Notes to Accounts of Raghuvir Synthetics Ltd.

Mar 31, 2025

4.6 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of economic
benefits will be required to settle the obligation. If the effect of the time value of money is material,
provisions are discounted using a current pre tax rates that reflects, where appropriate, the risks
specific to the liability. Where discounting is used, the increase in the provision due to the passage
of time is recognized as a finance cost.

A provision for onerous contract is recognized when the expected benefits to be derived by the
Company from a contract are lower than the unavoidable cost of meeting its obligations under the
contract. The provision is measured at the present value of the lower of the expected cost of

terminating the contract and the expected net cost of continuing with the contract. Before a
provision is established, the Company recognizes any impairment loss on the assets associated
with the contract.

Contingent liabilities are not recognized in the standalone financial statements. A contingent asset
is neither recognized nor disclosed in the standalone financial statements.

4.7 Revenue Recognition
Revenue:

Revenue from contracts with customers is recognized when control of the goods or services are
transferred to the customer at an amount that reflects the consideration to which the Company
expects to be entitled in exchange for those goods or services. Revenue is measured at the fair
value of the consideration received or receivable, taking into account contractually defined terms
of payment and excluding taxes or duties collected on behalf of the government.

The Company has generally concluded that it is the principal in its revenue arrangements, because
it typically controls the goods or services before transferring them to the customer.

The specific recognition criteria described below must also be met before revenue is recognized.

(i) Sale of Goods Revenue from sale of goods is recognized at the point in time when control
of the asset is transferred to the customer, generally on delivery of the goods. The normal credit
term is 0 to 180 days upon delivery, usually backed by financial arrangements.

(ii) Revenue from job work processes are recognized as and when the related jobs are performed,
the cost incurred up to reporting date for the in-completed jobs are carried to balance sheet under
the head cost on job work in process.

(iii) The Company accounts for pro forma credits, refunds of duty of customs or excise, or
refunds of sales tax/ GST in the year of admission of such claims by the concerned authorities.
Benefits in respect of Export Licenses are recognized on accrual basis. Export benefits are
accounted for as other operating income in the year of export based on eligibility and when there
is no uncertainty on receiving the same

(iv) Interest Income is recognized on time proportion basis taking into account the amounts
outstanding and the rates applicable. Interest income is included under the head “other income”
in the Statement of Profit and Loss.

Contract balances:

(a) Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred
to the customer. If the Company performs by transferring goods or services to a customer
before the customer pays consideration or before payment is due, a contract asset is
recognised for the earned consideration that is conditional.

(b) Trade receivables

A receivable represents the Company’s right to an amount of consideration that is unconditional
(i.e., only the passage of time is required before payment of the consideration is due). Refer
to accounting policies of financial assets in note (i) Financial instruments - initial recognition
and subsequent measurement.

(c) Contract liabilities (Advance from customers)

A contract liability is the obligation to transfer goods or services to a customer for which the
Company has received consideration (or an amount of consideration is due) from the
customer. If a customer pays consideration before the Company transfers goods or services

to the customer, a contract liability is recognized when the payment is made or the payment
is due (whichever is earlier). Contract liabilities (Advance from customers) are recognized
as revenue when the Company performs under the contract.

4.8 Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is,
if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration.

Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership
of an asset are classified as operating leases. Rental income from operating lease is recognised
on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating
and arranging an operating lease are added to the carrying amount of the leased asset and
recognised over the lease term on the same basis as rental income. Contingent rents are recognised
as revenue in the period in which they are earned

Leases are classified as finance leases when substantially all of the risks and rewards of ownership
transfer from the Company to the lessee. Amounts due from lessees under finance leases are
recorded as receivables at the Company’s net investment in the leases. Finance lease income is
allocated to accounting periods so as to reflect a constant periodic rate of return on the net
investment outstanding in respect of the lease.

The Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for
short-term leases and leases of low-value assets. The Company recognises lease liabilities to
make lease payments and right-of-use assets representing the right to use the underlying assets.

(i) Right-of-use assets

The Company recognises right-of-use assets ("ROU Assets) at the commencement date of
the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are
measured at cost, less any accumulated depreciation and impairment losses, and adjusted
for any remeasurement of lease liabilities. The cost of right-of-use assets includes the
amount of lease liabilities recognised, initial direct costs incurred, and lease payments made
at or before the commencement date less any lease incentives received. Right-of-use
assets are depreciated on a straight-line basis over the shorter of the lease term and the
estimated useful lives of the assets.

If ownership of the leased asset transfers to the company at the end of the lease term or
the cost reflects the exercise of a purchase option, depreciation is calculated using the
estimated useful life of the asset. The right-of-use assets are also subject to impairment.
Refer to the accounting policies in 4.6 Impairment of non-financial assets.

(ii) Lease liabilities

At the commencement date of the lease, the Company recognizes lease liabilities measured
at the present value of lease payments to be made over the lease term. The lease payments
include fixed payments (including in substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on an index or a rate, and amounts
expected to be paid under residual value guarantees. The lease payments also include the
exercise price of a purchase option reasonably certain to be exercised by the Company and
payments of penalties for terminating the lease, if the lease term reflects the Company
exercising the option to terminate. Variable lease payments that do not depend on an index
or a rate are recognized as expenses (unless they are incurred to produce inventories) in
the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental
borrowing rate at the lease commencement date because the interest rate implicit in the
lease is not readily determinable. After the commencement date, the amount of lease liabilities
is increased to reflect the accretion of interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities is remeasured if there is a modification,
a change in the lease term, a change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate used to determine such lease payments)
or a change in the assessment of an option to purchase the underlying asset. Lease
liabilities has been presented under the head “Other Financial Liabilities”.

(iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases
(i.e., those leases that have a lease term of 12 months or less from the commencement date
and do not contain a purchase option). It also applies the lease of low-value assets recognition
exemption that are considered to be low value. Lease payments on short-term leases and
leases of low-value assets are recognized as expense on a straight-line basis over the lease
term.

4.9 Borrowing Costs
Borrowing costs include

(i) interest expense calculated using the effective interest rate method,

(ii) finance charges in respect of finance leases, and

(iii) exchange differences arising from foreign currency borrowings to the extent that they are
regarded as an adjustment to interest costs.

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

All other borrowing costs are recognised in the statement of profit and loss in the period in which
they are incurred.

4.10 Government Grants

Government grants are not recognised until there is reasonable assurance that the Company will
comply with the conditions attaching to them and that the grants will be received.

When the grant relates to an asset, it is treated as deferred income and released to the statement
of profit and loss over the expected useful lives of the assets concerned. When the Company
receives grants of non-monetary assets, the asset and the grant are recorded at fair value
amounts and released to statement of profit and loss over the expected useful life in a pattern
of consumption of the benefit of the underlying asset. Government grants that are receivable as
compensation for expenses or losses already incurred or for the purpose of giving immediate
financial support to the Company with no future related costs are recognised in statement of profit
and loss in the period in which they become receivable.

4.11 Employee benefits

(a) Short-term obligations

Liabilities for salaries, including other monetary and non-monetary benefits that are expected
to be settled wholly within 12 months after the end of the period in which the employees
render the related service are recognised in respect of employees’ services up to the end

of the reporting period and are measured at the amounts expected to be paid when the
liabilities are settled. The liabilities are presented as current employee benefit obligations in
the balance sheet.

(b) Post-employment obligations

The Company operates the following post-employment schemes: a) defined contribution
plans - provident fund b) defined benefit plans - gratuity plans.

(i) Defined contribution plans

The Company has defined contribution plan for the post-employment benefits namely
Provident Fund, Employees Death Linked Insurance and Employee State Insurance
and the contributions towards such funds and schemes are recognised as employee
benefits expense and charged to the Statement of Profit and Loss when they are due.
The Company does not carry any further obligations with respect to this, apart from
contributions made on a monthly basis.

(ii) Defined benefit plans

The Company has defined benefit plan, namely gratuity for eligible employees in
accordance with the Payment of Gratuity Act, 1972 the liability for which is determined
on the basis of an actuarial valuation (using the Projected Unit Credit method) at the
end of each year.

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 tenor of the related
obligation. The liability or asset recognized in the balance sheet in respect of gratuity
is the present value of the defined benefit obligation at the end of the reporting period
less the fair value of plan assets.

The service cost (including current service cost, past service cost, as well as gains
and losses on curtailments and settlements) is recognised in the Statement of profit
and loss in the line item ‘Employee benefits expense’.

Remeasurements of the net defined liability, comprising of actuarial gains and losses,
return on plan assets (excluding amounts included in net interest on the net defined
benefit liability) and any change in the effect of asset ceiling (excluding amounts
included in net interest on the net defined benefit liability), are recognised immediately
in the balance sheet with a corresponding debit or credit to retained earnings through
Other Comprehensive Income (OCI) in the period in which they occur. Remeasurements
are not reclassified to profit or loss in subsequent periods.

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

4.12 Income Taxes

Income tax expense represents the sum of the tax currently payable and deferred tax

(i) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from
‘profit before tax’ as reported in the statement of profit and loss because of items of income
or expense that are taxable or deductible in other years and items that are never taxable
or deductible. The Company’s current tax is calculated using tax rates that have been
enacted or substantively enacted by the end of the reporting period.

(ii) Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets
and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable
temporary differences. Deferred tax assets are generally recognized for all deductible
temporary differences to the extent that it is probable that taxable profits will be available
against which those deductible temporary differences can be utilized. Such deferred tax
assets and liabilities are not recognized if the temporary difference arises from the initial
recognition of assets and liabilities in a transaction that affects neither the taxable profit nor
the accounting profit.

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

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply
in the period in which the liability is settled or the asset realized, based on tax rates (and
tax laws) that have been enacted or substantively enacted by the end of the reporting
period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that
would follow from the manner in which the Company expects, at the end of the reporting
period, to recover or settle the carrying amount of its assets and liabilities.

