified in Accounting Standard (AS) 17 "Segment Reporting Issued by the Institute of Chartered Accountants of India.

10. The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amount and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

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Mar 31, 2013

1. Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

2. Contingent Liability is disclosed in case of:

i) A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation.

ii) a present obligation arising from past events, when no reliable estimate is possible; and

3. Contingent assets are neither recognised, nor disclosed.

4. Provisions, Contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

5. Impairment of Assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss except in case of revalued assets.

6. In the opinion of Directors, Current Assets, Loans and Advances have the value at which these are stated in the Balance Sheet, if realized in the ordinary course of business and the provision for all known liabilities is adequate and not in excess of or less than the amount reasonably necessary.

7. Contingent Liabilities:

a) Contingent Liabilities not provided for in respect of Bills Discounted Rs. 4958.36 lakhs (Previous YearRs. NIL).

b) Contingent Liability in respect of Letter of Credit opened amounts to Rs. 958.00 lakhs

c) Claims not acknowledged by the Company relating to cases contested by the Company :

8. Earning in Foreign Exchange:

FOB value of export: Rs. 49,419.14/- Lakhs (Previous Year Rs. 21,673.86/- Lakhs)

9. The information as required under Micro, Small and Medium Enterprises Development Act, 2006 was called from relevant parties. In view of no response, no such information is furnished.

10. The Management is of the view of that the fixed assets of the Company are capable of generating adequate returns over their useful lives in the course of business. Therefore the assets are not impaired and do not call for providing any loss.

11. Related Party Disclosure: -

i) The Company has identified following parties for the purpose of Related Party Disclosure:

Subsidiary Companies: Holding

(%) Lahoti Spintex Limited 100

G. Varadan Limited 100

Entities in which KMP / relatives of KMP have

significant influence:

PSWare Information Private Limited

Sri Laxmi Exports (Partnership Firm)

Kirti Stock Brokers Private Limited

Bauble Investment Private Limited

Hind Commerce Limited

Key Management Personnel (KMP):

Shri Umesh R. Lahoti - Managing Director

Shri Ujwal R Lahoti - Executive Director

Shri Aadhitiya Lahoti - Director

12. Company has not been able to appoint a Company Secretary during the year, In spite of its best efforts.

13. The company has taken effort to verify the closing balances of the sundry creditors / Debtors subject to pending confirmations.

14. Additional Disclosure pursuant to clause 32 of Listing Agreement, (Excepting for employees) is not applicable as there are no transactions in that nature.

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Mar 31, 2012

A) Particulars of Security :

i ) Primary: First hypothecation/Mortgage charge on two wind power machine at distt.Nandurbar, Maharatshtra created out of banks finance

ii) Collateral: Hypothecation/mortage charge on CompanyRs.s existing windmill located at Village Salampalayam, erode, Tamil Nadu Of the above, Installment of Year 2011-12 has been considered as current maturities of long term debts and re-grouped accordingly under Other Current Liabilities in F.Y 2010-11. As entire amount of term loan has been repaid in the F.Y 2011- 12, no amount stands outstanding either as current maturities or as long term liability.

1. In the opinion of Directors, Current Assets, Loans and Advances have the value at which these are stated in the Balance Sheet, if realized in the ordinary course of business and the provision for all known liabilities is adequate and not in excess of or less than the amount reasonably necessary.

2. Contingent Liabilities:

a) Contingent Liabilities not provided for in respect of Bills Discounted Rs. NIL (Previous Year Rs. NIL).

b) Claims not acknowledged by the Company relating to cases contested by the Company :

(Rs. in lakhs)

As at As at 31-Mar-12 31-Mar-11

(i) Sales Tax Matter Nil 3.00

(ii) Income Tax 231.66 375.98 Matter (Pending

before Appellate Authorities in respect of which the Company is in appeal)

3. Earning in Foreign Exchange:

FOB value of export: Rs. 21,673.86/- Lakhs, (Previous Year Rs. 29,442.38 Lakhs).

4. The information as required under Micro, Small and Medium Enterprises Development Act, 2006 was called from relevant parties. In view of no response, no such information is furnished.

5. The Management is of the view of that the fixed assets of the Company are capable of generating adequate returns over their useful lives in the course of business. Therefore the assets are not impaired and do not call for providing any loss.

6. Company has not been able to appoint a Company Secretary during the year, In spite of itRs.s best efforts.

7. The company has taken effort to verify the closing balances of the sundry creditors / Debtors subject to pending confirmations.

8. Additional Disclosure pursuant to clause 32 of Listing Agreement, (Excepting for employees) is not applicable as there are no transactions in that nature.

b) Segment Reporting : Segment identification, reportable segments

i) Primary/secondry segment reporting formate: The risk-return profile of the companyRs.s business is determined predominantly by the nature of its products and services. Accordingly, business segments constitute the primary segments for disclosure of segment information.

ii) Segment Identification :Business segment have been on the basis of nature of product/services, the ri-return profile of individual business.

iii) Reportable Segment: Reportable segment has been identified as per the criteria specified in Accounting Standard (AS) 17 "Segment Reporting Issued by the Institute of Chartered Accountants of India.

