Notes to Accounts of Rishi Techtex Ltd.

Mar 31, 2025

31 Employee Benefit Obligationsa. Short-term Employee Benefits

These benefits include wages and salaries, including other monetary and non-monetary benefits, compensated absences which are either non-accumulating or accumulated and expected to be availed within twelve months after the end of the reporting period.

b. Long-term Employee Benefitsi) Defined Contribution Plans

The Company makes Provident Fund contributions, which are defined contribution plans, for qualifying employees. Company has no further payment obligations once the contributions have been paid. Under the Provident Fund Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are in compliance with the rates specified in the rules of the schemes. The Company recognised '' 36.96 Lakh (previous year '' 37.01 Lakh) as an expense and included in Note 28 - Employee Benefit Expenses ''Contribution to Provident Fund and Other Funds'' in the Statement of Profit and Loss for the year ended 31^st March 2025.

ii) Defined Benefit Plans

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on retirement / resignation or retirement under VRS at 15 days salary (last drawn salary) for each completed year of service. The present value of gratuity obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The following table sets out the unfunded status of the defined benefit schemes and the amount recognised in the financial statements:

b) Fair Value Hierarchy of Financial Assets and Liabilities

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (i) recognised and measured at fair value and (ii) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, Company has classified its financial instruments into three levels prescribed under the accounting standards below:

Level 1: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2: Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Level 3 inputs are unobservable inputs for the asset or liability.

Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

Measured at Amortised Cost for which Fair Value is disclosed

The fair values of all current financial assets and liabilities including trade receivables, cash and cash equivalents, bank balances, trade payables and other current financial assets and liabilities are considered to be the same as their carrying values, due to their short term nature. The fair values of all non-current financial assets and liabilities including are considered to be the same as their carrying values, as the impact of fair valuation is not material.

c) Capital Management

Total equity as shown in the balance sheet includes equity share capital, securities premium and retained earnings.

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. The management monitors the return on capital as well as the level of dividends to shareholders.

d) Financial risk management

Company''s activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and its impact on the financial statements.

(i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk - interest rate risk, foreign currency risk and other price risk such as equity price risk. Financial instruments affected by market risk include loans and borrowings, deposits, other financial instruments.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will find it difficult in meeting its obligations associated with its financial liabilities in time.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying business, Company''s treasury maintains flexibility in funding by maintaining availability under cash and cash equivalents, bank deposits and mutual funds.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The tables below analyses the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities.

(iii) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair value of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk investments because of fluctuations in the interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations to its preference shareholders.

(iv) Interest rate sensitivity

The borrowing of the Company includes vehicle loans which carries fixed coupon rate and hence the Company is not exposed to interest rate risk.

(v) 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 customers, deposits and loans given, investments and balances at bank. The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business enviornment in which the entity operates. Expected Credit Loss is based on actual credit loss experienced and past trends based on the historical data.

34 Segment

The Company is operating in single reportable segment of Technical textiles'' in terms of Ind AS 108. Accordingly, the segment revenue, segment results, segment assets and segment liabilities are reflected in the financial statements themselves as at and for the financial year ended 31^st March 2025.

Entity wide disclosuresInformation about products and services:

The Company is in a single line of business of "Shade Nets and Plastic woven Sacks”.

Information about major customers:

Two customers during the year ended 31^st March 2025 and one customer in 31^st March 2024 contributed to more than 10% of the revenue individually. Revenue from this customers was '' 4,403.48 Lakhs during the year ended 31^st March 2025 and '' 1,122.64 Lakhs during the 31^st March 2024.

renewed further as requested by Enforcement Directorate from time to time.

Subsequently, ED vide O/C No.1063/2018 dated 09.11.2018 provisionally attached the immovable property of the Company at Daman with a gross liability of '' 66,88,822/- (Net of Bank Guarantee '' 46,56,026). The ED referred the matter to Adjudicating Authority, New Delhi. The Adjudicating Authority vide order dated 26.04.2019 confirmed the attachment giving Company 45 days time to appeal against this order to the Hon''ble Appellate Tribunal, New Delhi. Accordingly, Company has preferred an appeal on 23.05.2019, the appeal has been admitted by the honourable appellate tribunal.

