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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Nahar Spinning Mills Ltd.

Mar 31, 2025

m) Provisions, contingent assets and contingent liabilities

Provisions are recognized only when there is a present obligation, as a result of past events, and when a reliable
estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each
reporting date and adjusted to reflect the current best estimates. Provisions are discounted to their present values,
where the time value of money is material.

Contingent liability is disclosed for:

â¢ Possible obligations which will be confirmed only by future events not wholly within the control of the Company
or

â¢ Present obligations arising from past events where it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
Contingent assets are neither recognised nor disclosed except when realisation of income is virtually certain,
related asset is disclosed.

n) Financial instruments

A Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs.
Subsequent measurement of financial assets and financial liabilities is described below.

Non-derivative financial assets
Subsequent measurement

i. A Financial assets carried at amortised cost

A financial asset is measured at the amortised cost if both the following conditions are met:

â¢ The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and

â¢ Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal

and interest (SPPI) on the principal amount outstanding.

â¢ After initial measurement, such financial assets are subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included
in interest income in the Statement of Profit and Loss

ii. Investments in equity instruments

Investments in equity instruments which are held for trading are classified as at fair value through profit or loss
(FVTPL). For all other equity instruments, the Company makes an irrevocable choice upon initial recognition, on
an instrument by instrument basis, to classify the same either as at fair value through other comprehensive income
(FVOCI) or fair value through profit or loss (FVTPL). Amounts presented in other comprehensive income are not
subsequently transferred to profit or loss. However, the Company transfers the cumulative gain or loss within
equity. Dividends on such investments are recognised in profit or loss unless the dividend clearly represents a
recovery of part of the cost of the investment.

iii. Investments in mutual funds/venture capital funds/alternative investment funds (AIF) - Investments in
mutual funds, venture capital funds and AIF are measured at fair value through profit and loss (FVTPL).

iv. Investments held for trading purposes - The Company has investments in equity instruments, mutual funds,
debentures, real estate properties, bonds etc. which are held for trading purposes and therefore, classified as at
fair value through profit or loss (FVTPL).

De-recognition of financial assets

Financial assets (or where applicable, a part of financial asset or part of a group of similar financial assets) are
derecognised (i.e. removed from the Company''s balance sheet) when the contractual rights to receive the cash flows
from the financial asset have expired, or when the financial asset and substantially all the risks and rewards are
transferred. Further, if the Company has not retained control, it shall also derecognise the financial asset and recognise
separately as assets or liabilities any rights and obligations created or retained in the transfer.

Non-derivative financial liabilities
Subsequent measurement

Subsequent to initial recognition, all non-derivative financial liabilities are measured at amortised cost using the
effective interest method.

De-recognition of financial liabilities

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the
original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in
the Statement of Profit and Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to
realise the assets and settle the liabilities simultaneously.

o) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding
during the period. The weighted average number of equity shares outstanding during the period is adjusted for
events including a bonus issue.

For the purpose of calculating diluted earnings per share, the net profit or loss (interest and other finance cost
associated) for the period attributable to equity shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

p) Segment reporting

The Company identifies segment basis the internal organization and management structure. The operating
segments are the segments for which separate financial information is available and for which operating profit/loss
amounts are regularly by the executive committee (''chief operating decision maker'') in deciding how to allocate
resources and in assessing performance. The accounting policies adopted for segment reporting are in line with

the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment
liabilities have been identified to segments on the basis of their relationship with the operating activities of the
segment.

q) Significant management judgement in applying accounting policies and estimation uncertainty

Significant management judgements

Recognition of deferred tax assets - The extent to which deferred tax assets can be recognized is based on an
assessment of the probability of the future taxable income against which the deferred tax assets can be utilized.
Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of impairment of
assets requires assessment of several external and internal factors which could result in deterioration of
recoverable amount of the assets.

Provisions - At each balance sheet date basis the management judgment, changes in facts and legal aspects,
the Company assesses the requirement of provisions against the outstanding contingent liabilities. However, the
actual future outcome may be different from this judgement.

