Notes to Accounts of R&B Denims Ltd.

Mar 31, 2025

i) Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event and it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. When the Company expects some or all of a provision to be reimbursed,
the expense relating to a provision is presented in the statement of profit and loss net of any
reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is
used, the increase in the provision due to the passage of time is recognised as a finance cost.
Provisions are reviewed at each balance sheet and adjusted to reflect the current best estimates.

j) Contingent Assets & Liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events,
the existence of which will be confirmed only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company or a present
obligation that arises from past events where it is either not probable that an outflow of resources
will be required to settle the obligation or a reliable estimate of the amount cannot be made. The
Company does recognise a contingent liability but discloses its existence in the financial
statements.

Contingent assets are not recognised in the financial statements. However, contingent assets are
assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the
asset and related income are recognised in the period in which the change occurs.

k) Taxes

Income tax expense comprises of current tax expense and deferred tax expense/benefit. Current
and deferred taxes are recognised in the standalone statement of profit and loss, except when
they relate to items that are recognised in other comprehensive income or directly in equity, in
which case, the current and deferred tax are also recognised in other comprehensive income or
directly in equity.

Current Income Tax

Current tax is the amount of tax payable on the taxable income for the year as determined in
accordance with the provisions of the applicable income tax law of the respective jurisdiction.
The current tax is calculated using tax rates that have been enacted or substantively enacted, at
the reporting date and any adjustment to tax payable in respect of previous years. Current tax
assets and tax liabilities are offset where the entity has a legally enforceable right to offset and
intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Deferred Tax

Deferred tax is recognised using the Balance Sheet approach on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts.

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the carry forward of unused tax
credits and unused tax losses can be utilised, except when the deferred tax asset relating to the
deductible temporary difference arises from the initial recognition of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or
part of the deferred tax asset to be utilised.

Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to
the extent that it has become probable that future taxable profits will allow the deferred tax asset
to be recovered.

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to
apply to taxable income in the years in which the temporary differences are expected to be
recovered or settled.

The Company recognises deferred tax liability for all taxable temporary differences associated
with investments in subsidiaries and associates, except to the extent that both of the following
conditions are satisfied:

• When the Company is able to control the timing of the reversal of the temporary difference;
and

• It is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets and liabilities.

l) Employee Benefit Expenses
Short-Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified
as short-term employee benefits and are measured on undiscounted basis. Benefits such as

salaries, wages, etc. and the expected cost of ex gratia are recognised in the period in which the
employee renders the related service. A liability is recognised for the amount expected to be paid
if the Company has a present legal or constructive obligation to pay this amount as a result of
past service provided by the employee and the obligation can be estimated reliably.

Post-Employment Benefits

Defined Contribution Plan

Post-retirement contribution plans such as Employees'' Pension scheme, Labour Welfare Fund,
Employee State Insurance Corporation (ESIC) are charged to the standalone statement of profit
and loss for the year when the contributions to the respective funds accrue. The Company does
not have any obligation other than the contribution made.

Defined Benefit Plans
Employee''s Provident Fund

In accordance with the Employees'' Provident Fund and Miscellaneous Provision Act, 1952, all
eligible employees of the Company are entitled to receive benefits under the provident fund plan
in which both the employee and employer (at a determined rate) contribute monthly to
Employee''s Provident Fund, a Fund set up by the Government. The contributions made by the
Company are recognised as an expense in the standalone statement of profit and loss under
"Employee benefits expense".

Gratuity Obligations

Post-retirement benefit plans such as gratuity for eligible employees of the Company are
calculated using projected unit credit method on the basis of actuarial valuation made by an
independent actuary as at the reporting date. Re-measurement, comprising actuarial gains and
losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets
(excluding net interest), is recognised in other comprehensive income in the period in which they
occur. Re-measurement recognised in other comprehensive income is included in retained
earnings and will not be reclassified to the standalone statement of profit and loss.

The present value of the defined benefit obligation is determined by discounting the estimated
future cash outflows by reference to market yields at the end of the reporting period on
government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. This cost is included in employee benefit
expense in the standalone statement of profit and loss.

Changes in the present value of the defined benefit obligation resulting from plan amendments
or curtailments are recognised immediately in the standalone statement of profit and loss as past
service cost.

m) Revenue Recognition

The Company derives revenue primarily from sale of Denim Fabrics and rendering of job-work
service towards the same. Revenue is recognized upon transfer of control of promised products
or services to customers in an amount that reflects the consideration the Company expects to
receive in exchange for those products or services. Revenue excludes amounts collected on behalf
of government authorities such as Goods and Service Tax (GST), returns, trade allowances,
rebates and amounts collected on behalf of third parties. To recognize revenues, the Company
applies the following five step approach:

• Identify the contract with a customer,

• Identify the performance obligations in the contract,

• Determine the transaction price,

• Allocate the transaction price to the performance obligations in the contract, and

• Recognize revenues when a performance obligation is satisfied.

Sale of Goods

The Company recognizes revenue from sale of goods measured upon satisfaction of performance
obligation which is at a point in time when control of the goods is transferred to the customer,
generally on delivery of the goods. Depending on the terms of the contract, which differs from
contract to contract, the goods are sold on a reasonable credit term. As per the terms of the
contract, consideration that is variable, according to Ind AS 115, is estimated at contract inception
and updated thereafter at each reporting date or until crystallisation of the amount.

Revenue is measured based on the transaction price, which is the consideration, adjusted for
volume discounts, rebates, scheme allowances, price concessions, incentives, and returns, if any,
as specified in the contracts with the customers. Revenue excludes taxes collected from
customers on behalf of the government. Accruals for discounts/incentives and returns are
estimated (using the most likely method based on accumulated experience and underlying
schemes and agreements with customers). Due to the short nature of credit period given to
customers, there is no financing component in the contract.

Rendering of Service

Revenue from services rendered is recognised in the standalone statement of profit and loss as
the underlying services are performed. Upfront non-refundable payments received under these
arrangements are deferred and recognised as revenue over the expected period over which the
related services are expected to be performed.

n) Other Income

Interest Income

Interest income from a financial asset is recognised when it is probable that the economic
benefits will flow to the Company and the amount of income can be measured reliably. Interest
income is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that discounts estimated future cash receipts through
the expected life of the financial asset to that asset''s net carrying amount on initial recognition.

Dividends

Dividend income from investments is recognised when the right to receive payment has been
established, provided that it is probable that the economic benefits will flow to the Company and
the amount of income can be measured reliably.

Other (Other than Interest and Dividend Income)

Other Income consists of rent income, insurance claim, vendor settlement income and
miscellaneous income and is recognised when it is probable that the economic benefits will flow
to the Company and amount of income can be measured reliably.

o) Finance Costs

General and specific borrowing costs that are attributable to the acquisition, construction or
production of a qualifying asset are capitalised as part of the cost of such asset till such time the
asset is ready for its intended use and borrowing cost are being incurred. A qualifying asset is an
asset that necessarily takes a substantial time to get ready for its intended use. All other
borrowing costs are recognised as an expense in the period they are incurred.

Borrowing cost includes interest expense, amortisation of discounts and ancillary costs incurred
in connection with borrowing of funds. Interest income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying assets is deducted from the
borrowing costs eligible for capitalisation.

p) Depreciation and Amortization

Depreciation

Depreciation on property, plant and equipment (other than freehold land) is calculated on pro¬
rata on the straight line method based on the useful life of the assets as indicated under Part C of
Schedule II of the Companies Act, 2013 except for certain assets where management believes and
based on the technical evaluation and assessment that the useful lives adopted by it best
represent the period over which an asset is expected to be available for use.

