Notes to Accounts of Mohite Industries Ltd.

Mar 31, 2024

10) Provisions and Contingent Liabilitiesi. Provisions:

A Provision is recorded when the Company has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated.

ii. Contingent Liabilities:

Whenever there is possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because (a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (b) the amount of the obligation cannot be measured with sufficient reliability are considered as contingent liability. Following are the Contingent Liablities which are not accounting for in books of account.

		('' in lakhs
Particulars	2023-2024	2022-2023
1. Claims not acknowledged as debts in respect of matters in appeals. 2. Commitments a) Estimated amount of contracts remaining to be executed b) Other Commitments : Guarantee given by Banks, counter guaranteed by the Company c) Other Significant Commitments	199.63	199.63

11) Earnings Per Share:

The company presents the basic and diluted EPS data. Basic and diluted EPS is computed by dividing the profit for the period attributable to the shareholders of the company by the weighted average number of shares outstanding during the period.

12) Cash and Cash Equivalents and Cash Flow Statement:

Statement of Cash Flow is prepared segregating the Cash Flow into Operating, Investing And Financing Activities. Cash Flow from Operating Activity is reported using Indirect Method adjusting the net profit for the effects of

i) Changes during the period in inventories and operating receivables/ payables transactions of non-cash nature.

ii) Non-cash items such as depreciation, provision, deferred tax unrealized foreign currency gains and losses and undistributed profits of associates.

iii) All other items for which cash effects are investing and financing cash flows.

13) Segment Reporting:

Segment have been identified on the basis of Accounting Standard on Segment Reporting AS -17

14) Borrowing Costs:

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is necessary to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed in the period in which they are incurred under finance costs.

III) Significant Management Judgement in applying accounting policies and estimation of uncertainty

(1) Significant Management Judgement

The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires management to make judgements, estimates and assumptions that affect the reported balances of revenues, expenses, assets and liabilities and the accompanying disclosures, and the disclosure of contingent liabilities. 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.

(2) Estimation of Uncertainty

IThe 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 hereinafter. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, may however effect changes 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. Estimates and judgments are regularly revisited. Estimates are based on historical experience and other factors, including futuristic reasonable information that may have a financial impact on the company.

a. Useful Lives of Depreciable Assets

The Company reviews the useful lives of Property, Plant and Equipment and Investment properties at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

b. Provisions and contingent liabilities

A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which the reliable estimate can be made. Provisions (excluding retirement benefits and compensated absences) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date adjusted to reflect the current best estimates. Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.

c) Taxes

"The Company’s tax jurisdictions are in India. Significant judgments are involved in determining the provision for income taxes, tax credits including the amount expected to be paid or refunded. Deferred tax assets are recognized for unused tax losses to the extent that it is probable that future taxable profit will be available against which the losses can be utilized. Significant management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies."

5.2 During the current financial year and the preceding financial year, there are no Intangible assets under evelopment which is overdue for completion or exceeded its cost compared to its original plan.

7 Impairment of property, plant and equipment, other intangible assets and right to use of assets

"At the end of each reporting year, the Company reviews the carrying amounts of its property, plant and equipment, other intangible assets and right to use of assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the Statement of Profit and Loss.

Company for the year ended March 31, 2024, has not carried out a specific exercise to determine the impairment losses if any since in the opinion of the management, given the growth phase the Company is expecting on the basis of subsequent business orders on hand, there exist no impairment losses."

Note : The company has a vendor registration process of obtaining confirmation from suppliers regarding their registration / notification under Micro, Small and Medium Enterprises Development Act, 2006. The above information has been determined based on vendors identified by the Company and confirmed by the vendors, which has been relied upon by the auditors. The delayed payments is on account delayed submission of invoices by the vendors and therefore no interest is due on such payments.

25.1 Under the Income Tax Act, 1961, the company has neither surrendered nor disclosed any transactions as income that has not been recorded in the books of accounts during the tax assessments for this financial year. Accordingly, there are no undisclosed income to report for this financial year.

25.2 The Company has neither traded nor invested in crypto currency or virtual currency during the current financial year and the previous financial year. Accordingly, there are no gain/(loss) to disclose.

34 Fair value measurements

This section explains the judgements and estimates made in determining the fair value of the financial instruments that are measured at amortized cost and for which values are disclosed in the financial statements. The company does not have any financial instruments that need to be recognized and measured at fair value through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL).

