Notes to Accounts of Rishab Special Yarns Ltd.

Mar 31, 2025

2.13 Provision, Contingent Liabilities and Contingent Assets:

A provision is recognised when the company has a present obligation as a result of past event
and it is probable that an outflow of resources will be required to settle the obligation, in
respect of which reliable estimate can be made.

If the effect of the time value of money is material, provisions are discounted using a current
pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting
is used, the increase in the provision due to the passage of time is recognized as a finance
cost.

Contingent Assets and Contingent Liabilities are not recognized in the financial statements.

28 Financial risk management

The Company has exposure to the following risks arising from financial instruments:

(i) Market risk

(a) Interest rate risk;

(ii) Credit risk and ;

(iii) Liquidity risk

Risk management framework

The Company''s activities expose it to a variety of financial risks, including market risk . The Company''s
primary risk management focus is to minimize potential adverse effects of risks on its financial performance.
The Company''s risk management assessment policies and processes are established to identify and
analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such
risks and compliance with the same. Risk assessment and management of these policies and processes

are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board
of Directors and the Audit Committee are responsible for overseeing these policies and processes.

(i) Market risk

Market risk is the risk of changes in the market prices on account of foreign exchange rates, interest
rates and Commodity prices, which shall affect the Company''s income or the value of its holdings of
its financial instruments . The objective of market risk management is to manage and control market
risk exposure within acceptable parameters, while optimising the returns.

(a) 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 market risk
for changes in interest rates relates to borrowings from banks and others.

Interest rate sensitivity - variable rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would
have increased /(decreased) equity and profit or loss by amounts shown below. This analysis
assumes that all other variables, in particular, foreign currency exchange rates, remain constant.
This calculation also assumes that the change occurs at the balance sheet date and has been
calculated based on risk exposures outstanding as at that date.

(ii) 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 and arises principally from the company''s
receivables from customer. The Company establishes an allowance for doubtful debts, impairement
and expected credit loss that represents it estimate an allowance for doubtful debts, impairment
and expected credit loss that represents its estimate on epected credit loss.

A. Trade receivables

The Company''s exposure to credit riskis influenced mainly by the individual characteristics of
each customer. The demographics of the customer , including the default risk of the industry
has an influence on credit risk assessment. Credit risk managed through credit approvals
establishing credit limits and continuously monitoring the creditwor thiness of customers to
which the Company grants credit terms in the normal course of business.However, the company
doesnot expect any losses from non-performance by these counter-parties apart from those
already given in financials, and does not have any significant concentration of exposures.

B. Cash and cash equivalents

The Company holds cash and cash equivalents with creditworthy banks of ¹ 83.17 thousands.
The credit worthiness of such banks is evaluated by the management on an on-going basis
and is considered to be good.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they
become due. The Company has been taking measures to ensure that the Company''s cash flow
from business borrowing is sufficient to meet the cash requirements for the Company''s operations.
The Company managing its liquidity needs by monitoring forecasted cash inflows and outflows in
day to day business. Liquidity needs are monitor endonvarious time bands, on a day to day and
week to week basis, as well as on the basis of a rolling 30 day projections. Net cash requirements
are compared to available working capital facilities in order to determine head room or any shortfalls.
Presently company''s objective is to maintain sufficient cash to meet its operational liquidity
requirements.

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

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

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

32 The Company has not been declared wilful defaulter by any bank or financial institution or government
or any government authority.

33 The company has not any such transactions 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 (such as, search or survey or any other relevant provision of the Income Tax Act, 1961).

34 Balance shown under receivables, payables and advances are subject to confirmation.

35 The Company did not have any long- term contracts including derivative contracts for which there were
any material foreseeable losses.

36 There has been no delay in transferring amounts, required to be transferred, to the Investor Education
and Protection Fund by the Company.