(iii) Current and deferred tax for the year

Current and deferred tax are recognized in the Statement of profit and loss, except when
they relate to items that are recognized in other comprehensive income or directly in equity,
in which case, the current and deferred tax are also recognized in other comprehensive
income or directly in equity respectively.

4.13 Fair Value Measurement

A number of Company''s accounting policies and disclosures require the determination of fair
value, for both financial and non-financial assets and liabilities. Fair value is the price that would
be received on sell of an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. A fair value measurement assumes that the transaction
to sell the asset or transfer the liability takes place either in the principal market for the asset or
liability or in the absence of a principal market, in the most advantageous market for the asset
or liability. The principal market or the most advantageous market must be accessible to the
Company.

The fair value of an asset or liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their economic
best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability
to generate economic benefits by using the asset in its highest and best use or by selling it to
another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.

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

(a) Level 1 - Unadjusted quoted prices in active markets for identical assets and liabilities.

(b) Level 2 - Inputs other than quoted prices included within Level 1 that are observable for

the asset or liability, either directly or indirectly.

(c) Level 3 - Unobservable inputs for the asset or liability.

For assets and liabilities that are recognized in the financial statements at fair value on a recurring
basis, the Company determines whether transfers have occurred between levels in the hierarchy
by re-assessing categorization at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level
of fair value hierarchy.

Fair values have been determined for measurement and / or disclosure purposes based on the
following methods. When applicable, further information about the assumptions made in determining
fair values is disclosed in the notes specific to that asset or liability.

(a) Investment in equity and debt securities

The fair value is determined by reference to their quoted price at the reporting date. In the
absence of quoted price, the fair value of the financial asset is measured using valuation
techniques.

(b) Trade and other receivables

The fair value of trade and other receivables, is estimated as the present value of future
cash flows, discounted at the market rate of interest at the reporting date. However in
respect of such financial instruments, fair value generally approximates the carrying amount
due to short term nature of such assets.

(c) Non derivative financial liabilities

Fair Value, which is determined for disclosure purposes, is calculated based on the present
value of future principal and interest cash flows, discounted at the market rate of interest
at the reporting date. For finance leases, the market rate of interest is determined by
reference to similar lease agreements.

NOTE 17.2 RIGHTS, PREFERENCES AND RESTRICTIONS:

TThe authorised share capital of the Company has only one class of shares referred to as ‘equity shares’ having

a par value of '' 1/- each. The rights and privileges to equity shareholders are general in nature and defined under

the Articles of Association.

The equity shareholders shall have:

(i) One Vote and a poll when present in person (including a body corporate by a duly authorised representative)
or by an agent duly authorised under a power of attorney or by a proxy his voting right shall be in proportion
to his share of the paid equity share capital of the company. However, no member shall exercise any voting
rights in respect of any share registered in his name on which any calls or other sums presently payable
by him have not been paid or in regard to which the company has exercised any right of lien.

(ii) subject to the rights of person if any, entitled to share with special rights as to dividends, all dividends shall
be declared and paid according to the amount paid or credited as paid to the shares in respect where of
the dividend is paid but if and so long as nothing is paid upon any shares in the company, dividends may
be declared and paid according to the amounts of the shares.

(iii) A special resolution sanctioning a sale to any other company duly passed pursuant to section 494 of the
old Companies Act 1956 (corresponding to the section 319 of the new Companies Act 2013) may, subject
to the provision of the act, in like manner as aforesaid determined that any shares or other consideration
receivable by the liquidator be distributed against the members otherwise then in accordance with their
existing rights and any such determination shall be binding upon all the members subject to the rights of
dissent and consequential right conferred by the said section.

(a) The Company received an order under Section 45-A of the Employees’ State Insurance Act, 1948, pertaining
to the financial years 2002 to 2005, raising a demand of Rs. 25.35 lakhs. The Company has contested this
demand and initiated proceedings before the Kamdar Rajya Bima Adalat, Ahmedabad. In accordance with
the directions of the ESI Court, the Company has furnished a Bank Guarantee amounting to Rs. 13.00 lakhs.

During the previous financial year, the ESI Court directed the Company to pay Rs. 0.59 lakhs towards
contractor’s liability, which amount has been duly deposited and is reflected as a deposit in the Company’s
books as of March 31, 2024.

In the current financial year, on December 11,2024, the ESIC department instructed HDFC Bank to transfer
Rs. 90.98 lakhs (including an interest component of Rs. 65.58 lakhs) to the ESIC department. Pursuant to
this directive, HDFC Bank effected the transfer of the said amount. The Company has subsequently filed an
appeal against this directive before the High Court of Gujarat on December 16, 2024.

The total amount of Rs. 90.98 lakhs paid under protest is disclosed as “ESIC Deposit Amount Paid Under
Appeal” under Note 10 to the financial statements.

NOTE 39 - CAPITAL MANAGEMENT:

The Company manages its capital to ensure that entities in the Company will be able to continue as going
concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.
The capital structure of the Company consists of net debt (borrowings offset by cash and bank balances) and
total equity of the Company.

B. Fair value hierarchy for assets: (Contd.....)

Notes:

Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active market
for identical assets that the entity can access at the measurement date. This represents mutual funds that
have price quoted by the respective mutual fund houses and are valued using the closing Net asset value
(NAV).

Level 2 hierarchy includes the fair value of financial instruments measured using quoted prices for identical
or similar assets in markets that are not active.

Level 3 if one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted compound instruments.

There are no transfers between any of these levels during the year. The Company’s policy is to recognize
transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

C. Fair value of financial assets and liabilities measured at amortized cost:

The Management has assessed that fair value of loans, trade receivables, cash and cash equivalents, other
bank balances, other financial assets and trade payables approximate their carrying amounts largely due to
their short-term nature. Difference between carrying amount of Bank deposits, other financial assets ,
borrowings and other financial liabilities subsequently measured at amortised cost is not significant in each
of the years presented.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair
values.

D. Derivative Financial Instrument

The Company takes various types of derivative instruments. The category-wise outstanding position of
derivative instruments is as under:-

NOTE 41 - FINANCIAL RISK MANAGEMENT:

The Company’s risk management policies are established to identify and analyses the risks faced by the
Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to re?ect changes in market conditions and the Company’s activities.
The Company, through its training and management standards and procedures, aims to maintain a disciplined
and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company’s risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks
faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit
undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which
are reported to the audit committee.

(a) Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations. The company is exposed to the credit risk from its trade receivables,
unbilled revenue, investments, cash and cash equivalents, bank deposits and other financial assets. The
maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of
managing counterparty credit risk is to prevent losses in financial assets.

Allowance for Doubtful Debts

The company has provided allowance for doubtful debts based on specific amount of particular customer.
Movement in allowance for doubtful debt are as follows:

Cash and Cash Equivalents:

Credit risk on cash and cash equivalents and other deposits with banks is limited as the Company generally
invests in deposits with banks with high credit ratings assigned by external credit rating agencies; accordingly
the Company considers that the related credit risk is low. Impairment on these items is measured on the
12-month expected credit loss basis.

(b) Liquidity risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach
to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities
when they are due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Company’s reputation.

The Company’s treasury maintains flexibility in funding by maintaining liquidity through investments in liquid
funds and other committed credit lines. Management monitors rolling forecasts of the group’s liquidity
position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of
expected cash flows.

Liquidity Table

The Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment
periods is given below. The tables have been drawn up based on the undiscounted cash flows of financial
liabilities based on the earliest date on which the Company can be required to pay. The tables include both
interest and principal cash flows. The contractual maturity is based on the earliest date on which the
Company may be required to pay.

(c) Market Risk:

Market risk is the risk arising from changes in market prices - such as foreign exchange rates and interest
rates - will affect the Company’s income or the value of its holdings of financial instruments. Market risk
is attributable to all market risk sensitive financial instruments including foreign currency receivables and
payables and long term debt. The Company is exposed to market risk primarily related to foreign exchange
rate risk, interest rate risk and the market value of the investments. Thus, the exposure to market risk is
a function of investing and borrowing activities and revenue generating and operating activities in foreign
currency.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company’s exposure to the risk of changes in market
interest rates relates primarily to the Company’s debt obligations with floating interest rates and
investments.

Most of the Company’s borrowings are on a floating rate of interest. The Company has exposure to
interest rate risk, arising principally on changes in Repo Rate (except for vehicle loan and GECL loan).
The Company uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund
requirements for its day to day operations from internal accruals.

The exposures of the Company’s financial assets / liabilities at the end of the reporting period are as
follows:

The above mentioned information has been compiled to the extent of responses received by the company
from its suppliers with regard to their registration under Micro, Small and Medium Enterprises Development
Act, 2006 (MSMED Act, 2006).

(b) The company has circulated letters of Balance Confirmation to Sundry Debtors, Sundry Creditors and the
parties to whom loans and advances have been granted. Confirmations were received in some cases.

NOTE 43 - UN-HEDGED FOREIGN CURRENCY EXPOSURE:

The Company does not enter into forward exchange contracts to hedge against its foreign currency exposures
relating to the underlying transactions and firm commitments.

NOTE 44 - LEASES:

Factory Building and Godown have been taken on lease by the Company. The terms of lease rent are for the
period 30 years. Such leases are renewable by mutual consent. There is no contingent rent, no sub-leases and
no restrictions imposed by the lease arrangements.

NOTE 45:

Subsequent to the balance sheet date, the Directorate General of GST Intelligence (DGGI), Ahmedabad Zonal
Unit, had initiated search operations under Section 67 of the Central Goods and Services Tax Act, 2017, at the
registered office / factory of the company at Rakhial, Ahmedabad. The officials concluded such search operations
recently i.e. in the first quarter of financial year 2025-2026. During the period of search, the company fully
cooperated with the officials and responded to all clarifications and details sought by them. This has not impacted
the operations of the company, which have continued as usual.