Freehold land has an unlimited useful life and therefore is not depreciated.

Depreciation on additions is provided on a pro - rata basis from the month of installation or
acquisition and in case of projects from the date of commencement of commercial production.
Depreciation on deductions / disposals is provided on a pro-rata basis up to the month preceding
the month of deduction / disposals.

The residual values, useful lives and methods of depreciation of property, plant and equipment
are reviewed at each financial year end and, if expectations differ from previous estimates, the
changes are accounted for as a change in an accounting estimate and adjusted prospectively.

The estimated useful lives are as follows:

Amortisation

The Company amortises intangible assets with a finite useful life using the straight-line method
over the following useful lives:

The amortisation period and the amortisation method for intangible assets with a finite useful
life are reviewed at each reporting date and adjusted prospectively, if appropriate.

The amortisation expense on intangible assets with finite life is recognised in standalone
statement of profit and loss under the head depreciation, impairment and amortisation expense.

q) Impairment

Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on the following financial assets and credit risk
exposure:

• Financial assets that are measured at amortised cost

• Financial assets that are measured at FVTOCI

• Trade or other contractual receivables resulting from transactions that are within the scope
of Ind AS 115

The Company follows ''simplified approach'' for recognition of impairment loss allowance on Trade
or other contractual receivables resulting from transactions that are within the scope of Ind AS
115. This approach doesn''t require the Company to track changes in credit risk. Rather, it
recognises impairment loss allowance based on lifetime ECL at each reporting date, right from its
initial recognition.

The Company follows ''general approach'' for recognition of impairment loss allowance, on other
financial assets, wherein the Company provides for 12-month ECL on ''Low Credit Risk'' financial
assets and lifetime time ECL on ''Moderate Credit Risk'' and ''High Credit Risk'' financial assets.

If, in a subsequent period, credit quality of the financial asset improves such that there is no
longer a significant credit risk, then the entity reverts to recognising impairment loss allowance
based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the
expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which
results from default events that are possible within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash
shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required
to consider:

• All contractual terms of the financial instrument (including prepayment, extension, call and
similar options) over the expected life of the financial instrument. However, in rare cases
when the expected life of the financial instrument cannot be estimated reliably, then the
entity is required to use the remaining contractual term of the financial instrument.

• Cash flows from the sale of collateral held or other credit enhancements that are integral to
the contractual terms.

• Financial assets measured as at amortised cost, contractual revenue receivables and lease
receivables: ECL is presented as an allowance, i.e., as an integral part of the measurement of
those assets in the balance sheet. The allowance reduces the net carrying amount. Until the
asset meets write-off criteria, the company does not reduce impairment allowance from the
gross carrying amount.

Impairment of Non-Financial Assets

The carrying amounts of the Company''s non-financial assets, other than inventories and deferred
tax assets are reviewed at each reporting date to determine whether there is any indication of
impairment. If any indication exists, or when annual impairment testing for an asset is required,
the Company estimates the asset''s recoverable amount. For goodwill and intangible assets that
have indefinite lives or that are not yet available for use, an impairment test is performed each
year at 31st March.

An asset''s recoverable amount is the higher of an asset''s or cash generating unit''s (CGU) fair value
less costs of disposal and its value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset or the cash¬
generating unit. In determining fair value less costs of disposal, recent market transactions are
taken into account. If no such transactions can be identified, an appropriate valuation model is
used. These calculations are corroborated by valuation multiples or other available fair value
indicators.

For the purpose of impairment testing, assets are grouped together into the smallest group of
assets that generate cash inflows from continuing use that are largely independent of the cash
inflows of other assets or groups of assets (the "cash-generating unit").

The goodwill acquired in a business combination is, for the purpose of impairment testing,
allocated to cash-generating units that are expected to benefit from the synergies of the
combination.

An impairment loss is recognised in the standalone statement of profit and loss if the estimated
recoverable amount of an asset or its cash-generating unit is lower than its carrying amount.
Impairment losses recognised in respect of cash-generating units are allocated first to reduce the
carrying amount of any goodwill allocated to the units and then to reduce the carrying amount
of the other assets in the unit on a pro-rata basis.

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment
losses recognised in prior periods are assessed at each reporting date for any indications that the
loss has decreased or no longer exists. An impairment loss is reversed if there has been a
favourable change in the estimates used to determine the recoverable amount. An impairment
loss is reversed only to the extent that the asset''s carrying amount does not exceed its recoverable
amount, nor exceed the carrying amount that would have been determined, net of depreciation
or amortisation, if no impairment loss had been recognised.

Goodwill that forms part of the carrying amount of an investment in an associate is not recognised
separately and therefore is not tested for impairment separately. Instead, the entire amount of
the investment in an associate is tested for impairment as a single asset when there is objective
evidence that the investment in an associate may be impaired.

r) Earnings per share

Basic 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. The average weighted average number of equity shares outstanding during the period
and for all periods presented is adjusted for events, such as bonus shares, other than the
conversion of potential equity shares that have changed the number of equity shares
outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss 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.

s) Investment in subsidiary, associate and joint venture

The Company has opted for accounting its investment in subsidiaries, associates and joint
ventures at cost less impairment loss (if any), in accordance with Ind AS 27 - "Separate Financial
Statements".

t) Exceptional Items

An item of income or expense which by its size, type or incidence requires disclosure in order to
improve an understanding of the performance of the Company is treated as an exceptional item
and the same is disclosed in standalone statement of profit and loss and in the notes forming part
of the standalone financial statements.

A. Accounting classification and fair value measurement:

The fair value of financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a
forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

The carrying amount of trade receivable, trade payable, loans, cash and cash equivalents, other bank balances and other receivables as at 31st March, 2025 and 31st March, 2024
are considered to be the same as their fair values, due to their short-term nature. Financial Instruments with fixed and variable interest rates are evaluated by the Company based on
parameters such as interest rate and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for the expected losses of these
receivables.

Fair value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of following:

Level 1 - Category includes financial assets and liabilities, that are measured in whole or in significant part by reference to published quoted price (unadjusted) in an active market.

Level 2 - Category includes financial assets and liabilities measured using a valuation technique based on assumptions that are supported by prices from observable current market
transactions. These include assets and liabilities for which pricing is obtained via pricing services, but where prices have not been determined in an active market, financial assets with
fair values based on broker quotes and assets that are valued using the Company''s own valuation models whereby the material assumptions are market observable. The majority of
Company''s over-the-counter derivatives and several other instruments not traded in active markets fall within this category.

Level 3 - Category includes financial assets and liabilities measured using valuation techniques based on non market observable inputs. This means that fair values are determined in
whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they
based on available market data. However, the fair value measurement objective remains the same, that is, to estimate an exit price from the perspective of the Company. The main
asset classes in this category are unlisted equity investments as well as unlisted funds.

B. Financial risk management objectives and policies:

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The
Company''s primary focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse
effects on its financial performance.

The Company''s financial liabilities comprise of trade payable and other liabilities to manage its operation and
financial assets include trade receivables, security deposits, loans and advances, etc, arises from its operation.

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk
management framework. The Company has implemented a robust Business Risk Management framework to identify,
evaluate business risks and opportunities. This framework seeks to create transparency, minimise adverse impact on
the business objectives and enhance the Company''s competitive advantage. The business risk framework defines
the risk management approach across the enterprise at various levels including documentation and reporting. The
framework has different risk models which help in identifying risks trend, exposure and potential impact analysis at a
Company level.