37 The company does not have transactions with the companies struck off under section 248 of Companies
Act ,2013.

38 The financial statements were approved for issue by the Board of Directors on 30th May, 2024.

39 Previous year''s figures have been re- arranged or re- grouped wherever considered necessary.

40 Figures have been rounded off to the nearest Lacs of rupees.

41 Figures in brackets indicate negative (-) figures.

Signed for the purpose of Identification

FOR BHATTER & ASSOCIATES For and on behalf of the Board of Directors of

Chartered Accountants Rishab Special Yarns Limited

Firm Regn. No.131411W

Sd/- Sd/- Sd/-

CA Gopal Bhatter Ganesh Yadav Anuj Kumar Singh

Partner Managing Director Executive Director

Membership No. 411226 DIN: 10783218 DIN: 10679898

UDIN: 25411226BMIQLU7958

Mumbai, the 30th day of May 2025

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Mar 31, 2024

10.2 Terms and rights attached to equity shares

The company has issued only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to vote per share. If The company declares and pays dividend if any, in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all the preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholder.

10.4 As per records, registers and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

10.6 There is change in promoters shareholding during the period ended March 31,2024 and March 31,2023

a) Percentage change in shareholding durint the year is due to transfer of entire shareholding of the all promoter and promoter group to new Promoters under share purchage agreemnt date 8th March 2023. The transfer took plce during the FY 2023-24.

b) * Acquired Shares from Old Promoter under Share Purchage Agreement dated 08.03.2022 transferred during the FY 2023-24 .

28 Financial risk management

The Company has exposure to the following risks arising from financial instruments:

(i) Market risk

(a) Interest rate risk;

(ii) Credit risk and ;

(iii) Liquidity risk

Risk management framework

The Company''s activities expose it to a variety of financial risks, including market risk . The Company''s primary risk management focus is to minimize potential adverse effects of risks on its financial performance. The Company''s risk management assessment policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management of these policies and processes

are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors and the Audit Committee are responsible for overseeing these policies and processes.

(i) Market risk

Market risk is the risk of changes in the market prices on account of foreign exchange rates, interest rates and Commodity prices, which shall affect the Company''s income or the value of its holdings of its financial instruments . The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimising the returns.

(a) 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 market risk for changes in interest rates relates to borrowings from banks and others.

Interest rate sensitivity - variable rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased /(decreased) equity and profit or loss by amounts shown below. This analysis assumes that all other variables, in particular, foreign currency exchange rates, remain constant. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date.

(ii) 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 and arises principally from the company''s receivables from customer. The Company establishes an allowance for doubtful debts, impairement and expected credit loss that represents it estimate an allowance for doubtful debts, impairment and expected credit loss that represents its estimate on epected credit loss.

A. Trade receivables

The Company''s exposure to credit riskis influenced mainly by the individual characteristics of each customer. The demographics of the customer , including the default risk of the industry has an influence on credit risk assessment. Credit risk managed through credit approvals establishing credit limits and continuously monitoring the creditwor thiness of customers to which the Company grants credit terms in the normal course of business.However, the company doesnot expect any losses from non-performance by these counter-parties apart from those already given in financials, and does not have any significant concentration of exposures.

B. Cash and cash equivalents

The Company holds cash and cash equivalents with creditworthy banks of '' 83.17 thousands. The credit worthiness of such banks is evaluated by the management on an on-going basis and is considered to be good.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company has been taking measures to ensure that the Company''s cash flow from business borrowing is sufficient to meet the cash requirements for the Company''s operations. The Company managing its liquidity needs by monitoring forecasted cash inflows and outflows in day to day business. Liquidity needs are monitor endonvarious time bands, on a day to day and week to week basis, as well as on the basis of a rolling 30 day projections. Net cash requirements are compared to available working capital facilities in order to determine head room or any shortfalls. Presently company''s objective is to maintain sufficient cash to meet its operational liquidity requirements.

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

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

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

32 The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

33 The company has not any such transactions 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 (such as, search or survey or any other relevant provision of the Income Tax Act, 1961).

34 Balance shown under receivables, payables and advances are subject to confirmation.

35 The Company did not have any long- term contracts including derivative contracts for which there were any material foreseeable losses.