9 The previous yeRs figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amount and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

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Mar 31, 2011

1. Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

2. Contingent Liability is disclosed in case of

i) a present obligation arising from past events, when it is not probable that an outfl ow of resources will be required to settle the obligation.

ii) a present obligation arising from past events, when no reliable estimate is possible; and

3. Contingent assets are neither recognised, nor disclosed.

4. Provisions, Contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

5 IMPAIREMENT OF ASSETS

An assets is treated as impaired when the carrying cost of assets exceed its recoverable value. An impairment loss is charged to Profi t and Loss Account in the year in which an asset is identifi ed by management as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1. The previous year's fi gures have been reworked, regrouped, rearranged and reclassifi ed wherever necessary. Amount and other disclosures for the preceding year are included as an integral part of the current year fi nancial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

2. In the opinion of Directors, Current Assets, Loans and Advances have the value at which these are stated in the Balance Sheet, if realized in the ordinary course of business and the provision for all known liabilities is adequate and not in excess of or less than the amount reasonably necessary.

3. Contingent Liabilities:

a) Contingent Liabilities not provided for in respect of Bills Discounted ? NIL (Previous Year RS. 117.91 Lakhs).

b) Claims not acknowledged by the Company relating to cases contested by the Company :

(Rs. in lakhs)

As at As at 31-Mar-11 31-Mar-10

(i) Sales Tax 3.00 Nil

(ii) Income Tax (Pending before Appellate 375.98 Authorities in respect of which the Company is in appeal)

9. The information as required under Micro, Small and Medium Enterprises Development Act, 2006 was called from relevant parties. In view of no response, no such information is furnished.

10. The Management is of the view of that the fixed assets of the Company are capable of generating adequate returns over their useful lives in the course of business. Therefore the assets are not impaired and do not call for providing any loss.

12. Related Party Disclosure: -

i) The Company has identifi ed following parties for the purpose of Related Party Disclosure:

Subsidiary Companies: Holding (%)

Lahoti Spintex Limited 100

G. Varadan Limited 100

Associate Companies:

Lahoti Terra Knitfab Limited NIL

(Ceased to be associate during the year)

Other Related Parties:

PSWare Information Private Limited

Sri Laxmi Exports (Partnership Firm)

Kirti Stock Brokers Private Limited

Bauble Investment Private Limited

Key Management Personnel:

Shri Umesh R. Lahoti - Managing Director

Shri Ujwal R Lahoti - Executive Director

Shri Aadhitiya Lahoti - Director

15. Company has not been able to appoint a Company Secretary during the year, In spite of it's best efforts.

16. The company has taken effort to verify the closing balances of the sundry creditors / Debtors subject to pending confirmations.

17. Additional Disclosure pursuant to clause 32 of Listing Agreement, (Excepting for employees) is made under schedule "J" to the Accounts.

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Mar 31, 2010

1. Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

2. Contingent Liability is disclosed in case of

i) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation.

ii) a present obligation arising from past events, when no reliable estimate is possible; and iii) a possible obligation from past events where the probability of outflow of resources is not remote.

3. Contingent assets are neither recognised, nor disclosed.

4. Provisions, Contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

L. IMPAIREMENT OF ASSETS

An assets is treated as impaired when the carrying cost of assets exceed its recoverable value. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified by management as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

5. The previous years figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amount and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

6. In the opinion of Directors, Current Assets, Loans and Advances have the value at which these are stated in the Balance Sheet, if realized in the ordinary course of business and the provision for all known liabilities is adequate and not in excess of or less than the amount reasonably necessary.

7. Contingent Liabilities:

Contingent Liabilities not provided for in respect of:

a) Income tax matters Rs. 42.53 Lakhs

b) Bill Discounted Rs. 117.91 Lakhs (Previous Year Rs. 123.82 Lakhs)

8. Earning in Foreign Exchange:

FOB value, including third party export: Rs. 24,270.93/- Lakhs (PreviousYear? 14,420.15 Lakhs)

9. The information as required under Micro, Small and Medium Enterprises Development Act, 2006 was called from relevant parties. In view of no response, no such information is furnished.

10. The Management is of the view of that the fixed assets of the Company are capable of generating adequate returns over their useful lives in the course of business. Therefore the assets are not impaired and do not call for providing any loss.

11. Particulars in respect of opening stock, purchases, closing stock and sales of goods traded during the period ended on March 31, 2010:

Key Management Personnel:

Shri Umesh R. Lahoti - Managing Director

Shri Ujwal R Lahoti - Executive Director

Shri Aadhitiya Lahoti - Jt. Executive Director

12. Company has not able to appoint a Company Secretary during the year. In spite of its best efforts.

13. The company has taken effort to verify the closing balances of the sundry creditors / Debtors subject to pending confirmations.

14. Additional Disclosure pursuant to clause 32 of Listing Agreement, (Excepting for employees) is made under schedule "J" to the Accounts.