The Audit Committee of the Board periodically reviews the risk management framework.

1) MARKET RISK:

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes
in market rates and prices. The Company''s size and operations result in it being exposed to the following market risks
that arise from its use of financial instruments:

a) currency risk;

b) other price risk; and

c) interest rate risk

b) Credit loss assessment for trade receivables:

Customer credit risk is managed by the management subject to the Company''s established policy, procedures and
control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive
credit review and individual credit limits are defined in accordance with this assessment. Outstanding customer
receivables are regularly monitored. At the year end the Company does not have any significant concentrations of
bad debt risk. An impairment analysis is performed at each reporting date on an individual basis for major clients. The
calculation is based on historical data. The Company does not hold collateral as security. The Company evaluates the
concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and
operate in largely independent markets.

3) LIQUIDITY RISK:

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The
Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due
without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions.
The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st
March, 2025 and 31st March, 2024. Cash flow from operating activities provides the funds to service the financial
liabilities on a day-to-day basis. The Company regularly monitors the rolling forecasts to ensure it has sufficient cash
on an on-going basis to meet operational needs. Any short-term surplus cash generated, over and above the amount
required for working capital management and other operational requirements, is retained as cash and cash
equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly
marketable investments with appropriate maturities to optimise the cash returns on investments while ensuring
sufficient liquidity to meet its liabilities.

CAPITAL MANAGEMENT:

A. Risk management

Capital includes equity attributable to the equity holders to ensure that it maintains an efficient capital structure and
healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its
capital structure and makes adjustments to it, in light of changes in economic conditions or its business
requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to
shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies
or processes during the year ended March 31,2025 and March 31,2024.

The Company monitors capital using a gearing ratio, which is net debt divided by total equity.

Net debt = Total borrowings (including lease liabilities) less (Cash and cash equivalents Bank balance other than
cash and cash equivalents (excluding balance earmarked for unclaimed dividend and other liabilities) Current
investments).

e. Figures pertaining to the previous years/period have been regrouped/rearranged, reclassified and restated wherever
considered necessary, to make them comparable with those of current year/period.

f. There are no subsequent events that occurred after the reporting date, that need to be adjusted in the financial statements.

g. The Company has a process whereby periodically all long-term contracts (including derivative contracts) are assessed for
material foreseeable losses. At the year end, the Company did not have any long-term contracts (including derivative
contracts) for which there were any material foreseeable losses.

The case of company stands pending before Customs Excise & Serivce Tax Appelate Tribunal for payment of customs
duty. The amount of customs duty involved is Rs 1,93,179/- which is contingent in nature.

The Appeal stands pending before Commissioner Appeals, GST for reversal of ITC received for disposing service of
effluent treatment and waste water treatment . The amount of ITC to be reversed involved is Rs ,43,66,118/- which is
contingent in nature.

The Appeal filed before Commissioner of Income Tax (Appeals) for for A.Y. 2016-17 has been settled and closed under
Vivad se Vishwas Scheme, 2024 . The effect of closure of appeal is still pending and tax demand is reflecting on Income
Tax Website.

The Appeal filed before Commissioner of Income Tax (Appeals) for for A.Y. 2018-19 has been settled and closed under
Vivad se Vishwas Scheme, 2024 . The effect of closure of appeal is still pending and tax demand is reflecting on Income
Tax Website.

Notes 36:

OTHER REGULATORY NOTES:

a. The Company does not have any benami property, where any proceeding has been initiated or pending against
the company for holding any Benami Property.

b. The Company does not have any transactions with companies struck off.

c. The Company has registered charges or satisfaction which are in the name of company with ROC within statutory
period.

d. The company have not traded or invest in Crypto currency or Virtual currency during the financial year.

e. The company have not advanced or given loan or invested fund (either borrowed fund 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 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.

f. 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 otherewise) 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.

g. The company does not have any such tranasaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961 (such
as, search or survey or any other relevent provisions of the Income Tax Act, 1961)

h. The company has not been declared as Wilful defaulter by the Banks, Financial institution or other lenders.

i. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the
Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

j. The Company does not has any immovable property (other than properties where the Company is the lessee and
the lease agreements are duly executed in favour of the lessee), whose title deeds are not held in the name of
company.

k. The Company does not has revalued its Property, Plant & Equipments (including Right-of-use Assets) and
intangible assets during the year.

l. The Company has not granted any loan or advances in nature of loans to directors, promoters, KMPs, and the
Related Parties during the year either jointly or severally whether repayable on demand or without specifying any
terms or period.

m. The Quarterly return or statements (Stock Statement) of current assets filed by the company with banks or
financial institutions are in agreement with the books of accounts.

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

For RPR & Co. of R & B Denims Limited

Chartered Accountants

Rajkumar M. Borana Amit A. Dalmia

CA Raunaq Kankaria Director Managing Director

Partner DIN : 01091166 DIN : 00034642

M.No. 138361
FRN.131964W

Date : 15/05/2025 Parkin Jariwala Sujata Dudharejiya

Place: Surat Chief Financial Officer Company Secretary

---

Mar 31, 2024

(1) Trade receivables are due neither from directors or other officers of the company either severally or jointly with any other person nor from firms or private companies respectively in which any director is a partner, a director or a member except company''s partnership firm/Subsidiary entity.

(2) Trade receivables include debt due from partnership firm(Subsidiary Entity) of Rs. 65.48 Lakhs (Previous year Rs. 150.53 Lakhs) in the ordinary course of business.

(3) Trade receivables are non-interest bearing and are generally on terms of 30 to 180 days.

* Term Loan(s) availed by the Company from Schedule Banks under Multiple Banking arrangements.

Term Loan(s) from The Cosmos Co-op Bank Ltd are secured by way of:

a) Hypothecation of existing plant and machineries.

b) Factory Land (lease hold), along with construction thereon made by the company, situated at Revenue Survey 446, Block No. 467, at Sachin-Palsana Highway Road, at Village Palsana, Dist. Surat, given as collateral security.

c) Personal gaurantee by the Directors - Mr. Amitkumar Dalmia, Mr. Deepakkumar Dalmia, Mr. Rajkumar Borana and Mr. Ankur Borana.

Term Loan(s) from Kotak Mahindra Bank Ltd is having NIL outstanding as on date with respect to LAP Loan. No Objection Certificate for Closure of LAP Loan with Kotak Mahindra Bank Ltd is received from bank.

** Cash Credit facility

From The Cosmos Co-op Bank Ltd & Axis Bank Ltd are secured by,

a) charge on all Current Assets of the Company & Pari Passu charges on the Facory Land & Building, in the name of Director''s of the Company namely Mr. Amitkumar Dalmia, Mr. Deepak Dalmia, Mr. Rajkumar Borana & Mr. Ankur Borana and also their respective Personal Guarantee.

Current maturities of term loans amounting to Rs. 847.65 on March 31, 2024 (Rs. 716.15 on March 31, 2023, March 31, 2022 and March 31, 2021 Rs 672.42 and 739.12 respectively) is classified under "Other Current Financial Liabilities". .

The discount rate is based on the prevailing market yields of Indian government securities for the estimated term of the obligations. The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors. Salary escalation and attrition rate are considered as advised by the the company; they appear to be line with the industry practice considering promotion and demand & supply of the employees.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Risks associated with defined benefit plan

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Company has to manage pay- out based on pay as you go basis from own funds.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

(i) Investment in Subsidiary:

The Company has invested in a partnership firm, "Rican Industries" on 1st September, 2023. The Company is holding 20% share of profit in partnership firm. As per the provision of Ind AS, Rican Industries is considered as subsidiary Partnership Firm of the company.