Significant Estimates

Useful lives of depreciable/amortisable assets - Management reviews its estimate of the useful lives of
depreciable/amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in
these estimates relate to technical and economic obsolescence that may change the utility of assets.

Defined benefit obligation (DBO) - Management''s estimate of the DBO is based on a number of underlying
assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases.
Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit
expenses.

Fair value measurements - Management applies valuation techniques to determine the fair value of financial
instruments (where active market quotes are not available). This involves developing estimates and assumptions
consistent with how market participants would price the instrument.

21.1 General reserve

The Company has transferred a portion of the net profit before declaring dividend to general reserve pursuant to the earlier
provision of Companies Act 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

21.2 Securities premium reserve

Securities premium reserve represents premium received on issue of shares. The reserve is utilised in accordance with the
provisions of the Companies Act, 2013.

21.3 Retained earnings

All the profits made by the Company are transferred to retained earnings from statement of profit and loss.

21.4 Reserve Fund u/s 45-IC of RBI Act 1934

The Company creates a reserve fund in accordance with the provisions of section 45-IC of the Reserve Bank of India Act,
1934 and transfers therein an amount of euqal to/more than twenty percent of its net profit of the year, before declaration of
dividend. Accordingly, during the year, the Company has created Statutary Reserve Fund amounting to Rs. 610 Lakhs.

21.5 Other comprehensive income

(i) The Company has elected to recognise changes in the fair value of certain investments in equity securities in other
comprehensive income. These changes are accumulated within the FVOCI reserve within equity. The Group transfers
amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

(ii) The Company has recognised remeasurements of defined benefits plans through other comprehensive income.

Valuation Techniques for fair value disclosures (Level 1 , Level 2 and Level 3)

(A) Investment in Quoted Equity Investments - Level 1 - Investment in listed equity instruments are measured at their readily
available quoted price in the market.

(B) Investment in Unquoted Equity Investments - Level 3 - the Company has used earning capitalisation method (fair value
approach) discounted at a rate to reflect the risk involved in the business.

(C) Investment in Mutual funds - Level 1 - Investment in mutual funds are measured at their readily available net asset value (NAV)
(per unit) in the market.

(D) Investment in Venture Capital Funds and Alternative Investment Funds Level 3 - Investment in venture capital funds and
alternative investment funds are measured at their fair value as per the Net Asset Value (NAV) Certificate shared by the
fund/investee party.

Valuation methodologies of financial instruments not measured at fair value

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not
recorded and measured at fair value in the Company''s financial statements. These fair values were calculated for disclosure
purposes only. The below methodologies and assumptions relate only to the instruments in the above tables:

Financial assets and liabilities

For financial assets and financial liabilities that have a short-term maturity (less than twelve months), the carrying amounts, which are
net of impairment, are a reasonable approximation of their fair value. Such instruments include: cash and balances, balances other
than cash and cash equivalents, loans, trade payables, short term borrowings, inter company loan and contract liability without a
specific maturity.

Investments measured at amortised cost

Investments which are carried at amortised cost represents investments in debt instruments including non convertible preference
shares. The fair values of such investments are determined using rates available in the market.

43 Financial risk management
i) Risk Management

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s board of directors has overall
responsibility for the establishment and oversight of the Company risk management framework. The Company''s risk are
managed by a treasury department under policies approved by the board of directors. The board of directors provides written
principles for overall risk management. This note explains the sources of risk which the entity is exposed to and how the entity
manages the risk and the related impact in the financial statements.

In order to avoid excessive concentrations of risk, the Group''s policies and procedures include specific guidelines to focus on
maintaining a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

A) Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to credit risk is
influenced mainly by cash and cash equivalents, other bank balances, investments, loan assets, trade receivables and other
financial assets. The Company continuously monitors defaults of customers and other counterparties and incorporates this
information into its credit risk controls.
a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for
each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class
of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

(i) Low credit risk

(ii) Moderate credit risk

(iii) High credit risk

The company provides for expected credit loss based on the following:

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying
bank deposits and accounts in different banks across the country.

Trade receivables

Trade receivables measured at amortized cost and credit risk related to these are managed by monitoring the recoverability of such
amounts continuously.