Appeal filed against adjudication order passed by the Adjudicating authority and the hearing date is 8^th July 2025.

40 Micro, Small and Medium Enterprises

Pursuant to the Micro, Small and Medium Enterprise Development Act, 2006, the Company had asked for confirmation from its vendors reagrding their status under the said Act. The Company is yet to receive varifiable confirmation from all the vendors and hence the amounts unpaid as at the year end together with interest payable if any, under this Act have been given as under.

41 Immovable Property Not Held In Company''s Name

The Company holds the title deeds of all immovable properties in their name.

42 Details of Benami Property

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

43 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.

44 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 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

45 Details of Crypto / Virtual Currency

The Company has not traded or invested in crypto currency.

46 Wilful defaulter

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

47 Number of layers

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

48 Quarterly return to financial institutions

The Monthly/ Quaterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

49 Transaction with Struck off Companies

The Company did not enter any transaction with struck off companies.

50 Data back up

As per MCA notification dated August 05, 2022, the Central Government has notified that Companies (Accounts) Fourth Amendment Rules, 2022. As per the amended rules, the companies are required to maintain back up of the books of account and other relevant books and papers in electronic mode that should be accessible in India at all the time. Also, the companies are required to create back up on servers physically located in India on a daily basis. To comply with this requirement, the Company takes the back up on daily basis.

51 Certain comparative figures have been reclassified to conform to the current year presentation.

52 The financial statements have been approved for issue by Company''s Board of Directors on 26^th May, 2025.

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Mar 31, 2024

1) Term loans from banks are secured by way of equitable mortgage created or to be created on all the present and future immovable properties including all land, buildings, structures, all plant and equipment attached thereon of the Company and hypothecation of all the movable properties including movable machinery, spares, tools and accessories, etc., present and future, subject to prior charges created and / or to be created in favour of the Company''s bankers on stocks of raw materials, semi finished and finished goods, consumable stores and other movable assets excluding vehicles specifically hypothecated against vehicle loans, as may be required for working capital requirements in the ordinary course of business.

2) The interest rates range from 7% to 8% per annum. For term loan and interest rate for OCC is from 9 to 11%.

1) Cash credits/working capital loans are secured by hypothecation of raw materials, semi finished and finished goods, other movable assets excluding vehicles specifically hypothecated against loans and book debts, present and future of the Company.

2) The interest rates for Cash credits/working capital loans from banks range from 9% to 11% per annum before subvention.

3) The Company has been sanctioned working capital limits from banks during the year on the basis of security of current assets of the Company.

31 Employee Benefit Obligationsa. Short-term Employee Benefits

These benefits include wages and salaries, including other monetary and non-monetary benefits, compensated absences which are either non-accumulating or accumulated and expected to be availed within twelve months after the end of the reporting period.

b. Long-term Employee Benefitsi) Defined Contribution Plans

The Company makes Provident Fund contributions, which are defined contribution plans, for qualifying employees. Company has no further payment obligations once the contributions have been paid. Under the Provident Fund Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are in compliance with the rates specified in the rules of the schemes. The Company recognised '' 37.01 Lakh (previous year '' 39.03 Lakh) as an expense and included in Note 28 - Employee Benefit Expenses ''Contribution to Provident Fund and Other Funds'' in the Statement of Profit and Loss for the year ended 31st March 2024.

ii) Defined Benefit Plans

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on retirement / resignation or retirement under VRS at 15 days salary (last drawn salary) for each completed year of service. The present value of gratuity obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The following table sets out the unfunded status of the defined benefit schemes and the amount recognised in the financial statements:

b) Fair Value Hierarchy of Financial Assets and Liabilities

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (i) recognised and measured at fair value and (ii) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, Company has classified its financial instruments into three levels prescribed under the accounting standards below:

Level 1: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2: Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Level 3 inputs are unobservable inputs for the asset or liability.

Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period. Measured at Fair Value Through Profit or Loss (FVTPL)

Measured at Amortised Cost for which Fair Value is disclosed

The fair values of all current financial assets and liabilities including trade receivables, cash and cash equivalents, bank balances, trade payables and other current financial assets and liabilities are considered to be the same as their carrying values, due to their short term nature. The fair values of all non-current financial assets and liabilities including are considered to be the same as their carrying values, as the impact of fair valuation is not material.

c) Capital Management

Total equity as shown in the balance sheet includes equity share capital, securities premium and retained earnings.

