Notes to Accounts of Ruby Mills Ltd.

Mar 31, 2025

2.10. Provisions and Contingent Liabilities

2.10.1. Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation;

2.10.2. The expenses relating to a provision is presented in the Statement of Profit and Loss net of reimbursements,
if any;

2.10.3. Contingent liabilities are possible obligations whose existence will only be confirmed by future events not
wholly within the control of the Company, or present obligations where it is not probable that an outflow of
resources will be required or the amount of the obligation cannot be measured with sufficient reliability;

2.10.4. Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility
of an outflow of economic resources is considered remote.

2.11. Revenue Recognition

2.11.1. Sale of goods:

Revenue is recognised upon transfer of control of promised goods to customers in an amount that reflects
the consideration which the Company expects to receive in exchange for those goods;

Revenue from the sale of goods is recognised at the point in time when control is transferred to the customer
which is usually on dispatch of goods, based on contracts with the customers. Export sales are recognized
on the issuance of Bill of Lading / Airway bill by the carrier;

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

Revenue excludes taxes collected from customers on behalf of the government.

Contract Balances:

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).

Contract liabilities

A contract liability is the obligation to transfer goods 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 are recognised as revenue
when the Company performs under the contract.

2.11.2. Rendering of Services

Revenue is recognized from rendering of services when the performance obligation is satisfied and the
services are rendered in accordance with the terms of customer contracts. Revenue is measured based on the
transaction price, which is the consideration, as specified in the contract with the customer.

Revenue from services is recognised over a time by measuring progress towards satisfaction of performance
obligation for the services rendered.

Revenue excludes taxes collected from customers on behalf of the government.

2.11.3. Lease license fees are recognised on straight line basis over the terms of the lease;

2.11.4. Export incentives under various schemes notified by the Government have been recognised on the basis of
applicable regulations, and when reasonable assurance to receive such revenue is established;

2.11.5. Revenue from the sale of Development rights is recognised in terms of agreement entered into by the Company
with the Developer;

2.11.6. Interest income is recognized using the effective interest rate (EIR) method;

2.11.7. Dividend income on investments is recognised when the right to receive dividend is established;

2.11.8. Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent
that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection;

M2. Employee Benefits

2.12.1. Short-term employee benefits

All employee benefits payable within twelve months of rendering the service are classified as short-term
employee benefits. Benefits such as salaries, wages etc. and the expected cost of ex-gratia are recognised in
the period in which the employee renders the related service.

2.12.2. Post-employment benefits

The Company operates the following post - employment schemes:

- Defined contribution plans such as provident fund and Family pension fund; and

- Defined benefit plans such as gratuity.

Defined Contribution Plans:

Obligations for contributions to defined contribution plans such as provident fund are recognised as an expense
in the Statement of Profit and Loss as the related service is rendered by the employee. The said benefits are
classified as Defined Contribution Schemes as the Company has no further defined obligations beyond the
monthly contributions;

Defined Benefit Plans:

The Company’s net obligation in respect of defined benefit plans such as gratuity is calculated by estimating
the amount of future benefit that the employees have earned in the current and prior periods, discounting that
amount and deducting the fair value of any plan assets;

The calculation of defined benefit obligation is performed at each reporting period end by a qualified actuary
using the projected unit credit method. When the calculation results in a potential asset for the Company, the
recognised asset is limited to the present value of the economic benefits available in the form of any future
refunds from the plan or reductions in future contributions to the plan;

The current service cost of the defined benefit plan, recognized in the Statement of Profit and Loss as part
of employee benefit expense, reflects the increase in the defined benefit obligation resulting from employee

service in the current year, benefit changes, curtailments and settlements. Past service costs are recognized
immediately in the Statement of Profit and Loss. The net interest is calculated by applying the discount rate to
the net balance of the defined benefit obligation and the fair value of plan assets. This net interest is included
in employee benefit expense in the Statement of Profit and Loss;

Re-measurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they occur, directly in other comprehensive income;

2.12.3. Other long-term employee benefits

Liability towards other long term employee benefits - leave encashment are determined on actuarial valuation
by qualified actuary by using Projected Unit Credit method;

The current service cost of other long terms employee benefits, recognized in the Statement of Profit and Loss
as part of employee benefit expense, reflects the increase in the obligation resulting from employee service in
the current year, benefit changes, curtailments and settlements. Past service costs are recognized immediately
in the Statement of Profit and Loss. The interest cost is calculated by applying the discount rate to the balance
of the obligation. This cost is included in employee benefit expense in the Statement of Profit and Loss. Re¬
measurements are recognised in the Statement of Profit and Loss.

2.13. Borrowing costs

2.13.1. Borrowing costs consist of interest and other costs incurred in connection with the borrowing of funds.
Borrowing costs also include exchange differences to the extent regarded as an adjustment to the borrowing
costs;

2.13.2. Borrowing costs that are attributable to the acquisition or construction of qualifying assets (i.e. an asset
that necessarily takes a substantial period of time to get ready for its intended use) are capitalized as a
part of the cost of such assets. All other borrowing costs are charged to the Statement of Profit and Loss.
Investment Income earned on the temporary investment of funds of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

2.14. Foreign Currency Transactions

2.14.1. Monetary items:

Transactions in foreign currencies are initially recorded at their respective exchange rates at the date the
transaction first qualifies for recognition;

Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates prevailing on
the reporting date;

Exchange differences arising on settlement or translation of monetary items are recognised in Statement of
Profit and Loss either as profit or loss on foreign currency transaction and translation or as borrowing costs to
the extent regarded as an adjustment to borrowing costs.

2.14.2. Non - Monetary items:

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions.

2.15. Government Grants

2.15.1. Government grants are recognized where there is reasonable assurance that the grant will be received and
all attached conditions will be complied with;

2.15.2. When the grant relates to an expense item, it is recognized in Statement of Profit and Loss on a systematic
basis over the periods that the related costs, for which it is intended to compensate, are expensed;

2.15.3. Government grants relating to Property, Plant and Equipment are presented as deferred income and are
credited to the Statement of Profit and Loss on a systematic and rational basis over the useful life of the
asset;

2.15.4. Export incentives under various schemes notified by the Government have been recognised on the basis of
applicable regulations, and when reasonable assurance to receive such revenue is established.

2.16. Fair Value measurement

2.16.1. The Company measures certain financial instruments at fair value at each reporting date;

2.16.2. Certain accounting policies and disclosures require the measurement of fair values, for both financial and
non- financial assets and liabilities;

2.16.3. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date in the principal or, in its absence, the
most advantageous market to which the Company has access at that date. The fair value of a liability also
reflects its non-performance risk;

2.16.4. The best estimate of the fair value of a financial instrument on initial recognition is normally the transaction
price - i.e. the fair value of the consideration given or received. If the Company determines that the fair value
on initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted
price in an active market for an identical asset or liability nor based on a valuation technique that uses only
data from observable markets, then the financial instrument is initially measured at fair value, adjusted to
defer the difference between the fair value on initial recognition and the transaction price. Subsequently
that difference is recognised in Statement of Profit and Loss on an appropriate basis over the life of the
instrument but no later than when the valuation is wholly supported by observable market data or the
transaction is closed out;

2.16.5. While measuring the fair value of an asset or liability, the Company uses observable market data as far as
possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used
in the valuation technique as follows:

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

- Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices);

- Level 3: inputs for the assets or liability that are not based on observable market data (unobservable
inputs);

2.16.6. When quoted price in active market for an instrument is available, the Company measures the fair value of
the instrument using that price. A market is regarded as active if transactions for the asset or liability take
place with sufficient frequency and volume to provide pricing information on an ongoing basis;

2.16.7. If there is no quoted price in an active market, then the Company uses valuation techniques that maximise
the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation
technique incorporates all of the factors that market participants would take into account in pricing a
transaction;

2.16.8. The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party
information, such as broker quotes or pricing services, is used to measure fair values, then the Company
assesses the evidence obtained from third parties to support the conclusion that these valuations meet
the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be
classified.

2.17. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

2.17.1. Financial Assets

I. Initial recognition and measurement

The Company recognises financial assets when it becomes a party to the contractual provisions of the
instrument.

All financial assets and financial liabilities are recognised at fair value on initial recognition, except for
trade receivables that do not contain a significant financing component or for which the Company has
applied practical expedient are initially measured at the transaction price determined under Ind AS 115.

Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial
liabilities, which are not at fair value through profit and loss, are added to the fair value on initial
recognition. Financial assets are classified at the initial recognition as financial assets measured at fair
value or as financial assets measured at amortised cost.

II. Subsequent measurement

Financial assets are subsequently classified as measured at

a) amortised cost;

b) fair value through profit and loss (FVTPL);

c) fair value through other comprehensive income (FVOCI).

Financial assets are not reclassified subsequent to their recognition, except if and in the period the
Company changes its business model for managing financial assets.

a) Measured at amortised cost

Financial assets that are held within a business model whose objective is to hold financial assets in order
to collect contractual cash flows that are solely payments of principal and interest, are subsequently
measured at amortised cost using the effective interest rate (‘EIR’) method less impairment, if any. The
amortisation of EIR and loss arising from impairment, if any is recognised in the Statement of Profit and
Loss.

b) Measured at fair value through other comprehensive income

Financial assets that are held within a business model whose objective is achieved by both, selling
financial assets and collecting contractual cash flows that are solely payments of principal and interest,
are subsequently measured at fair value through other comprehensive income. Fair value movements are
recognized in the other comprehensive income (OCI). Interest income measured using the EIR method
and impairment losses, if any are recognised in the Statement of Profit and Loss. On derecognition,
cumulative gain or loss previously recognised in OCI is reclassified from the equity to ‘other income’ in
the Statement of Profit and Loss.

For equity instruments, the Company may make an irrevocable election (on initial recognition) to
present in other comprehensive income subsequent changes in the fair value. The Company makes
such election on an instrument-by-instrument basis.

If the Company decides to classify an equity instrument as at FVOCI, then all fair value changes on the
instrument, excluding dividends, are recognised in the Other Comprehensive Income (OCI). There is no
recycling of the amounts from OCI to statement of Profit and Loss, even on sale of investment. However,
the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognised in the Statement of Profit & Loss.

c) Measured at fair value through profit or loss

A financial asset not classified as either amortised cost or FVOCI, is classified as FVTPL. Such financial
assets are measured at fair value with all changes in fair value, including interest income and dividend
income if any, recognised as ‘other income’ in the Statement of Profit and Loss.

III. Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the
financial asset expire, or it transfers the contractual rights to receive the cash flows from the asset and
the transfer qualifies for derecognition under Ind AS 109.

IV. Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement
and recognition of impairment loss on the financial assets measured at amortised cost and debt
instrument measured at FVOCI.

Loss allowance on receivable from customer are measured following the ‘simplified approach’ at an
amount equal to life time ECL at each reporting date. In respect of other financial assets, the loss
allowance is measured at 12 months ECL only if there is no significant deterioration in the credit risk
since initial recognition of the asset or asset is determined to have a low credit risk at the reporting date.

2.17.2. Financial Liabilities

Initial recognition and measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the
instrument.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables,
net of directly attributable transaction costs. For trade and other payables maturing within one year from
the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these
instruments.

Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the EIR method. Financial liabilities
carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised
in the Statement of Profit and Loss;

Derecognition

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or
expires;

2.17.3. Financial guarantees

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made
to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in
accordance with the terms of the debt instrument.

Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs
that are directly attributable to the issuance of the guarantee.

Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per
impairment requirements of Ind AS 109 and the fair value initially recognised less cumulative amortisation;

2.17.4. Derivative financial instruments:

The Company uses derivative financial instruments to manage the exposure on account of fluctuation in
interest rate and foreign exchange rates. Such derivative financial instruments are initially recognised at fair
value on the date on which a derivative contract is entered into and are subsequently measured at fair value
with the changes being recognised in the Statement of Profit and Loss. Derivatives are carried as financial
assets when the fair value is positive and as financial liabilities when the fair value is negative.

2.17.5. Embedded derivatives:

If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109, the classification
requirements contained in Ind AS 109 are applied to the entire hybrid contract.

Derivatives embedded in all other host contracts, including financial liabilities are accounted for as separate
derivatives and recorded at fair value, if their economic characteristics and risks are not closely related to
those of the host contracts and the host contracts are not held for trading or designated at FVTPL.

These embedded derivatives are measured at fair value with changes in fair value recognised in Statement of
Profit and Loss, unless designated as effective hedging instruments.

Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the
cash flows.

2.17.6. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet, if there
is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a
net basis, or to realise the assets and settle the liabilities simultaneously;

2.18. Taxes on Income

2.18.1. Current Tax

Income-tax Assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, by the end of reporting period;

Current Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit
and Loss, other comprehensive income or directly in equity.

2.18.2. Deferred tax

Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date;

Deferred tax liabilities are recognised for all taxable temporary differences;

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilised;

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised
to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be
recovered;

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or
substantively enacted at the reporting date;

Deferred Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit
and Loss, other comprehensive income or directly in equity;

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.

2.19. Segment reporting

2.19.1. The Company identifies operating segments based on the dominant source, nature of risks and returns and
the internal organisation. The operating segments are the segments for which separate financial information
is available and for which operating profit/loss amounts are evaluated regularly by the Managing Director
(who is the Company’s chief operating decision maker) in deciding how to allocate resources and in
assessing performance;

2.19.2. The accounting policies adopted for segment reporting are in conformity with the accounting policies of
the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been
identified to segments on the basis of their relationship to the operating activities of the segment. Inter
segment revenue is accounted on the basis of transactions which are primarily determined based on market
/ fair value factors. Revenue, expenses, assets and liabilities which relate to the Company as a whole and are
not allocable to segments on a reasonable basis have been included under ‘unallocated revenue / expenses
/ assets / liabilities’.

2.20. Earnings per share

Basic earnings per share are calculated by dividing the profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period;

For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect
of all dilutive potential equity shares.

2.21. Cash and Cash equivalents

Cash and cash equivalents in the Balance Sheet include cash at bank, cash, cheque, draft on hand and demand
deposits with an original maturity of less than three months, which are subject to an insignificant risk of changes in
value;

For the purpose of Statement of Cash Flows, Cash and cash equivalents include cash at bank, cash, cheque and
draft on hand net off of outstanding bank overdrafts as they are considered an integral part of the Company’s cash
management. The Company considers all highly liquid investments with a remaining maturity at the date of
purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

2.22. Cash Flows

Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments
and item of income or expenses associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities are segregated.

2.23. Dividend

Final dividend on shares are recorded as a liability on the date of approval by the shareholders and interim dividends
are recorded as a liability on the date of declaration by the Company’s Board of Directors.

3. Recent Pronouncements:

Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards under
ompanies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31,

2025, CA has notified Ind AS 117 Insurance Contracts and amendments to Ind AS 116 Leases, relating to sale
and leaseback transactions, applicable to the Group w.e.f. April 1, 2024. The Group has reviewed the new
pronouncements based on its evaluation has determined that it does not have any significant impact in its
financial statements.

4.1 Property plant and equipment pledged as securities for borrowing as detailed in note no 26.

4.2 These include assets which are given on operating leases, the details thereof are included in note no.50.B

4.3 In respect of Freehold Land of Dhamni Unit amounting to 31.80 lacs included in the above, the original title
documents deposited with one of the Bank and informed the Company that FIR and Newspaper publication
have been completed for the same.

4.4 The Company has not re-valued any of its Property, Plant & Equipment (including Right to use assets) and
intangible assets during the year.

4.5 The Company has reclassified part of its Investment Property for the Financial Year 2023-24 amounting to
Rs. 131. 60 Lakhs (WDV) to Property Plant and Equipment ( Buildings ) ( Refer Note 7.2)

4.6 An FIR has been lodged in case of Title deeds for Shastri Nagar Flats.

4.7 During the year, an vehicle amounting to Rs 1.32 crores was purchased in the name of director and was used
for business purposes

13.1 In terms of the Revenue Share Development Agreement (DA) entered into granting rights to develop
part of the land at Dadar, a Commercial Tower has been developed and with further agreements /
understandings between the company and the Developer, any cost of construction incurred by
the Company including further costs for the development is to be reimbursed by the Developer.
Accordingly, the cost incurred by Company upto 31st March, for the construction (net of revenue)
received from in terms of the DA) amounting to ''61,683.63 lacs (31st March 2024-''45,673.70 lakhs).

The completion/termination of the DA is underway & amounts including certain premises are to be paid
towards the Developers share of revenue. Upon the completion/termination of DA all the leased & unsold
premises shall belong to the Company.

16.1 For accounting policy on inventories Refer note 2.09;

16.2 Inventories hypothecated as security for bank borrowings - Refer note 26 and 32;

16.3 The cost of inventories recognised as an expense includes '' 118.68 (31st March 2024 '' 162.57 Lakhs) in respect
of adjustment of inventories to net realisable value/slow moving.

16.4 During the previous (FY 2023-24) the company have changed the policy of valuation fo Raw Material from
FIFO to weighted average, the impact of such change is immaterial and therefore the company has given
effect prospectively from FY 2023-24.

i. The Company has only one class of shares referred to as equity shares having par value of ''5 per
share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the
Company, the holders of equity shares will be entitled to receive any of the remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the
number of equity shares held by the shareholders.

ii. The Company declares and pays dividend in Indian Rupees. The final dividend, if any, proposed by the
Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting,
except in case of interim dividend.

25.1 Nature and Purpose of reserves

i. Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. These reserve is utilised in
accordance with the provisions of the Act;

ii. General Reserve

The general reserve represents amounts appropriated out of retained earnings and are available for
distribution to shareholders.

iii. Retained Earnings

Retained earnings are the profits that the group has earned till date, less any transfers to
general reserve, dividends or other distributionspaid to shareholders. Retained earnings includes
re-measurement loss / (gain) on defined benefit plans, net of taxes that will not be reclassified to Statement
of Profit and Loss. Retained earnings is a free reserve available to the Company..

25.2 Dividend on equity shares :

Dividend paid during the year ended 31^st March, 2025 amounting to '' 585.20 Lacs ( ''1.75 per equity share )
towards final dividend for the year ended 31^st March, 2024 as disclosed above.

The Board of Directors of the Company in their meeting on 26^th May, 2025 recommended final Dividend
of '' 1.75 per equity share for the year ended 31^st March, 2025.This payment is subject to the approval of
shareholders in the Annual General Meeting of the Company and if approved would result in net cash outflow
of '' 585.20 lakhs

48. Employee Benefits

A. Post Employment Benefit Plans:

Defined Contribution Scheme

The company makes contributions towards provident fund to define contribution retirement benefit plan for
qualifying employees. The Provident fund contributions are made to Government administered employees''
provident fund. Both the employees and the company make monthly contributions to the provident fund
plan equal to a specified percentage of the covered employees salary.

The company has recognised '' 150.05 lakhs (31^st March,2024 '' 146.40 lakhs) for Provident fund
contributions in the statement of Profit and Loss.

Defined Benefit Plans

The Company has the following Defined Benefit Plans
Gratuity:

The company makes annual contribution to Ruby Mills Limited Employees'' Gratuity Fund managed by
HDFC Standard Life Insurance Limited and Bajaj Allianz; a funded defined benefit plan for the qualifying
employees. The scheme provides for Payment to vested employees as under:

i. On normal retirement / early retirement /withdrawals/ resignation : As per the provisions of payment
of Gratuity Act, 1972.

ii. On death in service : As per provisions of Payment of Gratuity Act, 1972.

* This aforesaid amount does not includes amounts in respect of gratuity and leave entitlement as the same is not
determinable.

D. Shri Bharat M. Shah and Shri Viraj M. Shah / Shri Purav Shah, (Directors) have given Personal guarantees for
loans availed by the Company. Refer note no 26 and 32.

E. - The transactions with related parties are made in the normal course of business and on terms equivalent

to those that prevail in arm''s length transactions.

- Outstanding balances at the year-end are unsecured and settlement occurs In cash.

- There have been no guarantees provided or received for any related party receivables or payables

- The Company has not recorded any impairment of receivables relating to amounts owed by related
parties.

- Dividend paid to Directors includes their respective HUFs for the FY 2024-25 and FY 2023-24.

A. Calculation of fair values

The fair values of the financial assets and liabilities are defined as the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. The following methods and assumptions were used to estimate the fair values of financial instruments:

i The fair value of the long-term borrowings carrying floating-rate of interest is not impacted due to interest rate
changes and will not be significantly different from their carrying amounts as there is no significant change in
the under-lying credit risk of the Company (since the date of inception of the loans).

ii Cash and cash equivalents, trade receivables, investments in term deposits,investments in mutual funds, other
financial assets, trade payables, and other financial liabilities have fair values that approximate to their carrying
amounts due to their short-term nature.

depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices
in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs
(Level 3 measurements).

The categories used are as follows:

i Level 1: Quoted prices for identical instruments in an active market;

ii Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and

iii Level 3: Inputs which are not based on observable market data.

iv The following table presents the changes in level 3 items for the periods ended 31^st March, 2025 and 31^st March,
2024:

During the reporting period ending 31^st March, 2025 and 31^st March, 2024, there was no transfer between level 1
and level 2 fair value measurement.

Key Inputs for Level 1 and 2 Fair valuation Technique:

Mutual Funds : Based on Net Asset Value of the Scheme (Level 2)

Debentures : Based on Market Value of Debentures ( Level 1 )

C Financial risk management

Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the
Company''s risk management framework.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company,
to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Company''s activities.

The key risks and mitigating actions are also placed before the Audit Committee of the Company.

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

a Credit risk;
b Liquidity risk; and
c Market risk:

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, and arises principally from the Company''s trade and other receivables,
cash and cash equivalents and other bank balances. The maximum exposure to credit risk in case of all the
financial instruments covered below is restricted to their respective carrying amount.
i

Trade and other receivables

Customer credit is managed by each business unit subject to the Company''s established policies, procedures
and control relating to customer credit risk management. Trade receivables are non-interest bearing and
are generally on 21 days credit term for Textile division and for Garment division its ranges from 60 to 120
days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding
customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition,
a large number of minor receivables are grouped into homogenous groups and assessed for impairment
collectively. The Company does not hold collateral as security. The Company has no concentration of credit risk
as the customer base is widely distributed both economically and geographically , except for trade receivables
for real estate and related activities where 80% revenue comes from one customer.

