Notes to Accounts of Prashant India Ltd.

Mar 31, 2025

h. Contingent liabilities -

A provision is recognized when the Company has a present obligation as a result of past events and it is
probable that an outflow of resources will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their
present value and are determined based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current
best estimates. Contingent liabilities arc not recognized but are disclosed in the notes when Company has
a possible or present obligation where it is not probable that an outflow of resources will be required to
settle it.

i. Rounding off -

These standalone financial statements are presented in Rs. And all values are rounded to the nearest
thousands (Rs.’OOO)

h Shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment, including the terms and
amounts -
NIL

i for the period of five years immediately preceding the date as at which the Balance Sheet is prepared

A Aggregate number and class of shares allotted as fully paid-up pursuant to contract(s) without payment being received in cash

NIL

B Aggregate number and class of shares allotted as fully paid-up by way of bonus shares
NIL ''

C Aggregate number and class of shares bought back
NIL

Details of terms of repayment and security provided for secured borrowings -
Securities -

* Loans in (a) above are secured by hypothecation of all movable current assets and further secured by first charge on land-building of
Agro Division at Bhavnagar

* Loan in (b) above is secured by first charge on all the immovable properties and also by whole of movable plant-machineries, spares,
tools, accessories, both present and future, of Textile Division at Palsana

* Loans in (c) above are secured by first charge on all the immovable properties and also by whole of movable plant-machineries,
spares, tools and accessories, both present and future, of Wind Farm Unit at Dhank, Dist. Gujarat

* Loan in (d) above is secured by hypothecation of entire current assets including stocks & book debts and further secured by second
charge on all the immovable properties of Textile Division at Palsana

Repayment terms -

All loans have become overdue for repayment since long.

Default in repayment -

There have been continuous defaults in repayment of above loans and interest since Dec., 1998.

Other details •

Wind Farm Division

SPL holds first exclusive charge over the assets of Wind Farm Division.

Agro Division -

Ficon holds pari passu charge with SPL over the assets of Agro Division
Textile Division -

* SPPL holds first charge over current assets and second charge over fixed assets of Textile Division. SPL''s first exclusive charge over
the assets of Wind Farm Division stands extended also to secure the debt of Textile Division

* SPL holds first charge over fixed assets and second charge over current assets of Textile Division and owns right to receive 6.50 lacs
equity shares of the Company @ Rs.10 per share subject to applicable statutory approvals.

* The BIFR had declared the Company as Sick Industrial Company under the purview of the provisions of section 3(1 )(o) of the SICA (
Special Provisions), 1985 on dt.20-09-2005 and held the Company to be wound up u/s 20(1) of the said Act on dt.14-09-2006, which
was upheld by the AAIFR on dt06-12-2010. The Hon''ble High Court of Gujarat, however, on dt.28-07-15 directed the BIFR to
reconsider the case in light of various developments and in confirmity thereof, the BIFR has restored Company''s earlier Reference. The
BIFR now having been dissolved and neither the Company nor the lenderes have approached NCLT, no case for winding up of the
Company is pending against the Company at any forum.

m The Company has provided depreciation of Rs.Nil on Factory Building of Agro Division as the depletion of assets has continued even
though the division was closed during the whole year. ( Previouse year Rs.Nil)

n Exceptional item for the year is NIL.(Exceptional item for the previous year represents income tax and interest of previous years)

o Figures appearing in the Financial Statements has been rounded off to the nearest thousands and have been rearranged, regrouped

whereever necessary.