Loans

Credit risk related to borrower''s are mitigated by considering collateral''s/bank guarantees/letter of credit, from borrower''s. The
Company closely monitors the credit-worthiness of the borrower''s through internal systems and project appraisal process to assess
the credit risk and define credit limits of borrower, thereby, limiting the credit risk to pre-calculated amounts. These processes include
a detailed appraisal methodology, identification of risks and suitable structuring and credit risk mitigation measures. The Company
assesses increase in credit risk on an ongoing basis for amounts loan receivables that become past due and default is considered to
have occurred when amounts receivable become one year past due.

Other financial assets measured at amortized cost

Other financial assets measured at amortized cost includes loans and advances to employees, security deposits, insurance claim
receivables and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such
amounts continuously.

b) Credit risk exposure

i) Expected credit losses for financial assets other than loans

Company provides for expected credit losses on financial assets other than loans by assessing individual financial instruments

for expectation of any credit losses:

- For cash and cash equivalents and other bank balances - Since the Company deals with only high-rated banks and
financial institutions, credit risk in respect of cash and cash equivalents, other bank balances and bank deposits is
evaluated as very low.

- For investments - Considering the investments are in equity shares, mutual funds, and government securities, credit risk is
considered low.

- For loans comprising security deposits paid - Credit risk is considered low because the Company is in possession of the
underlying asset.

- For other financial assets - Credit risk is evaluated based on Company''s knowledge of the credit worthiness of those parties
and loss allowance is measured for 12 month expected credit losses upon initial recognition and provide for lifetime
expected credit losses upon significant increase in credit risk. The Company does not have any expected loss based
impairment recognised on such assets considering their low credit risk nature, though the reconciliation of expected credit
loss for all sub categories of financial assets (other than loans) are disclosed below:

ii) Expected credit loss for loans

The Company follows a ''three-stage'' model for impairment based on changes in credit quality since initial recognition as
summarised below:

A financial instrument that is not credit-impaired on initial recognition is classified in ''Stage 1'' and has its credit risk continuously
monitored by the Company i.e. the default in repayment is within the range of 0 to 30 days.

If a significant increase in credit risk (''SICR'') since initial recognition is identified, the financial instrument is moved to ''Stage 2''
but is not yet deemed to be credit-impaired i.e. the default in repayment is within the range of 31 to 90 days.

If the financial instrument is credit-impaired, the financial instrument is then moved to ''Stage 3'' i.e. the default in repayment is
more than 90 days.

The Expected Credit Loss (ECL) is measured at 12-month ECL for Stage 1 loan assets and at lifetime ECL for Stage 2 and Stage
3 loan assets. ECL is the product of the Probability of Default, Exposure at Default and Loss Given Default.

Forward-looking economic information (including management overlay) is included in determining the 12-month and lifetime
PD, EAD and LGD. The assumptions underlying the expected credit loss are monitored and reviewed on an ongoing basis.

B) 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 managing liquidity is to ensure as far
as possible, that it will have sufficient liquidity to meet its liabilities when they are due.

The Company maintains felxibility in funding by maintaining availability under committed credit lines. Management monitors the
Company''s liquidity positions (also comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of
expected cash flows. The Company also takes into account liquidity of the market in which the entity operates.

44. Capital management

The Company''s capital management objectives are

- to ensure the Company''s ability to continue as a going concern

- to comply with externally imposed capital requirement and maintain strong credit ratings

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the
face of balance sheet.

Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure while
avoiding excessive leverage. This takes into account the subordination levels of the Company''s various classes of debt. The
Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk
characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount
of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

46. GENERAL

i) In the opinion of the Board, the value of Current Assets, Loans and Advances have a value in the ordinary course of business at
least equal to that stated in the Balance Sheet except in case of those shown as doubtful.

ii) The Ministry of Corporate Affairs has issued Indian Accounting Standard(Ind AS) - 36 on impairment of assets. In accordance
with the said standard, the company has assessed as on date of applicability of the aforesaid Standard and as well as on
Balance Sheet Date, whether there are any indications (listed in paragraph 12 to 14 of the standards)m with regards t the
impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and
therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the
books of accounts.