(ii) Issue of Equity Shares:

During the FY 2023-24, the company has issued 2,00,00,000 nos. of equity shares of face value of INR 2/- each fully paid-up.

R & B Denims Limited allotted 2,00,00,000 equity shares of Rs. 2/- each pursuant to conversion of warrants on 12^th March, 2024.These shares were not credited in the demat accounts on shareholders on 31.03.2024 pursuant to pending corporate action, hence, not included in the shareholding pattern as on 31.03.2024.

(v) Financial Instruments

, All assets and liabilities for which fair value is measured or disclosed in the

i financial statements are categorized within the fair value hierarchy, described

as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 - Quoted (unadjusted) prices in active market for identical assets or liabilities.

• Level 2 (if level 1 feed is not available/appropriate) - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

• Level 3 (if level 1 and 2 feed is not available/appropriate) - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

| For financial assets and liabilities maturing within one year from the Balance

i Sheet date and which are not carried at fair value, the carrying amount

j approximates fair value due to the short maturity of these instruments. "

#Exclude Group Company investments 61, 72, 94,450 (Previous Year 22, 54, 27,457) measured at cost

The fair value of cash and cash equivalents, trade receivables, borrowings, trade payables, other current financial assets and liabilities approximate their carrying amount largely due to the short-term nature of these instruments. The Company''s long term debt and investment in fixed deposit have been contracted at market rates of interest. Accordingly, the carrying value of such instruments approximates their fair value.

The fair value of investment in shares of The Cosmos Co-operative Bank Ltd. and TJSB Sahkari bank Ltd. has been valued using cost approach and fair value of investment in shares of Shanti Spintex Ltd has been valued using Fair Market Value approach.

B. Financial Risk Management

The Company''s activities expose it to variety of financial risks: market risk, credit risk, interest rate risk and liquidity risk. Within the boundaries of approved Risk Management Policy framework The Company uses derivative instruments to manage the volatility of financial markets and minimize the adverse impact on its financial performance.

i) 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 risk, such as equity price risk.

a) Foreign Currency Risk

Foreign currency risk is the risk that the Fair Value or Future Cash Flows of an exposure will fluctuate because of changes in foreign currency rates. Exposures can arise on account of the various assets and liabilities which are denominated in currencies other than Indian Rupee.

The Company mainly deals in USD and hedge its risk with Futures contract.

b) Interest Rate Risk

The Company is also exposed to interest rate risk, changes in interest rates will affect future cash flows or the fair values of its financial instruments, principally debt. The Company issues debt in a variety of currencies based on market opportunities and it uses derivatives to hedge interest rate exposures.

c) Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the Company. Credit risk arises from company''s activities in investments, dealing in derivatives and receivables from customers. The Company ensure that sales of products are made to customers with appropriate creditworthiness. Investment and other market exposures are managed against counterparty exposure limits. Credit information is regularly shared between businesses and finance function, with a framework in place to quickly identify and respond to cases of credit deterioration.

d) Liquidity Risk

Liquidity risk arises from the Company''s inability to meet its cash flow commitments on the due date. The Company maintains sufficient stock of cash, marketable securities and committed credit facilities. The Company accesses global and local financial markets to meet its liquidity requirements. It uses a range of products and a mix of currencies to ensure efficient funding from across well-diversified markets and investor pools. Treasury monitors rolling forecasts of the Company''s cash flow position and ensures that the Company is able to meet its financial obligation at all times including contingencies.

The case of the Company stands pending before Customs Excise & Servive Tax Appellate Tribunal (CESTAT) for payment of custom duty. The amount of custom duty involved is Rs. 1,93,179/- which is contingent in nature.

The Appeal of the Company stands pending before Commissioner of Appeals (Income Tax) for F.Y. 2017-18. The amount of tax liability reflected on e-filling portal as outstanding demand after adjusting refunds is Rs. 21,19,496 (And accrued'' interest Rs. 8,37,513) which is contingent in nature.

The Appeal of the Company stands pending before Commissioner of Appeals (Income Tax) for F.Y. 2015-16. The amount of tax liability reflected on e-filling portal as outstanding demand is is Rs. 2,93,508 which is contingent in nature.

Under the scheme of Vivaad se Vishwas, form 5 have been issued by authorities and it is closed. However, the effect of Rs. 6,64,13,710/- for F.Y. 2015-16, and the effect of Rs. 89,88,832/- for F.Y. 2013-14 in the same scheme were pending to get cleared from the Income Tax Department.

The Company has Finalised GST Audit Notice (ADT-01) Conducted by the GST Departmental Audit Authority U/s 65 of CGST 2017 for the period of July, 2017 to March 2022. The Company has Received Demand of Rs. 47, 57,046. In the said GST Audit Notice the Company has Received Final Audit report (ADT-02) from the GST Department vide Reference no GST/300/2023-24 Dated 15.03.2024. Moreover, in respect of availed of Input Tax credit Service of effluent treatment and waste water treatment Input of Service (CGST and SGST) for Rs.43, 66,118/- has not been agreed by company and appeal for the same is done before the Deputy/Assistant Commissioner, CGST & Central Excise, Division-V, Surat .

(ix) Operating Segment:

Ind AS 108, Operating segments, establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Chief Operating Decision Maker evaluates the Group''s performance and allocates resources based on analysis of various performance indicators by business segments. Accordingly, information has been presented along business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the accounting policies.

Revenue and identifiable operating expenses in relation to segments are categorized based on items that are individually identifiable to that segment.

The Management believes that it is not practical to provide segment disclosures relating to few costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and adjusted against the total income of the Group.

The Company has three segments. Denims manufacturing, Solar and Windmill. Operating segments are defined as components of a company for which discrete financial information is available that is evaluated regularly by Chief Operating Decision Maker ("CODM"), in deciding how to allocate resources and assessing performance.

(x) There was no employee in receipt of remuneration aggregating to Rs. 102,00,000/-or more per year or Rs 8,50,000/- or more per month for the part or whole of the year. Previous year also there was no such employee.

(xi) The quantity and value of closing stock is certified by the management as true and

: correct.

(xii) The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). The disclosures are required by the said notification under the Chapter on Delayed Payments to Micro and Small Enterprises):

¹ On the basis of information collected by the Management payment to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) is made within due date for F.Y. 2023-24 and 2022-23. Hence no reporting is required.

(xiii) Managerial remuneration paid/ payable to the Managing Director/ Directors for the period from 1st April 2023 to 31st March 2024 Rs. 30 Lacs (Previous Year Rs. 30 Lacs)

(xiv) Previous year''s figures have been regrouped / recast wherever necessary to conform to current period''s presentation.

(xx) The financial statements for the year ended March 31, 2024 were approved by the Board of Directors and authorised for issue on 15-05-2024.

(29) ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT, 2013

(i) Details of benami property held

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

(ii) Borrowing secured against current assets

The Company have sanctioned borrowings/facilities from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.

(iii) Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or any lender.

(iv) Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.Hence, no disclosure require in this clause.

(v) Compliance with number of layers of companies

The Company have Subsidiary Enterprise i.e RB Industries RICON Industries and the company do not have layers of subsidiaries beyond the prescribed number with respect to the Companies (Restriction on number of layers) Rules, 2017.The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(vi) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(vii) Utilisation of borrowed funds and share premium

(i) 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) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

(ii) 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 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

(viii) Undisclosed Income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(ix) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the year.

(x) Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) during the current or previous year.