Upon oral instructions of the officials, the company made a payment of Rs. 188.00 Lakhs under protest. As of
the date of signing of the financial statements for the financial year 2024-2025, the company has not received
any formal communication from the authorities. The management does not expect any adverse consequences
from these search operations on the company’s financial or operational position.

The company will recognize the requisite liability or disclose a contingent liability, if any, when such a liability
materialize upon the initiation of formal proceedings by the DGGI, Ahmedabad Zonal Units.

NOTE 46 : OTHER REGULATORY INFORMATION REQUIRED BY SCHEDULE III :

(a) Title deed of immovable property

The title deed of all the immovable properties (other than properties where the Company is the lessee and
the lease agreements are duly executed in favor of the lessee) are held in the name of the Company.

(b) Revaluation of Property, Plant and Equipment and Intangible Assets

The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and
Intangible assets.

(c) 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.

The Company have not given any loans or advances in the nature of loans to promoters, directors, KMPS
and the related partied (as defined under Companies Act, 2013), either severally or jointly with any other
person.

(d) Fair Value of Investment Property

The Company does not own any immovable property which is classified as Investment property as at the
end of the year

(e) Capital- work- in progress (CWIP)

Refer note 7 for detailed disclosure.

(f) Details of Benami Property Held

The Company does not held any benami property under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988) and the rules made thereunder. Hence any proceeding has not been initiated or pending
against the group companies for holding any benami property under the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988) and the rules made thereunder.

(g) Borrowings obtained on the basis of security of current assets

The Company does not have any sanctioned working capital limits from banks on the basis of security
of current assets.

(h) Wilful Defaulter

The Company has not been declared Wilful Defaulter by any bank or financial institution or any other lender.

(i) Relationship With Struck Off Companies

The company does not have transactions with companies struck off under section 248 of the companies
act, 2013 or section 560 of the companies act, 1956.

NOTE 46 : OTHER REGULATORY INFORMATION REQUIRED BY SCHEDULE III : (CONTD.....)

(j) Registration of Charges or Satisfaction with Registrar of Companies

The Company does not have any charges or satisfaction, which is yet to be registered with ROC beyond
the statutory period.

(k) Compliance with number of layers of companies

The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the
Companies Act read with the Companies (Restriction on number of Layers) Rules, 2017.

(l) Approved scheme of arrangements

The Company has not entered into any scheme of arrangement approved by the Competent Authority in
terms of sections 230 to 237 of the Companies Act, 2013

(m) Utilisation Of Borrowed Funds And Share Premium

(i) During the year, no funds have been advanced or loaned or invested funds (either borrowed funds
or share premium or any other sources or kind of funds) by the company to any other persons or
entities, including foreign entities with the understanding whether recorded in writing or otherwise that
the Intermediary shall 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 provide any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries.

(ii) During the year, the company has not received any fund from any persons or entities, including
foreign entities (Funding Parties) with the understanding whether recorded in writing or otherwise that
the company shall 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 provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(n) Undisclosed Income

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

(o) Details of Crypto Currency or Virtual Currency

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

Note:

1 During the current year, there is increase in turnover and profit comapred to previous year which has resulted into such
variation.

2 Return on Equity ratio is increased in net profit compared to previous year.

3 During the current year, there is increase in turnover comapred to previous year which has resulted into such variation.

4 There is significant increase in purchase compared to previous year which has resulted into such variation.

5 There is significant increase in Sales and net profit compared to previous year which has resulted into such variation.

6 Return on Investment is not calcualed as no interest is received on the investment done by the company.

NOTE 47 - CODE ON SOCIAL SECURITY, 2020:

The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post- employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India.
However, the date on which the Code will come into effect has not been notified. The company will assess the
impact of the Code when it comes into effect and will record any related impact after the Code becomes effective.

NOTE 48 - STATEMENT OF MANAGEMENT:

(a) The non current financial assets, current financial assets and other current assets are good and recoverable
and are approximately of the values, if realized in the ordinary courses of business unless and to the extent
stated otherwise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount
reasonably necessary. There are no contingent liabilities except those stated in the notes.

(b) Balance Sheet, Statement of Profit and Loss, cash flow statement and change in equity read together with
Notes to the accounts thereon, are drawn up so as to disclose the information required under the
Companies Act, 2013 as well as give a true and fair view of the statement of affairs of the Company as
at the end of the year and financial performance of the Company for the year under review.

NOTE 49:

The figures for the previous year have been regrouped / reclassified wherever necessary to make them comparable
with the figures for the current year. Figures are rounded off to nearest Lakhs.

As per our report of even date FOR AND ON BEHALF OF THE BOARD

FOR G. K. CHOKSI & CO.

[Firm Registration No. 101895W] SUNIL R. AGARWAL YASH S. AGARWAL

Chartered Accountants Chairman & MD Director

DIN:00265303 DIN : 02170408

ROHIT K. CHOKSI

Partner DEEPIKA LADHA VIKRAM GUPTA

Mem. No. 31103 Company Secretary Chief Financial Officer

Place : Ahmedabad Place : Ahmedabad

Date : 29^th May, 2025 Date : 29^th May, 2025

---

Mar 31, 2024

4.6 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre tax rates that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

A provision for onerous contract is recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognizes any impairment loss on the assets associated with the contract.

Contingent liabilities are not recognised in the standalone financial statements. A contingent asset is neither recognised nor disclosed in the standalone financial statements.

4.7 Revenue Recognition Revenue:

Revenue from contracts with customers is recognised when control of the goods or services are

transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

The Company has generally concluded that it is the principal in its revenue arrangements, because it typically controls the goods or services before transferring them to the customer.

The specific recognition criteria described below must also be met before revenue is recognized.

(i) Sale of Goods Revenue from sale of goods is recognized at the point in time when control of the asset is transferred to the customer, generally on delivery of the goods. The normal credit term is 0 to 180 days upon delivery, usually backed by financial arrangements.

(ii) Revenue from job work processes are recognized as and when the related jobs are performed, the cost incurred up to reporting date for the in-completed jobs are carried to balance sheet under the head cost on job work in process.

(iii) The Company accounts for pro forma credits, refunds of duty of customs or excise, or refunds of sales tax/ GST in the year of admission of such claims by the concerned authorities. Benefits in respect of Export Licenses are recognized on accrual basis. Export benefits are accounted for as other operating income in the year of export based on eligibility and when there is no uncertainty on receiving the same

(iv) Interest Income is recognized on time proportion basis taking into account the amounts outstanding and the rates applicable. Interest income is included under the head “other income” in the Statement of Profit and Loss.

Contract balances:

(a) Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.

(b) Trade receivables

A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in note (i) Financial instruments - initial recognition and subsequent measurement.

(c) Contract liabilities (Advance from customers)

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities (Advance from customers) are recognised as revenue when the Company performs under the contract.

4.8 Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership

of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

The Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

(i) Right-of-use assets

The Company recognises right-of-use assets ("ROU Assets) at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

If ownership of the leased asset transfers to the company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. Refer to the accounting policies in 4.6 Impairment of non-financial assets.

(ii) Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. Lease liabilities has been presented under the head “Other Financial Liabilities”.

(iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

4.9 Borrowing Costs Borrowing costs include

(i) interest expense calculated using the effective interest rate method,

(ii) finance charges in respect of finance leases, and

(iii) exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.

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

All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.

4.10 Government Grants

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received.

When the grant relates to an asset, it is treated as deferred income and released to the statement of profit and loss over the expected useful lives of the assets concerned. When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value amounts and released to statement of profit and loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset. Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related costs are recognised in statement of profit and loss in the period in which they become receivable.

4.11 Employee benefits

(a) Short-term obligations

Liabilities for salaries, including other monetary and non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

(b) Post-employment obligations

The Company operates the following post-employment schemes: a) defined contribution plans - provident fund b) defined benefit plans - gratuity plans.

(i) Defined contribution plans

The Company has defined contribution plan for the post-employment benefits namely Provident Fund, Employees Death Linked Insurance and Employee State Insurance

and the contributions towards such funds and schemes are recognised as employee benefits expense and charged to the Statement of Profit and Loss when they are due. The Company does not carry any further obligations with respect to this, apart from contributions made on a monthly basis.

(ii) Defined benefit plans

The Company has defined benefit plan, namely gratuity for eligible employees in accordance with the Payment of Gratuity Act, 1972 the liability for which is determined on the basis of an actuarial valuation (using the Projected Unit Credit method) at the end of each year.

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 tenor of the related obligation. The liability or asset recognized in the balance sheet in respect of gratuity is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets.

The service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements) is recognised in the Statement of profit and loss in the line item ‘Employee benefits expense’.

Remeasurements of the net defined liability, comprising of actuarial gains and losses, return on plan assets (excluding amounts included in net interest on the net defined benefit liability) and any change in the effect of asset ceiling (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through Other Comprehensive Income (OCI) in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

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

4.12 Income Taxes

Income tax expense represents the sum of the tax currently payable and deferred tax

(i) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

(ii) Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

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

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

(iii) Current and deferred tax for the year

Current and deferred tax are recognised in the 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 respectively.

4.13 Fair Value Measurement

A number of Company''s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair value is the price that would be received on sell of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal market or the most advantageous market must be accessible to the Company.

The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

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

(a) Level 1 - unadjusted quoted prices in active markets for identical assets and liabilities.

(b) Level 2 - Inputs other than quoted prices included within Level 1 that are observable for

the asset or liability, either directly or indirectly.

(c) Level 3 - unobservable inputs for the asset or liability.

For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and

liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of fair value hierarchy.

Fair values have been determined for measurement and / or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

(a) Investment in equity and debt securities

The fair value is determined by reference to their quoted price at the reporting date. In the absence of quoted price, the fair value of the financial asset is measured using valuation techniques.

(b) Trade and other receivables

The fair value of trade and other receivables, is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date. However in respect of such financial instruments, fair value generally approximates the carrying amount due to short term nature of such assets.

(c) Non derivative financial liabilities

Fair Value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date. For finance leases, the market rate of interest is determined by reference to similar lease agreements.