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. Loss rates are based on actual credit loss
experience and past trends.

The following table provides information about the exposure to credit risk and Expected Credit Loss Allowance
for trade and other receivables:

The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments,
and due from developer. The Company has diversified portfolio of investment with various number of
counterparties which have secure credit ratings hence the risk is reduced. Individual risk limits are set
for each counter party based on financial position, credit rating and past experience. Credit limits and
concentration of exposures are actively monitored by the Management of the Company. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of financial assets:
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;

Liquidity risk is managed by Company through effective fund management. The Company''s principal sources
of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations.
The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is
generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to below;

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and price
risk.

Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates
relates primarily to the Company''s operating activities and financing activities.The Company has put in place a
Financial Risk Management Policy to Identify the most effective and efficient ways of managing the currency
risks.

Exposure to currency risk

The currency profile of financial assets and financial liabilities are as below:

Sensitivity analysis

The following table details the Company''s sensitivity to 2% increase and decrease in the Rupee against the
relevant foreign currencies is the sensitivity rate used when reporting foreign currency risk internally to key
management personnel and represents management''s assessment of the reasonably possible change in foreign
exchange rates. This is mainly attributable to the net exposure outstanding on receivables or payables in the
Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency
denominated monetary items and adjusts their translation at the period end for a 2% change in foreign currency
rate. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any
impact of forecast sales and purchases. In cases where the related foreign exchange fluctuation is capitalised
to fixed assets or recognised directly in reserves, the impact indicated below may affect the Company''s
income statement over the remaining life of the related fixed assets or the remaining tenure of the borrowing
respectively.

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 borrowings obligations with floating interest rates.

The Company''s approach to managing interest rate risk is to have a judicious mix of borrowed funds with fixed
and floating interest rate obligation.

Moreover, the short-term borrowings of the Company do not have a significant fair value or cash flow interest
rate risk due to their short tenure.

The Company is also exposed to interest rate risk on its financial assets that includes fixed deposits, since the
same are generally for short duration, the Company believes it has manageable risk and achieving satisfactory
returns. The Company also has long - term fixed interest bearing assets. However the Company has in place an
effective system to manage risk and maximise return

C Geographic information

The Company sells its products mainly within India where the conditions prevailing are uniform. Since the sales
outside India are below threshold limit, no separate geographical segment disclosure is considered necessary
(Refer Note 55).

All non-current assets in the nature of property, plant and equipment (including capital work in progress) and
intangible assets (including those under development) are domiciled in India.

D Information about major customers.

No single customer contributed 10% or more to the Company''s revenue for the year ended 31^st March, 2025 and
31^st March, 2024 in case of Textile business and one customer has contributed 99 % and 99 % of the Company''s
revenue for the year ended 31^st March, 2025 and 31^st March, 2024 respectively in case of Real estate business.

59. Other Disclosures :

a. The Company does not have any proceedings which have been initiated or pending against the Company
for holding any Benami property;

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

c. There are no instances of charges or satisfaction thereof which is yet to be registered with ROC beyond
the statutory period, except for the charge created on Buyer Credit availed for the purchase of Winder
Autoconer from Bank of Baroda with the Registrar registered in Mumbai amounting to Eur 1,71,000 and
1,44,000 which had to be satisfied on 11-1-2023 and 18-01-2023 respectively. There is a delay of 810 days
and 817 day beyond the due date for satisfaction of charge.

d. The Company has neither traded or invested, nor holds Crypto currency or Virtual Currency during the
year;

e. During the year, there were no instances of surrender or disclosure of income 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.

f. The company is not declared as willful defaulter by any bank or financial Institution or other lender.

g. There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to
237 of the Companies Act, 2013.

h. The Company does not have subsidiaries. Therefore Companies (Restrictions on number of layers) Rules,
2017 is not applicable.

i. The company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

- 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

j The company have not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:

a directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or

b provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

60. Events after reporting period

No adjusting or significant non - adjusting events have occurred between the reporting date 31^st March, 2025
and the report release date 26^thMay, 2025.

62. The figures for the corresponding previous year have been regrouped/rearranged wherever necessary, to make
them comparable.

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

The Ruby Mills Limited

CIN : L17120MH1917PLC000447

For C N K & Associates LLP Purav H. Shah Hiren M. Shah

Chartered Accountants Chief Financial Officer, Executive Chairman

ICAI Firm No: 101961W/W-100036 Chief Executive Officer & DIN : 00071077

Whole Time Director
DIN:00123460

Rajesh Mody Anuradha Tendulkar

Partner Company Secretary

Membership No.047501 Membership No. 55173

Place : Mumbai Place : Mumbai

Dated: 26^th May, 2025 Dated: 26^th May, 2025

---

Mar 31, 2024

2.10. Provisions and Contingent Liabilities

2.10.1. Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation;

2.10.2. The expenses relating to a provision is presented in the Statement of Profit and Loss net of reimbursements, if any;

2.10.3. Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the Company, or present obligations where it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured with sufficient reliability;

2.10.4. Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility of an outflow of economic resources is considered remote.

2.11. Revenue Recognition

2.11.1. Sale of goods:

Revenue is recognised upon transfer of control of promised goods to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods;

Revenue from the sale of goods is recognised at the point in time when control is transferred to the customer which is usually on dispatch of goods, based on contracts with the customers. Export sales are recognized on the issuance of Bill of Lading / Airway bill by the carrier;

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

Revenue excludes taxes collected from customers on behalf of the government.

Contract Balances:

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).

Contract liabilities

A contract liability is the obligation to transfer goods 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 are recognised as revenue when the Company performs under the contract.

2.11.2. Rendering of Services

Revenue is recognized from rendering of services when the performance obligation is satisfied and the services are rendered in accordance with the terms of customer contracts. Revenue is measured based on the transaction price, which is the consideration, as specified in the contract with the customer.

Revenue from services is recognised over a time by measuring progress towards satisfaction of performance obligation for the services rendered.

Revenue excludes taxes collected from customers on behalf of the government.

2.11.3. Lease license fees are recognised on straight line basis over the terms of the lease;

2.11.4. Export incentives under various schemes notified by the Government have been recognised on the basis of applicable regulations, and when reasonable assurance to receive such revenue is established;

2.11.5. Revenue from the sale of Development rights is recognised in terms of agreement entered into by the Company with the Developer;

2.11.6. Interest income is recognized using the effective interest rate (EIR) method;

2.11.7. Dividend income on investments is recognised when the right to receive dividend is established;

2.11.8. I nsurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection;

2.12. Employee Benefits

2.12.1. Short-term employee benefits

All employee benefits payable within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages etc. and the expected cost of ex-gratia are recognised in the period in which the employee renders the related service.

2.12.2. Post -employment benefits

The Company operates the following post - employment schemes:

- Defined contribution plans such as provident fund and Family pension fund; and

- Defined benefit plans such as gratuity.

Defined Contribution Plans:

Obligations for contributions to defined contribution plans such as provident fund are recognised as an expense in the Statement of Profit and Loss as the related service is rendered by the employee. The said benefits are classified as Defined Contribution Schemes as the Company has no further defined obligations beyond the monthly contributions;

Defined Benefit Plans:

The Company''s net obligation in respect of defined benefit plans such as gratuity is calculated by estimating the amount of future benefit that the employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets;

The calculation of defined benefit obligation is performed at each reporting period end by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Company, the recognised asset is limited to the present value of the economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan;

The current service cost of the defined benefit plan, recognized in the Statement of Profit and Loss as part of employee benefit expense, reflects the increase in the defined benefit obligation resulting from employee

service in the current year, benefit changes, curtailments and settlements. Past service costs are recognized immediately in the Statement of Profit and Loss. The net interest is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This net interest is included in employee benefit expense in the Statement of Profit and Loss;

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income;

2.12.3. Other long-term employee benefits

Liability towards other long term employee benefits - leave encashment are determined on actuarial valuation by qualified actuary by using Projected Unit Credit method;

The current service cost of other long terms employee benefits, recognized in the Statement of Profit and Loss as part of employee benefit expense, reflects the increase in the obligation resulting from employee service in the current year, benefit changes, curtailments and settlements. Past service costs are recognized immediately in the Statement of Profit and Loss. The interest cost is calculated by applying the discount rate to the balance of the obligation. This cost is included in employee benefit expense in the Statement of Profit and Loss. Remeasurements are recognised in the Statement of Profit and Loss.

2.13. Borrowing costs

2.13.1. Borrowing costs consist of interest and other costs incurred in connection with the borrowing of funds. Borrowing costs also include exchange differences to the extent regarded as an adjustment to the borrowing costs;

2.13.2. Borrowing costs that are attributable to the acquisition or construction of qualifying assets (i.e. an asset that necessarily takes a substantial period of time to get ready for its intended use) are capitalized as a part of the cost of such assets. All other borrowing costs are charged to the Statement of Profit and Loss. Investment Income earned on the temporary investment of funds of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

2.14. Foreign Currency Transactions

2.14.1. Monetary items:

Transactions in foreign currencies are initially recorded at their respective exchange rates at the date the transaction first qualifies for recognition;

Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates prevailing on the reporting date;

Exchange differences arising on settlement or translation of monetary items are recognised in Statement of Profit and Loss either as profit or loss on foreign currency transaction and translation or as borrowing costs to the extent regarded as an adjustment to borrowing costs.

2.14.2. Non - Monetary items:

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

2.15. Government Grants

2.15.1. Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with;

2.15.2. When the grant relates to an expense item, it is recognized in Statement of Profit and Loss on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed;

2.15.3. Government grants relating to Property, Plant and Equipment are presented as deferred income and are credited to the Statement of Profit and Loss on a systematic and rational basis over the useful life of the asset;

2.15.4. Export incentives under various schemes notified by the Government have been recognised on the basis of applicable regulations, and when reasonable assurance to receive such revenue is established.

2.16. Fair Value Measurement

2.16.1. The Company measures certain financial instruments at fair value at each reporting date;

2.16.2. Certain accounting policies and disclosures require the measurement of fair values, for both financial and non- financial assets and liabilities;

2.16.3. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Company has access at that date. The fair value of a liability also reflects its non-performance risk;

2.16.4. The best estimate of the fair value of a financial instrument on initial recognition is normally the transaction price - i.e. the fair value of the consideration given or received. If the Company determines that the fair value on initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique that uses only data from observable markets, then the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial recognition and the transaction price. Subsequently that difference is recognised in Statement of Profit and Loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable market data or the transaction is closed out;

2.16.5. While measuring the fair value of an asset or liability, the Company uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation technique as follows:

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

- Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);

- Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs);

2.16.6. When quoted price in active market for an instrument is available, the Company measures the fair value of the instrument using that price. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis;

2.16.7. If there is no quoted price in an active market, then the Company uses valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction;

2.16.8. The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the Company assesses the evidence obtained from third parties to support the conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.

2.17. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

2.17.1. Financial Assets

I. Initial recognition and measurement

The Company recognises financial assets when it becomes a party to the contractual provisions of the instrument.