The Title deeds of immovable properties are held in the name of the Company.

The Company has no Intangible assets under development as on 31.03.2024.

(xi) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(xii) Loans to Promoters, directors, KMPs and Related parties

There are no Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

(30)Figures for previous year have been regrouped wherever considered necessary.

b) Numerator and Denominator considered as under in above Ratios Calculation:

(i) Current Ratio :

(Total current assets/Current liabilities)

[Current liabilities: Total current liabilities - Current maturities of Long Term Debt]

(ii) Debt - Equity Ratio :

(Net debt/Average equity)

[Net debt: Current borrowings Non-current borrowings other than Unsecured Loan from Directors and their Relatives ]

[Equity: Equity share capital Other equity]

(iii) Debt Service Coverage Ratio (DSCR) :

(EBIT/Debt Service)

[EBIT: Net Profit After Taxes Non-Cash Operating Expenses Deferred Tax Expense Interest on Term Loan Other Adjustments like loss on Sale of Fixed Assets etc.]

[Debt Service : Interest on Term Loan Term Loan Principle Repayment]

(iv) Return on Equity (ROE) :

(Profit after tax (PAT)/Average Equity)

[Equity: Equity share capital Other equity ]

(iv) Inventory Turnover Ratio

(Net Sales/Average inventory)

(v) Trade receivables turnover Ratio :

(Turnover/Average trade receivables)

[Turnover: Revenue from operations]

(vi) Trade payables turnover Ratio

(Cost of Purchase of Goods/Average Trade Payables)

(vii) Net capital turnover Ratio (in days) :

(Turnover/Average working capital)

[Average Working capital: Current assets - Current liabilities] [Current liabilities: Total current liabilities - Current maturities of long-term debt] [Turnover: Revenue from operations]

(viii) Net profit Ratio :

(Net profit after tax/Turnover)

[Turnover: Revenue from operations]

(ix) Return on Capital Employed (ROCE) :

(EBIT/Average capital employed)

[EBIT: Profit before taxes Interest and Finance Charges]

[Capital Employed: Equity share capital Other equity Non-current borrowings Current maturities of long-term debt Deferred tax liabilities]

(x) Return on Investment(ROI) :

(FD Interest Income /Average Investment in Fixed Deposit)

c) Explanation for Change in the Ratio by more than 25% as compared to previous year:

@Repayment of Debt and Simultaneous increase in Shareholder''s equity lead to decrease in Debt/Equity ratio.

*Due to decrease in earnings and increase in capital employed on account of issue of equity shares during the year.

#On account of increase in the revenue for the year and decrease in the net working capital.

**Increase is on account of decrease in operating expenses (majorly Finance Cost) as compared to increase in revenue.

(32) Events after the reporting period

The Company has evaluated all the subsequent events through 15 May, 2024 which is the date on which these standalone financial statements were issued, and no events have occurred from the balance sheet date through that date except for matters that have already been considered in the standalone financial statements.

(ii) Terms and rights attached to equity shares.

The company has only one class of equity shares having face value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholder.

---

Mar 31, 2023

** Education and skill development, healthcare, socio-economic development and any activity covered under schedule VII of Companies Act 2013.

(iv) Financial Instruments

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 - Quoted (unadjusted) prices in active market for identical assets or liabilities.

• Level 2 (if level 1 feed is not available/appropriate) - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

• Level 3 (if level 1 and 2 feed is not available/appropriate) - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For financial assets and liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the carrying amount approximates fair value due to the short maturity of these instruments."

#Exclude Group Company investments 22,54,27,457 (Previous Year 18,50,58,429) measured at cost

The fair value of cash and cash equivalents, trade receivables, borrowings, trade payables, other current financial assets and liabilities approximate their carrying amount largely due to the shortterm nature of these instruments. The Company''s long term debt and investment in fixed deposit have been contracted at market rates of interest. Accordingly, the carrying value of such instruments approximates their fair value.

The fair value of investment in shares of The Cosmos Co-operative Bank Ltd. has been valued using cost approach.

B. Financial Risk Management

The Company''s activities expose it to variety of financial risks: market risk, credit risk, interest rate risk and liquidity risk. Within the boundaries of approved Risk Management Policy framework The Company uses derivative instruments to manage the volatility of financial markets and minimize the adverse impact on its financial performance.

i) 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 risk, such as equity price risk.

a) Foreign Currency Risk

Foreign currency risk is the risk that the Fair Value or Future Cash Flows of an exposure will fluctuate because of changes in foreign currency rates. Exposures can arise on account of the various assets and liabilities which are denominated in currencies other than Indian Rupee.

The Company mainly deals in USD and hedge its risk with Futures contract.

b) Interest Rate Risk

The Company is also exposed to interest rate risk, changes in interest rates will affect future cash flows or the fair values of its financial instruments, principally debt. The Company issues debt in a variety of currencies based on market opportunities and it uses derivatives to hedge interest rate exposures.

c) Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the Company. Credit risk arises from company''s activities in investments, dealing in derivatives and receivables from customers. The Company ensure that sales of products are made to customers with appropriate creditworthiness. Investment and other market exposures are managed against counterparty exposure limits. Credit information is regularly shared between businesses and finance function, with a framework in place to quickly identify and respond to cases of credit deterioration.

d) Liquidity Risk

Liquidity risk arises from the Company''s inability to meet its cash flow commitments on the due date. The Company maintains sufficient stock of cash, marketable securities and committed credit facilities. The Company accesses global and local financial markets to meet its liquidity requirements. It uses a range of products and a mix of currencies to ensure efficient funding from across well-diversified markets and investor pools. Treasury monitors rolling forecasts of the Company''s cash flow position and ensures that the Company is able to meet its financial obligation at all times including contingencies.

The case of the Company stands pending before Customs Excise & Servive Tax Appellate Tribunal (CESTAT) for payment of custom duty. The amount of custom duty involved is Rs. 1,93,179/- which is contingent in nature.

The Appeal of the Company stands pending before Commissioner of Appeals (Income Tax) for F.Y. 2017-18. The amount of tax liability involved are Rs. 27,45,944 (And accrued interest Rs. 2,05,956) which is contingent in nature.

Under the scheme of Vivaad se Vishwas, form 5 have been issued by authorities and it is closed. However, the effect of Rs. 6,64,13,710/- for F.Y. 2015-16, and the effect of Rs. 89,88,832/- for F.Y. 2013-14, in the same scheme is pending to get cleared from the Income Tax Department.

(ix) Operating Segment:

Ind AS 108, Operating segments, establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Chief Operating Decision Maker evaluates the Group''s performance and allocates resources based on analysis of various performance indicators by business segments. Accordingly, information has been presented along business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the accounting policies.

Revenue and identifiable operating expenses in relation to segments are categorized based on items that are individually identifiable to that segment.

The Management believes that it is not practical to provide segment disclosures relating to few costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and adjusted against the total income of the Group.

The Company has three segments. Denims manufacturing, Solar and Windmill. Operating segments are defined as components of a company for which discrete financial information is available that is evaluated regularly by Chief Operating Decision Maker ("CODM"), in deciding how to allocate resources and assessing performance.

(x) There was no employee in receipt of remuneration aggregating to Rs. 102,00,000/- or more per year or Rs 8,50,000/- or more per month for the part or whole of the year. Previous year also there was no such employee.

(xi) The quantity and value of closing stock is certified by the management as true and correct.

Dues to Micro and Small Enterprise have been determined to the extent such parties have been identified on the basis of information collected by the Management.