NOTE 17.2 RIGHTS, PREFERENCES AND RESTRICTIONS:

The authorised share capital of the Company has only one class of shares referred to as ‘equity shares’ having

a par value of Rs. 1/- each. The rights and privileges to equity shareholders are general in nature and defined

under the Articles of Association.

The equity shareholders shall have:

(i) One Vote and a poll when present in person (including a body corporate by a duly authorised representative) or by an agent duly authorised under a power of attorney or by a proxy his voting right shall be in proportion to his share of the paid equity share capital of the company. However, no member shall exercise any voting rights in respect of any share registered in his name on which any calls or other sums presently payable by him have not been paid or in regard to which the company has exercised any right of lien.

(ii) subject to the rights of person if any, entitled to share with special rights as to dividends, all dividends shall be declared and paid according to the amount paid or credited as paid to the shares in respect where of the dividend is paid but if and so long as nothing is paid upon any shares in the company, dividends may be declared and paid according to the amounts of the shares.

(iii) A special resolution sanctioning a sale to any other company duly passed pursuant to section 494 of the old Companies Act 1956 (corresponding to the section 319 of the new Companies Act 2013) may, subject to the provision of the act, in like manner as aforesaid determined that any shares or other consideration receivable by the liquidator be distributed against the members otherwise then in accordance with their existing rights and any such determination shall be binding upon all the members subject to the rights of dissent and consequential right conferred by the said section.

Notes:

Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active market for identical assets that the entity can access at the measurement date. This represents mutual funds that have price quoted by the respective mutual fund houses and are valued using the closing Net asset value (NAV).

Level 2 hierarchy includes the fair value of financial instruments measured using quoted prices for identical or similar assets in markets that are not active.

Level 3 if one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted compound instruments.

There are no transfers between any of these levels during the year. The Company’s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

C. Fair value of financial assets and liabilities measured at amortized cost:

The Management has assessed that fair value of loans, trade receivables, cash and cash equivalents, other bank balances, other financial assets and trade payables approximate their carrying amounts largely due to their short-term nature. Difference between carrying amount of Bank deposits, other financial assets , borrowings and other financial liabilities subsequently measured at amortised cost is not significant in each of the years presented.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

D. Derivative Financial Instrument

The Company takes various types of derivative instruments. The category-wise outstanding position of derivative instruments is as under:-

The Company’s risk management policies are established to identify and analyses the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

(a) Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The company is exposed to the credit risk from its trade receivables, unbilled revenue, investments, cash and cash equivalents, bank deposits and other financial assets. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets.

Cash and Cash Equivalents:

Credit risk on cash and cash equivalents and other deposits with banks is limited as the Company generally invests in deposits with banks with high credit ratings assigned by external credit rating agencies; accordingly the Company considers that the related credit risk is low. Impairment on these items is measured on the 12-month expected credit loss basis.

NOTE 42 - FINANCIAL RISK MANAGEMENT: (CONTD.....)

(b) Liquidity risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company’s treasury maintains flexibility in funding by maintaining liquidity through investments in liquid funds and other committed credit lines. Management monitors rolling forecasts of the group’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash fows.

(c) Market Risk:

Market risk is the risk arising from changes in market prices - such as foreign exchange rates and interest rates - will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of the investments. Thus, the exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates and investments.

Most of the Company’s borrowings are on a floating rate of interest. The Company has exposure to interest rate risk, arising principally on changes in Repo Rate (except for vehicle loan and GECL loan). The Company uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations from internal accruals.

As per Section 128 of the Companies Act, 2013 read with proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 with reference to use of accounting software by the Company for maintaining its books of accounts, the Company, in respect of financial year commencing on 1 April 2023, has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the software. Further, the audit trail has been preserved by the Company as per the statutory requirements for record retention. Furthermore, the management has ensured control over maintenance and monitoring of audit trail and its features are designed and operating effectively.

NOTE 47 : OTHER REGULATORY INFORMATION REQUIRED BY SCHEDULE III :

(a) Title deed of immovable property

The title deed of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favor of the lessee) are held in the name of the Company.

(b) Revaluation of Property, Plant and Equipment and Intangible Assets

The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible assets.

(c) 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.

The Company have not given any loans or advances in the nature of loans to promoters, directors, KMPS and the related partied (as defined under Companies Act, 2013), either severally or jointly with any other person.

(d) Fair Value of Investment Property

The Company does not own any immovable property which is classified as Investment property as at the end of the year.

(e) Capital- work- in progress (CWIP)

Refer note 7 for detailed disclosure.

(f) Details of Benami Property Held

The Company does not held any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. Hence any proceeding has not been initiated or pending against the group companies for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(g) Borrowings obtained on the basis of security of current assets

The Company does not have any sanctioned working capital limits from banks on the basis of security of current assets.

(h) Wilful Defaulter

The Company has not been declared Wilful Defaulter by any bank or financial institution or any other lender.

(i) Relationship With Struck Off Companies

The company does not have transactions with companies struck off under section 248 of the companies act, 2013 or section 560 of the companies act, 1956.

(j) Registration of Charges or Satisfaction with Registrar of Companies

The Company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period.

(k) Compliance with number of layers of companies

The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act read with the Companies (Restriction on number of Layers) Rules, 2017.

(l) Approved scheme of arrangements

The Company has not entered into any scheme of arrangement approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

(m) Utilisation Of Borrowed Funds And Share Premium

(i) During the year, no funds have been advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) by the company to any other persons or entities, including foreign entities with the understanding whether recorded in writing or otherwise that the Intermediary shall 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 provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(ii) During the year, the company has not received any fund from any persons or entities, including foreign entities (Funding Parties) with the understanding whether recorded in writing or otherwise that the company shall 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(n) Undisclosed Income

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

(o) Details of Crypto Currency or Virtual Currency

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

(p) RATIO: (CONTD.....)

Note:

1 Debt Service Coverage ratio is increased in current year as Company''s operations and profitability as increased compared to previous year.

2 Return on Equity ratio is increased in current year due to shut down of manufacturing operations in few months of Previous year.

3 Increase in ratio due to increase in closing inventories compare to previous year.

4 There is significant Increase in sales for the year under review as compared to previous year which has resulted into such variation.

5 Net Profit Ratio is Increased in current year compare to previous year as margin for sale in current year increased compare to previous year.

6 Return on capital employed ratio is increased due to increase in earning before interest and taxes as compared to previous year.

7 NA Represents "Not Applicable"

NOTE 48 - CODE ON SOCIAL SECURITY, 2020:

The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post- employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The company will assess the impact of the Code when it comes into effect and will record any related impact after the Code becomes effective.

NOTE 49 - STATEMENT OF MANAGEMENT:

(a) The non current financial assets, current financial assets and other current assets are good and recoverable and are approximately of the values, if realized in the ordinary courses of business unless and to the extent stated otherwise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably necessary. There are no contingent liabilities except those stated in the notes.

(b) Balance Sheet, Statement of Profit and Loss, cash flow statement and change in equity read together with Notes to the accounts thereon, are drawn up so as to disclose the information required under the Companies Act, 2013 as well as give a true and fair view of the statement of affairs of the Company as at the end of the year and financial performance of the Company for the year under review.

NOTE 50:

The figures for the previous year have been regrouped / reclassified wherever necessary to make them comparable with the figures for the current year. Figures are rounded off to nearest Lakhs.

As per our report of even date

FOR G. K. CHOKSI & CO. FOR AND ON BEHALF OF THE BOARD

[Firm Registration No. 101895W]

Chartered Accountants

ROHIT K. CHOKSI SUNIL R. AGARWAL YASH S. AGARWAL

Partner Chairman & MD Joint Managing Director

Mem. No. 31103 DIN: 00265303 DIN : 02170408

ADITI KHANDELWAL VIKRAM GUPTA

Company Secretary Chief Financial Officer

Place : Ahmedabad Place : Ahmedabad

Date : 28^th May, 2024 Date : 28^th May, 2024

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Mar 31, 2023

NOTE 17.2 RIGHTS, PREFERENCES AND RESTRICTIONS:

The authorised share capital of the Company has only one class of shares referred to as ‘equity shares'' having

a par value of Rs. 1/- each. The rights and privileges to equity shareholders are general in nature and defined

under the Articles of Association.

The equity shareholders shall have:

(i) One Vote and a poll when present in person (including a body corporate by a duly authorised representative) or by an agent duly authorised under a power of attorney or by a proxy his voting right shall be in proportion to his share of the paid equity share capital of the company. However, no member shall exercise any voting rights in respect of any share registered in his name on which any calls or other sums presently payable by him have not been paid or in regard to which the company has exercised any right of lien.

(ii) subject to the rights of person if any, entitled to share with special rights as to dividends, all dividends shall be declared and paid according to the amount paid or credited as paid to the shares in respect where of the dividend is paid but if and so long as nothing is paid upon any shares in the company, dividends may be declared and paid according to the amounts of the shares.

(iii) A special resolution sanctioning a sale to any other company duly passed pursuant to section 494 of the old Companies Act 1956 (corresponding to the section 319 of the new Companies Act 2013) may, subject to the provision of the act, in like manner as aforesaid determined that any shares or other consideration receivable by the liquidator be distributed against the members otherwise then in accordance with their existing rights and any such determination shall be binding upon all the members subject to the rights of dissent and consequential right conferred by the said section.

(a) The Company has received order u/s 45-A of the ESI Act 1948 for the year 2002 to 2005 raising demand of Rs. 25.35 Lacs. The company has disputed the demand raised by the corporation by filing a case in the court of Kamdar Rajya Bima Adalat, Ahmedabad and Bank Guarantee of Rs. 13.00 lakhs has been given under the direction of E.S.I Court Ahmedabad. Further in the earlier financial year ESI Court has issued order for payment of Rs. 0.59 Lacs in relation to contractor''s liability and the same has been deposited by the company and shown as deposit as on March 31, 2023._

(a) Gratuity

The Company offers gratuity plan for its qualified employees which is payable as per the requirements of Payment of Gratuity Act, 1972. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined obligation calculated with the projected unit credit method at the end of reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior year.