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. The management monitors the return on capital as well as the level of dividends to shareholders.

d) Financial risk management

Company''s activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and its impact on the financial statements

(i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk - interest rate risk, foreign currency risk and other price risk such as equity price risk. Financial instruments affected by market risk include loans and borrowings, deposits, other financial instruments.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will find it difficult in meeting its obligations associated with its financial liabilities in time. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying business, Company''s treasury maintains flexibility in funding by maintaining availability under cash and cash equivalents, bank deposits and mutual funds.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The tables below analyses the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities.

(iii) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair value of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk investments because of fluctuations in the interest rates. Cash flow interest rate risk because of fluctuations in interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations to its preference share holders.

(iv) Interest rate sensitivity

The borrowing of the Company includes vehicle loans which carries fixed coupon rate and hence the Company is not exposed to interest rate risk.

(v) 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 customers, deposits and loans given, investments and balances at bank. The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business enviornment in which the entity operates. Expected Credit Loss is based on actual credit loss experienced and past trends based on the historical data.

34 Segment

The Company is operating in single reportable segment of ''Technical textiles in terms of Ind AS 108. Accordingly, the segment revenue, segment results, segment assets and segment liabilities are reflected in the financial statements themselves as at and for the financial year ended 31st March 2024.

Entity wide disclosuresInformation about products and services:

The Company is in a single line of business of "Shade Net and Plastic woven sacks”

Information about major customers:

One customer during the year ended 31st March 2024 and 31st March 2023 contributed to more than 10% of the revenue individually. Revenue from this customer was '' 1122.64 lakh during the year ended 31st March 2024 and '' 1661.69 lakhs during the 31st March 2023.

Note: Enforcement Directorate vide provisional attachment order No. 01/2017/KZSZO (IN ECIR/KZSZO/4/2015) dated 15.03.2017 issued directions for freezing Bank accounts of the Company. The Company filed writ petition in the High Court of Kerala and the court vide order dated 12.05.2017 asked the Company to furnish the bank guarantee equivalent to the amount lying in the frozen bank accounts. The Company vide letter dated 23.05.2017 furnished the required bank guarantee of '' 20.33 Lakhs in favour of DIRECTORATE OF ENFORCEMENT, KOCHI. The Enforcement Directorate vide their letters dated 08.06.2017 released the frozen accounts of the Company. The said bank guarantee has been renewed further as requested by Enforcement Directorate from time to time.

Subsequently, ED vide O/C No.1063/2018 dated 09.11.2018 provisionally attached the immovable property of the Company at Daman with a gross liability of '' 66,88,822/- (Net of Bank Guarantee '' 46,56,026). The ED referred the matter to Adjudicating Authority, New Delhi. The Adjudicating Authority vide order dated 26.04.2019 confirmed the attachment giving Company 45 days time to appeal against this order to the Hon''ble Appellate Tribunal, New Delhi. Accordingly, Company has preferred an appeal on 23.05.2019, the appeal has been admitted by the honourable

appellate tribunal.

Appeal filed against adjudication order passed by the Adjudicating authority and the hearing date is 12th August 2024.

40 Micro, Small and Medium Enterprises

Pursuant to the Micro, Small and Medium Enterprise Development Act, 2006, the Company had asked for confirmation from its vendors reagrding their status under the said Act. The Company is yet to receive varifiable confirmation from all the vendors and hence the amounts unpaid as at the year end together with interest payable if any, under this Act have been given as under.

41 Immovable Property Not Held In Company''s Name

The Company holds the title deeds of all immovable properties in their name.

42 Details Of Benami Property

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

43 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.

44 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 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

45 Details of Crypto / Virtual Currency

The Company has not traded or invested in crypto currency.

46 Wllful defaulter

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

47 Number of layers

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

48 Quarterly return to financial institutions

The Monthly/ Quaterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

49 Transaction with Struck off Companies

The Company did not enter any transaction with struck off companies.

