Notes to Accounts of Pasari Spinning Mills Ltd.

Mar 31, 2024

(a) As perlnd As 40, Investment Properties, the Company has estimated the fair value of land at Rs. 11,76,24,197 and Building at Rs.4,51,94,493 as at 31/03/2022. However, the valuation is not as per Registered Valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Riles, 2017

(b) The title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in thename of the Company as at the balance sheet date.

Details of Land:

Plot Ho 54. 55 of Nanjangud Industrial Area, situated in Sy Nos 120,133,149 and 150 of Kallahally Village. Kasaba Hoblt. Nanjangud Taluk, Mysore District

(i) On account of Depreciation between books and Income tax written down value (WDV) of depreciable Property, Rant and equipment and unabsorbed depreciation and business loss.

(ii) The Company has recognised Deferred Tax as it has estimated that there is a reasonable certahty that sufficient future taxable income will be available to realise these assets.

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each Shareholders eligible for one vote per share. 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.

(iv) There are no shares reserved for issue under options and contracts/ commitments. Further, there are no shares that have been allotted during last 5 years pursuant to a contract without payment being received in cash or by way of bonus shares.

a. The Company has availed a project term loan of Rs. 2,00,00,000 from Canara Bank which is repayable in 144 monthly instalments carrying floating interest rate, which is at present 11 40% p a This loan has been secured by way of mortgage on Land situated in Sy. Nos, 120,133,149 and 150 of Kallahally Village, Nanjangud Industrial Area, Kasaba Hobli Nanjangud Taluk, Mysore District, First and exclusive charge on the receivable of the projects under project documents entered with tenants/lessee by the borrower, all insurance proceeds both present and future On the mortgage and charge/assignment by way of security of all rights, title, interest, claims, benefits, demands under the project documents both present and future On the Escrow account and the DSR account and all monies credited/ deposited therein and all investments in respect thereof and personal guarantee of all the Directors

b. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken as at the reporting date

c. There are no terms and conditions attached to the loan from related parties.There is also no stipulation of schedule of repayment of interest and principal and these loans are interest free and repayable on demand

a The Company had purchased cotton from Cotton Corporation of India and paid in advance for the same but Cotton Corporation supplied poor quality of material due to which the Company had raised a demand Rs. 180 per candy for the price difference wh ich was litigated by Cotton Corporation and the matter is in High Court. The Loans and Advance to Cotton Corporation of Rs. 63,90,000/- is in dispute pertaining to earlier years. However, the claim made by Cotton Corporation of India is Rs.7.03 crores which is disclosed as Contingent liability since the matter is in High Court.

(II) since me company doesn''t meet its applicaDillty criteria for CSR Provisioning, section 135 or companies act is not applicable

(lii) There are no proceedings initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) and rules made foereunder

(iv) The Company has not been sanctioned waking capital from banks or financial institutions on the basis of security of current assets at any point of time during the year.

(v) The Company did not have any transactions with Companies stuck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956

considering me information available with the company.

(vi) There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act. 2013 during the year.

(vii) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies). including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) 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 (il) provide any guarantee, security or tne like to or on behalf of the Ultimate Beneficiaries

(viii) The company has also 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 (i) 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 (II) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ix) The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments underthe Income Tax Act. 1961 during any of the years

(x) The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence, disclosures relating to it are not applicable.

(xi) The company is not declared wilful defaulter by any bank or financial Institution or other lender Note 24: Other Disclosure

(i) The Company had purchased cotton from Cotton Corporation of India and paid in advance for the same but Coton Corporation of India(CCI) supplied poor quality of material due to which the Company had raised a demand Rs. 180 per candy for the price difference. In 2006, the arbitration award was concluded in favour of CCI. wherein the company challenged such order in City Civil Sessions Judge. Bangalae. The case was so dismissed in favour of CCI. Presently. The company has challenged such order & the matter is now in the High Court. The company is confident of winning the case in its favouor An execution petition has been filed by CCI for an amount of Rs 7.03.12 476 47 in the Prinicipai District & .Sessions Judge. Mysiru

The Loans and Advance to Cotton Corporation of Rs 63,90,000/ being in depute pertaining to earlier years, a provision for Ihe same has been made in the year 2022-23. Balance litigated amount of Rs.6,39,22,746 has been dislclosed as Contingent Liabilty.