p The Company had published advertisement in various newspapers on 20th March, 2025 inviting tenders / bids for the sale of NA
Industrial land and building of Textile division of the Company at Palsana after obtaining prior consent of secured creditors having
encumbrance over the said property. The bids were to be opened on 29th March, 2025 at 11.00 am and the sale of said property was
to be finalized at highest/negotiated price with accepted payment terms and other conditions provided the price is considered
reasonable collectively by the Company and the secured creditors having encumbrance over the said property. Pursuant to the said
tender, various bids were received and negotiations took place with respective bidder, but none of the bidders’ price was considered
reasonable. Under the circumstances, one of the secured creditor took the initiative and offered to purchase the said property for a
price of Rs.10 cr. and almost 15% higher price than the price at which highest bid received, subject to the condition that the sale
consideration is to be appropriated solely towards the repayment of their long outstanding dues. The Company having aware about its
distressed financial position and in the absence of any other better option for the discharge of dues towards its secured creditors
having charge on the said property, considered the offer of secured creditor fair and reasonable and the same has been accepted by
the Company in its meeting of the Board held on 29th March, 2025. As such, an Agreement for Sale of Industrial Land and Building of
the Textile Division of the Company at Palsana has been executed between the Company as the Seller & one of the Secured
Creditors being charge holder of the said property M/s. Shantilon Poly Private Limited as the Purchaser and other Secured creditor
being charge holder of the said property M/s. Shantilon Private Limited as the Confirming party to the sale transaction. Since the said
transaction is a related party transaction, approval of the members of the Company is sought under the provisions of the Companies
Act, 2013 to be obtained in the EOGM / AGM. The Agreement for sale is subject to the approval of members in the EOGM / AGM and
if approved, the sale deed will be executed in due course after receiving entire sale consideration. The Company has received Rs.1 cr
i.e. 10% of the sale consideration in advance under the Agreement for sale.

If the transaction as envisaged is approved by the members in EOGM / AGM, the amount of sale consideration received by the
Company shall be appropriated between the Secured Creditors namely M/s. Shantilon Private Limited and M/s. Shantilon Poly Private
Limited in the sharing of Rs.4 cr and Rs.6 cr respectively and shall be adjusted towards repayment of their outstanding dues. The
Secured creditors will release their charge on the said property besides they have agreed to waive substantial portion of the debt
against the Company in order to help the Company in its revival process.

q In pursuant to the advertisement published in various newspapers on 1 st March, 2025 inviting tenders / bids for the sale of plant and
machineries of Wind Power division of the Company at Vill. Dhank on "as is where is basis”, after obtaining prior consent of secured
creditors having encumbrance over the said assets, the sale transaction could not be completed as first two highest bidders backed
off from their offer at later stage even after approving their bid at quoted sales price. The Company has again republised
advertisement in various newspapers on 22nd April, 2025 and has been waiting for fhe response. If any feasible bid is not received,
then the Company will approach various scrap vendors and other prospective buyers for the disposal of the said assets. The Board
will take final decision in approving the deal. If the deal goes through, the sale consideration will be utilised towards the repayment of
dues of secured creditors having charge over the said assets.

r In pursuant to the advertisement published in various newspapers on 2nd January, 2025 inviting tenders / bids for the sale of plant
and machineries of Textile division of the Company at Palsana on "as is where is basis", after obtaining prior consent of secured
creditors having encumbrance over the said assets, the Company has not received any feasible bids and now the Company has been
approaching various scrap vendors and other prospective buyers for the disposal of the said assets. The Board will take final decision
in approving the deal. If the deal goes through, the sale consideration will be utilised towards the repayment of dues of secured
creditors having charge over the said assets.

s The management is of the opinion that if the Company is to be revived then it is imperative to make the Company clean and debt free.
Once the Company becomes debt free then it opens the door of raising long term funds from prospective investors. At present, the
Company is overburdened in the piles of debt and no one is coming forward to start business with the Company and the future of the
Company remains blink. As such, the management is striving hard to wipe out the past debt from the books of the Company

viii Details of Benami Property held

No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of1988) and the rules made thereunder.

ix The Company does not have borrowings from banks or financial institutions on the basis of security of current assets

x Wilful Defaulter

The Company is not declared wilful defaulter by any bank of financial institution or other lender.

xi Relationship with Struck off Companies

The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560
of Companies Act, 1956

xii Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.

xv Compliance with approved Scheme(s) of Arrangements

No scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act,
2013.

xvi Utilisation of Borrowed funds and share premium

(A) 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

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

(B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or othersise) 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 to or on behalf of the Ultimate Beneficiaries.