All financial assets and financial liabilities are recognised at fair value on initial recognition, except for trade receivables that do not contain a significant financing component or for which the Company has applied practical expedient are initially measured at the transaction price determined under Ind AS 115.

Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit and loss, are added to the fair value on initial recognition. Financial assets are classified at the initial recognition as financial assets measured at fair value or as financial assets measured at amortised cost.

II. Subsequent measurement

Financial assets are subsequently classified as measured at

a) amortised cost;

b) fair value through profit and loss (FVTPL);

c) fair value through other comprehensive income (FVOCI).

Financial assets are not reclassified subsequent to their recognition, except if and in the period the Company changes its business model for managing financial assets.

a) Measured at amortised cost

Financial assets that are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows that are solely payments of principal and interest, are subsequently measured at amortised cost using the effective interest rate (''EIR'') method less impairment, if any. The amortisation of EIR and loss arising from impairment, if any is recognised in the Statement of Profit and Loss.

b) Measured at fair value through other comprehensive income

Financial assets that are held within a business model whose objective is achieved by both, selling financial assets and collecting contractual cash flows that are solely payments of principal and interest, are subsequently measured at fair value through other comprehensive income. Fair value movements are recognized in the other comprehensive income (OCI). Interest income measured using the EIR method and impairment losses, if any are recognised in the Statement of Profit and Loss. On derecognition, cumulative gain or loss previously recognised in OCI is reclassified from the equity to ''other income'' in the Statement of Profit and Loss.

For equity instruments, the Company may make an irrevocable election (on initial recognition) to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis.

If the Company decides to classify an equity instrument as at FVOCI, then all fair value changes on the instrument, excluding dividends, are recognised in the Other Comprehensive Income (OCI). There is no recycling of the amounts from OCI to statement of Profit and Loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the Statement of Profit & Loss.

c) Measured at fair value through profit or loss

A financial asset not classified as either amortised cost or FVOCI, is classified as FVTPL. Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend income if any, recognised as ''other income'' in the Statement of Profit and Loss.

III. Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the contractual rights to receive the cash flows from the asset and the transfer qualifies for derecognition under Ind AS 109.

IV. Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the financial assets measured at amortised cost and debt instrument measured at FVOCI.

Loss allowance on receivable from customer are measured following the ''simplified approach'' at an amount equal to life time ECL at each reporting date. In respect of other financial assets, the loss allowance is measured at 12 months ECL only if there is no significant deterioration in the credit risk since initial recognition of the asset or asset is determined to have a low credit risk at the reporting date.

2.17.2. Financial Liabilities

Initial recognition and measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the EIR method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss;

Derecognition

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expires;

2.17.3. Financial guarantees

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of the debt instrument.

Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee.

Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the fair value initially recognised less cumulative amortisation;

2.17.4. Derivative financial instruments:

The Company uses derivative financial instruments to manage the exposure on account of fluctuation in interest rate and foreign exchange rates. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently measured at fair value with the changes being recognised in the Statement of Profit and Loss. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

2.17.5. Embedded derivatives:

If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109, the classification requirements contained in Ind AS 109 are applied to the entire hybrid contract.

Derivatives embedded in all other host contracts, including financial liabilities are accounted for as separate derivatives and recorded at fair value, if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at FVTPL.

These embedded derivatives are measured at fair value with changes in fair value recognised in Statement of Profit and Loss, unless designated as effective hedging instruments.

Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows.

2.17.6. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet, if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously;

2.18. Taxes on Income

2.18.1. Current Tax

Income-tax Assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, by the end of reporting period;

Current Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit and Loss, other comprehensive income or directly in equity.

2.18.2. Deferred tax

Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date;

Deferred tax liabilities are recognised for all taxable temporary differences;

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised;

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered;

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date;

Deferred Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit and Loss, other comprehensive income or directly in equity;

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

2.19. Segment reporting

2.19.1. The Company identifies operating segments based on the dominant source, nature of risks and returns and the internal organisation. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the Managing Director (who is the Company''s chief operating decision maker) in deciding how to allocate resources and in assessing performance;

2.19.2. The accounting policies adopted for segment reporting are in conformity with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Inter segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors. Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on a reasonable basis have been included under ''unallocated revenue / expenses / assets / liabilities''.

2.20. Earnings per share

Basic earnings per share are calculated by dividing the profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period;

For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity shares.

2.21. Cash and Cash equivalents

Cash and cash equivalents in the Balance Sheet include cash at bank, cash, cheque, draft on hand and demand deposits with an original maturity of less than three months, which are subject to an insignificant risk of changes in value;

For the purpose of Statement of Cash Flows, Cash and cash equivalents include cash at bank, cash, cheque and draft on hand net off of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

2.22. Cash Flows

Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

2.23. Dividend

Final dividend on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors.

3. Recent Pronouncements:

Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

13.1 In terms of the Development Agreement (DA) entered into granting rights to develop part of the Freehold land at Dadar, a Commercial Tower is developed and with further agreements / understandings between the company and the Developer, any cost of construction incurred by the Company including interest on further costs for the development is to be reimbursed by the Developer. Accordingly, the cost incurred by Company upto 31st March, 2024 for the construction (net of amounts ) received from the Developer in terms of the DA) amounting to ''35,696.20 lacs (31st March 2023) '' 46,114.17 lacs) is shown as “Due from Developer” under Note 13 and ''9,977.50 lacs (31st March 2023 '' 7,478.32 lacs) is shown as “Due from developer” under Note 21;

a. The proportionate carrying cost of 12,204 square meters of land is '' 0.93 lacs as on 31st March, 2024 (31st March, '' 2023 0.93 lacs) in respect of which the Development Rights are granted is included under “Freehold Land (under development)” under “Property, Plant and equipments” in Note 4

b. The expected value of monetisation of the unsold inventories of the Tower is more than adequate to recover the amount of dues from the Developer

c. Upon receipt of Occupation Certificate in January 2022, the Company has capitalised the Cost amounting to '' 3851.34 lacs for such area in the said year ended 31st March, 2022

d. Further, the consideration for the Grant of the Development Rights is based on the specified percentage of the revenue received by the Developer (in terms of the DA), irrespective of the completion of construction / handing over the possession of the said constructed area to the Purchasers / Licensees and reflected as “Grant of Development Rights” in the Statement of Profit and Loss. The DA does not contemplate a transfer or an intention to transfer the ownership or possession of the said land at present and the same continues to remain with the Company

24.1 Nature and Purpose of reserves

i. Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. These reserve is utilised in accordance with the provisions of the Act;

ii. General Reserve

The general reserve represents amounts appropriated out of retained earnings and are available for distribution to shareholders.

iii. Retained Earnings

Retained earnings are the profits that the group has earned till date, less any transfers to general reserve, dividends or other distributionspaid to shareholders. Retained earnings includes re-measurement loss / (gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss. Retained earnings is a free reserve available to the Company..

24.2 Dividend on equity shares :

Dividend paid during the year ended 31st March, 2024 amounting to '' 418.00 Lacs ( ''1.25 per equity share ) towards final dividend for the year ended 31st March, 2023 as disclosed above.

The Board of Directors of the Company in their meeting on 21st May, 2024 recommended final Dividend of '' 1.75 per equity share for the year ended 31st March, 2024.This payment is subject to the approval of shareholders in the Annual General Meeting of the Company and if approved would result in net cash outflow of '' 585.20 lakhs

A. Calculation of fair values

The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values of financial instruments:

i The fair value of the long-term borrowings carrying floating-rate of interest is not impacted due to interest rate changes and will not be significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company (since the date of inception of the loans).

ii Cash and cash equivalents, trade receivables, investments in term deposits,investments in mutual funds, other financial assets, trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature.

C Financial risk management Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The key risks and mitigating actions are also placed before the Audit Committee of the Company.

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

a Credit risk; b Liquidity risk; and c Market risk;

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, and arises principally from the Company''s trade and other receivables, cash and cash equivalents and other bank balances. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.

i Trade and other receivables

Customer credit is managed by each business unit subject to the Company''s established policies, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 21 days credit term for Textile division and for Garment division its ranges from 60 to 120 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company does not hold collateral as security. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically , except for trade receivables for real estate and related activities where 80% revenue comes from one customer.

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. Loss rates are based on actual credit loss experience and past trends.

The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments, and due from developer. The Company has diversified portfolio of investment with various number of counter-parties which have secure credit ratings hence the risk is reduced. Individual risk limits are set for each counter-party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Management of the Company. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets;

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;

Liquidity risk is managed by Company through effective fund management. The Company''s principal sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to below;

c Market risk

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and price risk.

i Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities and financing activities.The Company has put in place a Financial Risk Management Policy to Identify the most effective and efficient ways of managing the currency risks.

Sensitivity analysis

The following table details the Company''s sensitivity to 2% increase and decrease in the Rupee against the relevant foreign currencies is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the net exposure outstanding on receivables or payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 2% change in foreign currency rate. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. In cases where the related foreign exchange fluctuation is capitalised to fixed assets or recognised directly in reserves, the impact indicated below may affect the Company''s income statement over the remaining life of the related fixed assets or the remaining tenure of the borrowing respectively.

C Geographic information

The Company sells its products mainly within India where the conditions prevailing are uniform. Since the sales outside India are below threshold limit, no separate geographical segment disclosure is considered necessary (Refer Note 54).

All non-current assets in the nature of property, plant and equipment (including capital work in progress) and intangible assets (including those under development) are domiciled in India.

D Information about major customers.

No single customer contributed 10% or more to the Company''s revenue for the year ended 31st March, 2024 and 31st March, 2023 in case of Textile business and one customer has contributed 99 % and 99 % of the Company''s revenue for the year ended 31st March, 2024 and 31st March, 2023 respectively in case of Real estate business.

58. Other Disclosures :

a. The Company does not have any proceedings which have been initiated or pending against the Company for holding any Benami property;

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

c. There are no instances of charges or satisfaction thereof which is yet to be registered with ROC beyond the statutory period, except for the charge created on Buyer Credit availed for the purchase of Winder Autoconer from Bank of Baroda with the Registrar registered in Mumbai amounting to Eur 1,71,000 and 1,44,000 which had to be satisfied on 11-1-2023 and 18-01-2023 respectively. There is a delay of 445 days and 452 day beyond the due date for satisfaction of charge.

d. The Company has neither traded or invested, nor holds Crypto currency or Virtual Currency during the year;

e. During the year, there were no instances of surrender or disclosure of income 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)

f. The company is not declared as willful defaulter by any bank or financial Institution or other lender.

g. There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

h. The Company does not have subsidiaries. Therefore Companies (Restrictions on number of layers) Rules, 2017 is not applicable.

i. The company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

- 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 Beneficiarie

j The company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:

a directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b provide any guarantee, security or the like on behalf of the Ultimate Beneficiari

59. Events after reporting period

No adjusting or significant non - adjusting events have occurred between the reporting date 31st March, 2024 and the report release date 21^st May, 2024.

61. The figures for the corresponding previous year have been regrouped/rearranged wherever necessary, to make them comparable.