(ii) The Company''s Registrar and Transfer Agent for all maters related to share transfers, dematerialization, dividends etc. is Kfin Technologies Private Limited

(iii) Rent Agreement with M Jeyakumar has expired on September 20, 2017. As per the mutual consent of both the parties it has been agreed to increase the rent by 5 percent every year. However, no Increase in rent is done for the FY 2023-24 as per the mutual agreement of both the parties.

(iv) Loan from related party pertains to unsecured interest free loan from Pasari Exports Limited, the Parent Company. T K R Textiles Ltd. the Associate Company and from Directors and their relatives Company has not executed agreement for the unsecured loan obtained

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Mar 31, 2015

1. The Company was incorporated on 25th November' 1991, vide CIN: L85110KA1991PLC012537, to carry on the business of Textile , Spinning, Weaving, Dying and Printing factories, conventional or modern using cotton, silk, wool, polyester fiber.

2. The Company has discontinued its production operations from the financial year 2010-11. The Company has no intention to continue the production operations henceforth and has decided to lease out the Factory premises. The Company has not made any sales during the current year.

3. During the year, the company involved in buying and

selling of shares of other companies through share market which is not the main objects of the business of the Company for which it was incorporated.

4. Claims against the Company not acknowledged as debts:

The Company purchased Cotton from the Cotton Corporation of India and paid an advance for the same but Cotton Corporation supplied poor quality of material due to which, the Company has raised a demand Rs,180 for the price difference which was litigated by Cotton Corporation and the matter is under arbitration.

5. The Loans and Advances of Rs.50,38,879/- paid to cotton suppliers is in dispute pertaining to earlier years.

6. During the year, the Company has given an amount of Rs. 30,34,000/- and M/s. Pasari Exports Limited has paid certain expenses for Rs. 4,62,889/- on behalf of M/s. Pasari Spinning Mills Limited. The transactions have been covered under related parties and M/s. Pasari Exports Limited holds more than 50% of the shareholding of M/s. Pasari Spinning Mills.

7. The Company has taken interest free unsecured loans from M/s. Pasari Exports Limited a company under the same management and the amount outstanding as on the date of reporting is Rs 2,10,46,553/- which has been classified under Current and Non-current in the financials based on the nature of the transactions.

8. In the absence of details received from suppliers, no

disclosures have been made under the provisions of Micro, Small and Medium Enterprises Development Act, 2006.

9. The Commercial Tax Authorities have raised a demand

including interest and penalty thereon for an amount of Rs,1,80,16,068/- payable in 5 installments of six months each as per the payment schedule prescribed in the order. The Company has not paid any of the said installments as demanded and went in appeal with Hon'ble BIFR for setting off the same. The matter is pertaining to earlier years which is pending for 8 years.

10. No provision has been made in the accounts for Employee Benefits as per AS-15 issued by the Institute of Chartered Accountants of India (ICAI).

11. No provision has been made in the accounts towards depletion in the market value of Investment. This matter is pertaining to earlier years.

12. The Company has received notice from CESCOM for an amount of Rs,28,43,845/- as back billing for which no provision is created in the Books, since the Company is disputing the same with the CESCOM authorities. This matter is pertaining to earlier years.

13. Licensed, Installed Capacity & Production:

Company has stopped its production and all the Plant and machinery are sold by the company.

14. Managerial Remuneration:

a. Remuneration paid to the Whole time Director according to Schedule V of the Companies Act, 2013 is as follows:

b. No employee was in receipt of remuneration beyond the limits prescribed under section 134 of the Companies Act, 2013.

