Notes to Accounts of Neil Industries Ltd.

Mar 31, 2025

(g) Provisions, Contingent liabilities and contingent assets:

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.

A contingent liability exists when there is a possible but not probable obligation, or a present obligation that
may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be
estimated reliably.

All known Liabilities, wherever material, are provided for and Liabilities, which are disputed, are referred to
by way of Notes on Accounts.

(h) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on
hand, deposits held at call with financial institutions, other short-term, highly liquid investments with
original maturities of three months or less that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value.

(i) Earnings Per Share:

Basic earnings per share is calculated by dividing the net profit for the year attributable to equity
shareholders 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 of bonus issue; bonus
element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of
shares).

(j) Financial Instruments:

Financial assets and liabilities are recognised when the Company becomes a party to the contractual
provisions of the instruments. All the financial assets and liabilities are measured initially at fair value.
Transaction costs that are directly attributable to the acquisition or issue of financial asset and financial
liabilities (other than financial assets and liabilities carried at fair value through profit or loss) are added or
deducted from the fair value measured on initial recognition of financial asset or financial liability.

(i)Classification and Measurement

All the financial assets are initially measured at fair value. Transaction costs that are directly attributable to
the acquisition of financial asset (other than financial assets carried at fair value through profit or loss) are
added to or deducted from the fair value measured on initial recognition of financial asset.

Subsequent measurement of a financial assets depends on its classification i.e., financial assets carried at
amortised cost or fair value (either through other comprehensive income or through profit or loss). Such
classification is determined on the basis of Company''s business model for managing the financial assets and
the contractual terms of the cash flows.

The Company''s financial assets primarily consists of cash and cash equivalents, trade receivables, loans to
employees and security deposits etc. which are classified as financial assets carried at amortised cost.

(ii) Amortised cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortised cost. A gain or loss on a financial assets that is
subsequently measured at amortised cost is recognised in profit or loss when the asset is derecognised or
impaired. Interest income from these financial assets is recognised using the effective interest rate method.

(iii) Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets
carried at amortised cost. For trade receivables, the Company provides for lifetime expected credit losses
recognised from initial recognition of the receivables.

(iv) Derecognition of financial assets

A financial asset is derecognised only when the Company has transferred the rights to receive cash flows
from the financial asset or retains the contractual rights to receive the cash flows of the financial asset, but
assumes a contractual obligation to pay the cash flows to one or more recipients.

(k) Cash flow statement

Cash flows are reported using the indirect method, whereby profit/ loss before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or financing flows. The cash flows from
operating, investing and financing activities of the Company are segregated.

(l) Borrowing Costs

"Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of
funds including interest expense calculated using the effective interest method.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or sale,
are added to the cost of those assets, until such time as the assets are substantially ready for their intended
use or sale.

Other income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Interest expense includes origination costs that are initially recognised as part of the carrying value of the
financial liability and amortized over the expected life using the EIR. It also include expenses related to
borrowing which are not part of effective interest as not directly related to loan origination."

(m) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision-Maker (CODM). The CODM assess the financial performance and position of the
company and makes strategic decisions.

(n) Financial Liabilities

The Company classifies all financial liabilities as subsequently measured at amortised cost, except for
financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are
liabilities, shall be subsequently measured at fair value.

"Financial liabilities at FVTPL

Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated
upon initial recognition as at FVTPL. Financial liabilities are classified as held for trading, if they are
incurred for the purpose of repurchasing in the near term. This category also includes derivative financial
instruments that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109 -
""Financial Instruments""."

"Financial liabilities measured at amortised cost

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost
using the EIR method except for those designated in an effective hedging relationship.

Amortised cost is calculated by taking into account any discount or premium and fee or costs that are an
integral part of the EIR. The EIR amortisation is included in finance costs in the Statement of Profit and
Loss. Any difference between the proceeds (net of transaction costs) and the redemption amount is
recognised in profit or loss over the period of the borrowings using the EIR method."

"Trade and other payables

A payable is classified as ''trade payable'' if it is in respect of the amount due on account of goods purchased
or services received in the normal course of business. These amounts represent liabilities for goods and
services provided to the Company prior to the end of financial year, which are unpaid. They are recognised
initially at their fair value and subsequently measured at amortised cost."

"Derecognition of financial liabilities

A financial liability is derecognised 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 derecognition of the original liability and the recognition of a new liability.

The difference between the carrying amount of the financial liability derecognised and the consideration
paid and payable is recognised in the Statement of Profit and Loss."