Note -

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in active markets.

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

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The company’s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period. The fair value of the above financial assets and liabilities are measured at amortized cost which is considered to be approximate to their fair values.

a) Credit Risk

Credit Risk is the risk that counter party will not meet its obligations under a financial instruments or customer contract leading to a financial loss. The Company is exposed to credit risk from its operating activities primarily trade receivables and from its financing activities including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Trade receivables

Credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. The impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogeneous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security.

Deposits with banks

Credit risk is limited as the company generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investments in long and short term deposits. Counterparty credit limits are reviewed by the Company periodically and the limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.

b) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company’s borrowings of long term, short term and working capital are directly related to the cash in flow of the company and hence is not exposed to significant interest rate risk.

c) Liquidity risk

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

d) Market risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exchange risk arises from its foreign currency (''FC'') revenues and expenses, (primarily in United States Dollars (‘USD’)). The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency). Since few years company is selling its product in domestic market hence the risk of Foreign Currency is at minimal level

During the year, the company has not taken any hedging instruments to hedge its foreign currency exposures.

36 Capital Management

The Company’s capital management is intended to create value for shareholders by facilitating the meeting of longterm and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and other longterm or short-term borrowings. The Company’s policy is aimed at combination of short-term and long-term borrowings. The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

Total borrowings includes all long and short-term borrowings as disclosed in note - 18 to the financial statements. Equity comprises all components excluding (profit)/loss on cash flow hedges. The following table summarises the capital of the Company: ... . . . ,

40 Loans due by directors or other officers of the company or any of them either severally or jointly with any other persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member in the current year is Rs. Nil (Previous year-Rs. Nil).

41 During the current financial year and the previous financial year, the company has not made any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the erstwhile Companies Act, 1956.

42 As on the date of approval of the financial statements, the Company is not declared as a wilful defaulter by any bank or financial institution or other lender.

43 Details of charges or satisfaction yet to be registered with registrar of companies beyond the statutory period as on the balance sheet date is S Nil (Previous year: S Nil)

44 The company has not made any investments, accordingly disclosure requirements for compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on Number of Layers) Rules, 2017 is not applicable.

45 (i) During the current year as well as previous year, no funds have been advanced or loaned or invested (either

from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ii) During the current year as well as previous year, no funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries except as provided in books of accounts.

46 The previous year figures have been re-grouped/re-classified wherever necessary to conform to the current year classification to the extent of information available.

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Mar 31, 2023

10) Provisions and Contingent Liabilities

i. Provisions:

A Provision is recorded when the Company has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated.

ii. Contingent Liabilities:

Whenever there is possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because (a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (b) the amount of the obligation cannot be measured with sufficient reliability are considered as contingent liability. Following are the Contingent Liablities which are not accounting for in books of account.

11) Earnings Per Share:

The company presents the basic and diluted EPS data. Basic and diluted EPS is computed by dividing the profit for the period attributable to the shareholders of the company by the weighted average number of shares outstanding during the period.

12) Cash and Cash Equivalents and Cash Flow Statement:

Statement of Cash Flow is prepared segregating the Cash Flow into Operating, Investing And Financing Activities. Cash Flow from Operating Activity is reported using Indirect Method adjusting the net profit for the effects of

i) Changes during the period in inventories and operating receivables/ payables transactions of non-cash nature.

ii) Non-cash items such as depreciation, provision, deferred tax unrealized foreign currency gains and losses and undistributed profits of associates.

iii) All other items for which cash effects are investing and financing cash flows.

14) Borrowing Costs:

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is necessary to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed in the period in which they are incurred under finance costs.

Ill) Significant Management Judgement in applying accounting policies and estimation of uncertainty

While preparing the financials statements, management has made a number of judgments, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.

(1) Significant Management Judgement

The following are significant management judgements in applying the accounting policies of the Company that have significant effect on the financial statements.

(2) Recognition of Deferred Tax Assets

The extent to which deferred tax assets can be recognized is based on an assessment of the probability that future taxable income will be available against which the deductible temporary differences and tax loss carry-forwards can be utilized. In addition, careful judgement is exercised in assessing the impact of any legal or economic limits or uncertainties in various tax issues.