NOTE 38 - SEGMENT INFORMATION:

The operating segment of the company is identified to be "Manufacturing and Processing of Fabrics", as the Chief Operating Decision Maker (CODM) reviews business performance at an overall company level as one segment and hence, does not have any disclosures to be made under Ind AS 108 Operating Segments.

The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the Company consists of net debt (borrowings offset by cash and bank balances) and total equity of the Company.

Fair value hierarchy:

The following section explains the judgments and estimates made in determining the fair values of the financial instruments that are recognized and measured at fair value through profit or loss. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial investments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Notes:

Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active market for identical assets that the entity can access at the measurement date. This represents mutual funds that have price quoted by the respective mutual fund houses and are valued using the closing Net asset value (NAV).

Level 2 hierarchy includes the fair value of financial instruments measured using quoted prices for identical or similar assets in markets that are not active.

Level 3 if one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted compound instruments.

There are no transfers between any of these levels during the year. The Company''s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

C. Fair value of financial assets and liabilities measured at amortized cost:

The Management has assessed that fair value of loans, trade receivables, cash and cash equivalents, other bank balances, other financial assets and trade payables approximate their carrying amounts largely due to their short-term nature. Difference between carrying amount of Bank deposits, other financial assets , borrowings and other financial liabilities subsequently measured at amortised cost is not significant in each of the years presented.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

The Company''s risk management policies are established to identify and analyses the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

(a) Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The company is exposed to the credit risk from its trade receivables, unbilled revenue, investments, cash and cash equivalents, bank deposits and other financial assets. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets.

Cash and Cash Equivalents:

Credit risk on cash and cash equivalents and other deposits with banks is limited as the Company generally invests in deposits with banks with high credit ratings assigned by external credit rating agencies; accordingly the Company considers that the related credit risk is low. Impairment on these items is measured on the 12-month expected credit loss basis.

(b) Liquidity risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company''s treasury maintains ?exibility in funding by maintaining liquidity through investments in liquid funds and other committed credit lines. Management monitors rolling forecasts of the group''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

Liquidity Table

The Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods is given below. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

(c) Market Risk:

Market risk is the risk arising from changes in market prices - such as foreign exchange rates and interest rates - will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of the investments. Thus, the exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates and investments.

Most of the Company''s borrowings are on a floating rate of interest. The Company has exposure to interest rate risk, arising principally on changes in Repo Rate (except for vehicle loan and GECL loan). The Company uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations from internal accruals.

At the behest of Hon''ble Gujarat High Court upon a suo-moto writ petition, Ahmedabad Municipal Corporation (AMC) has undertaken a drive to disconnect effluent discharge connection of all units discharging water effluent in the sewage lines of AMC. Accordingly, the treated effluent discharge connection of the Company was disconnected on 30/11/2021. ln the city of Ahmedabad, more than 400 connections were snapped by AMC by December 2021.

As result of this, the manufacturing operations of the Company had come to a standstill. The matter was disclosed to the stock exchanges on 13/12/2021 in terms of SEBI (LoDR) Regulations. It would be relevant to note that the Company has the requisite approvals from the competent authorities to discharge industrial effluents after treating the same in its inhouse effluent treatment plant. Aggrieved by the action of AMC, The Company has already filed a civil application in the matter against this disconnection. The Hon''ble court, at Ahmedabad, has passed as order against the company which has compelled the company to install MVR Water Treatment Plant to treat and get the polluted water/effluent recycled for reuse in the production process. The company has now recommenced its production with effect from 26th September, 2022._

The above mentioned information has been compiled to the extent of responses received by the company from its suppliers with regard to their registration under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006).

(b) The company has circulated letters of Balance Confirmation to Sundry Debtors, Sundry Creditors and the parties to whom loans and advances have been granted. Confirmations were received in some cases.

NOTE 45 - UN-HEDGED FOREIGN CURRENCY EXPOSURE:

The Company does not enter into forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments.

NOTE 46 - LEASES:

Factory Building and Godown have been taken on lease by the Company. The terms of lease rent are for the period 30 years. Such leases are renewable by mutual consent. There is no contingent rent, no sub-leases and no restrictions imposed by the lease arrangements.

1. In Current year company has taken new loan which has resulted in significant increase in current liabilities. Accordingly, there is decrease in current Ratio.

2. In Current year company has taken new loan which has resulted in significant increase in Total. Accordingly there is Increase Debt Equity Ratio.

3. Debt Service Coverage ratio is decreased as earnings for debt services have been reduced during the current year as Company''s operations and profitability have been effected due to shut down of manufacturing operations in few months.

4. Return on Equity ratio is decreased as profit for the year is decreased compare to previous year, due to shut down of manufacturing operation in few months.

5. Decrease in ratio due to increase in closing inventories compare to previous year.

6. There is significant decrease in sales for the year under review as compared to previous year which has resulted into such variation.

7. There is significant increase in average creditors which has resulted into such variance

8. There is significant decrease in sales for the year under review as compared to previous year which has resulted into such variation

9. Net Profit Ratio is reduced in current year compare to previous year as margin for sale in current year reduced compare to previous year.

10. Return on capital employed ratio is being decreased as earnings before interest and taxes is being decreased as compare to previous year due to shut down of manufacturing operations for last few months.

11. NA Represents "Not Applicable"

NOTE 48 - DETAILS OF BENAMI PROPERTY HELD:

The Company does not held any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. Hence any proceeding has not been initiated or pending against the group companies for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

NOTE 49 - RELATIONSHIP WITH STRUCK OFF COMPANIES:

The company does not have transactions with companies struck off under section 248 of the companies act, 2013 or section 560 of the companies act, 1956.

NOTE 50 - REVALUATION OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS:

The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible assets.

NOTE 51 - UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM:

(a) During the year, no funds have been advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) by the company to any other persons or entities, including foreign entities with the understanding whether recorded in writing or otherwise that the Intermediary shall 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 provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(b) During the year, the company has not received any fund from any persons or entities, including foreign entities (Funding Parties) with the understanding whether recorded in writing or otherwise that the company shall 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

NOTE 52 - UNDISCLOSED INCOME:

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

NOTE 53 - DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

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

NOTE 54 - REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES:

The Company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period.

NOTE 55 - COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES:

The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act read with the Companies ( Restriction on number of Layers) Rules, 2017.

NOTE 56 - BORROWINGS OBTAINED ON THE BASIS OF SECURITY OF CURRENT ASSETS:

The Company does not have any sanctioned working capital limits from banks on the basis of security of current assets.

NOTE 57 - WILLFUL DEFAULTER

The Company has not been declared Wilful Defaulter by any bank or financial institution or any other lender.

NOTE 58 - 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.

The Company have not given any loans or advances in the nature of loans to promoters, directors, KMPS and the related partied (as defined under Companies Act, 2013), either severally or jointly with any other person.

NOTE 59 - APPROVED SCHEME OF ARRANGEMENTS

The Company has not entered into any scheme of arrangement approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

NOTE 60 - CODE ON SOCIAL SECURITY, 2020:

The Code on Social Security, 2020 (‘Code'') relating to employee benefits during employment and post- employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The company will assess the impact of the Code when it comes into effect and will record any related impact after the Code becomes effective.

NOTE 61: STATEMENT OF MANAGEMENT:

(a) The non current financial assets, current financial assets and other current assets are good and recoverable and are approximately of the values, if realized in the ordinary courses of business unless and to the extent stated otherwise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably necessary. There are no contingent liabilities except those stated in the notes.

(b) Balance Sheet, Statement of Profit and Loss, cash flow statement and change in equity read together with Notes to the accounts thereon, are drawn up so as to disclose the information required under the Companies Act, 2013 as well as give a true and fair view of the statement of affairs of the Company as at the end of the year and financial performance of the Company for the year under review.

Note 62: The figures of the previous year had been relied on the audited previous financial statements.

NOTE 63: The figures for the previous year have been regrouped / reclassified, wherever necessary, to make them comparable with the figures for the current year._

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Mar 31, 2018

Note 1 Rights, Preferences and Restrictions

The authorized share capital of the Company has only one class of shares referred to as ‘equity shares’ having a par value of Rs. 10/- each. The rights and privileges to equity shareholders are general in nature and defined under the Articles of Association.

The equity shareholders shall have:

(i) One Vote and a poll when present in person (including a body corporate by a duly authorized representative) or by an agent duly authorized under a power of attorney or by a proxy his voting right shall be in proportion to his share of the paid equity share capital of the company. However, no member shall exercise any voting rights in respect of any share registered in his name on which any calls or other sums presently payable by him have not been paid or in regard to which the company has exercised any right of lien,

(ii) subject to the rights of person if any, entitled to share with special rights as to dividends, all dividends shall be declared and paid according to the amount paid or credited as paid to the shares in respect where of the dividend is paid but if and so long as nothing is paid upon any shares in the company , dividends may be declared and paid according to the amounts of the shares.

(iii) A special resolution sanctioning a sale to any other company duly passed pursuant to section 494 of the old Companies Act 1956 (corresponding to the section 319 of the new Companies Act 2013) may, subject to the provision of the act, in like manner as aforesaid determined that any shares or other consideration receivable by the liquidator be distributed against the members otherwise then in accordance with their existing rights and any such determination shall be binding upon all the members subject to the rights of dissent and consequential right conferred by the said section.

(a) The Company has received order u/s 45-A of the ESI Act 1948 for the year 2000 to 2002 raising demand of Rs. 7.98 Lakhs. The company has disputed the demand raised by the corporation by filing a case in the court of Kamdar Rajya Bima Adalat, Ahmedabad and Rs. 3.00 Lakhs has been deposited under the direction of E.S.I Court Ahmadabad in the Registrar Industrial Court Ahmadabad.