(o) Significant accounting judgements,estimates and assumptions

"The preparation of financial statements in conformity with the Ind AS requires the management to make
judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities and the accompanying disclosure and the disclosure of contingent liabilities, at the end of the
reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimates are revised and future periods are
affected. Although these estimates are based on the management''s best knowledge of current events and
actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material
adjustment to the carrying amounts of assets or liabilities in future periods.

In particular, information about significant areas of estimation, uncertainty and critical judgements in
applying accounting policies that have the most significant effect on the amounts recognised in the financial

(p) Business Model Assessment

Classification and measurement of financial assets depends on the results of the SPPI and the business
model test. The Company determines the business model at a level that reflects how groups of financial
assets are managed together to achieve a particular business objective. The Company monitors financial
assets measured at mortised cost or fair value through other comprehensive income that are derecognised
prior to their maturity to understand the reason for their disposal and whether the reasons are consistent with
the objective of the business for which the asset was held. Monitoring is part of the Company''s continuous
assessment of whether the business model for which the remaining financial assets are held continues to be
appropriate and if it is not appropriate whether there has been a change in business model, if so, then it will
be a prospective change to the classification of those assets.

(c )Management has decided to change the accounting of Loans from Fair Value to Amortized cost. There is
no change in the loan amount due to change in accounting from Fair Value to Amortized Cost.

( d)The Company has not received any intimation from its suppliers regarding their status under The Micro,
Small and Medium Enterprise Development Act, 2006 and hence no disclosure required under the said Act
can be made.

(e) Analytical Ratios

As per the Schedule III of Companies Act, 2013 requirements, following ratios are to be disclosed along
with explanation for those ratios having variance of more than 25% as compared to preceding year.

(f) The balances of sundry debtors, creditors and loans & advances are subject to confirmation.
( g) Previous year''s figures have been regrouped and rearranged wherever found necessary.

(h) The additional regulator information has been attached as Annexure - II.

---

Mar 31, 2024

(c) Management has decided to change the accounting of Loans from Fair Value to Amortized cost. There is no change in the loan amount due to change in accounting from Fair Value to Amortized Cost

The Company has not received any intimation from its suppliers regarding their status under The Micro. Small and '' Medium Enterprise Development Act. 2006 and hence no disclosure required under the said Act can be made.

(e)

Analytical Ratios

As per the Schedule III of Companies Act, 2013 requirements, following ratios are to be disclosed along with explanation for those ratios having variance of more than 25% as compared to preceding year.

(f) The balances of sundry debtors, creditors and loans & advances are subject to continuation.

g) Previous year''s figures have been regrouped and rearranged wherever found necessary.

(h) The additional regulator information has been attached as Annexure - II.

Note: Interest for the year not recognized for Jawan Mining And Construction Equipments Pvt Ltd and the same is also considered as Sub Standard Asset and provisioning for same is done as per RBI guidelines. Case has been filed against the party and recovery proceeding filed with NCLAT(Appeals) is pending for disposal

2. Rights,preference,repayability and restriction, if any, on equity share

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

Additional Rcgulaton Information (2023-24)

i) I"he title deed of Immovable Property held by the company is in its own name.

ii) Hie company has not revalued its property, plant & equipment during the year.

iii) ilie company has no intangible assets.

iv) Ilie company has not granted any loans or advances to promotors, directors, KMPs and the related parties (as defined under companies Act, 2013), either severally or jointly with any other person .

v) There is no Capital-work-in progress at the year-end.

vi) There is no intangible assets under development at the year-end.

vii) The company has no benami property and no proceedings has been initiated or pending against the company for holding any benami property under The Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there under.

viii) The company has no borrow ings from banks or financial institutions on the basis of security of current assets.

ix) The company has not been declared as a wilful defaulter by any bank or financial institution or other lenders.

x) The company has no transactions with companies struck off u/s 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

xi) The Company has entered into Builder’s Agreement with Pioneer Construbuild LLP at part of Singhpur property

xii) file company has not made any investment beyond the number of lay ers prescribed under clause 87 of section 2 of the CompanieAct, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017

xiii) Ratio Analysis : Please refer Note No.-1 attached herewith.

xiv) The company has not entered into any scheme of arrangement, approved by competent authority in terms of sections 230 to 237 of the Companies Act, 2013.

xv) (A) The Company has 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 maimer 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,

(B The Company has not received any fund from any pcrson(s) or entity(ies), mcluding 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 tiny 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,

xvi) The Company does not have any undisclosed income w hich is not recorded in the books of account that has been surrendered or disclosed as income during the year in its tax assessments or under any other provisions of the Income Tax Act, 1961.

xvii) The provisions contained in Section 135 of the Companies Act, 2013 relating to CSR Activities are not applicable to the company for tire year under review.

xviii) The Company has not traded or invested in Crypto currency or Virtual Currency during the year.