Profit & Loss Account items
a Undisclosed income

There is no transaction not recorded in the books of accounts that have 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), unless there is immunity for disclosure under any scheme and that previously unrecorded income and related assets have
been properly recorded in the books of account during the year

b Corporate Social Responsibility (CSR)

The Company is not covered under section 135 of the Companies Act.

c Details of Crypto Currency or Virtual Currency

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

d Directors'' remuneration

The directors'' have waived their remuneration for the services rendered by them in the affairs of the Company as approved by the
Board in the absence of net profit and in view of sick financial position of the Company. The Independent director has been paid sitting
fees during the year.

d Deferred tax asset / (liability) AS - 22

Since the Company has been continuously incurring net losses / cash losses and still there is no certainty about the future income,
deferred tax asset has not been accounted as a prudent accounting practice

e Segment reporting AS-17

The Company has identified business segments as its primary segment and geographic segments as its secondary segment. Business
segments are primarily Textiles and Windfarm. Revenues and expenses directly attributable to segments are reported under each
reportable segment Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of
associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments
have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed
under each reportable segment. All other assets and liabilities are disclosed as unallocable. Fixed assets that are used interchangeably
amongst segments are not allocated to primary and secondary segments. Geographical revenues are allocated based on the location
of the customer. Geographic segments of the Company are Surat and Rajkot.

For and on behalf of Board of Directors of As per our audit report of even date

PRASHANT INDIA LIMITED For SONIJHAWAR & CO.

CHARTERED ACCOUNTANTS

1 Sd /- P.M.GONDALIA

Managing Director sd/-

DIN - 00014809

( SATYANARAIN SONI)

2 Sd/- H.M.GONDALIA PARTNER

Director M.No.: 071689

DIN-00014805 FRN. :0110386W

UDIN: 25071689BMHUVJ3156

3 Sd/- SAROJNATH A.MISHRA

Chief Financial Officer

4 Sd/- SWATIJOSHI

Company Secretary
M.No. -A65736

Place : Surat.

Date : 28-05-2025

---

Mar 31, 2024

i. Contingent liabilities -

A provision is recognized when the Company has a present obligation as a result of past events and it is
probable that an outflow of resources will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their
present value and are determined based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current
best estimates. Contingent liabilities are not recognized but are disclosed in the notes when Company
has a possible or present obligation where it is not probable that an outflow of resources will be
required to settle it

Details of terms of repayment and security provided for secured borrowings -
Securities -

* Loans in (a) above are secured by hypothecation of all movable current assets and further secured by first charge on land-building of
Agro Division at Bhavnagar

* Loan in (b) above is secured by first charge on all the immovable properties and also by whole of movable plant-machineries, spares,
tools, accessories, both present and future, of Textile Division at Palsana

* Loans in (c) above are secured by first charge on all the immovable properties and also by whole of movable plant-machineries,
spares, tools and accessories, both present and future, of Wind Farm Unit at Dhank, Dist, Gujarat

* Loan in (d) above is secured by hypothecation of entire current assets including stocks & book debts and further secured by second
charge on all the immovable properties of Textile Division at Palsana

* Loans above are further secured by Personal Guarantee of the Directors.

Repayment terms -

All loans have become overdue for repayment since long.

Default in repayment -

There have been continuous defaults in repayment of above loans and interest since Dec., 1998.

Other details -

Wind Farm Division

SPL holds first exclusive charge over the assets of Wind Farm Division.

Agro Division -

Ficon holds pari passu charge with SPL over the assets of Agro Division
Textile Division -

* SPPL holds first charge over current assets and second charge over fixed assets of Textile Division. SPL''s first exclusive charge over
the assets of Wind Farm Division stands extended also to secure the debt of Textile Division

* SPL holds first charge over fixed assets and second charge over current assets of Textile Division and owns right to receive 6.50 lacs
equity shares of the Company @ Rs,10 per share