15. Auditor's Remuneration:

Auditor's remuneration

includes: 2014-15 2013-14

a. As Auditors Rs, 50,000/- Rs, 50,000/-

16. Related Party Transaction:

a) Name : Pasari Exports Ltd

b) Name : TKR Textiles Pvt Ltd

Description of Relationship : Two of the Directors of the Company are also the Directors of TKR Textiles Pvt. Ltd

17. Deferred Taxation:

In accordance with Accounting Standard-22, "Accounting for Taxes on income" and the pronouncement issued by the Institute of Chartered Accountants of India, the company has accounted for deferred tax during the year. Major components of deferred tax assets/(Liabilities) are detailed below:

18. The Company has also reclassified /regrouped the previous year figures in accordance with the requirements applicable to the Current year data for the purpose of comparison.

19. Figures have been rounded off to the nearest rupee.

20. Contingent Liabilities as on 31.03.2015: Nil

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Mar 31, 2014

(A) OTHER DISCLOSURES:

1. The Company has discontinued its production operations from the end of June 2011, during the year and sold the entire machineries and Electrical equipments. The Company has no intention to continue the production operations henceforth and has decided to lease out the Factory premises. However, the Company continues its Trading Activities.

2. Claims against the Company not acknowledged as debts:

The Cotton Corporation of India : Rs.180 Lakhs pertaining to earlier years.

Price difference and interest on purchase of cotton aggregating to ''180 Lakhs is disputed by the Company and the matter is before arbitration pertaining to earlier years.

3. Loans and Advances of Rs.50,38,879/- paid to cotton suppliers is in dispute pertaining to earlier years.

4. In the absence of details received from suppliers, no disclosures have been made under the provisions of Micro, Small and Medium Enterprises Development Act, 2006.

5. The Commercial Tax Authorities have raised a demand including interest and penalty thereon for an amount of ''1,80,16,068/- payable in 5 installments of six months each as per the payment schedule prescribed in the order. The Company has not paid any of the said installments as demanded and went in appeal with Hon''ble BIFR for setting off the same. The matter is pending. This matter is pertaining to earlier years.

6. No provision has been made in the accounts for Employee Benefits as per AS-15 issued by the Institute of Chartered Accountants of India (ICAI).

7. No provision has been made in the accounts towards depletion in the market value of Investment. This matter is pertaining to earlier years

8. The Company has received notice from CESCOM for an amount of ''28,43,845/- as back billing for which no provision is created in the Books, since the Company is disputing the same with the CESCOM authorities. This matter is pertaining to earlier years

9. LICENSED, INSTALLED CAPACITY & PRODUCTION:

Company has stopped it production and all the Plant and machinery are sold by the company.

10. MANAGERIAL REMUNERATION:

b. No employee was in receipt of remuneration beyond the limits prescribed under section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975.

11. RELATED PARTY DISCLOSUER AS PER AS – 18:

a) Name : PASARI EXPORTS LTD

b) Description of Relationship : Common Directors and major share holder

c) Description and Nature of Transaction : Financial Assistance Received.

d) Volume of Transaction :

i) Unsecured Loan Received during Current Year : Rs.11,71,186 /-

ii) Unsecured Loan Paid during Current Year : Rs. 14,832 /-

a) Name : TKR TEXTILES PVT LTD

b) Description of Relationship : Two of the Directors of the Company are also the Directors of TKR Textiles Pvt. Ltd

c) Description and Nature of Transaction : Loans and Advances to TKR Textile Pvt Ltd.,

We have not recognized any deferred tax for the current year.

12. The Revised Schedule VI notified under Companies Act 1956 has become applicable to the Company for the year ended 31st March 2012 for preparation and presentation of its Financial Statements. The Adoption of the revision does not impact recognition and measurement principles followed by the company in preparing the Financials. The Company has also reclassified /regrouped the previous year figures in accordance with the requirements applicable to the Current year data for the purpose of comparison.