(3) Estimation of Uncertainty

Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is mentioned below. Actual results may be different.

a. Impairment of Non-Financial Assets

In assessing impairment, management has estimated economic usefulness of the assets, the recoverable amount of each asset or cash- generating units based on expected future cash flows and use of an interest rate to discount them.

Estimation of uncertainty relates to assumptions about economically future operating cash flows and the determination of a suitable discount rate.

b. Useful Lives of Depreciable Assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence that may change the utility of assets including Intangible Assets.

c. Inventories

Management has carefully estimated the net realizable values of inventories, taking into account the most reliable evidence available at each reporting date. The future realization of these inventories may be affected by market-driven changes.

d. Current and Non-Current Classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities.

As per our report of even date attached

For and on behalf of the Board of Directors of

for SHAKIRALI S BHOJAGAR & CO MOHITE INDUSTRIES LTD.

Chartered Accountants

Shakirali S Bojagar • Shivaji Mohite • Monika Mohite

Proprietor MD DIN 00425441 Jt.MD DIN 00425614

Membership No. 164250 UD1N-23164250BGYEUB8424

• Abhay Bhide • Cs Parashram Adav • Priyanka Patil

Place: Kolhapur Director & CEO Company Secretary CFO

Date : 25^th May, 2023 DIN 05307473

Note No.: 33 - Details of Benami Property

There are no proceedings initiated or pending against the Company for holding any Benami Property under the Benami Transactions ( Prohibitions] Act, 1988 and the rules made thereunder.

Note No.: 34 - Registration of Charges or Satisfaction with Registrar of Companies

The Corporate Guarantee of Rs 9.00 Crores was given to the Kolhapur Urban Co-operative Bank & Shree Mahalaxmi Co- Oprative Bank Ltd for availing loan by subsidiary Company Solitaire Constructions Pvt Ltd. The loan is repaid by the company but the charges are not satisfied as on balance sheet date

Note No.: 35 - Undisclosed Income

The Company does not have any transaction which were not recorded in the books of accounts or that has been surrendered or disclosed as income during the year in the tax assessments.

Note No.: 36 - Details of Crypto / Virtual Currency

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

Note No.: 37 - Willful Defaulter

The Company has not been declared willful defaulter by any Banks / Financial Institutions.

As per our report of even date attached

For and on behalf of the Board of Directors of

for SHAKIRALI S BHOJAGAR & CO MOHITE INDUSTRIES LTD.

Chartered Accountants

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Mar 31, 2018

I. Basis of Preparation :

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed by Ministry of Corporate Affairs under Companies (Indian Accounting Standards) Rules, 2015, provisions of the Companies Act, 2013, to the extent notified and pronouncements of the Institute of Chartered Accountants of India.

Disclosures under Ind AS are made only in respect of material items and in respect of the items that will be useful to the users of financial statements in making economic decisions.

The financial statements for the year ended 31^st March 2018 (including comparatives) are duly adopted by the Board on 30^th May, 2018 for consideration and approval by shareholders.

Note -

a) Equity Shareholders List holding more than 5% of equity shares along with the number of equity shares held is as given below

b) The Company has only one class of equity share of par value Rs. 10/- Each holder of the equity shares is entitled to one vote per share.

c) During the previous Five years, the company has not issued bonus shares/bought back shares / issued shares for consideration other than cash

Notes :

1. LIC loan against policy is availied against assignment of Key Man Insurance Policies

2. LIC loan against property is secured by exclusive first charge on personal property of directors located at Plot No.1 Survey No. 250B/1A/4, E Ward, Nagala Park, Kolhapur

3. Daimler Finance Vehicle Loan is secured by hypothecation of respective vehicle against which loan is sanctioned.

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Mar 31, 2016

1. Company has only one class of equity share of par value Rs. 10 /-. Each holder of the equity shares is entitled to one vote per share.

2. During the previous five years, the company has not issued bonus shares/ bought back shares / issued shares for consideration other than cash.

3. Bank of Baroda term loan are secured by exclusive first charge on fixed assets (Present & Future) of the Company relating to the Hydro Power Project.