As per our attached report of even date

For and on behalf of the Board of Directors of The Ruby Mills Limited

CIN : L17120MH1917PLC000447

For C N K & Associates LLP Hiren M. Shah Bharat M Shah

Chartered Accountants Executive Chairman Managing Director

ICAI Firm No: 101961W/W-100036 DIN : 00071077 DIN : 00071248

Rajesh Mody Anuradha Tendulkar Purav H. Shah

Partner Company Secretary Chief Executive Officer

Membership No. 047501 Membership No. 55173 and Whole Time Director

DIN : 00123460

Place : Mumbai Place : Mumbai

Dated : 21^th May, 2024 Dated : 21^th May, 2024

---

Mar 31, 2023

The Company has not given any loans or advances in nature of loans to key managerial persons, directors, promoters or related parties either severally or jointly with any other person.

No loans are due from directors or other officers of the Company either severally or jointly with any other person. Further, no loans are due from firms or private companies respectively in which any director is a partner, a director or a member

13.1 a. In terms of the Development Agreement (DA) entered into in an earlier year granting rights to develop part of the Freehold land at Dadar a Commercial Tower is developed and with further agreements / understandings between the Company and the Developer, any cost of construction incurred by the Company and such further costs (including interest on borrowings for the said construction) that may be incurred by the Company for the development of the above referred to area is to be reimbursed by the Developer. Accordingly, the cost incurred by the Company upto 31stMarch, 2023 for the construction (net of amounts received from the developer in terms of the DA) amounting to '' 46114.17 lakhs (31st March, 2022 '' 57,354.44 lakhs) is shown as “Due from developer" under Note 13 and '' 7,478.32 lakhs (31st March, 2022 '' 6,179.52 lakhs) is shown as “Due from developer" under Note 21;

b .The Company had paid the cost of construction for the area retained. Upon receipt of Occupation Certificate in January 2022, the Company has capitalised the Cost amounting to '' 3,851.34 lakhs for such area in the said year ended 31st March 2022

c. The proportionate carrying cost of 12,204 square meters of land is '' 0.93 lakhs as on 31st March, 2023 (31st March, 2022 '' 0.93 lakhs), in respect of which the Development Rights are granted, is included under “Freehold Land (under development)" under “Property, plant and equipments" in Note 4

d. Further, the consideration for the Grant of the Development Rights is based on the specified percentage of the revenue received by the Developer (in terms of the DA), irrespective of the completion of construction / handing over the possession of the said constructed area to the Purchasers / Licensees and reflected as “Grant of Development Rights" in the Statement of Profit and Loss. The DA does not contemplate a transfer or an intention to transfer the ownership or possession of the said land at present and the same continues to remain with the Company.

Post obtaining the full OC for this Tower, the Company would be able to recover the entire amount in next 2 to 3 years based on further monetizing of unsold inventories of the Tower which has full OC. The value of unsold inventories of Tower is double the amount due from Developer, which shall enable the Company to recover dues at all the times.

While making the provision for Current tax, the Company has relied on the opinion of an expert for the tax treatment of gains earned for the Grant of development rights and availability of certain tax benefits in respect of the capital expenditure incurred on shifting of the industrial undertaking,as per the provision of the Income Tax Act, 1961.

16.1 For accounting policy on inventories Refer note 2.10;

16.2 Inventories hypothecated as security for bank borrowings - Refer note 25 and 31;

16.3 The cost of inventories recognised as an expense includes NIL (March 31, 2022 ''5.56 Lakhs) in respect of adjustment of inventories to net realisable value/slow moving.

18.1 There are no unbilled receivables as at 31st March, 2023 and 31st March, 2022

18.2 The credit period for trade receivable for textile related is 21 days and for garment related ranges from 60 days to 120 days;

18.3 Company is in the process of reconciling balances of some parties. The Company believes that on completion of the said process, there would be no material adjustments necessary in the accounts.

18.4 Before accepting any new customer, the Company has appropriate levels of control procedures which ensure the potential customer''s credit quality. Credit limits scoring attributed to customers are reviewed periodically by the Management;

18.5 No trade receivables are due from directors or other officers of the Company either severally or jointly with any other person. Further, no trade receivables are due from firms or private companies respectively in which any director is a partner, a director or a member.

18.6 Trade receivables hypothecated as security for bank borrowings - Refer note 25 and 31

18.7 Movement in the expected credit loss allowance

i. The Company has only one class of shares referred to as equity shares having par value of '' 5 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

ii. The Company declares and pays dividend in Indian Rupees. The final dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

23.3 Issue of Bonus Shares :

The Company has allotted the bonus shares at 1:1 ratio in it''s Board Meeting held on 23 September 2022. Accordingly, the number of shares increased from 1,67,20,000 to 3,34,40,000. The paid-up capital on account of Bonus issue of '' 8.36 Crore has been appropriated from Securities Premium Account

24.1 Nature and Purpose of reservesi. Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. These reserve is utilised in accordance with the provisions of the Act;

ii. General Reserve

The general reserve represents amounts appropriated out of retained earnings and are available for distribution to shareholders.

iii. Retained Earnings

Retained Earnings represents surplus / accumulated earnings of the company and are available for distribution to shareholders.

24.2 Dividend on equity shares :

Dividend paid during the year ended 31st March, 2023 amounting to '' 501.60 Lacs ('' 3 per equity share ) towards final dividend for the year ended 31st March, 2022 as disclosed above.

The Board of Directors of the Company in their meeting on 30^th May, 2023 recommended final Dividend of '' 1.25 per equity share for the year ended 31st March, 2023.This payment is subject to the approval of shareholders in the Annual general Meeting of the Company and if approved would result in net cash outflow of '' 418.00 lakhs

33.1 Trade payables are non - interest bearing and are normally settled within 45 - 60 days. Trade payables to MSME are settled within 45 days except in case of quality related issue.

33.2 Company is in the process of reconciling balances of some parties. The Company believes that on completion of the said process, there would be no material adjustments necessary in the accounts.

35.1 A Sum of '' 10,100.00 Lakhs is Advance against Sale of Property directly from a prospective buyer for proposed Sale of a premises on Freehold Land under “Buildings". Out of the total consideration agreed, a substantial balance was receivable. Meanwhile, certain disputes and differences have arisen between the prospective buyer and their bankers on account of which the Company is indirectly affected. In the absence of payment of the balance consideration and inter alia with the accounts of the prospective buyer becoming a NPA with its bankers and the said advance becoming the subject matter of legal proceedings between the prospective buyer and their Bankers; , including proceedings before the Debts Recovery Tribunal, NCLT and also criminal proceedings. In the said recovery proceedings between the prospective buyer and it Bankers, the Company has unnecessary been involved.

SBI petition in NCLT was admitted and Resolution Professional ( RP ) was appointed. The Company placed facts in the correct prospective and filed the Intervening Application (IA) which is taken up for hearing wherein the Company offered '' 10,100 lakhs. During the hearing the RP produced Supreme Court order in certain proceedings between SBI and Axis Bank.

Thereupon advised the Company filed an Intervening Application in Supreme Court and further filed the Applications to hand over the fixed Deposit of '' 7,850 lakhs to the Registrar of Supreme Court, pending the dispute between the SBI and Axis bank.

No aggregate amounts of current and deferred tax have arisen in the reporting period which have been recognised in equity and not in Statement of Profit or Loss or Other Comprihensive Income.

47. Employee BenefitsA. Post Employment Benefit Plans:Defined Contribution Scheme

The company makes contributions towards provident fund to define contribution retirement benefit plan for qualifying employees. The Provident fund contributions are made to Government administered employees'' provident fund. Both the employees and the company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employees salary.

The company has recognised '' 138.77 lakhs (31st March,2022 '' 92.34 lakhs) for Provident fund contributions in the statement of Profit and Loss.

Defined Benefit Plans

The Company has the following Defined Benefit Plans Gratuity:

The company makes annual contribution to Ruby Mills Limited Employees'' Gratuity Fund managed by HDFC Standard Life Insurance Limited and Bajaj Allianz; a funded defined benefit plan for the qualifying employees. The scheme provides for Payment to vested employees as under:

i. On normal retirement / early retirement /withdrawals/ resignation : As per the provisions of payment of Gratuity Act, 1972.

ii. On death in service : As per provisions of Payment of Gratuity Act, 1972.

The estimates for future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors

The expected return on plan assets is based on market expectation at the beginning of the period, for returns over the entire life of the related obligation

For the funded plans, the trust maintains appropriate fund balance considering the analysis of maturities. Projected Unit credit method is adopted for Asset-Liability Matching.

B. Other Long Term Benefits :

Leave Salary

The Leave Salary cover the Company''s liability for casual and earned leave.Entire amount of the provision is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next 12 months

Remuneration paid include perquisites which does not form part of Managerial remuneration calculation as per Schedule V of The Companies Act 2013

* This aforesaid amount does not includes amounts in respect of gratuity and leave entitlement as the same is not determinable.

D. Shri Bharat M. Shah and Shri Viraj M. Shah / Shri Purav Shah, (Directors) have given Personal guarantees for loans availed by the Company. Refer note no 25 and 31.

E. - The transactions with related parties are made in the normal course of business and on terms equivalent

to those that prevail in arm''s length transactions.

- Outstanding balances at the year-end are unsecured and settlement occurs In cash.

- There have been no guarantees provided or received for any related party receivables or payables

- The Company has not recorded any impairment of receivables relating to amounts owed by related parties.

B. Lease as lessor Operating Lease

The Company has entered into cancellable and non-cancellable operating lease arrangement in respect of Premises, Plant and Machinery and Furniture and Fixture. The lease period in case of Primises ranges upto 60 months. The details are as follows:

i. Carring value of Leases assets as follow as on 31^st March, 2023 and as on 31^st March, 2022

*The Company has issued 1,67,20,000 equity shares of '' 5/- each as fully paid bonus shares during the year in

the ratio of 1 equity share of '' 5/- each for every 1 equity shares held. This has been considered for calculating weighted average number of equity shares for all comparative periods. In line with the above, EPS for the year ended 31.03.2022 has been restated.

51. Financial instrumentsA. Calculation of fair values

The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values of financial instruments:

i The fair value of the long-term borrowings carrying floating-rate of interest is not impacted due to interest rate changes and will not be significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company (since the date of inception of the loans).

ii Cash and cash equivalents, trade receivables, investments in term deposits,investments in mutual funds, other financial assets, trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature.

in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

i Level 1: Quoted prices for identical instruments in an active market;

ii Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and

iii Level 3: Inputs which are not based on observable market data.

During the reporting period ending 31st March, 2023 and 31st March, 2022, there was no transfer between level 1 and level 2 fair value measurement.

Key Inputs for Level 1 and 2 Fair valuation Technique:

Mutual Funds : Based on Net Asset Value of the Scheme (Level 2)

C Financial risk managementRisk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The key risks and mitigating actions are also placed before the Audit Committee of the Company.

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

a Credit risk; b Liquidity risk; and c Market risk;

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, and arises principally from the Company''s trade and other receivables, cash and cash equivalents and other bank balances. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.

i Trade and other receivables

Customer credit is managed by each business unit subject to the Company''s established policies, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 21 days credit term for Textile division and for Garment division its ranges from 60 to 120 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company does not hold collateral as security. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically , except for trade receivables for real estate and related activities where 80% revenue comes from one customer.

