Notes to Accounts of M K Exim (India) Ltd.

Mar 31, 2025

Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. All equity shareholders are entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the board of directors is subject to the approval of the shareholders in ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, in the proportion to their shareholdings.

The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance.

The capital structure of the Company consists of net debt (borrowings offset by cash and bank balances) and total equity of the Company.

The Company''s board of directors reviews the capital structure on an annual basis. Therefore all new capital requirements are duly discussed by the board of directors. The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes borrowings less cash and cash equivalents and other bank balances.

The management assessed that the fair values of cash and cash equivalent and bank balances, trade receivables, other financial assets, trade payables and other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

Fair Value hierarchy

Fair value measurements recognised in the Balance sheet:

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable

-Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

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

-Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The Following table provides the fair value measurement hierarchy of the Company''s assets and liabilities.

The Company''s Corporate finance department monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse the exposures by degree and magnitude of risks. These risks include market risk (including interest rate risk and other price risk), credit risk and liquidity risk.

The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identification and mapping controls against these risks, monitor the risk and their limits, improve risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and Company''s activities to provide reliable information to the management and the Board to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company. The Company''s finance function reports quarterly to the Company''s Board of Directors that monitors risks and policies implemented to mitigate risk exposures. The Board of Directors reviews and agrees policies for managing each of these risks which are summarized below:

The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates due to foreign currency borrowings and variable interest loans. The Company has not entered into derivative contracts to manage part of its foreign currency risk. The Company does not enter into derivative contracts to manage risks related to anticipated sales and purchases.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s interest bearing financial liabilities includes borrowings with fixed interest rates.

The Company''s exposure to the risk of changes in market interest rates relates primarily to long term debts and overdraft facilities having floating rate of interest. Its objective in managing its interest rate risk is to ensure that it always maintains sufficient headroom to cover interest payment from anticipated cashflows which are regularly reviewed by the Board. However, the risk is very low.

Credit risk management

Credit risk is the risk that counterparty will not meet its obligations under a Financial instrument or customer contract, leading to afinancial loss. The company is exposed to credit risk from its operating activities ( primarily trade receivables) and from its financing activities, including deposists with banks, foreign exchange transactions and other financial instruments.

Trade receivables

Customer credit risk is managed by the Company subject to the company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating. Outstanding customer receivables are regularly monitored.

Cash and bank balances

The credit risk on bank balances and other bank deposits is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

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 Company''s objective is to, at all times maintain optimum level of liqudity 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 loans from banks at an optimised cost.

The following tables detail the Company''s remaining contractual maturity for its financial liabilities with agreed repayment periods. The tables have been drawn up based on the 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.

Note 33: Segment Reporting

(i) Segments have been identified in line with the Indian Accounting Standard-108- "Operating Segment" issued by the Institute of Chartered Accountants of India.

(ii) The Business Segment has been considered as the primary segment for disclosure.The segments have been identified taking into account the nature of products, the different risks and returns and internal reporting system. The Geographical Segment based on location of its customers have been considered as secondary segment for disclosure.

(iii) The segment revenue, segment results, segment assets and segment liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis.

(iv) Information about primary business segments :-

Note 34: The following Schedule III amendments is not applicable on the Company:

(i) The Company is not holding any benami property under the "Benami Transactions (Prohibition) Act, 1988;

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

(iii) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

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

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

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

(v) The Company does not hold any immovable property whose lease deed is not in the name of Company;

(vi) The Company has not revalued any of its property, plant and equipment or intangible assets;

(vii) The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed as income during the year (previous year) in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961;

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

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

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

Note 36 : The Figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to make them comparable.

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Mar 31, 2024

L. Provisions, contingent liabilities and contingent assets

Provisions are recognised when the Company has a present obligation (legal or constructive), as a result of past event, and it is probable that an outflow of resources embodying economic benefits, that can be reliably estimated, will be required to settle such an obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax 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 recognised as a finance cost.

Contingent liabilities exist when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company, or a present

obligation that arises from past events where it is either not probable that an outflow of resources will be required or the amount cannot be reliably estimated. Contingent liabilities are appropriately disclosed unless the possibility of an outflow of resources embodying economic benefits is remote.