36 There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

37 The company does not have transactions with the companies struck off under section 248 of Companies Act ,2013.

38 The financial statements were approved for issue by the Board of Directors on 30th May, 2024.

39 Previous year''s figures have been re- arranged or re- grouped wherever considered necessary.

40 Figures have been rounded off to the nearest Lacs of rupees.

41 Figures in brackets indicate negative (-) figures.

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Mar 31, 2014

1. Contingent Liabilities - Not Provided For

S. Particulars Amount Amount Amount No. (Rs. in Lacs) (Rs. in Lacs) 31.03.2014 31.03.2013

a) In respect of Cess demanded by Textile Committee under the Textile Committee (Cess) Rules, 1975, for the period from 1989 to 1997, against which company has filed writ petition at Raj. High Court for holding the levy of Cess and for setting aside the demand (Rs. 400000/- deposited under protest & Rs. 426749/- retained as security against the demand by The Office of NHAI land acquisition, Abu Road which is included in Deposits under the head Current Assets.) 8.27 8.27

b) In respect of Excise Duty (NCCD) and Penalty demanded by Excise Department for clearances during March, 2003, against which the company has filed appeal with Hon''ble Tribunal Excise Custom & Service Tax, New Delhi which in its order remanded the matter to The Commissioner (Appeals) Customs, Excise & Service Tax for hearing on merits (Rs. 801632/- Deposited included in Deposits under the head Current Assets.) 83.36 83.36

2. Figures of the previous year have been regrouped and rearranged to correspond to current year''s classification.

3. Provision for Current and Deferred Tax

No provision for tax for the year has been made in view of current year''s loss and in view of uncertainty of future business deferred tax assets has not been recognized.

4. Due to Micro, Small & Medium Enterprises

To the extent of information available with management, there are no SSI units to whom Company owes money for more than 30 days.

The Company has not received any communication from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

5. In the opinion of management, loans and advances and other assets are approximately of the value stated, it realized in the ordinary course of business unless and otherwise stated. The provisions of all liabilities are adequate and not in excess of the amount reasonably necessary.

6. Additional information pursuant to the provisions of paragraphs 3 and 4 of Part II of Schedule VI of the Companies Act, 1956 is not applicable.

7. Disclosure as required by "Accounting Standard 24: Discontinuing Operations" and "Accounting Standard 28: Impairment of Assets"

The company was incurring heavy losses in textile business. Under the circumstances the Board of directors in their meeting held on 29.10.2005 decided to discontinue the business operations of the company and to sell the company''s machinery & equipments and surplus land to repay the liabilities of the company. The company has sold entire Tangible Assets except major part of land & building and some part of furniture & fixtures.

8. Disclosure as required by Accounting Standard - 18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India are as follows:

a. Relationship

i. Key Management Personnel & their relatives

Mr. Amitabh Hirawat - Managing Director

Smt. Padam Devi Hirawat

ii. Enterprises owned or significantly influenced by key management personnel or their relatives where transactions have taken place:

Trepechy Trading Pvt. Ltd.

Shashwin Textiles Ltd.

Trepechy Textiles Pvt. Ltd,

Note: Related party relationship is as identified by the company & relied upon by the Auditors.

b. Transactions carried out with related parties referred in A above, in ordinary course of business:

9. SHARE CAPITAL

(i) The Company has only one class of Equity shares having a par value of Rs 10/-. Each holder is eligible for one vote per share held, in the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company, after distribution of all preferential amounts in proportion to their shareholding.

10. Long Term Borrowings

The Long Term Borrowing will be payable after 12 months.

11. Related Parties Disclosures:

A. Relationship

(i) Key Management Personnel & their relatives

Mr. Amitabh Hirawat - Managing Director

Smt Padam Devi Hirawat

(ii) Enterprises owned or significantly influenced by key management personnel or their relatives where transactions have taken place:

M/s Trepechy Trading Pvt. Ltd.

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Mar 31, 2013

1. CORPORATE INFORMATION:

M/s Rishab Special Yams Limited was incorporated under Companies Act, 1956 ( No. 1 of 1956) on 17.08.1987 as a public Limited company with its registered office at 2070, Rasta Bara Gangore, Jaipur -302017, to carry on the business of manufacturing, processing, texturising, twisting, doubling, processing, packing, colorouring, dyeing, printing, bleaching,, finishing, crimping, lenitting of polyester filament yarn, and all other types of yams and fibres. The company went on public issue in February 1992 and the issue was oversubscribed by 11 times. The basis of allotment was finalized on 10.04.1992 and company raised a total sum of Rs.290.43 lakhs through this Initial public offer. Due to incurrence of continuous losses year after year the company has decided in its Board Meeting held on 29.10.2005 to discontinue the business operations of the company. Subsequently the company is trying to revive the business and evaluating various options to utilized its available assets gainfully.