(xiii) Managerial remuneration paid/ payable to the Managing Director/ Directors for the period from 1st April 2022 to 31st March 2023 Rs. 30 Lacs (Previous Year Rs. 30 Lacs)

(xiv) Previous year''s figures have been regrouped / recast wherever necessary to conform to current period''s presentation.

(xx) The financial statements for the year ended March 31, 2023 were approved by the Board of Directors and authorised for issue on 10-05-2023.

(29) ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT, 2013i. Details of Benami property held

No proceedings have been initiated on or are pending against the Company for holding Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

ii. Borrowing secured against current assets

The Company have sanctioned borrowings/facilities from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.

iii. Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or any lender.

iv. Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956. Hence, no disclosure require in this clause.

v. Compliance with number of layers of companies

The Company have only one Subsidiary Enterprise i.e RB Industries and the company do not have layers of subsidiaries beyond the prescribed number with respect to the

Companies (Restriction on number of layers) Rules, 2017.The Company has complied with the number of layers prescribed under the Companies Act, 2013.

vi. Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

vii. Utilisation of borrowed funds and share premium

i. 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) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

ii. 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 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

viii. Undisclosed Income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

ix. Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the year.

x. Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) during the current or previous year.

The Title deeds of immovable properties are held in the name of the Company.

The Company has no Intangible assets under development as on 31.03.2023.

xi. Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

xii. Loans to Promoters, directors, KMPs and Related parties

There are no Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

(30) Figures for previous year have been regrouped wherever considered necessary.

c) Explanation for Change in the Ratio by more than 25% as compared to previous year:

#Decrease in CC Utilisation by huge amount is the reason for increase in Current Ratio.

@Repayment of Debt and Simultaneous increase in Shareholder''s equity lead to decrease in Debt/Equity ratio.

* Decrease in profitability in F.Y. 2022-23 and Simultaneous increase in Shareholder''s equity lead to decrease in the ratio.

** Revenue of the company has decreased and there in increase in finished stock and as a result Inventory Turnover Ratio has decreased.

$-Increase in Repo rate and FD rates lead to increase in ROI.

Term Loan(s) from The Cosmos Co-op Bank Ltd are secured by way of:

a) Hypothecation of existing plant and machineries.

b) Factory Land (lease hold), along with construction thereon made by the company, situated at Revenue Survey 446, Block No. 467, at Sachin-Palsana Highway Road, at Village Palsana, Dist. Surat, given as collateral security.

c) Personal gaurantee by the Directors - Mr. Amitkumar Dalmia, Mr. Deepakkumar Dalmia, Mr. Rajkumar Borana and Mr. Ankur Borana.

Term Loan(s) from Kotak Mahindra Bank Ltd are secured by way of:

a) Offering Collateral Security in the form of registered mortage of Residential Plot in the name of Director and his Spouse & also personal guarantee of the Director namely Mr. Amitkumar Dalmia, Mr. Deepak Dalmia, Mr. Rajkumar Borana & Mr. Ankur Borana.

** Cash Credit facility

From The Cosmos Co-op Bank Ltd & Axis Bank Ltd are secured by,

a) charge on all Current Assets of the Company & Pari Passu charges on the Facory Land & Building, in the name of Director''s of the Company namely Mr. Amitkumar Dalmia, Mr. Deepak Dalmia, Mr. Rajkumar Borana & Mr. Ankur Borana and also their respective Personal Guarantee.

Current maturities of term loans amounting to Rs. 716.15 on March 31, 2023 (Rs. 672.42 on March 31, 2022 March 31, 2021 and March 31, 2020 Rs 739.12 and 199.8 respectively) is classified under "Other Current Financial Liabilities".

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected beneft obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Risks associated with defined benefit plan

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Company has to manage pay- out based on pay as you go basis from own funds.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

---

Mar 31, 2018

1) THE COMPANY OVERVIEW:

R & B Denims Ltd. is a Public Limited Listed Company incorporated and domiciled in India. The address of its registered office is R & B Denims Limited, Block No. 467, Palsana-Sachin Highway, Gujarat, India. The Company is engaged in the business of manufacturing and sale of quality Denim Textile products. The company caters both domestic and international markets.

2) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

Statement of compliance and basis of preparation

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS)prescribed under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules as amended from time to time, the provisions of the Companies Act, 2013 (“the Companies Act”) as applicable and guidelines issued by the Securities and Exchange Board of India (“SEBI”).

Up to the year ended March 31, 2017, the company prepared its financial statements in accordance with the requirements of the Indian GAAP (“Previous GAAP”), which included Standards notified under the Companies (Accounting Standards) Rules, 2006. The date of transition to Ind AS is April 01, 2016.

Accounting policies have been applied consistently to all periods presented in these financial statements.

The financial statements correspond to the classification provisions contained in Ind AS 1 “Presentation of Financial Statements”. For clarity, various items are aggregated in the statements of profit and loss and balance sheet. These items are disaggregated separately in the notes to the financial statements, where applicable.

All amounts included in the financial statements are reported in lakhs of Indian rupees except share and per share data, unless otherwise stated. Due to rounding off, the numbers presented throughout the document may not add up precisely to the totals and percentages may not precisely reflect the absolute figures.

Basis of measurement

These financial statements have been prepared on a historical cost convention and on an accrual basis, except for the following material items which have been measured at fair value as required by relevant Ind AS;

- The defined benefit asset(liability) is as the present value of defined benefit obligation less fair value of plan assets and

- Financial instruments classified as fair value through profit or loss.

Use of estimates and judgment

The preparation of the financial statements in accordance with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgment in applying accounting policies that have the most significant effect on the amounts recognized in financial statements are included in the following notes:

- Useful lives of Property, plant and equipment [Note M]

- Measurement of defined benefit obligations [Note D]

- Provision for inventories [Note J]

- Measurement and likelihood of occurrence of provisions and contingencies [Note Q]

- Deferred taxes [Note E]

3) RECENT ACCOUNTING DEVELOPMENTS

Standards issued but not yet effective:

In March 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendment) Rules, 2018, issuing Ind AS 115, Revenue from Contracts with Customers. The standard is applicable from April 01, 2018. The Corresponding Ind AS 18, ‘Revenue’ and Ind AS 11, ‘Construction Contract’ have been omitted. Relevant amendments have been made to Ind AS 101, 103, 104, 107, 109, 112, 1, 2, 8, 12, 16, 17, 21, 23, 28, 32, 34, 36, 37, 38 and 40.

The Company has not applied these amendments since they are effective for periods beginning on or after April 01, 2018.

4) FIRST TIME ADOPTION OF IND AS

These are the Company’s first financial statements prepared in accordance with Ind AS.

The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from April 01, 2017 with a transition date of April 1, 2016. These financial statements for the year ended March 31, 2018 are the first the Company has prepared under Ind AS. For all period’s upto and including the year ended 31st March, 2017, the Company prepared its financial statements in accordance with the previously applicable Indian GAAP (previous GAAP).

The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements be applied retrospectively and consistently for all financial years presented. Accordingly, the Company has prepared financial statements which comply with Ind AS for year ended 31st March 2018, together with the comparative information as at and for the year ended 31st March 2017. The Company’s opening Ind AS Balance Sheet has been prepared as at 1st April, 2016, the date of transition to Ind AS.

In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act.

An explanation of how the transition from previous GAAP to Ind AS has affected the Company financial position, financial performance and cash flows is set out in the following tables and notes

I. Optional Exemptions from retrospective application

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions.

(a). Deemed cost of property, plant and equipment.