A contingent asset is a possible asset arising from past events, the existence of which will be confirmed only by occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent assets are not recognised till the realisation of the income is virtually certain. However, the same are disclosed in the financial statements where an inflow of economic benefit is possible.

M. Business combinations under common control

Business combinations involving entities or businesses under common control are accounted for using the pooling of interest method.

Under pooling of interest method, the assets and liabilities of the combining entities or businesses are reflected at their carrying amounts after making adjustments necessary to harmonise the accounting policies. The financial information in the financial statements in respect of prior periods is restated as if the business combination had occurred from the beginning of the preceding period in the financial statements, irrespective of the actual date of the combination. The identity of the reserves is preserved in the same form in which they appeared in the financial statements of the transferor and the difference, if any, between the amount recorded as share capital issued plus any additional consideration in the form of cash or other assets and the amount of share capital of the transferor is transferred to capital reserve.

N. Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• The net profit or loss attributable to owners of respective class of equity shares of the Company

• By the weighted average number of equity shares (respective class wise) outstanding during the financial year.

(ii) Diluted earnings per share

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

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

• the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

O. Cash and Cash equivalents

For the purpose of presentation in statement of cash flows, cash and cash equivalents includes cash on hand, deposit held at call with financial institution, other short term, highly liquid investments with original maturities of 3 months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank Overdrafts are shown within borrowings in current

liabilities in Standalone balance sheet.

P. Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before exceptional items and tax is adjusted for the effects of transactions of noncash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information

Q. Exceptional items

When items of income or expense are of such nature, size or incidence that their disclosure is necessary to explain the performance of the Company for the year, the Company makes a disclosure of the nature and amount of such items separately under the head “Exceptional Items”.

4. Recent accounting pronouncements:

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

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Mar 31, 2023

xiii. Provisions, contingent liabilities and contingent assets

A provision is recognized when there exists a present obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to present value and are determined

based on best estimates required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities exist when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company, or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required or the amount cannot be reliably estimated. Contingent liabilities are appropriately disclosed unless the possibility of an outflow of resources embodying economic benefits is remote.

A contingent asset is a possible asset arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company. Contingent assets are not recognized till the realisation of the income is virtually certain. However, the same are disclosed in the financial statements where an inflow of economic benefit is possible.

xiv. Cash and cash equivalent:

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term deposits with banks.

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Mar 31, 2015

1. RELATED PARTY DISCLOSURES

As per Accounting Standard 18, issued by the institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defined in tile Accounting Standard are given below :

(1)List of related partes and relationships :

S.NO. NAME of RELATED PARTY RELATIONSHIP

1. Mr Dayaram Khanchandani : Key Management Personnel (KMP)

2. Mrs. Pusiipa Khancliandani: Key Management Personnel (KMP)

3. Mr. Ashok Patni Key Management Personnel (KMP)

4. Mr. Manish Murlidhar Dialam Key Management Personnel (KMP)

5. M.K.Products Partnership firm of KMP

6. Rakhi Khanchandani Relative of Director

7. M/s Square Gem General Trading Related concern of KMP L.L.C.

8.. M/s Square Textile L.L.C. Related concern of KMP

2. COMTINGEMT LIABILITIES AND COMMITMENTS Year Ended Year Ended 31.03.2015 31.03.2014

Claims against the Company not

acknowledge as debts NIL NIL

Disputed Income Tax Liability

Pending in Appeals 190380/- 290380/-

3. SEGMENT REPORTING

(I) Segments have been identified in line with the Accounting Standard-17- "Segment Reporting ' issued by the Institute of Chartered Accountants of India.

(ii) Tile Business Segment has been considered as the primary segment for disclosure.

Tile segments have been identified taking into account the nature of products, the different risks and returns and internal reporting system. The Geographical Segment based on location of its customers have been considered as secondary segment for disclosure.

(iii) The segment revenue, segment results, segment assets and segment liabilities include the respective amounts identifiable to each of tile segments as also amounts allocated on a reasonable basis.

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Mar 31, 2014

1. CONTINGENT LIABILITIES AND COMMITMENTS Year Ended Year Ended 31.03.2014 31.03.2013

Claims against the Company not acknowledge as debts NIL NIL

Disputed Income Tax Liability Pending in Appeals 2,90,380/- NIL

Corporate Gurantee given by Company to Bank NIL NIL

2. SEGMENT REPORTING

(I) Segments have been identified in line with the Accounting Standard-17- "Segment Reporting " issued by the Institute of Chartered Accountants of India.