49. Mr. Dinesh Oswal, Managing Director has been paid remuneration from 1st April 2024 to 31st March 2025 as per Shareholders approval
vide their Special Resolutions dated 29th September 2021 and 25th September 2024 under section 197 read with Schedule V of the
Companies Act, 2013.

50. Company had invested Rs. 2.00 Crore in Rated, Listed and Secured, Cumulative, redeemable Debentures of ATS Infrabuild Pvt. Ltd.
(âATSâ) in 27-06-2018, being maturity in June 2022, later extended till June 2024. The borrower had paid the interest yearly on time, but
from June 2023 onwards borrower has defaulted in interest payment. The debenture trustee is resorting to all legal action available to
recover the amounts.

Keeping above facts in view, our company has not provided for interest accrued/receivable from June 2023 and also a provision of 20%
of value has been made in books of accounts.

For Gupta Vigg & Company For and on behalf of

Chartered Accountants Nahar Capital And Financial Services Limited

FRN 001393N

Vinod Khanna Anjali Modgil Hans Raj Kapoor S.K. Sharma Dinesh Oswal

Partner Company Secretary Chief Financial Officer Director Managing Director

M.No. 81585 M.No. FCS9650 DIN : 00402712 DIN : 00607290

Place : Ludhiana

Date : 28th May 2025

UDIN : 25081585BMLDYR9287

Mar 31, 2024

(s) Provisions and contingent liabilities

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.

(t) Employee benefits

(i) Short term obligations

Liabilities for wages and salaries, including non-monetary benefits if any, that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

(ii) Other long term employee benefit obligations

The liabilities if any, which needs to be settled after 12 months from the end of the period in which the employees render the related services are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of reporting period using the projected unit credit method.

(iii) Post-employment obligations

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligations at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

(iv) Defined contribution plans

Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and is charged to the Statement of Profit and Loss.

(u) Estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management has made judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities as at the date of financial statements and reported amount of income and expenses during the period.

The areas involving critical estimates or judgements are:

â¢ Estimation of current tax expense and payable

â¢ Designation of financial assets /liabilities through FVTPL

â¢ Estimation of defined benefit obligation

â¢ Recognition of deferred tax assets for carried forward tax losses

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on company and that are believed to be reasonable under the circumstances.

(v) Cash Flow Statement :

The cash flow statement is prepared in accordance with the Indian Accounting Standard (Ind AS)-7 "Statement of Cash Flowsâ using indirect method for operating activities.

(w) Earning per share

(i) Basic earning per share

Basic earning per share is calculated by dividing :

- The profit attributable to equity share holders and

- By the weighted average number of equity shares outstanding during the financial year.

(ii) Diluted earning per share

Diluted earning per share adjusts the figures used in the determination of basic earning per share to take in to 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.

(x) New and amended standards

The Company applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after 01 April 2023.

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from 01 April 2023, as below:

Ind AS 1 - Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after 1 April 2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the standalone financial statements.

Recent Indian Accounting Standards (Ind AS) issued not yet effective

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

27. Contingent liabilities not provided for

a) Excise/Service Tax/Sales Tax/Income Tax/ Other Government Authorities have raised demands of Rs. 1148.71 Lacs (31 March 2023: Rs.175.56 Lacs) out of which a sum of Rs. 34.65 Lacs (31 March 2023: Rs. 6.00 Lacs) has been deposited against said demand. Further these demands have been contested in

appeal and no provision has been made in the financial statement. b) The Company has given Bank Guarantees for Rs. 5 Lacs ( 31 March 2023 : Rs. 5 Lacs) in favour of Punjab Pollution Control Board and Bank Guarantee for Rs.6.69 Lacs (31 March 2023 : Rs. 6.69 Lacs) in favour of Ministry of Textiles.

30. Other notes

I. Salaries & wages incurred during the year on repairs and maintenance of Building and Plant & Machinery etc. have been charged to former accounts and not shown separately.