50 Data back up

As per MCA notification dated August 05, 2022, the Central Government has notified that Companies (Accounts) Fourth Amendment Rules, 2022. As per the amended rules, the companies are required to maintain back up of the books of account and other relevant books and papers in electronic mode that should be accessible in India at all the time. Also, the companies are required to create back up on servers physically located in India on a daily basis. To comply with this requirement, the Company takes the back up on daily basis.

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Mar 31, 2018

1 Corporate information

Rishi Techtex Limited is a public company incorporated and domiciled in India. its shares are listed on the recognized stock exchanges, namely BSE Limited, in India. The registered office of the Company is located at 612, V.K.Industrial Estate, 10-14, Pais Street, Byculla (West), Mumbai 400011.

The Company is engaged in manufacturing of Shade nets and Plastic Woven Sacks and supplying to fertilizer and cement Industry. Company has consistently developed number of products to cater to a wide spectrum of Industries such as cement, fertilizer, chemical Petrochemical, etc.

These financial statements were authorised for issue by the Board of Directors on May 26, 2018.

2 Basis of preparation

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

a. Compliance with lnd AS:

The financial Statements comply in all material respects with Indian Accounting Standards (lnd AS) notified under Section 133 of the Companies Act, 2013 (“the Act”) [Companies (Indian Accounting Standards) Rules, 2015] other relevant provisions of the Act.

The Financial Statements up to the year ended March 31,2017 were prepared in accordance with the Accounting Standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) (“Previous GAAP”) and other relevant provisions of the Act.

These financial statements are the first financial statements of the company prepared in accordance with lnd AS. Refer note 41 for an explanation of how the transition from Previous GAAP to lnd AS has affected financial position, financial performance and cash flows of the company.

Historical cost convention:

The Financial Statements have been prepared on a historical cost basis except for the following:

a) Certain financial assets and liabilities that are measured at fair value

b) Defined benefit plans: plan assets measured at fair value

Rounding of Amounts:

The financial statements are presented in INR and all values are rounded to the nearest lakhs, except when otherwise Indicated.

b. Significant estimates, judgements and assumptions

The preparation of financial statements in conformity with lnd AS requires the management to make estimates, assumptions and exercise judgment in applying the accounting policies that affect the reported amount of assets, liabilities and disclosure of contingent liabilities at the end of the financial statements and reported amounts of income and expense during the year.

The management believes that these estimates are prudent and reasonable and are based on management''s best knowledge of current events and actions. Actual results could differ from these estimates and difference between actual results and estimates are/ shall be recognised in the period in which results are known or materialised.

c. Current non-current classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle (12 months) and other criteria set out in the Schedule ill to the Act.

Amendment to Ind AS 7

Amendment to Ind AS 7 effective from 01 April, 2017 require the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the Balance sheet for liabilities arising from financing activities, to meet disclosure requirement. Accordingly, the Company has given the said disclosure as below:

b) Rights, preferences, restrictions of equity shares

The Company has only one class of equity shares having a face value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share.

The equity shares are entitled to dividend proposed by Board of Directors subject to approval of the share holders in the Annual General Meeting except in case of interim dividend. in the event of liquidation of the Company, holder of equity shares are entitled to receive remaining assets of the Company, after distribution of all preferential amounts in proportion to their share holding.

Note 3 Employee Benefits

a. Defined benefit plan: Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on retirement / resignation or retirement at 15 days salary (last drawn salary) for each completed year of service. The present value of gratuity obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation

Sensitivity Analysis

Below is the sensitivity analysis determined for significant actuarial assumption for determination of defined benefit obligation and based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period.

Note 4 Financial Instrument and Risk Management

i) Financial risk management objective and policies

The Company''s principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include investments, loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The company''s senior management oversees the management of these risks.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk - interest rate risk, foreign currency risk and other price risk such as equity price risk. Financial instruments affected by market risk include loans and borrowings, deposits, other financial instruments.

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair value of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that future cash flows of floating interest bearing investments will vary because of fluctuations in interest rates.

Interest rate sensitivity

The borrowing of the Company includes vehicle loans which carries fixed coupon rate and hence the Company is not exposed to interest rate risk.