13. Figures have been rounded off to the nearest rupee.

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Mar 31, 2013

1. The Company has discontinued its production operations from the end of June, 2011, during the year and sold the entire machineries and Electrical Equipments. The company has no intention to continue the production operations henceforth and has decided to lease out the factory premises. However, the company continues its trading activities.

2. Claims against the company not acknowledged as debts:

The Cotton Corporation of India: Rs.180 lakhs

Price difference and interest on purchase of cotton aggregating to Rs.180 lakhs is disputed by the company and the matter is before Arbitration.

3. Loans and advances Rs.50,38,879 paid to the cotton suppliers which is in dispute.

4. In the absence of details received from the suppliers, no disclosures have been made under the Provisions of Micro, Small and Medium Enterprises Development Act, 2006.

5. The Commercial Tax Authorities have raised a demand including interest and penalty thereon for an amount of Rs.1,80,16,068/- payable in five installments of six months each, as per the payment schedule prescribed in the order. The Company has not paid any of the said installments as demanded and went in appeal with Hon''ble BIFR for setting off the same. The matter is pending.

6. No Provision has been made in the accounts for Employee Benefits as per AS-15 issued by the Institute of Chartered Accountants of India (ICAI).

7. No provision has been made in the accounts towards depletion in the Market Value of Investment.

8. The Company has received notice from CESCOM for an amount of Rs.28, 43,845 as back billing for which no provision is created in the books. Since the company is disputing the same with the CESCOM authorities.

9. LICENSED, INSTALLED CAPACITY & PRODUCTION:

Company has stopped it production and all the Plant and machinery are sold by the company.

10. AUDITOR''S REMUNERATION:

Auditor''s remuneration includes:

a. As Auditors : Rs. 60,000

b. For expenses : Rs.

c. Service Tax : Rs. 7,416 Total : Rs. 67,416

14. RELATED PARTY DISCLOSURE AS PER AS- 18

1. a) Name : PASARI EXPORTS LTD

b) Description of Relationship : Common Directors and major share holder

c) Description and Nature of Transaction :

i) Financial Assistance Received.

d) Volume of transaction:

i) Unsecured Loan Received during Current Year : Rs. 50,00,169 /-

ii) Unsecured Loan Paid during Current Year : Rs. 29,54,000 /-

2. a) Name : TKR TEXTILES PVT LTD

b) Description of Relationship : Two of the Directors of the Company are also the Directors of TKR Textiles Pvt. Ltd

c) Description and Nature of Transaction : Loans and Advances to TKR Textile Pvt Ltd.,

11. DEFERRED TAXATION

In accordance with Accounting Standard-22, "Accounting for Taxes on income" and the pronouncement issued by the institute of chartered Accountants of India, the company has accounted for deferred tax during the year. Major components of deferred tax assets/(Liabilities) are detailed below:

12. The Revised Schedule VI notified under Companies Act 1956 has become applicable to the Company for the year ended 31st March 2013 for preparation and presentation of its Financial Statements. The Adoption of the revision does not impact recognition and measurement principles followed by the company in preparing the Financials. The Company has also reclassified /regrouped the previous year figures in accordance with the requirements applicable to the Current year data for the purpose of comparison.

13. Figures have been rounded off to the nearest rupee.

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Mar 31, 2012

1. The Company has discontinued its production operations from the end of June, 2011, during the year and sold the entire machineries and Electrical Equipments except two machineries pending for sale. The company has no intention to continue the production operations henceforth and has decided to lease out the factory premises. However, the company continues its trading activities.

2. Claims against the company not acknowledged as debts:

The Cotton Corporation of India: Rs. 180 lakhs

Price difference and interest on purchase of cotton aggregating to Rs.180 lakhs is disputed by the company and the matter is before Arbitration.