II. In the opinion of the board, the value of Current Assets, Loans and Advances have a value in the ordinary course of business at least equal to that stated in the balance sheet

III. Some balances of Trade Payables , Advances and Trade Receivables are subject to their Confirmation.

IV. Borrowing cost amounting Rs. 571.86 Lacs (31st March 2023 : Rs. 418.41 Lacs) has been capitalized during the year.

V. Material events occurring after the balance sheet date are taken into cognizance.

The foundation has undertaken "Health Care Projectâ, as approved by the consortium at Mohan Dai Oswal Cancer Hospital and Research Foundation, Ludhiana and as well as Rural Development project at village Barmalipur, District Ludhiana.

During the financial year 2023-24 CSR committee recommended Rs.586.50 lakhs (Previous year Rs.434.00 lakhs), for CSR obligation being two percent of the average net profits of the company for three immediately preceding financial years.

VII. The Company had entered into a contract with Trident International Holdings FZCO, Dubai to purchase

property for official use for a consideration of Thriteen Million Three hundred nineteen thousand eight hundred ninety eight Dirhams. The company has paid Seven Million Nine hundred ninety one thousand nine hundred forty Dirhams. (INR 939.51 Lacs) As per the contract, the above said party was supposed to handover the contracted property at the end of 1st Quarter of 2011. The said party breached the contract, thus company is entitled to recover full payment of the amount paid and reasonable interest and damages etc. and for this purpose the company intiated legal proceedings against the party to recover the amount. The arbitration order was decided in favour of the company and the company had filed execution & recovery petition. Now the company has got the information that the project stands cancelled on dated 07/03/2024 by the special judicial committee for incomplete real estate project. The company is waiting for the confirmation from the committee order as they shall intimate the company for further process and the amount paid by the company has been shown as advances recoverable in Cash or Kind.

VIII. Advances recoverable amount includes Rs. 500 Lacs on account of GST paid under protest and final treatment of this expense would be considered as and when the matter is finally adjudicated.

IX. In Financial year 2021-22, the Company participated in e-auction conducted by DRT Chandigarh for purchase of one Textile unit, being highest bidder, the company deposited full amount of Rs. 3797.60 Lacs with respective authorities but purchase was not finalised being matter sub-judice. Now auction being set asided , company has prayed for refund of the money deposited with relevant authorities. Matter is pending for the final decision The amount has been shown as advance recoverable under Non-Current Assets under the head Capital Advance.

X. An ocean vessel carrying the containerized export shipments of finished goods of the company amounting to Rs. 1149.43 Lacs had partly tilted/capsized at the seaport''s berth on 24th March 2022. The rescue operations of the cargo have been completed. The containers are still lying with the port authorities of Syama Prasad Mookerjee Port, Kolkata pending final settlement between the shipping line and the port authorities. The company has also lodged an insurance claim. The amount has been shown as sundry receivables after netting off of Rs. 290.68 Lacs written off against the losses.

XI. The company is operating in single segment i.e Textiles. Hence segment reporting as required under IND AS 108 (Operating Segments) is not applicable.

XII. The figures of the previous period/year have been regrouped/recasted wherever considered necessary to correspond to current period/year disclosures.

Major Customer

Sales of the company is evenly distributed, disclosure of major customer is not being made. There is no single

customer having sale more than 10% of the turnover of the company.

31. Significant accounting judgements, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result inoutcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

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

Estimates and assumptions

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

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation. The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. Further details about gratuity obligations are given in Note 35.

Fair value measurement of financial instruments

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

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model.

32. Financial risk management objective and policies

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to support its operations. The Company''s financial assets include loans, trade and other receivables, and cash & cash equivalents that derive directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. This financial risk committee provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedure and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each risk, which are summarised as below:

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: ''interest rate risk, currency risk and other price risks. Financial instruments affected by market risk include loans and borrowings, deposits and payables/receivables in foreign currencies.

a) Interest rate risk

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment.

Recoveries made are recognised in statement of profit and loss.