(ii) The Business Segment has been considered as the primary segment for disclosure. The segments have been identified taking into account the nature of products, the different risks and returns and internal reporting system. The Geographical Segment based on location of its customers have been considered as secondary segment for disclosure.

(iii) The segment revenue, segment results, segment assets and segment liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis.

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Mar 31, 2013

1. DEFERRED TAX LIABILITY (Net)

In accordance with AS-22 "Accounting for Taxes on lncome",issued by the Institute of Chartered Accountants of India, the company has created deferred tax assets during the year.The breakup of Net Deferred Assets/ (Liabilities) are @30.90% as under:

2. RELATED PARTY DISCLOSURES

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below :

3. CONTINGENT LIABILITIES AND COMMITMENTS

Year Ended Year Ended 31.03.2013 31.03.2012

Claims against the Company not acknowledge as debts NIL NIL

Disputed Income Tax Liability

Pending in Appeals NIL 10.21 lacs

Corporate Gurantee given by Company to Bank NIL 516.66 lacs

4. SEGMENT REPORTING

(I) Segments have been identified in line with the Accounting Standard-17- "Segment Reporting " issued by the Institute of Chartered Accountants of India.

(ii) The Business Segment has been considered as the primary segment for disclosure. The segments have been identified taking into account the nature of products, the different risks and returns and internal reporting system. The Geographical Segment based on location of its customers have been considered as secondary segment for disclosure.

(iii) The segment revenue, segment results, segment assets and segment liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis.

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Mar 31, 2012

1. RELATED PARTY DISCLOSURES

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below :

2. SEGMENT REPORTING

(i) Segments have been identified in line with the Accounting Standard-17- "Segment Reporting " issued by the Institute of Chartered Accountants of India.

(ii) The Business Segment has been considered as the primary segment for disclosure. The segments have been identified taking into account the nature of products, the different risks and returns and internal reporting system. The Geographical Segment based on location of its customers have been considered as secondary segment for disclosure.

(iii) The segment revenue, segment results, segment assets and segment liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis.

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Mar 31, 2010

1 Contingent Liabilities

Year Ended Year Ended 31.03.2010 31.03.2009

(i) Claims against the Company not acknowledge as debts NIL NIL

(ii) Disputed Income Tax Liability Pending in Appeals 133938.00 133938.00

2 Impairment of Assets

The Company have discontinued the operation of its Garment Manufacturing Plant. In accordance with the Accounting Standard - 28" Impairment of Assets" issued by the Institute of Chartered Accountants of India, the Company has not calculated the Impairment loss, if any, on account of unavailability of information of recoverable amount of Garment Manufacturing Plant.

3 In view of non availability of relevant information with the company, the total outstanding dues to small Scale Industrial undertakings cannot be ascertained, therefore the same are not disclosed.

4 Trade Advances amounting to Rs. 114.81 Lacs (Previous Year 241.52 Lacs) which are long overdue were given out of business expediency and the same in the opinion of the management are good and recoverable. The same are subject to confirmation.

5 Debtors amounting to Rs. 201.50 lacs (Previous Year 201.50 Lacs) which are long overdue were given out of business expediency and the same In the opinion of the management are good and recoverable. The same are subject to confirmation.

6 The company is having discussion for sale of land and Building of company situated at G-1-150 industrial area, Jaipur. The Company has also received Rs. 75 lacs as dvance for sale of property, however no agreement Is executed by the Company in this regard.

7 In accordance with AS-22 "Accounting for Taxes on lncome",lssued by the Institute of Chartered Accountants of India, the company has created deferred tax assets during the year.

8 Segment Reporting

(i) Segments have been identified in line with the Accounting Standard-17- "Segment Reporting "issued by the Institute of Chartered Accountants of India.

(ii) The Business Segment has been considered as the primary segment for disclosure. The segments have been identified taking into account the nature of products, the different risks and returns and internal reporting system. The Geographical Segment based on location of its customers have been considered as secondary segment for disclosure.

(iii) The segment revenue, segment results, segment assets and segment liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis.

(iv) Information about primary business segments.