3. Loans and advances Rs. 50,38,879 paid to the cotton suppliers which is in dispute.

4. Advance received from Madanapalli Spinning Ltd., is adjusted against sales of Cotton Yarn and the Balance Amount Rs. 19,28,851/- is considered as Interest free advance from the Party, as the Company has stopped the business Operations during the year.

5. In the absence of details received from the suppliers, no disclosures have been made under the Provisions of Micro, Small and Medium Enterprises Development Act, 2006.

6. The Commercial Tax Authorities have raised a demand including interest and penalty thereon for an amount of Rs. 1,80,16,068/- payable in five installments of six months each, as per the payment schedule prescribed in the order. The Company has not paid any of the said installments as demanded and went in appeal with Hon'ble BIFR for setting off the same. The matter is pending.

7. No Provision has been made in the accounts for Employee Benefits as per AS-15 issued by the Institute of Chartered Accountants of India (ICAI).

8. No provision has been made in the accounts towards depletion in the Market Value of Investment.

9. MANAGERIAL REMUNERATION:

a. No employee was in receipt of remuneration beyond the limits prescribed under section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975.

10. The Revised Schedule VI notified under Companies Act 1956 has become applicable to the Company for the year ended 31st March 2012 for preparation and presentation of its Financial Statements. The Adoption of the revision does not impact recognition and measurement principles followed by the company in preparing the Financials. The Company has also reclassified/regrouped the previous year figures in accordance with the requirements applicable to the Current year data for the purpose of comparison.

11. Figures have been rounded off to the nearest rupee.

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Mar 31, 2010

1. CLAMS-AGAINSTTHE COMPANY NOT ACKNOWLEDGED AS DEBTS:

The Cotton Corporation of India: Rs.180 lakhs Price difference and interest on purchase of cotton aggregating to Rs,180 lafchs is disputed by the company and the matter is before Arbitration.

2. Nd confirmation of balance has been obtained in respect of Debtors, Creditors and other advances.

3. toarts and advances includes Rs.50,38,879 paid to the cotton suppliers which is in dispute.

4. Based on the information available with the management, the company does not owe any sum to a small scale industrial undertaking as defined in clause (j) to section 3 of the Industries (Development and Regulation) Act,1951.

5. In the absence of details received from the suppliers, no disclosure have been made under the Provisions of Micro, Small and Medium Enterprises Development Act, 2006.

6. Against the aggregate demand of Rs.1,75,47,888 raised by the Commercial Tax Authorities for the years 93-94 to 2003-04 the Company has so far paid Rs.13,29,945. The Commercial Tax Authorities have waived Interest aggregating to Rs.3,30,607. No provision has been made for the balance of Rs. 1,59,14,324 towards the demand.

7. No Provision has been made in the accounts for Employee Benefits as per AS-15 issued by the Institute of Chartered Accountants of lndta.(ICA1}

8. No provision has been made in the accounts towards depletion in the Market Value of Investment

9. DETAILS OF SALES:

10. RAW MATERIAL CONSUMPTION:

11. DETAILS OF CLOSING STOCK:

12. DETAILS OF PURCHASES:

13. LICENSED, INSTALLED CAPACITY & PRODUCTION

14. MANAGERIAL REMUNERATION:

15. AUDITORS REMUNERATION:

16. RELATED PARTY DISCLOSURE AS PER AS-18:

17. DISCLOSURE UNDER AS-20 EARNING PER SHARE:

18. DEFERREDTAXATION:

In accordance with Accounting Standard-22, "Accounting forTaxes on Income* and the pronouncement issued by the institute of Chartered Accountants of India, the Company has accounted for deferred tax during the year. Major components of deferred tax Assets / (Liabilities) are detailed below:

19. Previous year figures have been re-grouped / re-arranged where ever considered necessary to make them comparable with the current year figures.

20. Figures have been rounded off to the nearest rupee.