Cash & cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

Trade receivables

Credit risk related to trade receivables are mitigated by taking bank guarantees/letter of credit, from customers where credit risk is high. The Company closely monitors the credit-worthiness of the debtors through internal systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and default is considered to have occurred when amounts receivable become one year past due.

Other financial assets measured at amortised cost

Other financial assets measured at amortized cost includes loans and advances to employees, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously.

33. Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and ''borrowings, trade payables, less cash and cash equivalents.

The carrying amounts of trade receivables, trade payables,advances to employees, cash and cash equivalents and other bank balances are considered to be the same as their fair values, due to short term nature.

The fair values for security deposits were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

40. Other Information

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property

(ii) The Company do not have any transactions with companies struck off.

(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding 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

(vi) 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,

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

Mar 31, 2023

(s) Provisions and contingent liabilities

Provisions are measured at the present value of managementâs best estimate of the expenditure required to settle the present obligation at the end of the reporting period

(t) Employee benefits

(i) Short term obligations

Liabilities for wages and salaries, including non-monetary benefits if any, that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employeesâ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

(ii) Other long term employee benefit obligations

The liabilities if any, which needs to be settled after 12 months from the end of the period in which the em- ployees render the related services are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of reporting period using the projected unit credit method.

(iii) Post-employment obligations

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assump- tions are recognised in the period in which they occur, directly in other comprehensive income.They are included in retained earnings in the statement of changes in equity and in the balance sheet.

(iv) Defined contribution plans

Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and is charged to the Statement of Profit and Loss.

(u) Estimates and judgements

The areas involving critical estimates or judgements are:

â¢ Estimation of current tax expense and payable

â¢ Designation of financial assets /liabilities through FVTPL

â¢ Estimation of defined benefit obligation

â¢ Recognition of deferred tax assets for carried forward tax losses

(v) Cash Flow Statement :

The cash flow statement is prepared in accordance with the Indian Accounting Standard (Ind AS)-7 âStatement of Cash Flowsâ using indirect method for operating activities.

(w) Earning per share

(i) Basic earning per share

Basic earning per share is calculated by dividing :

- The profit attributable to equity share holders and

- By the weighted average number of equity shares outstanding during the financial year.

(ii) Diluted earning per share

Diluted earning per share adjusts the figures used in the determination of basic earning per share to take in to 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.

(x) New Standards/Amendments notified but not yet effective:

Ministry of Corporate Affairs (MCA), on March 31, 2023, through the Companies (Indian Accounting Standards (Ind AS)) Amendment Rules, 2023 amended certain existing Ind ASs on miscellaneous issues with effect from 1st April 2023. Following are few key amendments relevant to the Company:

i. Ind AS 1 - Presentation of Financial Statements & Ind AS 34 - Interim Financial Reporting - Material accounting policy information (including focus on how an entity applied the requirements of Ind AS)

shall be disclosed instead of significant accounting policies as part of financial statements.

ii. Ind AS 107 - Financial Instruments: Disclosures - Information about the measurement basis for financial instruments shall be disclosed as part of material accounting policy information.

iii. Ind AS 8 - Accounting policies, changes in accounting estimate and errors-Clarification on whal constitutes an accounting estimate provided.

iv. Ind AS 12 - Income Taxes - In case of a transaction which give rise to equal taxable and deductible temporary differences, the initial recognition exemption from deferred tax is no longer applicable and deferred tax liability & deferred tax asset shall be recognized on gross basis for such cases.

The Company does not expect the effect of this on the financial statements to be material, based on preliminary evaluation.

27. Contingent liabilities not provided for

a) Excise/Service Tax/Sales Tax/Income Tax/ Other Government Authorities have raised demands of Rs. 175.56 Lacs (31 March 2022: Rs.190.07 Lacs) out of which a sum of Rs. 6.00 Lacs (31 March 2022: Rs. 7.14 Lacs) has been deposited against said demand. Further these demands have been contested in appeal and no provision has been made in the financial statement.

b) The Company has given Bank Guarantees for Rs. 5 Lacs ( 31 March 2022 : Rs. 5 Lacs) in favour of Punjab Pollution Control Board and Bank Guarantee for Rs.6.69 Lacs (31 March 2022 : Rs. 6.69 Lacs) in favour ol Ministry of Textiles.

c) Levy of Entry Tax on certain items including yarn by the Punjab Government is subjudice before the Honâble Punjab & Haryana High Court .The Punjab Government has deferred the same subject to undertaking by the company that if the same is hold valid by the Honâble High Court , then company will deposit the same w.e.1 the date of undertaking . The amount of such entry tax is Rs. 153.50 Lacs (31 March 2022: Rs.153.50 Lacs) .It has no material effect on the profitability of the company as either company will get refund or get ITC of the same.