Ind AS 101 permits a first time adopter to elect to continue with the carrying values for all of its Property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. Accordingly, the Company has opted to consider the carrying value for all of its Property, plant and equipments as recognised in its previous GAAP financials as its deemed cost at the transition date.

(b) Fair value of financial assets and financial liabilities

Ind AS 101 permits a first time adopter to apply requirement of Ind AS 109 prospectively to transactions entered into on or after the date of transition. Accordingly the company has opted to consider the measurement of financial assets and liabilities arisen before the date of transition of Ind AS as per previous GAAP.

II. Mandatory Exceptions to retrospective application

(a). Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies).

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 01, 2016, the date of transition to Ind AS and as of March 31, 2017.

(b). Classification and measurement of financial assets

The classification of financial assets to be measured at cost or fair value made on the basis of the facts and circumstances that existed on the date of transition to Ind AS.

III. Transition to Ind AS - Reconciliations

The following reconciliations provide the explanations and quantification of the differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101:

i. Reconciliation of Statement of Profit and Loss for the year ended 31st March, 2017.

ii. Adjustments to Statement of Cash Flows for the year ended 31st March, 2017.

Previous GAAP figures have been reclassified/regrouped wherever necessary to conform to Standalone financial statements prepared under Ind AS.

Notes to reconciliation

1) Re-measurement of defined benefit obligations :

Under the Previous GAAP, actuarial gains and losses on defined benefit obligations were recognized in the statement of profit and loss. Under Ind AS, these are recognized in other comprehensive income. This difference has resulted in an increase in net income for the year ended March 31, 2016. However, the same does not result in difference in equity or total comprehensive income.

2) Difference in current tax expense :

Tax adjustments include deferred tax impact on account of differences between Previous GAAP and Ind AS.

Trade receivables are due neither from directors or other officers of the company either severally or jointly neither with any other person nor from firms or private companies respectively in whom any director is a partner, a director or a member.

*These deposits can be withdrawn by the Company at any time without prior notice and without any penalty on the principal.

*Term loan(s) from Cosmos Co-Op Bank Limited are secured by way of:

a) Hypothecation of existing plant and machineries.

b) Factory Land (lease hold), along with construction thereon made by the company, situated at Revenue Survey 446, Block No. 467, at Sachin-Palsana Highway Road, at Village Palsana, Dist. Surat, given as collateral security.

c) Personal guarantee by the Directors - Mr. Amitkumar Dalmia, Mr. Deepakkumar Dalmia, Mr. Rajkumar Borana and Mr. Ankur Borana.

Current maturities of term loans amounting to Rs. 824.92 (March 31, 2017 and April 01, 2016: Rs 824.92 and Rs 521.67 respectively are classified under “Other Current Financial Liabilities”.

Provision for employee benefits includes gratuity liability. Provision for other taxes includes liability related to Income tax and Indirect Taxes. The timing of cash outflows in respect of other provisions cannot be reasonably determined.

(c) Defined benefit plans - Gratuity:

The Company has a defined benefit gratuity plan in India (unfunded). The company’s defined benefit gratuity plan is a final salary plan for employees.

Gratuity is paid from company as and when it becomes due and is paid as per company scheme for Gratuity.

During the year, the company has changed the benefit scheme in line with Payment of Gratuity Act, 1972 by increasing monetary ceiling from 10 lakhs to 20 lakhs. Change in liability (if any) due to this scheme change is recognised as past service cost.

The Company’s obligation in respect of the gratuity plan is provided for based on actuarial valuation using the projected unit credit method. The Company recognizes actuarial gains and losses immediately in other comprehensive income, net of taxes. Amount recognized in the statement of profit and loss in respect of gratuity cost (defined benefit plan) is as follows:

Gratuity is applicable only to employees drawing a salary in Indian rupees and there are no other foreign defined benefit gratuity plans.

The principal assumptions used for the purpose of actuarial valuation are as follows:

The discount rate is based on the prevailing market yields of Indian government securities for the estimated term of the obligations. The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors. Salary escalation and attrition rate are considered as advised by the the company; they appear to be line with the industry practice considering promotion and demand & supply of the employees.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Risks associated with defined benefit plan

Gratuity is a defined benefit plan and company is exposed to the Following Risks:

Salary Risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan’s liability.

Interest rate risk:

A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision.

Asset Liability Matching Risk:

The plan faces the ALM risk as to the matching cash flow. Company has to manage pay- out based on pay as you go basis from own funds.

Mortality risk:

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Note 5 Fair Value

The fair value of cash and cash equivalents, trade receivables, borrowings, trade payables, other current financial assets and liabilities approximate their carrying amount largely due to the short-term nature of these instruments. The Company’s long term debt and investment in fixed deposit have been contracted at market rates of interest. Accordingly, the carrying value of such instruments approximates their fair value.

The fair value of investment in shares of The Cosmos Co-operative Bank Ltd. has been valued using cost approach.

The case of the Company stands pending before Customs Excise & Service Tax Appellate Tribunal (CESTAT) for payment of custom duty. The amount of custom duty involved is Rs. 193,179/- which is contingent in nature.

The case of the Company stands pending before Appellate Tribunal for the Sales Tax Penalty levied for F.Y. 2012-13. The amount of Penalty is Rs. 57,074/- which is contingent in nature.

The Appeal of the Company stands pending before Commissioner of Appeals (Income Tax) for F.Y. 201213 and F.Y. 2013-14. The amount of tax liability involved are Rs. 7,335,180/- and Rs. 18,825,700/respectively which are contingent in nature.

Note 6 Operating Lease

Future lease commitments in respect of non-cancellable leases:

Note 7 Operating Segment

The operations of the company are limited to one segment viz. Denims manufacturing.

Operating segments are defined as components of a company for which discrete financial information is available that is evaluated regularly by Chief Operating Decision Maker (“CODM”), in deciding how to allocate resources and assessing performance.

Geographical revenues are allocated based on the location of the customer. Information regarding geographical revenue is as follows:

The following customers represent 10% or more of the company’s total revenue during the year ended March 31, 2018 and March 31, 2017

Note 8 Other Additional Information

There was no employee in receipt of remuneration aggregating to Rs. 10,200,000/- or more per year or Rs. 850,000/- or more per month for the part or whole of the year. Previous year also there was no such employee.

Balances of loans, advances, Cash & Bank and Creditors & Debtors are subject to confirmation and have been taken as appeared in the books of account of the company.

The quantity and value of closing stock is certified by the management as true and correct.

In the absence of information regarding outstanding dues of MICRO or Small Scale Industrial Enterprise(s) as per The Micro, Small & Medium Enterprise Development Act, the Company has not disclosed the same as required by Schedule III to the Companies Act, 2013.

The provision of Service Tax Expense has been made in current Year is Nil. (Pre Year Rs. 279,736)

The Company is eligible for VAT subsidy under the Gujarat Textile Policy 2012 amounting to Rs. 2.3 Cr, out of which subsidy of Rs. 1.05 Cr has been received and Rs. 1.25 Cr is receivable and the same have been accounted as income during the year.

The Company is eligible for Power Tariff Subsidy under the Gujarat Textile Policy 2012 amounting to Rs. 35.62 Lacs. The same have been accounted as income during the year.

The Company is eligible for Interest Subsidy under the Technology Up-gradation Fund (TUF Scheme) amounting to Rs. 56.02 Lacs. The same have been accounted as income during the year.

Managerial remuneration paid/ payable to the Managing Director/ Directors for the period from 1st April 2017 to 31st March 2018 Rs. 30 Lacs (Previous Year Rs. 30 Lacs)

(ii) Terms and rights attached to equity shares:

The company has only one class of equity shares having face value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholder.