Collateral

4. Second Pari passu charge on the fixed asset of the Co. (except vehicles) relating to the textile Unit.

5. Second Pari passu charge on the current asset of the Company relating to the textile unit.

6. Personal guarantee of Mrs. Monika Mohite and Shri .Shivaji Mohite

7. LIC loan against policy is availed against assignment of Key Man Insurance Policies

3. LIC loan against property is secured by exclusive first charge on personal property of directors located at Plot No. 1, Survey No. 250B/1 A/4, E Ward, Nagala Park, Kolhapur.

Note : -8

Working Capital Facilities in (i) to (iii) and Non - Fund Limits are secured by First charge on entire stock of Raw material, Stock in Process, finished Goods, consumables, stores and spare, book debts on pari passu with other bank (present & future)

9. Gratuity is administrated through Group Gratuity Scheme with LIC of India.

10. Salary Escalation Rate :-

Future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

11. Expected rate of return in plan assets :-

This is based on actuaries expectations of the average long-term rate of return expected on investments of the fund during the estimated term of the obligations.

12. Discount Rate :-

The discount rate is based on the prevailing market yields of Indian Government securities as at balance sheet date for the estimated term of the obligations.

13. Segment Reporting :

Segment have been identified in line with Accounting Standard on Segment reporting (AS-17)

14. Related Party Disclosures:

15. Related Parties and their relationship

16. Key Management Personnel:

Mr. Shivaji R. Mohite, Chairman & Managing Director

Mrs. Monika S. Mohite, Joint Managing Director

Mr. Abhay S. Bhide, Executive Director & Chief Executive Officer

Mr. Neehal M. Pathan, Non-Execute Director

Mr. Shreyas S. Alatkar, Chief Financial Officer

Ms. Ashvini P. Kalekar, Company Secretary

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Mar 31, 2015

1. Bank of Baroda Term Loan are secured by exclusive First charge on fixed assets (Present & Future) of the Company relating to the Hydro Power Project.

Collateral

a) Second Pari passu charge on the fixed asset of the Co. (except vehicles) relating to the textile Unit.

b) Second Pari passu charge on the current asset of the Company relating to the textile unit.

c) Personal guarantee of Mrs. Monika Mohite and Mr. Shivaji Mohite

2. The Loan against Property is Secured by the Mortgage of Property located at Plot No. 1, Survey NO.250B/1A/4, 'E' Ward, Nagala Park, Kolhapur.

3. a) Term Loan under TUF's scheme is secured by first pari passu charge with BOB on fixed assets of spinning unit at Vadgaon.

b) Pledge of Thirty Lacs Equity Shares of Mr. Shivaji Mohite

4. LIC Loan is availed against assignment of Keyman Insurance Policies

Note: -

Working Capital Facilities in (i) to (iii) and Non - Fund Limites above are secured by First charge on entire stock of Raw material, Stock in Process, finished Goods, consumables, stores and spare, bookdebtsonpari passu with other bank (present & future)

Note- Short Term Loans and advances includes amount receivables from employees against interest free loan given to them in the ordinary corse of business and as per rules of the Company.

i) Expected rate of return in plan assets -

This is based on actuaries expectations of the average long-term rate of return expected on investments of thefund during the estimated term of the obligations.

ii) Discount Rate-

The discount rate is based on the prevailing market yields of Indian Government securities as at balance sheet date for the estimated term of the obligations.

c) Retirement and Other Benefits to Employees:

a] Provident fund is accounted on monthly basis in accordance with the terms of the contract with the employees and is deposited with the "Employees Provident Fund Organization (EPFO)".

b] Encashment of leave is accounted for in the year in which the employees exercise the option of encashment.

c] Gratuity Liability is defined benefit obligation and Liability on account of retirement gratuity is provided in accordance with the Company's Group Gratuity Cash Assurance Scheme with LIC of India.

iii) Deferred Tax Liability/Assets at the end of the year:

As on 31st March, 2015 there is reversal of Deferred Tax Liability on account of timing difference of depreciation of Rs, 3861646/-.

iv) Segment Reporting:

Segment have been identified in line with Accounting Standard on Segment reporting (AS-17)

v) Related Party Disclosures:

As per the Accounting Standard on 'Related Party Disclosures' (AS 18)

-Name of the Parties

i) Key Management Personnel:

Mr. Shivaji Ramchandra Mohite (Chairman & Managing Director) Mrs.Monika Shivaji Mohite (Joint Managing Director) Mr. Abhay Shamrao Bhide (Executive Director & CEO) Mr. Neehal M. Pathan (Non-Execute Director)

ii) Other related parties (Associates), where transaction have taken place during the year.