28. Capital commitments

Estimated amount of Contracts remaining to be executed , net of advances -

As at 31st As at 31st

March 2023 March 2022

On Capital Accounts 6,866.75 25,733.51

On Others 173.76 2,400.65

29. There are no Micro & Small enterprises covered under Micro, Small and Medium Scale Development Act,2006, to whom the company owes dues, which are outstanding for more than 45 days. This information has been determined on the basis of information received from the parties

31-Mar-23 31-Mar-22

The principal amount and the interest due thereon (to be shown separately) - -

remaining unpaid

The amount of interest paid by the buyer in terms of section 16, of the Micro - -

Small and Medium Enterprise Development Act, 2006 along with the amounts of the payment made to the supplier beyond the appointed day

The amount of interest due and payable for the period of delay in making - -

payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under Micro Small and Medium Enterprise Development Act, 2006.

The amount of interest accrued and remaining unpaid - -

The amount of further interest remaining due and payable even in the - -

succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under section 23 of this Act

30. Other notes

I. Salaries & wages incurred during the year on repairs and maintenance of Building and Plant & Machinery etc. have been charged to former accounts and not shown separately.

II. In the opinion of the board, the value of Current Assets, Loans and Advances have a value in the ordinary course of business at least equal to that stated in the balance sheet

III. Some balances of Trade Payables , Advances and Trade Receivables are subject to their Confirmation.

IV. Borrowing cost amounting Rs. 418.41 Lacs (31st March 2022 : Rs. 18.77 Lacs) has been capitalized during the year.

V. Material events occurring after the balance sheet date are taken into cognizance.

VI. To meet its CSR Obligation under section 135 of Companies Act, 2013 and as per the company''s CSR policy approved and adopted by the Board of Directors, company joined hands with Group Companies under one umbrella, to undertake the CSR projects through Oswal Foundation. Oswal Foundation is a Registered Society formed in the year 2006 having its charitable objects in various fields It has already registered itself with the Ministry of Corporate Affairs with vide Registration no. CSR0000145 for undertaking CSR activities. The foundation is going to undertake âHealth Care Projectâ, as approved by the consortium at Mohan Dai Oswal Cancer Hospital and Research Foundation, Ludhiana During the financial year 2022-23 CSR committee recommended Rs.434 lakhs (Previous year Rs.53.91), for CSR obligation being two percent of the average net profits of the company for three immediately preceding financial years. Accordingly, to fulfil its obligation under CSR, Board on the recommendation of CSR Committee decided to contribute an amount of Rs.500 lakhs (Previous year Rs.53.91lakhs) to the Oswal Foundation for undertaking Health care projects as approved by the consortium of the Group Companies formed to undertake CSR activities through Oswal Foundation.The company also contributed Rs.10 lakhs under CSR to M/S Team Work Welfare Foundation , Bhopal for promotion of sports activities.

As per the decision of CSR committee, the company has debited in p & l account only current yearsâ liability of Rs. 434 lakhs and the balance amount of Rs.76 lakhs have been shown as advance/Prepaid in other recoverables- under Note 8 - Other Current assets and will be adjusted against liability in subsequent years

Particulars 31st 31st

March 2023 March 2022

The amount required to be spent 434.00 53.91

The amount spent 434.00 53.91

VII. The Company had entered into a contract with Trident International Holdings FZCO, Dubai to purchase property for official use for a consideration of Thirteen Million Three hundred nineteen thousand eight hundred ninety eight Dirhams. The company has paid Seven Million Nine hundred ninety one thousand nine hundred forty Dirhams. (INR 939.51 Lacs) As per the contract, the above said party was supposed to handover the contracted property at the end of 1st Quarter of 2011. The said party breached the contract, thus company is entitled to recover full payment of the amount paid and reasonable interest and damages etc. and for this purpose the company has initiated legal proceedings against the party to recover the amount. The arbitration order has been decided in favour of the company and the company has filed execution & recovery petition Till company recovers the amount by a legal process, the amount paid by the company has been shown as advances recoverable in Cash or Kind.