---

Mar 31, 2018

1.1 Basis of Preparation :

The Standalone financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP) The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and Companies (accounting Standards) Amendments Rules, 2016 and the guidelines issued by the Reserve Bank of India is applicable to a Systematically Important Non Deposit accepting NBFC. The Standalone Financial Statements have been prepared under the historical cost convention and on accrual basis except for interest and discounts on non-performing assets which are recognized on realization basis.

The accounting policies adopted in the preparation of standalone financial statement are consistent with those of previous year, except for the changes required as per the Companies (accounting Standards) Amendments Rules, 2016.

Note : The Kotak Mahindra Current Account held by the Company has been closed during the Financial Year.

(c) The Company has not received any intimation from its suppliers their status under The Micro , Small and Medium Enterprise Development Act, 2006 and hence no disclosure required under the said Act can be made.

(d) I he balances of sundry debtors, creditors and loans & advances are subject to confirmation.

( e) The Company has not made any Expenditure / Remittances in Foreign Currencies

(a) Rights. preference, repayability and restriction, if any, on equity shares

The Company has only ore class of equity shares having a par value of Rs. 10 per share. Each Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation; the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

---

Mar 31, 2015

(a) Related Party Disclosures as required in terms of Accounting Standard AS 18

Relationships (Related Party relationship are as identified by the Company)

(a) Holding Company : N. A.

(b) Subsidiary Company : N. A.

(c) Fellow Subsidiary Company : N. A.

(d) Associates : N.A.

(e) Key Management Personnel :

1) Arvind Kumar Mittal

2) Rajesh Bajpai

3) Vivek Awasthi

4) Pinki Yadav

5) Chandra Kant Dwivedi

6) Vaibhav Agnihotri

(f) Relative of Key Management Personnel: : N.A.

(b) Transaction with Related Party

Year Ended

1) Director Remuneration Paid to Keymanagement 3/31/2015 3/31/2014 personnel

Arvind Kumar Mittal 275,000 -

2) Legal Fees paid to Director Vaibhav Agnihotri 4,200

( c) The Company has not received any intimation from its suppliers regarding their status under The Micro, Small and Medium Enterprise Development Act, 2006 and hence no disclosure required under the said Act can be made.

(d) There was no impairment loss on Fixed Assets on the basis of review carried out by the Management in accordance with the Accounting Standard 28 issued by The Institute of Chartered Accountants of India.

(a) Riqhts.preference.repavabilitv and restriction, if any, on equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

---

Mar 31, 2014

(a) Rights.preference.repavabilitv and restriction, if any, on equity shares The Company has only one class of equity shares having a par value of Rs. 10 per share. Each Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

---

Mar 31, 2013

Related Party Disclosures as required in terms of Accounting Standard AS 18

Relationships (Related Party relationship are as identified by the Company)

(a) Holding Company : N.A.

(b) Subsidiary Company : N.A.

(c) Fellow Subsidiary Company : N.A.

(d) Associates : N.A.

(e) Key Management Personnel : 1. ARVIND KUMAR MITTAL

2. SANDEEP SHARMA

(f) Relative of Key Management Personnel : N.A.

1. The Company has not received any intimation from its suppliers regarding their status under The Micro, Small and Medium Enterprise Development Act, 2006 and hence no disclosure required under the said Act can be made.

2. There was no impairment loss on Fixed Assets on the basis of review carried out by the Management in accordance with the Accounting Standard 28 issued by The Institute of Chartered Accountants of India.

3. The entire operations of the company relate to only one segment viz. Export of Garments as such, there is no separate reportable segment under Accounting Standard - AS 17 on Segment Reporting.

4. The balances of sundry debtors, creditors and loans & advances are subject to confirmation.

5. Share Capital

(a) Rights, preference, repayability and restriction, if any, on equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

6. Earnings Per Share (EPS):

Earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders, by the weighted average number of equity shares outstanding during the period.

---

Mar 31, 2012

1. SHARE CAPITAL

(a) Rights, preference, repayability and restriction, if any, on equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.