(b) The Company has received order u/s 45-A of the ESI Act 1948 for the year 2002 to 2005 raising demand of Rs. 25.35 Lakhs. The company has disputed the demand raised by the corporation by filing a case in the court of Kamdar Rajya Bima Adalat Ahmadabad and Bank Guarantee of Rs. 13,00 Lakhs has been given under the direction of E.S.I Court Ahmadabad. Further in the earlier financial year ESI Court has issued order for payment of Rs. 58,609 in relation to contractor’s liability and the same has been deposited by the company and shown as deposit as on 31^s1 March, 2018.

Note 37: Employee Benefits

Note 2 Defined contribution plan

The Company has defined contribution plan in form of Provident Fund & Pension Scheme and Employee State Insurance Scheme for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The total expense recognized in the Statement of profit and loss under employee benefit expenses in respect of such schemes are qiven below:

Note 3 Defined benefit plan

(a) Gratuity

The Company offers gratuity plan for its qualified employees which is payable as per the requirements of Payment of Gratuity Act, 1972. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions

Note 4: Segment Information

The company operates in a solitary business segment i.e. textile business. Accordingly no further financial information for business segment is required to be given under the Ind AS 108 "Operating Segments’¹ are not applicable.

Note 5: Related Party Disclosure

Note 6: Related Party Disclosures for the year ended March 31, 2018

(a) Details of Related Parties

Sr. Name of Related Parties Description of Relationship

No.

1 Sunil R. Agarwal

2 Yash S. Agarwal Key Management Personnel

3 Hardik S. Agarwal _

4 Raghuvir Exim Ltd. Enterprise over which key management personnel

5 The Sagar Textiles Mills Pvt. Ltd. exercise significant influence by controlling interest.

6 Raghuvir Research Foundation Trust

7 Raghukaushal Textile Pvt. Ltd. Enterprise over which relatives of key management

8 Raahuvir Life Stvle Pvt. Ltd. personnel exercise significant influence.

Fair value hierarchy

The following section explains the judgments and estimates made in determining the fair values of the financial instruments that are recognized and measured at fair value through profit or loss. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial investments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Notes:

Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active market for identical assets that the entity can access at the measurement date. This represents mutual funds that have price quoted by the respective mutual fund houses and are valued using the closing Net asset value (NAV).

Level 2 hierarchy includes the fair value of financial instruments measured using quoted prices for identical or similar assets in markets that are not active.

Level 3 if one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted compound instruments.

There are no transfers between any of these levels during the year. The Company''s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

C. Fair value of financial assets and liabilities measured at amortized cost

The Management has assessed that fair value of loans, trade receivables, cash and cash equivalents, other bank balances, other financial assets and trade payables approximate their carrying amounts largely due to their short-term nature. Difference between carrying amount of Bank deposits, other financial assets, borrowings and other financial liabilities subsequently measured at amortized cost is not significant in each of the years presented.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Note 7: Financial risk management

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board has established the Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The Committee holds regular meetings and report to board on its activities.

The Company’s risk management policies are established to identify and analyses the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to re?ect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

(a) Credit Risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The company is exposed to the credit risk from its trade receivables, unbilled revenue, investments, cash and cash equivalents, bank deposits and other financial assets. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets.

Cash and Cash Equivalents

Credit risk on cash and cash equivalents and other deposits with banks is limited as the Company generally invests in deposits with banks with high credit ratings assigned by external credit rating agencies; accordingly the Company considers that the related credit risk is low. Impairment on these items is measured on the 12-month expected credit loss basis.

(b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company’s treasury maintains flexibility in funding by maintaining liquidity through investments in liquid funds and other committed credit lines. Management monitors rolling forecasts of the group’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

Liquidity Table

The Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods is given below. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

^A Borrowings are disclosed net of processing charges.

(c) Market Risk

Market risk is the risk arising from changes in market prices - such as foreign exchange rates and interest rates - will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of the investments. Thus, the exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency.

(i) Currency Risk

The Company is exposed to currency risk on account of foreign currency transactions including recognized assets and liabilities denominated in a currency that is not the Company’s functional currency (''), primarily in respect of US$, and Euro. The Company ensures that the net exposure is kept to an acceptable level and is remain a net foreign exchange earner.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates and investments

Most of the Company’s borrowings are on a floating rate of interest. The Company has exposure to interest rate risk, arising principally on changes in Marginal Cost of Funds based Lending Rate (MCLR). The Company uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like short term credit lines besides internal accruals.

The exposures of the Company’s financial assets / liabilities at the end of the reporting period are as follows:

Interest rate risk sensitivity:

The below mentioned sensitivity analysis is based on the exposure to interest rates for floating rate borrowings For this it is assumed that the amount of the floating rate liability outstanding at the end of the reporting period was outstanding for the whole year. If interest rate had been 50 basis points higher or lower,

other variables being held constant, following is the impact on profit.

Note: 8 First time adoption of IND AS

The Company has prepared the opening balance sheet as per Ind AS as of April 1, 2016 (the transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of asset liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS required under Ind AS, and applying Ind AS in measurement of recognized assets and liabilities. However. subject to the certain mandatory exceptions under Ind AS 101 and certain optional exemptions permitted under Ind AS 101 availed by the Company as detailed below:

1 Mandatory exceptions to retrospective application of other Ind AS

⁽³⁾ An 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 differences in accounting policies) unless there is an objective evidence that those estimates were in error.

The company has not made any changes to estimates made in accordance w.th Previous GAAP.

(b) Ind AS 109 - Financial Instruments (Derecognition of previously recognized Financial Assets/ Financial

An entity shall apply the derecognition requirements in Ind AS 109 prospectively for the transactions occurring on or after date of transition to Ind AS.

The Company has applied the derecognition requirements prospectively.

(c) Ind AS 109 "Financial Instruments” (Classification and Measurement of Financial Assets/ Financial Liabilities) Classification and measurement of Financial Assets shall be made on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

The Company has evaluated the facts and circumstances existing on the date of transition to Ind AS for the purpose of classification and measurement of Financial Assets and accordingly has classified and measured financial assets on the date of transition

(d) Ind AS 109 “Financial Instruments" (Impairment of Financial Assets): Impairment requirements under Ind AS 109 should be applied retrospectively based on reasonable and supportable information that is available on the date of transition without undue cost or effort

The Company has not recognized any impairment of financial asset during the year.

2 Optional exemptions

(a) Deemed cost for property and plant and equipment

Ind AS 101 permits a first-time adopter to opt to continue with the carrying value for all of its property, plant and equipment as recognized 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 de-commissioning liabilities.

Accordingly, the Company has opted to measure all of its property, plant and equipment at their previous GAAP carrying value

The company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). The above mentioned information has been compiled to the extent of responses received by the company from its suppliers with regard to their registration under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006).

(b) The company has circulated letters of Balance Confirmation to Sundry Debtors, Sundry Creditors and the parties to whom loans and advances have been granted. Confirmations were received in some cases.

Note 9: Statement of Management

(a) The non current financial assets, current financial assets and other current assets are good and recoverable and are approximately of the values, if realized in the ordinary courses of business unless and to the extent stated otherwise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably necessary. There are no contingent liabilities except those stated in the notes.

(b) Balance Sheet, Statement of Profit and Loss, cash flow statement and change in equity read together with Notes to the accounts thereon, are drawn up so as to disclose the information required under the Companies Act, 2013 as well as give a true and fair view of the statement of affairs of the Company as at the end of the year and financial performance of the Company for the year under review.

Note 10: The figures for the previous year have been regrouped I reclassified, wherever necessary, to make them comparable with the figures for the current year.

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Mar 31, 2015

1. Rights, Preferences and Restrictions

The authorised share capital of the Company has only one class of shares referred to as 'equity shares' having a par value of Rs. 10/- each. The rights and privileges to equity shareholders are general in nature and defined under the Articles of Association.

The equity shareholders shall have:

(i) One Vote and a poll when present in person (including a body corporate by a duly authorised representative) or by an agent duly authorised under a power of attorney or by a proxy his voting right shall be in proportion to his share of the paid equity share capital of the company. However, no member shall exercise any voting rights in respect of any share registered in his name on which any calls or other sums presently payable by him have not been paid or in regard to which the company has exercised any right of lien,

(ii) subject to the rights of person if any, entitled to share with special rights as to dividends, all dividends shall be declared and paid according to the amount paid or credited as paid to the shares in respect where of the dividend is paid but if and so long as nothing is paid upon any shares in the company , dividends may be declared and paid according to the amounts of the shares.

(iii) A special resolution sanctioning a sale to any other company duly passed pursuant to section 494 of the act may, subject to the provision of the act, in like manner as aforesaid determined that any shares or other consideration receivable by the liquidator be distributed against the members otherwise then in accordance with their existing rights and any such determination shall be binding upon all the members subject to the rights of dissent and consequential right conferred by the said section.

2. Contingent Liabilities and Capital commitments

[Amount in Rs.]

Particulars 2014-2015 2013-2014

Contingent Liabilities

* Bank Guarantee NIL 5,00,000

* Claims not acknowledged as debts - ESI

[See note no. 32 (a)] 4,97,990 4,97,990

[See note no. 32 (b)] 25,34,922 25,34,922

* Claims Related to employees pending with Hon'ble Supreme Court of India 3,00,000 3,00,000

* Pending export obligations liability on account of Excise Duty on Procurement 1,30,26,531 78,54,185 of Machinery

* Demand under Textile committee (Cess) 12,33,153 12,33,153 Rules 1975

* Demand under Central Excise 13,80,542 13,80,542

Capital Commitments

* Estimated amount of contracts remaining to be executed on capital account and not NIL 15,00,000 provided for

* Other commitments NIL NIL

(a) The Company has received order u/s 45-A of the ESI Act 1948 for the year 2000 to 2002 raising demand of Rs. 7 97 990/-. The company has disputed the demand raised by the corporation by filing a case in the court of Kamdar Rajya Bima Adalat, Ahmedabad and Rs. 3,00,000/- has been deposited under the direction of E.S.I Court Ahmedabad in the Registrar Industrial Court Ahmedabad.