M/s. Mahalaxmi Cotton, Ginning, Pressing & Oil Industries

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Mar 31, 2014

I) Contingent liabilities:

Contingent Liabilities not provided in respect of- Rs in Lacs As at As at Particulars 31 March 2014 31 March 2013

1.Claims not acknowledged as debts in respect of matters in appeals. - 359.89

2. Commitments

a) Estimated amount of contracts remaining to be executed - -

b) Other Commitments :

Guarantee given by banks, counter guaranteed by the Company 380.29 660.59

c) Other Significant Commitments - -

a] Gratuity is administrated through Group Gratuity Scheme with LIC of India.

b] Salary Escalation Rate-

Future salary increases considered in acturial valuation taken into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

i) Expected rate of return in plan assets-

This is based on actuaries expectations of the average long-term rate of return expected on investments of the fund during the estimated term of the obligations.

ii) Discount Rate-

The discount rate is based on the prevailing market yields of Indian Government securities as at balance sheet date for the estimated term of the obligations.

iii) Deferred Tax Liability/Assets at the end of the year:

As on 31st March, 2014 the Deferred TaxAsset comprises of timing difference on account of Depreciation only of Rs. 39,15,221/- which is shown under Deferred Tax Liability (Net).

v) Retirement and Other Benefits to Employees:

a] Provident fund is accounted on monthly basis in accordance with the terms of the contract with the employees and is deposited with the "Employees Provident Fund Organization (EPFO)".

b] Encashment of leave is accounted for in the year in which the employees exercise the option of encashment.

c] Gratuity Liability is defined benefit obligation and Liability on account of retirement gratuity is provided in accordance with the Company''s Group Gratuity Cash Assurance Scheme with LIC ofIndia.

vi) Segment Reporting:

Segment have been identified in line withAccounting Standard on Segment reporting (AS-17)

viii) Related Party Disclosures:

As per theAccounting Standard on ''Related Party Disclosures''(AS 18)

-Name of the Parties

i) Key Management Personnel:

Mr. Shivaji RamchandraMohite (Chairman & Managing Director)

Mrs. Monika Shivaji Mohite (Joint Managing Director)

ii) Other related parties (Associates), where transaction have taken place during the year. M/s. Mahalaxmi Cotton, Ginning, Pressing & Oil Industries

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Mar 31, 2013

I) Contingent Liabilities :

Contingent Liabilities not provided in respect of - Rs. in Lacs

As at As at Partlculars 31st March 2013 31st March 2012

1. Claims not acknowledged as debts in respect of matters in appeals. 359.89 359.89

2. Commitments

a) Estimated amount of contracts remaining to be executed

b) Other Commitments :

Guarantee given by banks, counter guaranteed by the Company 660.59 668.21

c) Other Significant Commitments - -

ii) Deferred Tax Liability / Assets at the end of the year :

As on 31st March, 2013 the Deferred Tax Asset comprises of timing difference on account of Depreciation only of Rs. 39,66,167/- which is shown under Deferred Tax Liability (Net).

iii) Retirement and Other Benefits to Employees:

a] Provident fund is accounted on monthly basis in accordance with the terms of the contract with the employees and is deposited with the "Employees Provident Fund Organization (EPFO)".

b] Encashment of leave is accounted for in the year in which the employees excerise the option of encahsment.

c] Gratuity Liability is defined benefit obligation and Liability on account of retirement gratuity is provided in accordance with the Company''s Group Gratuity Cash Assurance Scheme with LIC of India.

iv) Segment Reporting :

Segment have been identified in line with Accounting Standard on Segment reporting (AS-17) Segment -wise information for the year ended 31st March 2013.

v) Related Party Disclosures:

As per the Accounting Standard on ''Related Party Disclosures'' (AS 18)

-Name of the Parties

i) Key Management Personnel :

Mr. Shivaji Ramchandra Mohite (Chairman & Managing Director)

Mrs. Monika Shivaji Mohite (Joint Managing Director)

ii) Other related parties (Associates), where transaction have taken place during the year.