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 customers, deposits and loans given, investments and balances at bank. The Company measures the expected credit loss of trade receivables based on historical trend, Industry practices and the business environment in which the entity operates. Expected Credit Loss is based on actual credit loss experienced and past trends based on the historical data.

ii) Capital Management

For the purpose of the Company'' s capital management, capital includes issued capital and all other equity reserves. The Company manages its capital structure to ensure that it will be able to continue as a going concern while maximising the return to the stakeholders.

The following table shows the Levels within the hierarchy of financial assets and liabilities measured at fair value on a recurring basis: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or Indirectly. Level 3: unobservable inputs for the asset or liability

Note 5 Micro, Small and Medium Enterprises

The Company has not received the required information from Suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence, disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act are NiL as given below. This information has been relied upon by the auditor.

Note 6 Operating Leases

a At the reporting date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

b The total of future minimum sublease payment expected to be received under non - cancellable subleases at the end of reporting period is NIL

c Lease payment s recognised as an expense in the period in which it is incurred.

Note 7 Transition to Indian Accounting Standard

FIRST TIME ADOPTION OF IND AS

For all periods upto and including the year ended 31 March 2017, the Company had prepared its financial statements in accordance with the Accounting Standards notified under Section 133 of the Companies Act, 2013, read together with Rule 7 of the companies (Accounts) Rules, 2014 (Previous GAAP). This note explains the principal adjustments made by the Company in restating its financial statements prepared under Previous GAAP

Exemptions and exceptions availed

in preparing these Ind AS Financial Statements, the Company has availed certain exemptions and exceptions in accordance with Ind AS 101 First-time Adoption of Indian Accounting Standards, as explained below. The resulting difference between the carrying values of the assets and liabilities in the Financial Statements as at the transition date under Ind AS and iGAAP have been recognised directly in equity (retained earnings or another appropriate category of equity). This Note explains the adjustments made by the Company in restating its iGAAP Financial Statements, including the Balance Sheet as at April 01, 2016 and the Financial Statements as at and for the year ended March 31, 2017.

a) Ind AS optional exemptions:

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from IGAAP to Ind AS.

i) Deemed cost

Para D7 AA of Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the Financial Statements as at the date of transition to Ind AS, measured under iGAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities.

The company has exercised this option of adopting deemed cost.

ii) Designation of previously recognised financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at Fair Value through Other Comprehensive income on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity investments.

iii) Investments in equity instruments:

An entity may make an irrevocable election at initial recognition of a financial asset to present subsequent changes in the fair value of an investment in an equity instrument in other comprehensive income. Ind AS 101 allows such designation of previously recognized financial assets, as ‘Fair value through Other Comprehensive income''.

The Company has accordingly designated certain equity instruments as at 1^st April 2016 as fair value through other comprehensive income.

b) Ind AS Mandatory exceptions:

I. Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

II. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

III. De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. Accordingly, the Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

First-time Ind AS adoption reconciliations

(i) Effect of Ind AS adoption on the balance sheet as at 31st March, 2017 and 1st April 2016

Notes to first time adoption of Ind AS:

(i) Deferred Tax

The previous GAAP required deferred tax accounting using the which focused on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using balance sheet approach which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. various transitional adjustments has resulted in recognition of temporary differences.

(ii) Expected credit loss

Under Indian GAAP allowances of doubtful debt was provided as per management estimate whereas under Ind AS allowances are based on expected credit loss model as per Ind - AS 109 - Financial instruments.

(iii) Other comprehensive income (OCI)

Ind-AS requires preparation of Statement of Other Comprehensive income in addition to Statement of profit and loss. Re-Measurement gain/loss on defined benefit plans earlier accounted for in statement of profit and loss under Indian GAAP has been reclassified to OCi as required by Ind-AS 19 - Employee Benefits.

(iv) Investments

Under the Ind AS, investments are measured at fair value as at reporting date whereas, under the Indian GAAP current investments was valued at lower of cost or market value and non-current investments was valued at cost except for any permanent diminution in value of long term investments was to be provided for.

(v) Security Deposit

Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value. Accordingly the Company has fair valued these security deposits under Ind AS and the difference between the fair value and the transaction value of the security deposit has been recognised as prepaid rent.

Retained earnings

Retained earnings as at 1^st April 2016 have been adjusted consequent to the above Ind AS transition adjustments.