* The BIFR had declared the Company as Sick Industrial Company under the purview of the provisions of section 3(1 )(o) of the SICA (
Special Provisions), 1985 on dt. 20-09-2005 and held the Company to be wound up u/s 20(1) of the said Act on dt 14-09-2006, which
was upheld by the AAIFR on dt.06-12-2010. The Hon''ble High Court of Gujarat, however, on dt.28-07-15 directed the BIFR to
reconsider the case in light of various developments and in confirmity thereof, the BIFR has restored Company''s earlier Reference The
BIFR now having been dissolved and neither the company nor the lenderes have approached NCLT, there is no case for winding up of
the company is pending against the company at any forum.

viii Details of Benami Property held

No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of1988) and the rules made thereunder

ix The Company does not have borrowings from banks or financial institutions on the basis of security of current assets

x Wilful Defaulter

The Company is not declared wilful defaulter by any bank of financial institution or other lender.

xi Relationship with Struck off Companies

The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560
of Companies Act. 1956

xii Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.

xiii Compliance with number of layers of companies

The Company has complied with the number of layers perscribed under clause (87) of section 2 of the Act read with Copmanies (
Restriction of number of Layers) Rules, 2017.

xv Compliance with approved Scheme(s) of Arrangements

No scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act,
2013.

xvi Utilisation of Borrowed funds and share premium

(A) 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

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

(B) The Company has not received any fund from any person(s) or entity(ies). including foreign entities (Funding Party) with the
understanding (whether recorded in writing or othersise) 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 to or on behalf of the Ultimate Beneficiaries

Profit & Loss Account items
a Undisclosed income

There is no transaction not recorded in the books of accounts that have 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), unless there is immunity for disclosure under any scheme and that previously unrecorded income and related assets have
been properly recorded in the books of account during the year

b Corporate Social Responsibility (CSR)

The Company is not covered under section 135 of the Companies Act

c Details of Crypto Currency or Virtual Currency

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

---

Mar 31, 2014

A Contingent liabilities and commitments (to the extent not provided for)

Particulars 31-03-2014 31-03-2013 Rs. Rs

Claims against the company not acknowledged as debt 7.16 7.16

Guarantees- 0.00 0.00

Other money for which the company is contingently liable 785.76 777.93



Detaiils given below :

The Company has not made provisions for the above items, which in the opinion of the Auditors, need provision. Had the provision been made in the books of accounts, the accumulated losses of the Company would have increased by Rs.6852.95 lacs

c Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

The company has no information regarding which of its suppliers is a small scale industrial undertaking. Hence, the particulars of amounts payable to such undertakings, if any, have not been given as required under Schedule VI to the Companies Act, 1956

The company is not in a position to identify the amounts payable to small scale and ancillary undertakings under the provision of the "Interest on the delayed payment to small scale and ancillary undertaking Act, 1993" and accordingly it is not possible to quantify the extent of overdue interest payable under the said Act

d Disclosure as per Clause 3''2 of the Listing Agreements with the Stock Exchanges

Loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by such parties is NIL

k Balances of trade receivables, trade payables, loans and advances are subject to confirmation and have been taken as appearing in the books of accounts of the Company.

I The Company has provided depreciation of Rs.3.20 lacs on assets of agro division as the depletion of assets has continued even though the division was closed during the whole year. Plant & machineries have been considered to be continuous process plant and depreciation has been charged accordingly ''

d Deferred tax asset/(liability) AS-22

Since the company has been continuously incurring net losses / cash losses and still there is no certainty about the future income, deferred tax asset has not been accounted as a prudent accounting practice

f Segment reporting AS-17

The Company has identified business segments as its primary segment and geographic segments as its secondary segment. Business segments are primarily Textiles and Windfarm. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All othej expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Fixed assets that are used interchangeably amongst segments are not allocated to primary and secondary segments. Geographical revenues are allocated based on the location of the customer. Geographic segments of the Company are Surat and Rajkot.

---

Mar 31, 2012

1.a. Estimated amount of contracts remaining to be executed on capital accounts and not provided for Rs. Nil (Previous year Rs. Nil)

b. Contingent liabilities

Name of Nature of dues Amount Forum where Management's statute / Rs.lacs dispute is perception, Authority pending if any

Gujarat Demand on regular 544.68 Case The demand Sales Tax assessment reminded by raised is Act, 1969 A.Y. 1986-87 Tribunal to based on to 89-90 A.C. Sales false A.Y.1993-94 Tax. presumptions to 98-99 Bhavnagar only and hence, no liability is envisaged.