M/s. Mahalaxmi Cotton, Ginning, Pressing & Oil Industries

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Mar 31, 2012

A. Right of Equity Shareholders :

Company has only one class of equity shares of par value Rs.10/- Each holder of the equity shares is entitled to one vote per share. In the event of liquidation of the company the holder of equity share will be entitled to receive remaining assets of the company after distribution of the preferential payments. The distribution will be in proportion to the number of equity shares held by the shareholders.

b. During the previous five years, the company has not issued bonus shares / bought back shares/issued shares for consideration other than cash.

Notes :

1. Term Loan No. I above is secured by First pari passu charge on the fixed asset (Present & Future) re lating to the weaving unit with IDBI Bank

Collateral

a) First pari passu charge on the fixed asset of the Company (except vehicles) relating to the textile unit.(pari passu with IDBI Bank)

b) Extension of first charge on fixed assets (present & future) of Hydro Power Project at Radhanagari

c) Second pari passu charge on the current assets relating to the textile unit (pari passu with SBI & IDBI)

d) Personal guarantee of Shri R M Mohite, Mrs Monika Mohite and Shri Shivaji Mohite

2. Term Loan No. II & III above are secured by exclusive First charge on fixed assets (Present & Future) of the Company relating to the Hydro Power Project

Collateral

a) Second pari passu charge on the fixed asset of the Company (except vehicles) relating to the textile unit.

b) Second pari passu charge on the current asset of the Company relating to the textile unit.

c) Personal guarantee of Shri R M Mohite, Mrs Monika Mohite and Shri Shivaji Mohite

3. The Loan against property is secured by the mortgage of property located at Plot No. 1, Survey No. 250B/1A /4, E Ward, Nagala Park, Kolhapur.

4. a) Term Loan under TUF's scheme is secured by first pari passu charge with BOB on fixed assets of spinning unit at Vadgaon, Weaving unit at Kagal & Khotwad Ichalkaranji

b) Pledge of Thirty Lacs Equity Shares of Shivaji Mohite

5. LIC Loan is availed against assignment of Key Man Insurance Policies

6. All Vehicle Loans are secured by the mortgage of the particular vehicles.

Note :

Above Working Capital Facilities are secured by First charge on entire stock of raw material, stock in process, finished goods, consumables, stores & spare and book debts on pari passu with other banks (present & future)

Short Term Loans and advances includes amount receivable from employees against interest free loan given to them in the ordinary course of business and as per rules of the Company. No repayment schedule or repayment is beyond seven years.

i) Contingent liabilities:

Contingent Liabilities not provided in respect of :-

Rs. in Lacs As at As at Particulars March, March, 31, 2012 31, 2011

1. Claims not acknowledged as debts in respect of matters in appeals. 359.89 359.89

2. Commitments

a) Estimated amount of contracts remaining to be executed -- --

b) Other Commitments :

Guarantee given by banks, counter guaranteed by the 668.21 675.85

Company

c) Other Significant Commitments -- --

a) Gratuity is administered through Group Gratuity Scheme with Life Insurance Corporation of India.

b) Salary Escalation Rate:

Future salary increases considered in actuarial valuation taken into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

i) Expected rate of return in plan assets :

This is based on actuaries expectation of the average long-term rate of return expected on investments of the fund during the estimated term of the obligations.

ii) Discount Rate:

The discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

iii ) Deferred Tax Liability/Assets at the end of the year :

As on 31st March, 2012 the Deferred Tax Asset comprises of timing difference on account of Depreciation only of Rs. 33,11,670/- which is shown under Deferred Tax Liability (Net)

(v) Retirement and Other benefits to Employees

[a] Provident fund is accounted on monthly basis in accordance with the terms of contract with the employees and is deposited with the "Employees Provident Fund Organization (EPFO)".

[b] Encashment of leave is accounted for in the year in which the employees exercise the option of encashment.

[c] Gratuity Liability is defined benefit obligation and Liability on account of retirement gratuity is provided in accordance with the Company's Group Gratuity Cash Assurance Scheme with Life Insurance Corporation of India.