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Mar 31, 2016

Notes:

Details of security for the secured short-term borrowings:

a. Working capital loans outstanding at Rs,732.28 lakh is secured against exclusive hypothecation of Inventories and Receivables/ Repayable on demand and carries Interest at 14.15%.

Note: Figures in bracket relates to the previous year

Remeneration to KMP includes remuneration to Ms. Nidhi Shah, Mr. Jagdish Dokwal and Mr. Abhishek Patel and Payment to Non-Executive/Independent Directors includes Payment to Mr. Pranav Patel, Mr. Arvind Nopany and Ms.Sheela Ayyar.

1. Previous years figures have been regrouped/reclassified wherever necessary to correspond with the current years Classification / Disclosure.

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Mar 31, 2015

1. CORPORATE INFORMATION :

The company was incorporated in 1984-85 in the name of Rishi Packers Pvt. Ltd. with an initial project costing Rs. 80/- Lacs. The Company has over the last two and half decades undertaken a number of expansion, modernization and diversification programs successfully. The gross block which was Rs. 131.70 Lacs in the first year has gone up to Rs. 3212.62 Lacs by the end of March 2015. The turnover has gone up from Rs. 28.50 Lacs and has reached at its highest level at Rs. 5276.81 Lacs in 2014-15.

The Company, which started as a woven sack unit supplying bags to fertilizer and cement industry, has consistently developed a number of products to cater to a wide spectrum of industries such as cement, fertiliser, chemical. Petrochemical, etc.

In the year 1998-99 the company undertook a major expansion and started manufacturing agro shade net for the first time in India. Presently the company is the largest exporter and manufacturer of agro shade net in India.

We are a technical textile company operating in India for over 30 years. Our yarn, fabric, bag and agro shade net manufacturing plant with latest technology is located at Survey No. 381, Zari Causway Road, Kachigam, Daman.

2. Terms/rights attached to equity shares

The company has only one class of equity shares having a per value of Rs.10 per share. Each holder of equity shares in entitled to one vote per share.

Notes: Details of the security for the secured short-term borrowings:

a. Working capital loans outstanding at Rs.793.68 Lacs is seucred against exclusive hypothication of Inventories and Receivables / Repayable on demand and carries Interest at 14.70%.

3. ADDITIONAL INFORMATION:

Contigent Liability and Commitments Rs. in Lacs

31.03.2015 31.03.2014

Contigent Liability:

a) Claims against the company not acknowledge 0.00 0.00 as debt

b) Guarantee given by bank on behalf of Company 0.00 0.00

Commitments:

a) Estimated amount of Capital contract remaining 0.00 0.00 to be executed for tangible assets

0.00 0.00

4. Details of dues to MICRO AND SMALL ENTERPRISES as defined under the MEMED Act, 2006

Pursuant to the Micro, Small and Medium Enterprise Development Act 2006, the Company had asked for confirmation from its vendors regarding their status under the said Act. The Company is yet to receive verifiable confirmations from the vendors and hence the amounts unpaid as at the year and together with interest payable if any, under this Act have not been given.

5. The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.

6. The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

7. RELATED PARTY DISCLOSURE

Description of relationship (As per AS18) Names of related parties

Associates Company Rishi Laser Limited

Rishi Vocational Education Pvt. Ltd.

Key Management person Mr. Harshad B. Patel (Upto 18.02.2015)

Mr. Abhishek Patel

Mr. Jagdish Dokwal

Ms. Nidhi Shah (from July 2014)

Mr. Vasant Goray (upto June 2014)

Non Executive/Independent Directors Mr. Arvind Nopany

Mr. Pranav Patel

8. Previous Years Figures have been regrouped / recalssified where-ever necessary to correspond with the current Year's Classification/Disclosure.

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Mar 31, 2014

NOTE NO. 1

CORPORATE INFORMATION:

The company was incorporated in 1984-85 in the name of Rishi Packers Pvt. Ltd. with an initial project costing Rs.80/- Lacs. The Company has over the last two and half decades undertaken a number of expansion, modernization and diversification programs successfully. The gross block which was Rs.131.70 Lacs in the first year has gone up to Rs.3207.67 Lacs by the end of March 2014. The turnover has gone up from Rs.28.50 Lacs and has reached at its highest level at Rs.4726.79 lacs in 2013-14.