(b) The Company has received order u/s 45-A of the ESI Act 1948 for the year 2002 to 2005 raising demand of Rs. 25,34,922/-. The company has disputed the demand raised by the corporation by filing a case in the court of Kamdar Rajya Bima Adalat Ahmedabad and Bank Guarantee of Rs. 13,00,000/- has been given under the direction of E.S.I Court Ahmedabad.

3. Employee Benefits

(a) Defined contribution to provident fund employee state insurance fund and Employees Death Linked Insurance

The Company makes contribution towards Employees' Provident Fund Employee State Insurance fund and Employees Death Linked Insurance. In accordance with the provisions of these schemes the Company is required to contribute a specified percentage of payroll costs. The Company has during the year recognized the sum of Rs. 6,85,612 (March 31 2014: Rs. 5,51,248) as expense towards contributions to these plans.

(b) Defined Contribution Benefit Plans (Gratuity)

The following table sets out the status of the gratuity plans as at 31st March, 2015.

4. The company operates in a solitary business segment i.e. textile business. Accordingly no further financial information for business segment is required to be given.

5. Related Party Disclosures

As required by accounting standard - AS 18 "Related Parties Disclosure" issued by The Institute of Chartered Accountants of India are as follows:

(a) List of related parties with whom transactions have taken place during the year and relationship:

Sr.No. Name of related party Relationship

1 Sunil R. Agarwal

2 Yash S. Agarwal Key Management Personnel

3 Hardik S. Agarwal

4 Raghuvir Exim Limited Enterprise over which key 5 The Sagar Textiles Mills management personnel exercise Pvt. Ltd. significant influence by controlling interest.

6 Raghukaushal Textile Pvt. Ltd. Enterprise over which relatives of key management

7 Raghuvir Life Style Pvt. Ltd. personnel exercise significant influence.

6. Assets retired from active use amounting to Rs. 4,02,05,150/- (P.Y. Rs. 4,08,82,000/-) being assets retired from active use on which depreciation has not been charged from the date of retirement.

7. Balances of sundry creditors sundry debtors loans and advances and amounts due to sundry debtors are subject to confirmations and reconciliation if any by the respective parties.

8. Pursuant to section 203 of The Companies Act, 2013("the act"), every listed company is required to appoint whole time Key Managerial Personnel as referred at section 2(51) of the act. During the current financial year the company has made sincere attempt to recruit such personnel through advertisement in print media however the company could not found the Company Secretary and the company is still in process of appointing the same.

9. Previous year figures have been regrouped, reclassified and reworked wherever necessary for comparative purpose.

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Mar 31, 2014

Explanatory Notes to Cash Flow Statement

1 The Cash Flow Statement is prepared in accordance with the format prescribed by Securites and Exchange Board of India & as Accounting Standard 3 as Prescribed by the Institute of Chartered Accountants of India.

2 In Part A of the Cash Flow Statements, figures in brackets indicates deductions made from the net profit for deriving the cash flow from operating activities. In part B & part C, figures in brackets indicates cash outflows.

3 Figures of the previous year have been regrouped wherever necessary,to confirm to current years presentation.

[Amount in Rs.] Particulars 2013-2014 2012-2013

Contingent Liabilities

- Bank Guarantee 5,00,000 —

- Claims not acknowledged as debts - ESI [See note no. 2.32 (a)] 4,97,990 4,97,990

[See note no. 2.32 (b)] 25,34,922 25,34,922

- Claims Related to employees pending with Hon''ble Supreme Court of India 3,00,000 3,00,000

- Pending export obligations liability on account of Excise Duty on

Procurement of Machinery 78,54,185 54,15,061

- Demand under Textile committee (Cess) Rules 1975 12,33,153 —

Capital Commitments

- Estimated amount of contracts remaining to be executed on capital account and not provided for 15,00,000 50,00,000

- Other commitments NIL NIL

3.2 (a) The Company has received order u/s 45-A of the ESI Act 1948 for the year 2000 to 2002 raising demand of Rs. 7 97 990/-. The company has disputed the demand raised by the corporation by filing a case in the court of Kamdar Rajya Bima Adalat, Ahmedabad and Rs. 3,00,000/- has been deposited under the direction of E.S.I Court Ahmedabad in the Registrar Industrial Court Ahmedabad.

(b) The Company has received order u/s 45-A of the ESI Act 1948 for the year 2002 to 2005 raising demand of Rs. 25,34,922/-. The company has disputed the demand raised by the corporation by filing a case in the court of Kamdar Rajya Bima Adalat Ahmedabad and Bank Guarantee of Rs. 13,00,000/- has been given under the direction of E.S.I Court Ahmedabad.

3.3 Employee Benefits

(a) Defined contribution to provident fund employee state insurance fund and Employees Death Linked Insurance

The Company makes contribution towards Employees'' Provident Fund Employee State Insurance fund and Employees Death Linked Insurance. In accordance with the provisions of these schemes the Company is required to contribute a specified percentage of payroll costs. The Company has during the year recognized the sum of Rs. 5.51 lacs (March 31 2013: Rs. 6.25 lacs) as expense towards contributions to these plans.

3.4 The company operates in a solitary business segment i.e. textile business. Accordingly no further financial information for business segment is required to be given.

3.5 Related Party Disclosures

As required by accounting standard - AS 18 "Related Parties Disclosure" issued by The Institute of Chartered Accountants of India are as follows:

Note : 1. The particulars given above have been identified on the basis of information available with the company 2. Figures in brackets relate to previous year.

3.6 Assets retired from active use amounting to Rs. 4,08,82,000/- (P.Y. Rs. 1,71,82,000/-) being assets retired from active use on which depreciation has not been charged from the date of retirement.

3.7 Balances of sundry creditors sundry debtors loans and advances and amounts due to sundry debtors are subject to confirmations and reconciliation if any by the respective parties.

3.8 Previous year figures have been regrouped, reclassified and reworked wherever necessary for comparative purpose.

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Mar 31, 2013

1.1 (a) The Company has received order u/s 45-A of the ESI Act 1948 for the year 2000 to 2002 raising demand of Rs. 7 97 990/-. The company has disputed the demand raised by the corporation by filing a case in the court of Kamdar Rajya Bima Adalat, Ahmedabad and Rs. 3,00,000/- has been deposited under the direction of E.S.I Court Ahmedabad in the Registrar Industrial Court Ahmedabad.

(b) The Company has received order u/s 45-A of the ESI Act 1948 for the year 2002 to 2005 raising demand of Rs. 25,34,922/-. The company has disputed the demand raised by the corporation by filing a case in the court of Kamdar Rajya Bima Adalat Ahmedabad and Bank Guarantee of Rs. 13,00,000/- has been given under the direction of E.S.I Court Ahmedabad.

1.2 Employee Benefits

(a) Defined contribution to provident fund employee state insurance fund and Employees Death Linked Insurance

The Company makes contribution towards Employees'' Provident Fund Employee State Insurance fund and Employees Death Linked Insurance. In accordance with the provisions of these schemes the Company is required to contribute a specified percentage of payroll costs. The Company has during the year recognized the sum of Rs. 6.25 lacs (March 31 2012: Rs. 3.60 Lacs) as expense towards contributions to these plans.

1.3 The company operates in a solitary business segment i.e. textile business. Accordingly no further financial information for business segment is required to be given.

1.4 Related Party Disclosures

As required by accounting standard -AS 18 "Related Parties Disclosure" issued by The Institute of Chartered Accountants of India are as follows:

1.5 Assets.retired from active use amounting to Rs. 1,71,82,000/-(P.Y. Rs. 1,79,07,000/-) being assets retired from active use on which depreciation has not been charged.

1.6 Balances of sundry creditors sundry debtors loans and advances and amounts due to sundry debtors are subject to confirmations and reconciliation if any by the respective parties.

1.7 Previous year figures have been regrouped, reclassified and reworked wherever necessary for comparative purpose.

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Mar 31, 2012

(a) Rights, Preferences and Restrictions

The authorised share capital of the Company has only one class of shares referred to as ''equity shares'' having a par value of Rs. 10/- each. The rights and privileges to equity shareholders are general in nature and defined under the Articles of Association.

The equity shareholders shall have :

(i) One Vote and a poll when present in person (including a body corporate by a duly authorised representative) or by an agent duly authorised under a power of attorney or by aproxy his voting right shall be in proportion to his share of the paid equity share capital of the company. However, no member shall exercise any voting rights in respect of any share registered in his name on which any calls or other sums presently payable by him have not been paid or in regard to which the company has exercised any right of lien,

(ii) subject to the rights of person if any, entitled to share with special rights as to dividends, all dividends shall be declared and paid according to the amount paid or credited as paid to the shares in respect where of the dividend is paid but if and so long as nothing is paid upon any shares in the company, dividends may be declared and paid according to the amounts of the shares.

(iii) A special resolution sanctioning a sale to any other company duly passed pursuant to section 494 of the act may, subject to the provision of the act, in like manner as aforesaid determined that any shares or other consideration receivable by the liquidator be distributed against the members otherwise then in accordance with their existing rights and any such determination shall be binding upon all the members subject to the rights of dissent and consequential right conferred by the said section.

1.1 Contingent Liabilities and Capital Commitments

Particulars 2011-2012 2010-2011 Amount (Rs.) Amount (Rs.)

1. Claims not acknowledged as debts - Excise Duty 4,73,162 4,73,162 (See note no. 2.30)

2. Claims not acknowledged as debts - ESI 33,32,912 33,32,912 (See note no. 2.30)

3. Claims related to employees pending with honeble highcourt of Gujarat 3,00,000 -

1.2 (i) The company had received a show cause notice dated 25/06/199.9 from excise authorities for Rs. 4,73,162/- (including Rs. 10,892/- interest) on 30/06/1999. The company has disputed the same by filing a reply with the Central Excise Department. Against this reply, the Excise Department sent another notice vide their letter no. 54/15-96/Demand/99, dtd.22/ 6/2000. This new notice was also disputed by the company and an appeal against the same is filed by the company with the commissioner of Central Excise (Appeals) Ahmedabad on 25/07/2000. The matter is still pending with Excise Authority.