(viii) Related Party Disclosures:

As per the Accounting Standard on 'Related Party Disclosures' (AS 18)

Name of the Parties

i) Key Management Personnel :

Mr. Shivaji Ramchandra Mohite (Chairman & Managing Director)

Mrs. Monika Shivaji Mohite (Joint Managing Director)

ii) Other related parties (Associates), where transaction have taken place during the year. M/s. Mahalaxmi Cotton, Ginning, Pressing & Oil Industries

---

Mar 31, 2010

1. Contingent liabilities:

[a] Guarantees given by banks, counter guaranteed by the Company - Rs. 6,49,50,000/-(previous year Rs. 2,71,15,000/-)

[b] Letter of credit (for import of machinery) established by banks, counter guaranteed by the Company - Euro 1,84,680 (previous year- Rs.l 0,03,00,000)

[c] Income tax/sales tax demands against which the Company has preferred appeals - Nil (previous year Rs. 2,22,69,110)

Central Excise duty demands against which the Company has preferred appeals - Rs.3,59,89,388/- (previous year Rs. 3,59,89,388/-)

[d] Guarantees given on behalf of a sister /associate concerns —Rs. 4,00,00,000 (previous year NIL)

2. Share Capital:

During the year the Company has not issued any shares. There is no change in issued, subscribed and paid up capital of the Company during the year.

3. Fixed Assets:

Estimated amount of contracts remaining to be executed on capital account and not provided for (net advances) is NIL (Previous year NIL)

4. Current Assets, Loans & Advances:

[a] Debtors do not include any overdue amount which has not been settled over long periods or which is under dispute and arbitration. In the opinion of the management, all the outstanding debts as on 31.03.2010 are considered good.

[b] Advances recoverable in cash or in kind do not include any sort of loan or advance to the Chairman, Managing Director or to Joint Managing Director.

[c] In the opinion of the Board of Directors of the Company, the value of realization of current assets, loan and advances, in the ordinary course of business, would not be less than the amount at which they are stated in the Balance Sheet and the provision for all known and determined liabilities, is adequate and not in excess of the amount reasonably required.

[d] The balances of debtors and creditors are subject to confirmation.

[e] The Company does not have information regarding their vendors status "The Small, Medium and Micro Enterprises Development Act, 2006", therefore bifurcation between Total Outstanding dues of Micro Enterprises and Small Enterprises and Other dues are not disclosed under the head "Current Liabilities and Provisions".

[f] Mr.Rajendar Prabhakar Kinkar, an independent director of the Company, is a director of Shri.Mahalaxmi Co-operative Bank Ltd. with whom the Company has banking relationship.

5. Profit and Loss Account:

a] Provident fund is accounted on monthly basis in accordance with the terms of contract with the employees and is deposited with the "Employees Provident Fund Organization (EPFO)".

b] Encashment of leave is accounted for in the year in which the employees exercise the option of encashment.

c] Provisions for additional accrued-gratuity—liability for the year is estimated to be Nil (Previous year Rs.4,99,334/-). Liability on account of retirement gratuity is provided in accordance with the Companys Group Gratuity Cash Assurance Scheme with Life Insurance Corporation of India.

6. Segment Reporting:

The Company is engaged in the business of 100% cotton yarn of various counts/plies and knitted fabric . In context of Accounting Standard 17 issued by the Institute of Chartered Accountants of India, it is considered to be the only one business segment.

7. Related Party Disclosures:

As per the Accounting Standard on Related Party Disclosures (AS 1 8) issued by The Institute of Chartered Accountants of India, the related parties of the Company are as follows: 1) List of Related Parties & Relationship

(a) Mr. Shivaji Ramchandra Mohie

(b) Mrs. Monika Shivaji Mohite

(c) Mahalaxmi Cotton, Ginning Pressing & Oil Ind.

(d) United Real Estate Developers Pvt. Ltd.

(e) Shantanu Developers Pvt. Ltd.

(f) Shivam Earth-Movers Pvt. Ltd.

(g) Shiv-Dhruv Developers Pvt. Ltd.

(h) D & S (Engineers & Contractors) Pvt. Ltd.

(i) First Steps Baby Wear Pvt.Ltd.

(j) Mohitex Kinnts Pvt. Ltd

(k) Rosary Developers Pvt. Ltd

(l) Divine Contractors Pvt. Ltd

(m) Musk Developers Pvt. Ltd

(n) Precision Developers Pvt. Ltd

(o) Starlit Developers Pvt. Ltd

8. Previous years figures have been re-grouped and reclassified to make them comparable with the figures of the current year.