The Company, which started as a woven sack unit supplying bags to fertilizer and cement industry, has consistently developed a number of products to cater to a wide spectrum of industries such as cement, fertiliser, chemical. Petrochemical, etc.

In the year 1998-99 the company undertook a major expansion and started manufacturing agro shade net for the first time in India. Presently the company is the largest exporter and manufacturer of agro shade net in India.

We are a technical textile company operating in India for over 29 years. Our yarn, fabric, bag and agro shade net manufacturing plant with latest technology is located at Survey No. 381, Zari Causway Road, Kachigam, Daman.

ADDITIONAL INFORMATION:

1.1 Contigent Liability and Commitments

Rs. in Lacs 31-03.2014 31.03.2013

Contigent Liability:

a) Claims against the company not acknowledge as debt 0.00 0.00

b) Guarantee given by bank on behalf of Company 6.00 6.30

Commitments:

a) Estimated amount of Capital contract remaining to be executed for 0.00 10.00

tangible assets 6.00 16.30

1.2 Details of dues to MICRO AND SMALL ENTERPRISES as defined under the MEMED Act, 2006

Pursuant to the Micro, Small and Medium Enterprise Development Act 2006, the Company had asked for confirmation from its vendors regarding their status under the said Act. The Company is yet to receive verifiable confirmations from the vendors and hence the amounts unpaid as at the year and together with interest payable if any, under this Act have not been given.

1. The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.

2. The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

3. Previous Years Figures have been regrouped / recalssified whereever necessary to correspond with the current Year''s Classification/Disclosure.

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Mar 31, 2013

CORPORATE INFORMATION

The company was incorporated in 1984-85 in the name of Rishi Packers Pvt. Ltd. with an initial project costing Rs.80/- Lacs. The Company has over the last two and half decades undertaken a number of expansion, modernization and diversification programs successfully. The gross block which was Rs.131.70 Lacs in the first year has gone up to Rs.3295.76 Lacs by the end of March 2013. The turnover has gone up from Rs.28.50 Lacs and has reached Rs.3882.82 lacs in 2012-13.

The Company, which started as a woven sack unit supplying bags to fertilizer and cement industry, has consistently developed a number of products to cater to a wide spectrum of industries such as cement, fertiliser, chemical. Petrochemical, etc.

In the year 1998-99 the company started a new division called KNITTING DIVISION at Daman factory to manufacture specialized products for agriculture. This division has achieved a turnover of Rs. 1666.88 Lacs as on 31.03.2013 with an export turnover of Rs.695.61 Lacs. At present we are the largest exporter of this product from India and also the largest seller in India.

We are a multiproduct company operating in India for over 28 years. Our yarn, fabric and bag manufacturing plant with latest technology is located at Survey No. 381, Zari Causway Road, Kachigam, Daman.

1.1 Contigent Liability and Commitments

Rs. in Lacs

31.03.2013 31.03.2012

Contigent Liability:

a) Claims against the company not acknowledge as debt 0.00 0.00

b) Guarantee given by bank on behalf of Company 6.30 28.10

Commitments:

a) Estimated amount of Capital contract remaining to be executed for 10.00 220.00 tangible assets

16.30 248.10

1.2 Details of dues to MICRO AND SMALL ENTERPRISES as defined under the MEMED act, 2006

Pursuant to the Micro, Small and Medium Enterprise Development Act 2006, the Company had asked for confirmation from its vendors regarding their status under the said Act. The Company is yet to receive verifiable confirmations from the vendors and hence the amounts unpaid as at the year and together with interest payable if any, under this Act have not been given.

2. Previous Years Figures have been regrouped / recalssified whereever necessary to correspond with the current Year''s Classification/Disclosure.

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Mar 31, 2012

CORPORATE INFORMATION:

The company was incorporated in 1984-85 in the name of Rishi Packers Pvt. Ltd. with an initial project costing Rs.80/- Lacs. The Company has over the last two and half decades undertaken a number of expansion, modernization and diversification programs successfully. The gross block which was Rs.131.70 Lacs in the first year has gone up to Rs.2921.30 Lacs by the end of March 2012. The turnover has gone up from Rs.28.50 Lacs and has reached Rs.3880.30 Lacs in 2011-12.