Demand on regular 10.24 GVAT Demand raised assessment Tribunal, due to A.Y.2002-03 Gujarat purchases from allegedly fictitious dealers is not taxable because of documentary evidences and facts on the subject

N.A. Guarantee 101.78 N.A. Commission commission payable to payable to directors directors and others &others providing 1999-00 to for 2009-10 guarantee and security to the banks and financial institutions against their lending to the company.

Civil Suit Non payment of 116.47 Fast Track Supply of materials Court. machines by supplied and Ranipat BHEL has other charges O.S.No.25 not been in up to of 2006 accordance dt.30-11-01 as with the per contract terms of by BHEL - contract. 1995

Civil Suit Claims against 7.16 No liability the company not is envisaged the acknowledged by as debt management on this account

2. Value of imports on C.I.F. basis Rs. Nil (Previous year Rs.Nil)

3. Earnings or Expenditure in foreign exchange - Foreign travelling Rs. 52929/- (Euro 796.60) (Previous year Rs. Nil)

4. a. Remuneration paid to directors Rs. 2,99,268/- (Previous year Rs. 2,99,268/-).

b. Travelling & conveyance expenses incurred by Directors Rs. 2,15,102/- (Previous year Rs. 2,42,408/-).

5. The company has provided depreciation of Rs. 16.25 lacs on assets of agro division as the depletion of assets has continued even though the division was closed during the whole year. Plant & machineries have been considered to be continuous process plant and depreciation has been charged accordingly.

6. The balances of sundry debtors, sundry creditors, secured and unsecured loans, loans and advances and old bank balances are subject to confirmation and have been taken on the basis of the accounts in the books of the company

7. The closing stock of raw materials, finished goods, consumable stores, oil, diesel and packing materials are as taken, valued and certified by the directors of the company.

8. In the opinion of Board of Directors, all the current assets, loans and advances have net realisable value as stated in the balance sheet except for loans and advances and old bank balances in respect of which provision is required to be made as mentioned in note no.3.

9. Sundry debtors (unsecured, considered good) include a sum of Rs. Nil (Previous year Rs.Nil) due by companies/firms in which director(s) is/are interested as director/member. Loans & advances (unsecured, considered good) include a sum of Rs. Nil (Previous year Rs.Nil) due by companies/firms in which director(s) is/are interested as director/member.

10. a. The company has no information regarding which of its suppliers is a small scale industrial undertaking. Hence, the particulars of amounts payable to such undertakings, if any, have not been given as required under Schedule VI to the Companies Act, 1956.

b. The company is not in a position to identify the amounts payable to small scale and ancillary undertakings under the provision of the "Interest on the delayed payment to small scale and ancillary undertaking Act, 1993" and accordingly it is not possible to quantify the extent of overdue interest payable under the said Act.

11. During the year under review, there was no employee drawing remuneration of Rs. 2,00,000/- per month or RS. 24,00,000/-per annum. Moreover, there was no employee drawing if employed for the part of the year in receipt remuneration of Rs. 2,00,000/ per month or Rs. 24,00,000/- for the part of the year.

12. The company had been held sick industrial company within the meaning of the provisions of sec.3(l(0) of the Sick Industrial Companies ( Special Provisions ) Act, 1985 by the BIFR on dt.20-09-2005 and has been held to be wound up us 20(1) of the said Act by the BIFR on dt. 14-09-2006. The said order has been upheld by the AAIFR on dt.06-12-2010. These orders of company's winding up are challenged by the company, by way of civil application before the Hon'ble Gujarat High Court.

13. Figures of previous year are regrouped or rearranged to make them comparable with the current year figures.

14. Licensed, installed capacities and production; quantitative & other details - Annexure 'A'

15. In view of huge accumulated losses endangering 'Going Concern' status of the company, Deferred Tax Assets are not recognized following the principle of conservative.