2. Contingent Liabilities - Not Provided for:

S. Particulars Amount Amount No. (Rs. in Lacs) (Rs. in Lacs) 31.03.2013 31.03.2012

a) In respect of Cess demanded by Textile Committee under 8.27 8.27 the Textile Committee (Cess) Rules, 1975, for the period from 1989 to 1997, against which company has filed writ petition at Raj. High Court for holding the levy of Cess and for setting aside the demand (Rs. 400000/- deposited under protest & Rs. 426749/- retained as security against the demand by The Office of NHAI land acquisition, Abu I Road which is included in Loans & Advances)

b) ] In respect of Excise Duty (NCCD) and Penalty demanded I BM I 8^34 by Excise Department for clearances during March, 2003, against which the company has filed appeal with Hon''ble Tribunal Excise Custom & Service Tax, New Delhi (Rs. I 801632/- Deposited included in Loans & Advances).

3. Figures of the previous year have been regrouped and rearranged to correspond to current year''s classification.

4. Provision for Current and Deferred Tax

No provision for tax for the year has been made in view of availability of brought forward losses for set off against current year''s income and in view of uncertainty of future business deferred tax assets has not been recognized.

5. Due to Micro, Small & Medium Enterprises

To the extent of information available with management, there are no SSI units to whom Company owes money for more than 30 days.

The Company has not received any communication from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

6. In the opinion of management, loans and advances and other assets are approximately of the value stated, if realized in the ordinary course of business unless and otherwise stated. The provisions of all liabilities are adequate and not in excess of the amount reasonably necessary.

7. Additional information pursuant to the provisions of paragraphs 3 and 4 of Part II of Schedule VI of the Companies Act, 1956 is not applicable.

8. Disclosure as required by "Accounting Standard 24: Discontinuing Operations" and "Accounting Standard 28: Impairment of Assets"

The company was incurring heavy losses in textile business. Under the circumstances the Board of directors in their meeting held on 29.10.2005 decided to discontinue the business operations of the company and to sell the company''s machinery & equipments and surplus land to repay the liabilities of the company. The company has sold entire Tangible Assets except major part of building and some part of land & furniture & fixtures.

9. Disclosure as required by Accounting Standard - 18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India are as follows:

a. Relationship

i. Key Management Personnel & their relatives

Mr. Amitabh Hirawat - Managing Director

Smt. Padam Devi Hirawat ii. Enterprises owned or significantly influenced by key management personnel or their relatives where transactions have taken place:

Trepechy Trading Pvt. Ltd.

Shashwin Textiles Ltd. Trepechy Textiles Pvt. Ltd,

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Mar 31, 2012

1 CORPORATE INFORMATION:

M/s Rishab Special Yarns Limited was incorporated under Companies Act, 1956 ( No. 1 of 1956) on 17.08.1987 as a public Limited company with its registered office at 2070, Rasta Bara Gangore, Jaipur -302003, to carry on the business of manufacturing, processing, texturising, twisting, doubling, dyeing of polyester filament yarn, and all other types of yarns and fibres.

The company went public in February 1992. The basis of allotment was finalized on 10.04.1992 and company raised a total sum of Rs.290.43 lakhs through this Initial public offer. Shares of the Company are listed with The Bombay Stock Exchange Ltd., Mumbai ,The Delhi Stock Exchange Association Ltd., New Delhi,Jaipur Stock Exchange Limited, Jaipur

The company has decided in its Board Meeting held on 29.10.2005 to discontinue the then existing business operation of the company. Now company is evaluating to enter new businesses viz. Granite cutting & Polishing etc and business related to production and recycling and to trade, deal in import or export of various plastic materials and to manufacture various products of aforesaid material at present location at Abu Road.