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. Loss rates are based on actual credit loss experience and past trends.

The following table provides information about the exposure to credit risk and Expected Credit Loss Allowance for trade and other receivables:

The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments, and due from developer. The Company has diversified portfolio of investment with various number of counter-parties which have secure credit ratings hence the risk is reduced. Individual risk limits are set for each counter-party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Management of the Company. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets;

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;

Liquidity risk is managed by Company through effective fund management. The Company''s principal sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to below;

The following are the remaining contractual maturities of financial liabilities at the reporting date. Amounts disclosed are the contractual un-discounted cash flows:

Maturity analysis of significant financial liabilities

c Market risk

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and price risk.

i Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities and financing activities.The Company has put in place a Financial Risk Management Policy to Identify the most effective and efficient ways of managing the currency risks.

Sensitivity analysis

The following table details the Company''s sensitivity to 2% increase and decrease in the Rupee against the relevant foreign currencies is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the net exposure outstanding on receivables or payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 2% change in foreign currency rate. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. In cases where the related foreign exchange fluctuation is capitalised to fixed assets or recognised directly in reserves, the impact indicated below may affect the Company''s income statement over the remaining life of the related fixed assets or the remaining tenure of the borrowing respectively.

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 borrowings obligations with floating interest rates.

The Company''s approach to managing interest rate risk is to have a judicious mix of borrowed funds with fixed and floating interest rate obligation.

Moreover, the short-term borrowings of the Company do not have a significant fair value or cash flow interest rate risk due to their short tenure.

The Company is also exposed to interest rate risk on its financial assets that includes fixed deposits, since the same are generally for short duration, the Company believes it has manageable risk and achieving satisfactory returns. The Company also has long - term fixed interest bearing assets. However the Company has in place an effective system to manage risk and maximise return

* The above amount represents loan given by company which has significant increase in credit risk and no interest income is accrued in F.Y. 2022-23. Loss allowance of ''447.27 lakhs has been created on the said amount as at 31st March, 2023.

Interest rate sensitivity

A reasonably possible change of 2% in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant. In cases where the related interest rate risk is capitalised to fixed assets, the impact indicated below may affect the Company''s income statement over the remaining life of the related fixed assets. The said calculation is done excluding loans which are taken and utilised for development of property and charged to due from developers which will never impact the income statement of the Company.

The Company has deployed its surplus funds into various financial instruments including units of mutual funds etc. The Company is exposed to price risk on such investments, which arises on account of movement in interest rates, liquidity and credit quality of underlying securities.

52. Capital Management:

The Company''s objective is to maximize the shareholders'' value by maintaining an optimum capital structure. Management monitors the return on capital as well as the debt equity ratio and makes necessary adjustments in the capital structure for the development of the business.

For the purpose of computing debt to equity ratio, equity includes Equity share capital and Other equity and Debt includes Long term borrowings, short term borrowings and current maturities of long term borrowings.

53. Segment information A Basis for segmentation

Management has identified two reportable business segments, namely:

i Textiles

ii Real estate and related

Segments have been identified taking into account the nature of activities and its risks and returns.

The Company''s Managing Director, the Chief Operating Decision Maker (CODM) for the Company, periodically reviews the internal management reports and evaluates performance/allocates resources based on the analysis of various performance indicators relating to the segments referred to above.

B Information about reportable segments

Information related to each reportable segment is set out below. Segment profit (loss) after tax is used to

measure performance because management believes that this information is the most relevant in evaluating the results of the respective segments relative to other entities that operate in the same industry.

*For the purposes of review by the CODM, information referred to above is measured consistent with the accounting policies applied for preparation of these financial statements.

C Geographic information

The Company sells its products mainly within India where the conditions prevailing are uniform. Since the sales outside India are below threshold limit, no separate geographical segment disclosure is considered necessary (Refer Note 54).

All non-current assets in the nature of property, plant and equipment (including capital work in progress) and intangible assets (including those under development) are domiciled in India.

D Information about major customers.

No single customer contributed 10% or more to the Company''s revenue for the year ended 31^st March, 2023 and 31^st March, 2022 in case of Textile business and one customer has contributed 99 % and 99 % of the Company''s revenue for the year ended 31^st March, 2023 and 31^st March, 2022 respectively in case of Real estate business.

v Revenue recognised from Contract liability (Advances from Customers)

The Contract liability outstanding at the beginning of the year has been recognised as revenue during the year ended 31st March, 2023.

vi Trade receivables are non-interest bearing and are generally on 21 days credit term for Textile division and for Garment division its range from 60 to 120 days credit term. In 31^st March, 2023 ''. 63.43 lakhs (31^st March, 2022: '' 39.97 lakhs) was recognised as provision for expected credit losses on trade receivables. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored.

56 Contingent liabilities and capital commitmenta. Contingent Liabilities:

Particulars			As at 31st March 2023		As at 31st March 2022
i) ii) iii) iv)	In respect of Income tax matters Other Matters: Excise, service tax and customs matters FEMA Claim against Company under RERA Act Claim against the Company by ex employees pending in labour court not acknowledged as debt		729.42 286.04 14.00 Not ascertainanble		493.03 286.04 14.00 Not ascertainanble
b. Capital Commitments
Particulars				As at 31st March 2023		As At 31st March 2022
i) ii)	Related to Contracts: Estimated amount of contracts remaining to be executed on capital account Less: Advances Net Estimated Amount Other commitments			1,939.95 132.00		316.84 144.72
				1,807.94		172.12
				-		-
57. Disclosure as per Section 186(4) of the Companies Act, 2013:
Particulars		Interest Rate		As at 31st March, 2023		As at 31st March, 2022
Rohan Developers Private Limited Less : Loss Allowance Net Receivable		13%		9,320.58 (447.27)		9,445.58 (397.12)
				8,873.31		9,048.46

The ICD was given for business purpose as at the time, the Company temporarily had surplus funds. Presently, the said ICD is reflected as non-current as not expected to be received within a period of twelve months from the date of the Balance Sheet.

58. Other Disclosures :

a. The Company does not have any proceedings which have been initiated or pending against the Company for holding any Benami property;

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

c. There are no instances of charges or satisfaction thereof which is yet to be registered with ROC beyond the statutory period;

d. The Company has neither traded or invested, nor holds Crypto currency or Virtual Currency during the year;

e. During the year, there were no instances of surrender or disclosure of income 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.

f. The company is not declared as willful defaulter by any bank or financial Institution or other lender.

g. There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

h. The Company does not have subsidiaries. Therefore Companies (Restrictions on number of layers) Rules, 2017 is not applicable.

i. The company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

- 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 Beneficiarie

j) The company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:

a directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b provide any guarantee, security or the like on behalf of the Ultimate Beneficiari

59. Events after reporting period

No adjusting or significant non - adjusting events have occurred between the reporting date 31^st March, 2023 and the report release date 30^th May, 2023.

61. The figures for the corresponding previous year have been regrouped/rearranged wherever necessary, to make them comparable.

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Mar 31, 2018

1. CORPORATE INFORMATION

The Ruby Mills limited (''RML'' or ''the Company'') is a public limited company domiciled in India incorporated on 9^th January 1917. Registered office of the Company is located at Mumbai. The Company is listed on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited. The Company is an integrated textile mill. The Company has two plants. The spinning and weaving plant is located at Dhamni and the process house at Kharsundi both at Khopoli close to Bombay - Pune Highway. The Company had entered into a Development Agreement (“the DA") to develop part of its vacant mill land at Dadar. In terms of the DA, any cost of construction incurred by the Company incurred for the development of the above is to be reimbursed by the Developer. The consideration for the Grant of the Development Rights is based on the specified percentage of the revenue received by the Developer.

The Company has elected to use the exemption available under Ind AS 101 to continue the carrying value of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use as its deemed cost as at the date of transition to Ind AS i.e. 1^st April 2016 as per the following details:

The Company has elected to use the exemption available under Ind AS 101 to continue the carrying value of all of its investment properties as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use as its deemed cost as at the date of transition to Ind AS i.e. 1^st April 2016 as per the following details:

The fair values of the investment property are categorised as level 2 in the fair valuation hierarchy and has been determined by external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued

The Company has sub divided the leasehold land for subsequent sale. Therefore the same is not amortised.

2 a. In an earlier year, the Company entered into a Development Agreement (“the DA") with a Developer whereby the Company granted the development rights to develop approximately 36,000 square metres of constructed area (“the Development Rights") on 12,204 square metres out of its Freehold Land at Dadar (“the said property").

b. In terms of the DA and further agreements / understandings between the Company and the Developer, any cost of construction incurred by the Company and such further costs (including interest on borrowings for the said construction) that may be incurred by the Company for the development of the above referred to area is to be reimbursed by the Developer. Accordingly, the cost incurred by the Company upto 31^st March, 2018 for the construction (net of amounts received from the developer in terms of the DA) amounting to Rs. 52,946.29 lakhs (31^st March, 2017 Rs.53,030.68 lakhs and 1^st April, 2016 Rs.. 39,670.35 lakhs) is shown as “Due from developer" under Note 9 and Rs.. 9,958.13 lakhs (31^st March, 2017 Rs.. 9,958.37 lakhs and 1^st April, 2016 Rs.22,456.63 lakhs) is shown as "Due from developer" under Note 17.

c. The Company has Subsequently received from the Government of Maharashtra, the approval for the development of additional constructed area of approximately 5,000 square metres over and above the area covered under the DA ; the Developer and the Company have agreed that such additional area is to be owned by the Company. The related cost of such area to be owned by the Company is mutually agreed upon with the Developer on an appropriate basis. The Company has also carried forward the amount of Rs. 2,825.16lakhs (31^st March, 2017 Rs.. 2,746.14 lakhs and 1^st April, 2016 Rs.. 2,647.15 lakhs) in Capital Work-in-progress. The said cost may be adjusted / increased when the Developer completes the construction of the total area including the construction of the common areas.

d. The proportionate carrying cost of 12,204 square meters of land of Rs. 0.93 lakhs (31^st March, 2017 Rs. 0.93 lakhs and 1^st April, 2016 Rs. 0.93 lakhs), in respect of which the Development Rights are granted, is shown as "Freehold Land (under development)" under "Property, plant and equipments" in Note 3.

e. Further, the consideration for the Grant of the Development Rights is based on the specified percentage of the revenue received by the Developer (in terms of the DA in force), irrespective of the completion of construction / handing over the possession of the said constructed area to the Purchasers / Licensees and reflected as "Grant of Development Rights" in the Statement of Profit and Loss. The DA does not contemplate a transfer or an intention to transfer the ownership or possession of the said property at present and the same continues to remain with the Company.

While making the provision for Current tax, the company has relied on the opinion of an expert for the tax treatment of gains earned for the Grant of development rights and availability of certain tax benefits in respect of the capital expenditure incurred on shifting of the industrial undertaking, as per the provision of the Income - Tax Act,1961.

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Balance with Central Excise Authorities represents the amount of unutilised credit of additional duty of Central Excise claimed as refund by the Company in the year 2003-04. The Company had preferred an appeal before the Bombay High Court against the order of the Appellate Tribunal rejecting the refund claim of the company. Honourable High court has rejected the claim of the Company vide order its order of October 2017. Based on the advice of the legal Counsels the company has not preferred further appeal before the Supreme Court and had thus written of the outstanding balance during the year.