The Company, which started as a woven sack unit supplying bags to fertilizer and cement industry, has consistently developed a number of products to cater to a wide spectrum of industries such as cement, fertiliser, chemical, Petrochemical, etc.

In the year 1998-99 the company started a new division called KNITTING DIVISION at Daman factory to manufacture specialized products for agriculture. This division has achieved a turnover of Rs. 1765/- Lacs as on 31.03.2012 with an export turnover of Rs.533.30 Lacs. At present we are the largest exporter of this product from India and also the largest seller in India.

We are a multiproduct company operating in India for over 27 years. Our yarn, fabric and bag manufacturing plant with latest technology is located at Survey No. 381, Zari Causway Road, Kachigam, Daman.

a. Terms/rights attached to equity shares

The company has only one class of equity shares having a per value of Rs.10 per share. Each holder of equity shares in entitled to one vote per share.

Notes: Details of the security for the secured short-term borrowings:

a. Working capital loans outstanding at Rs. 665.13 lacs is seucred against exclusive hypothication of Inventories and Receivables / Repayable on demand and carries Interest at 14.25%.

1.1 Details of dues to MICRO AND SMALL ENTERPRISES as defined under the MEMED act, 2006

Pursuant to the Micro, Small and Medium Enterprise Development Act 2008, the Company had asked for confirmation from its vendors regarding their status under the said Act. The Company is yet to receive verifiable confirmations from the vendors and hence the amounts unpaid as at the year and together with interest payable if any, under this Act have not been given.

1. The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.

2. The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

2. Previous Years Figures have been regrouped / recalssified whereever necessary to correspond with the current Year''s Classification Disclosure.

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Mar 31, 2011

Rs. in Lacs

1. Contingent Liabilities 31.03.2011 31.03.2010

i) Foreign Bills Discounted 0.00 0.00

ii) Guarantees given by bank on 30.30 30.30 behalf of the Company

2. There are no Employees who are in receipt of remuneration in the aggregate of Rs. 60,00,000/-, where employed throughout the year or Rs.5,00,000/- per month where employed for part of the year.

3. The Liability in respect of future payments of gratuity to retiring employees is provided on the basis of acturial valuation.

4. There are no dues outstanding for more than Rs.1.00 Lac to Small scale undertaking which are outstanding for more than 30 days to the extent such parties have been identified from available information.

5. Balances of Debtors and Creditors are subject to confirmation.

6. (A) Related Party Disclosure :

List of Related Parties with Controlling Interest Mr. Harshad Patel

Others Rishi Laser Ltd.

7. The operation of the Company are Confined to manufacture and sale of plastic wovenand Knitted fabrics. There is no seperately reportable segment as far as dominent source of risks and returns is concerned.

8. During the year Company has issued 6,00,000/- Equity shares of Rs.10/- each under preferential allotment at premium of Rs.0.10 per share.

9. Previous year's figures have been regrouped wherever necessary.

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Mar 31, 2010

Rs. in Lacs

1. Contingent Liabilities : 31.03.2010 31.03.2009

i) Foreign Bills Discounted 0.00 0.00

ii) Guarantees given by bank on behalf of the Company 30.30 34.80

2. Managerial Remuneration paid under section 198 of the Companies Act,1956.

Salaries 10.80 6.00

Contribution to Provident Fund 0.71 0.00

11.51 6.00

2. There are no Employees who are in receipt of remuneration in the aggregate of Rs. 24,00,000/-, where employed throughout the year or Rs.2,00,000/- per month where employed for part of the year.

3. The Liability in respect of future payments of gratuity to retiring employees is provided on the basis of acturial valuation.

4. There are no dues outstanding for more than Rs.1.00 Lac to Small scale undertaking which are outstanding for more than 30 days to the extent such parties have been identified from available information.

5. Balances of Debtors and Creditors are subject to confirmation.

6. The operation of the Company are confined to manufacture and sale of plastic woven and Knitted fabrics. There is no seperatly reportable segment as far as dominent source of risks and returns is concerned.

7. Previous years figures have been regrouped wherever necessary.