Contingent Liabilities - Not Provided for:

S. Particulars Amount Amount No (Rs. in Lacs) (Rs. in Lacs)

31.03.2012 31.03.2011

a) In respect of Cess demanded by Textile Committee under the Textile 8.27 8.27 Committee (Cess) Rules, 1975, for the period from 1989 to 1997, against which company has filed writ petition at Raj. High Court for nullifying the levy of Cess and for setting aside the demand (Rs. 400000/- deposited under protest & Rs. 426749/- retained as security against the demand by The Office of NHAI land acquisition, Abu Road which is included in Loans & Advances)

b) In respect of Excise Duty and Penalty demanded by Excise Department for 83.36 83.36 clearances during March, 2003, against which the company has filed appeal with Hon'ble Tribunal Excise Custom & Service Tax, New Delhi (Rs. 801632/-deposited, included in Loans & Advances).





2. Figures of the previous year have been regrouped and rearranged to correspond to current year's classification.

3. Provision for Current and Deferred Tax: No provision for tax for the year has been made in view of losses in current year and in view of uncertainty of future business deferred tax assets has not been recognized.

4. Due to Micro, Small & Medium Enterprises: To the extent of information available with management, there are no SSI units to whom Company owes money for more than 30 days.

The Company has not received any communication from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

5. In the opinion of management, loans and advances and other assets are approximately of the value stated, if realized in the ordinary course of business unless otherwise stated. The provisions of all liabilities are adequate and not in excess of the amount reasonably necessary.

6. Additional information pursuant to the provisions of paragraphs 3 and 4 of Part II of Schedule VI of the Companies Act, 1956 is not applicable.

7. Disclosure as required by "Accounting Standard 24 : Discontinuing Operations" and "Accounting Standard 28 : Impairment of Assets"

The company was incurring heavy losses in textile business. Under the circumstances the Board of directors in their meeting held on 29.10.2005 decided to discontinue the business operations of the company and to sell the company's machinery & equipments and surplus land to repay the liabilities of the company. The company has sold entire fixed assets except major part of land & building and some furniture & fixtures.

8. Disclosure as required by Accounting Standard - 18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India are as follows:

a. Relationship

i. Key Management Personnel & their relatives

Mr. Amitabh Hirawat - Managing Director

Mr. Nathmal Hirawat - Father of Mr. Amitabh Hirawat

Srnt. Padam Devi Hirawat - Mother of Mr. Amitabh Hirawat

ii. Enterprises owned or significantly influenced by key management personnel or their relatives where transactions have taken place:

Trepechy Trading Pvt. Ltd. Shashwin Textiles Ltd. Trepechy Textiles Pvt. Ltd,

Note: Related party relationship is as identified by the company & relied upon by the Auditors.

Notice Pursuant to Section 192A (2) of the of the Companies Act, 1956 read with the Companies (Passing of the Resolutions by Postal Ballot) Rules, 2011.

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Mar 31, 2010

1. Disclosure as required by "Accounting Standard 24: Discontinuing Operations" and "Accounting Standard 28: Impairment of Assets"

a. The company was incurring heavy losses in textile business. Under the circumstances the Board of directors in their meeting held on 29.10.2005 decided to discontinue the business operations of the company and to sell the companys machinery & equipments and surplus land to repay the liabilities of the company. The company has sold entire plant & machinery and misc. fixed assets except for land & building and some furniture & fixture during the year 2008.

2. Deferred Tax - In view of no certainty of future business deferred tax assets has not been recognized.

3. Contingent Liability-

S. Particulars Amount Amount No. (Rs. in Lacs) (Rs. in Lacs) 31.03.2010 31.03.2009

a) In respect of Cess demanded by Textile Committee under 8.27 8.27 the Textile Committee (Cess) Rules, 1975, for the period from 1989 to 1997, against which company has filed writ petition of Raj. High Court for holding the levy of Cess and for setting aside the demand (Rs. 400000/- deposited under protest & Rs. 426749/- retained as security against the demand by The Office of NHAI land acquisition, Abu Road which is included in Loans & Advances)

b) In respect of Excise Duty (NCCD) and Penalty demanded 83.36 83.36 by Excise Department for clearances during March, 2003, against which the company has filed appeal with Honble Tribunal Excise Custom & Service Tax, New Delhi (Rs. 801632/ Deposited included in Loans & Advances).