14.1 The credit period for trade receivable for textile related is 21 days and for garment related ranges from 60 days to 121 days.

14.2 Before accepting any new customer, the Company has appropriate levels of control procedures which ensure the potential customer''s credit quality. Credit limits scoring attributed to customers are reviewed periodically by the Management.

14.3 No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person. Trade or other receivables are also not due from firms or private companies respectively in which any director is a partner, a director or a member

3 Rights, preferences and restrictions :

i. The Company has only one class of shares referred to as equity shares having par value of '' 5 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

ii The Company declares and pays dividend in Indian Rupees. The final dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

4. Nature and Purpose of reserves

i Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. These reserve is utilised in accordance with the provisions of the Act.

ii General Reserve

The general reserve represents amounts appropriated out of retained earnings and are available for distribution to shareholders.

iii Retained Earnings

Retained Earnings represents surplus / accumulated earnings of the company and are availble for distribution to shareholders.

5. Cash Credit and Overdraft Facilities are secured as under :

i. Bank of India - Rs.477.54 (31^st March, 2017 Rs.318.21 lakhs, 1^st April, 2016 Rs.318.13 lakhs)

State Bank of India - Rs.962.97 (31^st March, 2017 Rs.669.84 lakhs, 1^st April, 2016 Rs.923.22 lakhs)

Bank of Baroda - Rs.NIL (31^st March, 2017 Rs.132.86 lakhs, 1^st April, 2016 Rs.80.19 lakhs)

Secured against

a. First pari passu charge on entire Current Assets, both present and future, of the Company.

b. Second pari passu charge on Land and Building and Plant and Machinery on Company''s Assets at Dhamini and Kharsundi.

c. Personal guarantee of two promoter directors of the Company.

ii. Indusind Bank - Rs.NIL (31^st March, 2017 Rs.NIL and 1^st April, 2016 Rs.8.53 lakhs )

Secured against

a. Primary Security by way of Assignment of receivables from respective lessees of the property situated at "The Ruby" in IT Park at Dadar, Mumbai, Maharashtra.

b. Collateral Security by way of registered mortgage on the said property.

c. Personal guarantee of two promoter directors of the Company.

6.1 Trade payables are non - interest bearing and are normally settled within 45 - 60 days. Trade payable to MSME''s are settled within 45 days.

6.2 According to information available with the Management, on the basis of intimation received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), the Company has amounts due to Micro, Small and Medium Enterprises under the said Act as follows :

This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

7.1 *All amounts required to be transferred to the Investor Education and Protection Fund by the Company have been transferred within the time prescribed for the same.

7.2 Other liability include creditors for expenses and others

8.1 A sum of Rs.10,100.00 lakhs is Advance against Sale of Property from a prospective buyer, for the proposed Sale of premises on Freehold Land under “Buildings". Out of the total consideration agreed, a substantial amount is yet receivable. Meanwhile, certain disputes and differences have arisen between the prospective buyer and their bankers in which the Company is, indirectly affected. Although the Company is no way connected with the indepndent dealing of the Bank''s constituent as the buyer''s bankers had never intimated our company about any loan to their constituent either at the time of their appraisal/sanction or 1 1/2 year after receipt of advance (which was directly received from the prospective buyer). However, to safe guard the Company''s interest, an attorney is appointed who has opined that this is a matter between the prospective buyer and their bankers and the Company is not even contingently liable in the said matter.

Meanwhile Criminal proceedings have been initiated by the investigating agency against one of the Company''s director on basis of the complaint of the buyer''s bankers against directors of the proposed buyers, a bank officials, their empanelled valuers and architects and unknown others who were party to the loan transaction between the prospective buyer and its bankers. The Company has made an offer to pay the advance reflected in its books after appropriate directions and is also taking necessary legal steps to safeguard its interests.

9.1 Donation includes sum of Rs. Nil (previous year Rs.10 lakhs) paid to Shiv Sena, a political party.

9.2 *Previous year figures represent fees paid to predecessor auditor.

These are the Company''s first financial statements prepared in accordance with Ind AS. The Company has adopted all the Ind AS and the adoption was carried out in accordance with Ind AS 101 First time adoption of Indian Accounting Standards. The transition was carried out from Generally Accepted Accounting Principles in India (Indian GAAP) as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, which was the "Previous GAAP".

The Significant Accounting Policies set out in Note No. 2 have been applied in preparing the financial statements for the year ended 31^st March 2018, 31^st March 2017 and the opening Ind AS balance sheet on the date of transition i.e. 1^st April 2016.

In preparing its Ind AS Balance Sheet as at 1^st April 2016 and in presenting the comparative information for the year ended 31^st March 2017, the Company has adjusted amounts previously reported in the financial statements prepared in accordance with Previous GAAP. This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with Previous GAAP, and how the transition from Previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows.

I Explanation of transition to Ind AS

In preparing the financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.

A Optional Exemptions availed

i Deemed cost for property, plant and equipment, investment property and intangible assets:

The Company has elected to measure all its property, plant and equipment and intangible assets at the Previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS.

B Applicable Mandatory exceptions

i Estimates

On assessment of the estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those estimates. However, estimates that were required under Ind AS but not required under Previous GAAP are made by the Company for the relevant reporting dates reflecting conditions existing as at that date.

ii Derecognition of financial assets and financial liabilities

Derecognition of financial assets and liabilities as required by Ind AS 109 is applied prospectively i.e. after the transition date.

iii Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

VIII Notes to reconciliations:

A Fair valuation of investments

All Investments have been fair valued in accordance with Ind AS 109. Investments are fair valued through profit or loss. Under Previous GAAP the current investments were carried at cost net of diminution in their value as at the Balance Sheet date. The long term investments were carried at cost net of permanent diminution, if any.

B Trade receivables

Under Previous GAAP, the Company had recognised provision on trade receivables based on the expectation of the Company. Under Ind AS, the Company provides loss allowance on receivables based on the Expected Credit Loss (ECL) model which is measured following the "simplified approach" at an amount equal to the lifetime ECL at each reporting date.

C Borrowings

Under Previous GAAP, transaction costs in relation to borrowings were charged to Statement of Profit and Loss in the year when incurred. Under Ind AS, borrowings are recognised at fair value at the inception and subsequently at amortised cost with interest recognised based on effective interest rate method.

D Spares parts

Under Previous GAAP, machinery spares that were specific to the a particular property, plant and equipment (PPE) were capitalised to the cost of the PPE. Replacement of such spares were charged to the Statement of Profit and Loss. Spares other than above, were inventorised on procurement and were charged to Statement of Profit and Loss on consumption. Under Ind AS, all significant spare parts which meet the definition of property, plant and equipment are capitalised as property, plant and equipment and in other cases, the spare part is inventorised on procurement and charged to Statement of Profit and Loss on consumption.

E Land Leases

Under Previous GAAP, agreements in respect of land leases were not part of scope of Accounting Standard 19 -“Leases". Agreement in respect of land leases were classified as lease hold land with reference to the lease period. However, under Ind AS, agreements in respect of land leases are to be classified either as finance lease or operating lease. Accordingly, the Company has classified land leases as finance lease.

F Capital Grant

Under Previous GAAP, Government Grants in respect of Property, Plant and Equipment was reduced from cost of Property, Plant and Equipment. Under Ind AS, Government Grants in respect of Property, Plant and Equipment needs to be presented as deferred income as part of liabilities.

G Excise Duty

Under previous GAAP, revenue from sale of goods was presented net of the Excise Duty. Under Ind AS, revenue from sale of goods is presented inclusive of Excise Duty. Accordingly, Excise Duty has been presented in the Statement of Profit and Loss as an expense.

H Remeasurement of defined benefit liabilities

Under previous GAAP, the Company recognised remeasurement of defined benefit plans under Statement of Profit or Loss. Under Ind AS, remeasurement of defined benefit plans are recognised in Other Comprehensive Income.

I Investment Property

Pursuant to Ind AS requirements, investment property is presented separately. Under Previous GAAP the same was presented as part of tangible assets. Tangible assets have been now divided into two categories under Ind AS viz. Property, plant and equipment and Investment property.

J Fair valuation of security deposits

Under previous GAAP, interest free security deposit was accounted at cost. Under Ind AS security deposit is reognised at fair value at the inception and subsequently measured at amortised cost.

k Prior period item

Prior period excess provision of Rs.94.96 lakhs is adjusted in the opening retained earnings as at 1^st April, 2016 with corresponding effect in ''Trade Payables''.

L Deferred Tax

Under Previous GAAP, deferred tax accounting was done using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Under Ind AS, accounting of deferred taxes is done using the 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.Pursuant to Ind AS requirements, credit for Minimum Alternate Tax (MAT) is reclassified as deferred tax assets. Under previous GAAP the same was presented as part of taxes paid.

M The previous year GAAP figures have been reclassified/regrouped to make them comparable with Ind AS presentation.

10 Employee benefits A Post Employment Benefit Plans: Defined Contribution Scheme

The company makes contributions towards provident fund to define contribution retirement benefit plan for qualifying employees. The Provident fund contributions are made to Government administered employees'' provident fund. Both the employees and the company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employees salary.

The company has recognised Rs.55.95 lakhs (31^st March, 2017 Rs.57.86 lakhs, 31^st March, 2016 Rs.45.15 lakhs) for Provident fund contributions in the statement of Profit and Loss.

Defined Benefit Plans

The Company has the following Defined Benefit Plans Gratuity:

The company makes annual contribution to Ruby Mills Limited Employees'' Gratuity Fund managed by HDFC Standard Life Insurance Limited and Bajaj Allianz; a funded defined benefit plan for the qualifying employees. The scheme provides for Payment to vested employees as under:

i. On normal retirement / early retirement /withdrawals/ resignation : As per the provisions of payment of Gratuity Act, 1972 without any vesting period.

ii. On death in service : As per provisions of Payment of Gratuity Act, 1972 without vesting period.

The estimates for future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors

The expected return on plan assets is based on market expectation at the beginning of the period, for returns over the entire life of the related obligation

11 Leases

Operating leases

A Leases as lessee

The Company has taken motor cars, guest house and shop under operating leases. These are generally cancellable and range between three and five years and are renewable by mutual consent on mutually agreeable terms.

i The Company enters into cancellable operating leases in respect of vehicles, guest house and Shop which are cancellable by giving appropriate notices as per respective agreements. Details of the lease rentals recognised in the Statement of Profit and Loss

A Calculation of fair values

The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values of financial instruments:

i The fair value of the long-term borrowings carrying floating-rate of interest is not impacted due to interest rate changes and will not be significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company (since the date of inception of the loans).

ii Cash and cash equivalents, trade receivables, investments in term deposits, other financial assets, trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature.

The fair value of financial instruments as referred to in note (B) above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

i Level 1: Quoted prices for identical instruments in an active market;

ii Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and

iii Level 3: Inputs which are not based on observable market data.

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year and are adjusted for the effect of all dilutive potential equity shares.