9 RELATED PARTY DISCLOSURES

As per Accounting Standard 18, issued by the Institute of Accountant of India, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below:

(i) List of related parties and relationships :

S. No. NAME OF RELATED PARTY RELATIONSHIP

1 M/s. M.K. Ingots Casting Pvt. Ltd. Associate Company

2 Mr. Dayaram Khanchandanl: Key Management Personnel

3 Mr. Kanhaiya Lai Khanchandanl: Key Management Personnel

4 Mrs. Pushpa Khanchandanl Key Management Personnel

5 Mr. Shyam Khanchandanl: Relative of Key Management Personnel

6 Mr. Ashok Patni Key Management Personnel

7 M/s. M.K. Traders Proprietoship firm of Key Management Personnel

8 M/s. Square Textiles L.L.C. Relative Concern Key Management Personnel

9 M/s. K.V. Exports Proprietoship Concern Key Management Personnel

10 M/s. M.K. Textiles Relative Concern Key Management Personnel

11 M/s Symphony Jewels Pvt. Ltd. Associate Company

12 Mr. Murli Menghani Key Management Personnel

10 Figures for the previous year have been re-grouped / re-arranged wherever considered necessary to make them comparable with those of current year.

11 Figures have been rounded off to the nearest rupees.

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Mar 31, 2009

1 Contingent Liabilities Year Ended Year Ended 31.03.2009 31.03.2008

(I) Claims against the Company not acknowledge asdebts NIL NIL

(ii) Disputed Income Tax Liability Pending in Appeals

2 Impairment of Assets

The Company have discontinued the operation of its Garment Manufacturing Plant. It accordance with the Accounting Standard - 28 " Impairment of Assets " issued by th( Institute of Chartered Accountants of India, the Company has not calculated the Impairmen loss, if any, on account of unavailability of information of recoverable amount of Garmen Manufacturing Plant.

3 In view of non availability of relevant information with the company, the total outstanding dues to small Scale Industrial undertakings cannot be ascertained, therefore the same are not disclosed.

4 Trade Advances amounting to Rs. 241.52 Lacs (Previous Year 373.38 Lacs) which are long overdue were given out of business expediency and the same in the opinion of the management are good and recoverable. The same are subject to confirmation.

5 Debtors amounting to Rs.201.50lacs (Previous year Rs.924.22 lacs) which are long overdue were given out of business expediency and the same in the opinion of the management are good and recoverable. The same are subject to confirmation.

6 The Company is having discussion for sale of Land and Building of the Company situated at E-3,RIICO Industrial Area,Jaipur. The Company has also received Rs.50.00 Lacs as advance for sale of property.However no agreement executed by the Comapny in regard.

7 In accordance with AS-22 "Accounting for Taxes on Income",issued by the Institute of Chartered Accountants of India, the company has provided for deferred tax during the year.

8 Segment Reporting

(I) Segments have been identified in line with the Accounting Standard-17- "Segment Reporting "issued by the Institute of Chartered Accountants of India.

(ii) The Business Segment has been considered as the primary segment for disclosure. The segments have been identified taking into account the nature of products, the different risks and returns and internal reporting system. The Geographical Segment based on location of its customers have been considered as secondary segment for disclosure.

(iii) The segment revenue, segment results, segment assets and segment liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis.

(iv) Information about primary business segments.

9 Balance in Personal Accounts are subject to confirmation

10 RELATED PARTY DISCLOSURES

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below :

(I) List of related parties and relationships :

S.NO. NAME OF RELATED PARTY RELATIONSHIP

1 M/s. M.K.Ingots Castings Pvt.Ltd. Associate Company

2 Mr. Dayaram Khanchandani: Key Management Personnel

3 Mr. Kanhaiya Lai Khanchandani: Key Management Personnel

4 Mrs. Pushpa Khanchandani Key Management Personnel

5 Mr. Shyam Khanchandani: Relative of Key Management Personnel

6 Mr. Ashok Patni Key Management Personnel

7 M/s. M.K.Traders Proprietorship concern of Key Management Personnel

8 M/s. Square Textiles L.L.C Relative concern of Key Management Personnel

9 M/s. K.V.Exports Proprietorship concern of Key Management Personnel

10 M/s. M.K.Textiles Relative concern of Key Management Personnel

11 M/s Symphony Jewels Pvt. Ltd. Associate Company

12 Mr. Murli Menghani Key Management Personnel