4. Segment Reporting- The company was engaged in manufacturing of texturised, twisted & dyed yarns, however no business is being done presently. Hence, no separate disclosure as required by AS-17 "SEGMENT REPORTING" is given.

5. Due to Micro, Small & Medium Enterprises - To the extent of information available with management, there are no SSI units to whom Company owes money for more than 30 days. The Company has not received any communication from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

6. In the opinion of management, loans and advances and other assets are approximately of the value stated, if realized in the ordinary course of business unless and otherwise stated. The provisions of all liabilities are adequate and not in excess of the amount reasonably necessary.

7. Disclosure as required by Accounting Standard -18 on "Related Party Disclosures" Issued by the Institute of Chartered Accountants of India are as follows: a. Relationship

i. Key Management Personnel & their relatives

Mr. Amitabh Hirawat - Managing Director

Mr. Nathmal Hirawat - Chairman

Smt. Padam Devi Hirawat

ii. Enterprises owned or significantly influenced by key management personnel or their relatives where transactions have taken place :

Shashwin Textiles Limited

Trepechy Trading Co. Pvt. Ltd.

Jaipur Green Fuels

Note : Related party relationship is as identified by the company & relied upon by the Auditors.

8. Figures of the previous year have been regrouped and rearranged to correspond to current years classification.

9. Figures have been rounded off to the nearest rupee

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Mar 31, 2009

1. Disclosure gj required by "Accounting Standard 24 rDiscontinuina Operations and "Accounting Standard 22 :lmpairment of Assets

a. The company was incurring heavy losses in textile business. Under the circumstances mentioned above, As per the Board of directors in their meeting held on 29.10.2005 decided to discontinue the business operations of the company and to sell the companys machinery & equipments and surplus land to repay the liabilities of the company. The company has sold entire plant & machinery and misc. fixed assets except for land & building during 2008.

2. Deferred Tax

In view of no certainty of future business deferred tax assets has not been recognised.

3. Fringe Benefit Tax

In view of no employees in the company, no provision has been made for Fringe Benefit Tax.

4. Contingent liability AMOUNT (RS. IN LACS)

31.03.2009 31.03.3008

a) In respect of Cess demanded by Textile Committee under the Textile Committee (Cess) Rules, 1975, for the period from 1989 to 1997, against 8.27 8.27 which company has filed writ petition at Raj. High Court for holding the levy of Cess and for setting aside the demand (Rs. 400000/- deposited under protest & Rs. 426749/- retained as security against the demand by The Office of NHAI land acquisition, Abu Road which is included in Loans & Advances)

b) in respect of Excise Duty (NCCD) and Penalty demanded by Excise Department for clearances during March, 2003, against which the 83.36 83.36 company has fled appeal with Honble Tribunal Excise Custom & Service Tax, New Delhi (Rs. 801632/- Deposited included in Loans & Advances).

5. Segment Reporting

The company was engaged in manufacturing of texturised, twisted & dyed yams, however no bussiness is being done presently. Hence, no separate disclosure as required by AS-17 "SEGMENT REPORTING" is given.

6. Due to Micro, Small & Medium Enterprises

To the extent of information available with management, there are no SSI units to whom Company owes money for more than 30 days.

The Company has not received any communication from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

7. In the opinion of management, loans and advances and other assets are approximately of the value stated, if realised in the ordinary course of business unless and otherwise stated. The provisions of all liabilities are adequate and not in excess of the amount reasonably necessary.

8. Disclosure as required by Accounting Standard - 18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India are as follows:

a) Relationship

i. Key Management Personnel & their relatives Mr. Amitabh Hirawat (Managing Director) Mr.Nathmal Hirawat, Chairman Smt. Padam Devi Hirawat

ii. Enterprises owned or significantly influenced by key management personnel or their relatives where transactions have taken place: Shashwin Textiles Limited Jaipur Green Fuels

9. Figures of the previous year have been regrouped and rearranged to correspond to current years classification.

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