(ii) (a) The Company has received order u/s 45-A of the ESI Act, 1948, for the year 2000 to 2002 raising demand of Rs. 7,97,990/-. The company has disputed the demand raised by the corporation by filing a case in the court of Kamdar Rajya Bima Adalat, Ahmedabad and Rs 3,00,000/- has been deposited under the direction of E.S.I Court, Ahmedabad in the Registrar, Industrial Court Ahmedabad.

(b) The Company has received order u/s 45-A of the ESI Act, 1948, for the year 2002 to 2005 raising demand of Rs. 25,34,922/-. The company has disputed the demand raised by the corporation by filing a case in the court of Kamdar Rajya Bima Adalat, Ahmedabad and Bank Guarantee of Rs. 13,00,000/- has been given under the direction of E.S.I Court, Ahmedabad.

1.3. Employee Benefits

(a) Defined contribution to provident fund, employee state insurance fund and Employees Death Linked Insurance

The Company makes contribution towards Employees'' Provident Fund, Employee State Insurance fund and Employees Death Linked Insurance. In accordance with the provisions of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company has, during the year, recognized the sum of Rs. 3.60 lacs (March 31, 2011: Rs.2.81 Lacs) as expense towards contributions to these plans.

(b) Defined contribution benefit plan (Gratuity)

The following table sets out the status of the gratuity plans as at 31st March, 2012.

1.4 The company operates in a solitary business segment i.e. textile business. Accordingly, no further financial information for business segment is required to be given.

1.5 Assets retired from active use amounting to Rs. 1,75,07,000 (P.Y. Rs. 1,78,57,000) being assets retired from active use on which depreciation has not been charged.

1.6 Balances of unsecured loans, sundry creditors, sundry debtors, loans and advances and amounts due to sundry debtors are subject to confirmations and reconciliation if any, by the respective parties.

1.7 In the absence of necessary information relating to the suppliers registered as Micro, Small and Medium enterprises under the Micro, Small and Medium Enterprises (Development) Act, 2006, the company has not been able to identify such suppliers and the information required under the said Act could not be complied and disclosed.

1.8 The financial statements for the year ended 31st March,2011 had been prepared as pee the then applicable pre-revised Schedule VI to the companies Act, 1956. Consequent to the notification to the Revised Schedule VI under the companies Act,1956, the financial statement for the year ended 31st March, 2012 are prepared as per the Revised Schedule VI. According to previous year figures have also been reclassified to conform this year''s classification.

As per our attached Report of even date.

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Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advance) Rs.NIL (Previous Year Rs. 2173120/-).

2. Contingent Liabilities not provided for:

[Amount in Rs.]

Particulars 2010-2011 2009-2010

1. Claims not acknowledged as debts- Excise Duty 4,73,162 4,73,162 (See note no. 3(i))

2. Claims not acknowledged as debts - ESI 33,32,912 33,32,912 (See note no. 3 (ii)(a) & (b))

3. (i) The company had received a show cause notice dated 25/06/1999 from excise authorities for Rs. 4,73,162/- (including Rs. 10,892/- interest) on 30/06/1999. The company has disputed the same by filing a reply with the Central Excise Department. Against this reply, the Excise Department sent another notice vide their letter no. 54/15- 96/Demand/99, dtd.22/6/2000. This new notice was aiso disputed by the company and an appeal against the same is filed by the company with the commissioner of Central Excise (Appeals) Ahmedabad on 25/07/2000. The matter is still pending with Excise Authority.

(ii) (a) The Company has received order u/s 45-A of the ESI Act, 1948, for the year 2000 to 2002 raising demand of Rs. 7,97,990/-. The company has disputed the demand raised by the corporation by filing a case in the court of Kamdar Rajya Bima Adalat, Ahmedabad and Rs 300000/- has been deposited under the direction of E.S.I Court, Ahmedabad in the Registrar, Industrial Court Ahmedabad.

(b) The Company has received order u/s 45-A of the ESI Act, 1948, for the year 2002 to 2005 raising demand of Rs. 25,34,922/-. The company has disputed the demand raised by the corporation by filing a case in the court of Kamdar Rajya Bima Adalat, Ahmedabad and Bank Guarantee of Rs. 1300000/- has been given under the direction of E.S.I Court, Ahmedabad.

4. Employee Benefits

(a) Defined contribution to provident fund, employee state insurance fund and Employees Death Linked Insurance

The Company makes contribution towards Employees' Provident Fund, Employee State Insurance fund and Employees Death Linked Insurance. In accordance with the provisions of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company has, during the year, recognized the sum of Rs. 2.81 lacs (March 31, 2010: Rs.2.72 Lacs) as expense towards contributions to these plans.

5. The company operates in a solitary business segment i.e. textile business. Accordingly, no further financial information for business segment is required to be given.

6. Related Party Disclosures

As required by accounting standard - AS 18 "Related Parties Disclosure" issued by The Institute of Chartered Accountants of India are as follows:

(a) List of related parties with whom transactions have taken place during the year and relationship:

7. Adhering to significant Accounting Policy on Fixed Assets and Depreciation, based on quotes received from parties interested in buying the assets retired from active use & held for sale, written down value of such assets have been reduced to their net realizable value & loss to the tune of Rs.1.52 has been recognized in the Profit & Loss Account for the year under review,

8. Balances of debtors, creditors, loans, advances and deposits are subject to confirmation by the parties concerned.

9. In the absence of necessary information relating to the suppliers registered as Micro, Small and Medium enterprises under the Micro, Small and Medium Enterprises (Development) Act, 2006, the company has not been able to identify such suppliers and the information required under the said Act could not be complied and disclosed.

The company has been advised that the computation of Net Profits for the purpose of Director's Remuneration under section 349 of the companies Act, 1956 need not be enumerated since no commission has been paid to the Directors. Fixed monthly remuneration has been paid to the directors as per Section II of Part II of Schedule-XIII to the companies Act, 1956.

10. The Previous Year's figures have been regrouped and reclassified wherever necessary so as to make them comparable with those of the Current Year.

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Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advance) Rs.2173120/- (Previous Year Rs. 3712000/-)

2. Contingent Liabilities not provided for:

2009-10 2008-09

Particulars Amount (Rs.) Amount (Rs.)

1. Claims not acknowledged as debts - Excise Duty 4,73,162 4,73,162 (See note no. 3(i))

2. Claims not acknowledged as debts - ESI 33,32,912 33,32,912

(See note no. 3 00(a) & (b))

3. (i) The company had received a show cause notice dated 25/06/1999 from excise authorities for Rs. 4,73,162/- (including Rs. 10,892/- interest) on 30/06/1999. The company has disputed the same by filing a reply with the Central Excise Department. Against this reply, the Excise Department sent another notice vide their letter no. 54/15-96/Demand/99, dtd.22/6/2000. This new notice was also disputed by the company and an appeal against the same is filed by the company with the commissioner of Central Excise (Appeals) Ahmedabad on 25/07/2000. The matter is still pending with Excise Authority.

(ii) (a) The Company has received order u/s 45-A of the ESI Act, 1948, for the year 2000 to 2002 raising demand of Rs. 7,97,990/-. The company has disputed the demand raised by the corporation by filing a case in the court of Kamdar Rajya Bima Adalat, Ahmedabad and Rs 300000/- has been deposited under the direction of E.S.I Court, Ahmedabad in the Registrar, Industrial Court Ahmedabad.

(b) The Company has received order u/s 45-A of the ESI Act, 1948, for the year 2002 to 2005 raising demand of Rs. 25,34,922/-. The company has disputed the demand raised by the corporation by filing a case in the court of Kamdar Rajya Bima Adalat, Ahmedabad and Bank Guarantee of Rs. 1300000/- has been given under the direction of E.S.I Court, Ahmedabad

4. Employee Benefits

(a) Defined contribution to provident fund, employee state insurance fund and Employees Death Linked as Insurance

The Company makes contribution towards Employees Provident Fund, Employee State Insurance fund and Employees Beath Linked Insurance. In accordance with the provisions of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company has, during the year, recognized the sum of Rs. 3.90 lacs (March 31, 2009: Rs.2.21 Lacs) as expense towards contributions to these plans.

5. The company operates in a solitary business segment i.e. textile business. Accordingly, no further financial information for business segment is required to be given.

6. Related Party Disclosures

As required by accounting standard - AS 18 "Related Parties Disclosure" issued by The Institute of Chartered Accountants of India are as follows:

(a) List of related parties with whom transactions have taken place during the year and relationship:

Sr. Name of related party Relationship No.

1 Kamlesh R Agarwal

2 Sunil R. Agarwal Key Management Personnels

3 Girish R. Agarwal Enterprise under significant

4 RSL Dyecot Limited influence of Key Management

5 Kashiram Textile Mills (Prop. R.R. Family Trust) Personnel or their relatives.

6 Raghuvir Exim Limited Associate Enterprise

7. Adhering to significant Accounting Policy on impairment of assets and based on reports by independent consultant on impairment of various assets of the Company, the loss on impairment to the tune of Rs.5.34 lacs has been recognized in the Profit & toss Account for the year under review

8. Balances of debtors, creditors, loans, advances and deposits are subject to confirmation by the parties concerned.

9. In the absence of necessary or information relating to the suppliers registered as Micro, Small and Medium enterprises under the Micro, Small and Medium Enterprises (Development) Act, 2006, the company has not been able to identify such suppliers and the information required under the said Act could not be complied and disclosed.

10. The Previous Years figures have been regrouped and reclassified wherever necessary so as to make them comparable with those of the Current Year.