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Mar 31, 2017

1. The case of the Company stands pending before Customs Excise & Service Tax Appellate Tribunal (CESTAT) for payment of custom duty. The amount of custom duty involved is Rs. 193,179/- which is contingent in nature.

2. The case of the Company stands pending before Appellate Tribunal for the Sales Tax Penalty levied for F.Y. 2012-13. The amount of Penalty is Rs. 57,074/- which is contingent in nature.

3. The Appeal of the Company stands pending before Commissioner of Appeals (Income Tax) for F.Y. 2012-13 and F.Y. 2013-14. The amount of tax liability involved are Rs. 7,335,180/- and Rs. 18,825,700/- respectively which are contingent in nature

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Mar 31, 2016

Note 1. The weighted average number of equity shares outstanding at the year ended on 31st march 2016, are also adjusted for the yearend balance of share application money pending allotment, as considered potential equity shares, for calculation of Diluted Earnings per Share as per the AS 20.

2. There was no employee in receipt of remuneration aggregating to Rs. 6,000,000/- or more per year or Rs. 500,000/- or more per month for the part or whole of the year. Previous year also there was no such employee.

3. Balances of loans, advances, Cash & Bank and Creditors & Debtors are subject to confirmation and have been taken as appeared in the books of account of the company.

4. The quantity and value of closing stock is certified by the management as true and correct.

5. In the absence of information regarding outstanding dues of MICRO or Small Scale Industrial Enterprise(s) as per The Micro, Small & Medium Enterprise Development Act, the Company has not disclosed the same as required by Schedule VI to the Companies Act, 1956.

6. The provision of Service Tax Expense has been made in current of Rs. 265,497 ( Pre Year Rs. 348,989)

7. The Company, being eligible for VAT subsidy under the Gujarat Textile Policy 2012, has received subsidy amount Rs. 2.05 Cr for the F.Y. 2013-14, along with interest and the same has been accounted as income during the year. Treatment of revenue recognition has been made as per AS 9.

8. The Company, being eligible for Power Tariff Subsidy under the Gujarat Textile Policy 2012, has received subsidy for the calendar year 2015, amount for Rs. 69.51 lakhs and the same has been accounted as income during the year. Treatment of revenue recognition has been made as per AS 9.

9. The Company, being eligible for Interest Subsidy under the Technology Up gradation Fund (TUF Scheme) has received subsidy for the F.Y. 2014-15, amount for Rs. 59.00 lakhs and the same has been accounted as income during the year. Treatment of revenue recognition has been made as per AS 9.

10. The Promoter Directors and the related parties made an Open Offer to the shareholders of the Company for acquisition of 3,638,619 equity shares of the company at a price of Rs. 10/- each. The offer commenced on 22.01.2016 and tendering period closed on 05.02.2016. The open offer was complete and successful within the given dates.

11. Additional information :

a. Managerial remuneration paid/ payable to the Managing Director/ Directors for the period from 1st April 2015 to 31st March 2016 Rs. 1200 thousand (Previous Year Rs. 1200 thousand )

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Mar 31, 2015

1. There was no employee in receipt of remuneration aggregating to Rs. 60,00,000/- or more per year or Rs. 5,00,000/- or more per month for the part or whole of the year. Previous year also there was no such employee.

2. Balances of loans, advances, Cash & Bank and Creditors & Debtors are subject to confirmation and have been taken as appeared in the books of account of the company.

3. The quantity and value of closing stock is certified by the management as true and correct.

4. The quantity and value of closing stock is certified by the management as true and correct.

5. The Company has made registration under Service Tax Statute in current financial year i.e. F.Y. 2013-14. Hence the provision of Service Tax Expense has been made in current of Rs. 3,48,989 ( Pre Year Rs. 1,34,748).

6. Contingent Liability

(Rs. In Thousand)

Particulars Amount in Rs. Date of Expiry of Gaurantee

1) Guarantees in lieu of Deposit

Dakshin Gujarat Vij Company Limited, Surat 4,770.88 27/08/2016

Particulars Amount in Rs. Date of Expiry of Gaurantee 2) Performance Guarantee

Director of Foreign Trade, New Delhi 703.00 17/11/2016

Director of Foreign Trade, New Delhi 63.00 22/02/2015

Commissioner of Customs, Nhava Seva, Mumbai 13,350.00 12/07/2021

Director of Foreign Trade, New Delhi 1,272.00 21/04/2016

Director of Foreign Trade, New Delhi 280.00 25/02/2016

Commissioner of Customs, Nhava Seva, Mumbai 300.00 13/12/2021

Director of Foreign Trade, New Delhi 1,900.00 10/06/2023

Director of Foreign Trade, New Delhi 107.00 12/06/2016

Director of Foreign Trade, New Delhi 830.00 21/06/2023

Director of Foreign Trade, New Delhi 20.00 30/06/2016

Director of Foreign Trade, New Delhi 25.00 30/08/2017

Director of Foreign Trade, New Delhi 768.00 27/11/2017

Commissioner of Customs, Nhava Seva, Mumbai 50.00 08/10/2014

7. The case of Company stands pending before Deputy Commissioner of Customs, Custom Division, Surat for payment of custom duty. The amount of custom duty involved is Rs. 1,93,179/-, against which duty of Rs. 14,488 is already paid. However, no provision for the liability of remaining amount of duty has been made being contigent in nature.

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Mar 31, 2014

NOTE # 1

R&B Denims is a Limited Company incorporated in November 2010 by the RawatKhedia and the Borana group, two amongst the most influential textile houses in the polyester hub at Surat. Both of these companies have a long lineage of more than 30 years each, in the textile industry, and are very well known in their areas of expertise. The commercial production of the Company had been started in financial year 2012-13.

The Company is engaged in to the business of manufacturing and sale of quality Denim Textile Products. Today the Company is manufacturing various types of Denim ranging from 9 to 14 Oz/Sq. yd. with Open End Spun Yarns, Multi Count, Cottons and Polyester Spandex with Indigo Bottom Sulphur Toppings and Sulphar Bottom and Indigo Toppings with both Foam and Wet Finishes.

(a) Contingent Liability

(Rs. In Thousand) Amount in Date of Particulars Rs. Expiry of Gaurantee

1) Guarantees in lieu of Deposit

Dakshin Gujarat Vij Company Limited, Surat 4,770.88 27/08/2016

Dakshin Gujarat Vij Company Limited, Surat 4,549.12 21/03/2015

2) Performance Guarantee

Director of Foreign Trade, New Delhi 703.00 17/11/2014

Director of Foreign Trade, New Delhi 63.00 22/02/2015

Commissioner of Customs, Nhava Seva, Mumbai 13,350.00 12/07/2021

Director of Foreign Trade, New Delhi 1,272.00 21/04/2016

Director of Foreign Trade, New Delhi 280.00 25/02/2016

Commissioner of Customs, Nhava Seva, Mumbai 300.00 13/12/2021

Director of Foreign Trade, New Delhi 1,900.00 10/06/2023

Director of Foreign Trade, New Delhi 107.00 12/06/2016

Director of Foreign Trade, New Delhi 830.00 21/06/2023

Director of Foreign Trade, New Delhi 20.00 30/06/2016

Our Company and officers in default have filled applications u/s. 621 (a) of Companies Act, 1956 for compounding of offence u/s. 295 (Loans to Directors) & u/s. 211 (Employee Benefit) of Companies Act, 1956. However, no provision for the liability being of contigent nature have been made.