VIII. The Company has purchased Guest House at Shimla from Bemloi development and Infrastructure Co. P Ltd. (DLF Group) New Delhi for value of Rs. 389 Lacs plus applicableTaxes, as per agreed payment terms based on construction work. Till date company has paid 95% demanded amount as a part consideration of the said property. Since the builder M/s Bemloi Development and Infrastructure Company (p) Ltd. (DLF Group), New Delhi failed to fulfil the commitment, complete the construction and deliver the possession within stipulated time , therefore company has filed a case before National Consumer Disputes redressal Commission for redressal of our claim of the advance paid of Rs. 382 Lacs alongwith compensation and interest. As on date company is in advance stage of settlement of compensation with the developer. This amount has been shown as advances recoverable in Cash or Kind.

IX. Advances recoverable amount includes Rs. 500 Lacs on account of GST paid under protest and final treatment of this expense would be considered as and when the matter is finally adjudicated.

X. During last year, the Company participated in e-auction conducted by DRT Chandigarh for purchase of one Textile unit, being highest bidder, the company deposited full amount of Rs. 3797.60 Lacs with respective authorities but purchase was not finalised being matter sub-judice. Now the company has withdrawn itself from the auction and has filed application for refund with relevant authorities. The amount has been shown as advance recoverable under Non-Current Assets under the head Capital Advance

XI. An ocean vessel carrying the containerized export shipments of finished goods of the company amounting to Rs. 11.49 Crores had partly tilted/capsized at the seaport''s berth on 24th March 2022. The rescue operations of the cargo have been completed. The containers are still lying with the port authorities of Syama Prasad Mookerjee Port, Kolkata pending final settlement between the shipping line and the port authorities. The shipping company has to arrange possession of the consignments for ascertainment of the loss (if any) after final assessment of the goods received physically.

The revenue against sale of such goods was recognized in the financial year 2021-22 and the amount is shown as trade receivables in the financial statement. The financial effect in the books as regard to recoverable value of the consignment shall be considered after the final assessment only.

XII. The company is operating in single segment i.e Textiles. Hence segment reporting as required under IND AS 108 (Operating Segments) is not applicable.

XIII. The figures of the previous period/year have been regrouped/recasted wherever considered necessary to correspond to current period/year disclosures.

Major Customer

Sales of the company is evenly distributed, disclosure of major customer is not being made There is no single customer having sale more than 10% of the turnover of the company.

32. Significant accounting judgements, estimates and assumptions

The preparation of the Companyâs financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts 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.

Judgements

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

Estimates and assumptions

Defined benefit plans (gratuity benefits)

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

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. Further details about gratuity obligations are given in Fair value measurement of financial instruments

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at armâs length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model.

33. Financial risk management objective and policies

(A) Market risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to ''the risk of changes in market interest rates relates primarily to the Company''s long term debt obligations with floating interest rates. The company is carrying its borrowings primarily at variable rates. For floating rates borrowings, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding ''for the whole year . A 50 basis point Increase or decrease is used when reporting interest rate risk internally to Key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

B) Credit risk

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

(i) Low credit risk on reporting date

(ii) Moderate credit risk

Cash & cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

Trade receivables

Other financial assets measured at amortised cost

34 Capital management

For the purpose of the Companyâs capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Companyâs capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade payables, less cash and cash equivalents..

The carrying amounts of trade receivables, trade payables, advances to employees, cash and cash equivalents and other bank balances are considered to be the same as their fair values, due to short term nature.

41. Other Information