12. Financial Instruments C Financial risk management Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

"The key risks and mitigating actions are also placed before the Audit Committee of the Company."

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

a Credit risk;

b Liquidity risk;

c Market risk; and

d Interest rate risk

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, and arises principally from the Company''s trade and other receivables, cash and cash equivalents and other bank balances. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.

i Trade and other receivables

Customer credit is managed by each business unit subject to the Company''s established policies, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 21 days credit term for Textile division and for Garment division its range from 60 to 120 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company does not hold collateral as security. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.

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. Loss rates are based on actual credit loss experience and past trends.

The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments in Government securities, inter corporate deposit and due from developer. Individual risk limits are set for each counterparty based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Management of the Company. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

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.

Liquidity risk is managed by Company through effective fund management. The Company''s principal sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.

The following are the remaining contractual maturities of financial liabilities at the reporting date. Amounts disclosed are the contractual undiscounted cash flows.

c Market risk

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and price risk.

i Currency risk

The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. Company''s exposure is mainly denominated in U.S. dollars (USD). The USD exchange rate has changed substantially in recent periods and may continue to fluctuate substantially in the future. The Company has put in place a Financial Risk Management Policy to Identify the most effective and efficient ways of managing the currency risks.

Sensitivity analysis

The following table details the Company''s sensitivity to a 25 basis points increase and decrease in the Rupee against the relevant foreign currencies is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the net exposure outstanding on receivables or payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 0.25% change in foreign currency rate. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. In cases where the related foreign exchange fluctuation is capitalised to fixed assets or recognised directly in reserves, the impact indicated below may affect the Company''s income statement over the remaining life of the related fixed assets or the remaining tenure of the borrowing respectively.

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 rates. The Company''s exposure to the risk of changes in market rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

The Company''s approach to managing interest rate risk is to have a judicious mix of borrowed funds with fixed and floating interest rate obligation.

Moreover, the short-term borrowings of the Company do not have a significant fair value or cash flow interest rate risk due to their short tenure.

The Company is also exposed to interest rate risk on its financial assets that includes fixed deposits, since the same are generally for short duration, the Company believes it has manageable risk and achieving satisfactory returns. The Company also has long - term fixed interest bearing assets. However the Company has in place an effective system to manage risk and maximise return.

Interest rate sensitivity

A reasonably possible change of 25 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant. In cases where the related interest rate risk is capitalised to fixed assets, the impact indicated below may affect the Company''s income statement over the remaining life of the related fixed assets. The said calculation is done excluding loans which are taken and utilised for development of property and charged to due from developers which will never impact the income statement of the Company.

13 Capital Management:

The Company''s objective is to maximize the shareholders'' value by maintaining an optimum capital structure. Management monitors the return on capital as well as the debt equity ratio and makes necessary adjustments in the capital structure for the development of the business.

For the purpose of computing debt to equity ratio, equity includes Equity share capital and Other equity and Debt includes Long term borrowings, short term borrowings and current maturities of long term borrowings.

14 Segment information A Basis for segmentation

Management has identified three reportable business segments, namely:

i Textiles

ii Real estate

Segments have been identified taking into account the nature of activities and its risks and returns.

The Company''s Managing Director, the Chief Operating Decision Maker (CODM) for the Company, periodically reviews the internal management reports and evaluates performance/allocates resources based on the analysis of various performance indicators relating to the segments referred to above.

B Information about reportable segments

Information related to each reportable segment is set out below. Segment profit (loss) after tax is used to measure performance because management believes that this information is the most relevant in evaluating the results of the respective segments relative to other entities that operate in the same industry.

C Geographic information

The Company sells its products mainly within India where the conditions prevailing are uniform. Since the sales outside India are below threshold limit, no separate geographical segment disclosure is considered necessary.

All non-current assets in the nature of property, plant and equipment (including capital work in progress) and intangible assets (including those under development) are domiciled in India.

D Information about major customers

No single customer contributed 10% or more to the Company''s revenue for the year ended 31^st March, 2018 and 31^st March, 2017 in case of Textie business and one customer has contributed 94% of the Company''s revenue for the year ended 31^st March, 2018 and 31^st March, 2017 in case of Real estate business.

15 Note on prior period expenses

Excess provision for commission expense of Rs.94.96 lakhs for the period FY 2014-15 is adjusted in the opening retained earnings as at 1^st April, 2016 with corresponding effect in ''Trade payables''.

The effect of the above on basic and diluted EPS is Rs.0.57 per share of Rs.5 each.

The ICD was given as at the time, the Company temporarily had surplus funds. Presently, the said ICD is reflected as non-current as not expected to be received within a period of twelve months from the date of the Balance Sheet.

16. In accordance with Ind AS 18 on "Revenue" and Schedule III to the Companies Act, 2013, Sales for the pervious year ended 31^st March 2017 and for the period 1^st April to 30^th June 2017 were reported gross of Excise Duty and net of Value Added Tax (VAT)/Sales Tax. Excise Duty was reported as a separate expenses line item. Consequent to the introduction of Goods and Services Tax (GST) with effect from 1^st July 2017, VAT/Sales Tax, Excise Duty etc. have been subsumed into GST and accordingly the same is not recognised as part of Sales as per the requirements of Ind AS 18. This has resulted in lower reported sales in the current year in comparison to the sales reported under the pre-GST structure of indirect taxes. With the change in structure of indirect taxes, expenses are also being reported net of taxes. Accordingly, Financial Statements for the year ended 31^st March 2018 and in particular, Sales, absolute expenses, elements of Working Capital (Inventories, Trade payable, other current assets/current liabilities etc.) and ratios in percentage of sales, are not comparable with the figures of the pervious year.

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Mar 31, 2016

1 Other Loans and Advances are in the nature of Advances recoverable in cash or in kind or for the value to be received which include Duty Drawback, Export Incentives receivable, Prepaid expenses, Advances to Employees and Provident Fund Receivable.

2.. While making the Provision for Current Tax, the Company has relied on the opinion of an expert for the tax treatment of gains earned from the Grant of Development Rights and availability of certain tax benefits in respect of the capital expenditure incurred on shifting of the industrial undertaking, as per the provisions of the Income-tax Act, 1961.

3. Disclosure in accordance with Accounting Standard (AS 19) on Accounting for Leases :

4. Where the company is a Less or :

5.. The Company has given premises under leave and license agreements under operating lease. These are generally cancellable and are for 14 months to 9 years and are renewable by consent on mutually agreeable terms. License Fees are recognized in the Statement of Profit and Loss under Note 21.

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Mar 31, 2015

1.1 Balance with Central Excise Authorities represents the amount of unutilised credit of additional duty of Central Excise claimed as refund by the Company. The Central Excise Department rejected the refund of this amount against which the Company filed an appeal before the High Court of Bombay on March 29, 2007 which was subsequently admitted by the Honorable High Court on March 25, 2008.

1.2a. In an earlier year, the Company entered into a Development Agreement ("the DA") with a Developer whereby the Company granted the development rights to develop approximately 36,000 square metres of constructed area ("the Development Rights") on 12,204 square metres out of its Freehold Land at Dadar("the said property").

b. In terms of the DA and further agreements / understandings between the Company and the Developer, any cost of construction incurred by the Company and such further costs (including interest on borrowings for the said construction) that may be incurred by the Company forthe development ofthe above referred to area is to be reimbursed by the Developer. Accordingly, the costincurred by the Company upto March 31,2015 for the construction (net of amounts received from the developer in terms of the DA) amounting toRs. 461,92,99,493 (PreviousYearRs. 459,04,42,120)isshownas"Duefromdeveloper"underNote14andRs. 225,00,00,000(Previous YearRs. 220,00,00,000)is shown as "Advances recoverable in cash or in kind orfor value to be received" under Note 19.

c. Subsequently, the Company has received from the Government of Maharashtra, the approval for the development of additional constructed area of approximately 5,000 square metres over and above the area covered under the DA ; the Developer and the Company have agreed that such additional area is to be owned by the Company. The related cost of such area to be owned by the Company is mutually agreed upon with the Developer on an appropriate basis.Ason March 31,2015, the Company has capitalised the cost (which includes the cost of common area facilities) ofRs. NIL (Previous YearRs. NIL), under the head "Buildings" based on receipt of the Occupation Certificate for such additional area and has entered into a Leave and License Agreement with a party in respect of the said constructed area. The Company has also carried forward the amount of Rs. 23,24,88,599 (Previous YearRs. 23,18,47,025) in Capital Work-in-progress. The said cost may be adjusted / increased when the Developer completes the construction ofthe total area including the construction of the common areas.

d. The proportionate carrying cost of 12,204 square meters of land of Rs. 92,912 (Previous YearRs. 92,912), in respect of which the Development Rights are granted, is shown as "Freehold Land (underdevelopment)" under "Fixed Assets" in Note 12.

e. Further, the consideration forthe Grant ofthe Development Rights is based on the specified percentage ofthe revenue received by the Developer (in terms ofthe DA in force), irrespective ofthe completion of construction / handing overthe possession ofthe said constructed area to the Purchasers/Licensees and reflected as "Grant of Development Rights" in the Statement of Profit and Loss. The DA does not contemplate a transfer or an intention to transfer the ownership or possession ofthe said property at present and the same continuesto remain with the Company.

1.3 Other Loans and Advances are in the nature of Advances recoverable in cash or in kind or for the value to be received which include

Sales tax setoff receivable, PF paid under protest and Prepaid expenses.

2.1 During the year, the Company has paid in aggregate Rs. 4,74,00,000 as Managerial Remuneration to its executive Chairman, Managing Director, Joint Managing Director and Executive Director.The Company has been legally advised that the said payment is within the limit prescribed under the provisions of section 197 and 198 read with Schedule V to the Companies Act, 2013. However, out of abundant caution, the Company has applied for the approval of the Central Government, which is pending.

3.1 Contingent Liabilities : (to the extent not provided for)

I. Matters under disputes / appeals :

a. Claims against the Company by Ex-employees pending in Labour Court not acknowledged as debts

unascertainable unascertainable

b. Income Tax 8,46,51,302 8,50,71,817

c. Excise Duty / Service Tax 3,65,36,454 3,66,86,454

d. Amount paid under protest in respect of Employees' PF under section 8F of EPF Act, 1952 15,65,934 15,65,934

e. Property Tax under dispute 4,34,52,348 3,87,72,467

ii. Bank Guarantees 2,22,93,745 2,38,86,800 ( In Lieu of Cash Deposits)

4. While making the Provision for Current Tax, the Company has relied on the opinion of an expert for the tax treatment of gains earned from the Grant of Development Rights and availability of certain tax benefits in respect of the capital expenditure incurred on shifting of the industrial undertaking, asperthe provisions of the Income-tax Act, 1961.

4.1 Relationships :

I Key Managerial Personnel :

i. Shri Manaharlal C. Shah (Executive Chairman)

ii. Shri Hiren M. Shah (Managing Director)

iii. Shri Bharat M. Shah (Jt. Managing Director)

iv. Shri Viraj M. Shah (Executive Director)

v. Shri Purav H. Shah (President)

vi. Shri Rishabh V. Shah (Vice President)

II Relatives of Key Managerial Personnel :

i. Smt. Aruna M. Shah

ii. Shri Rishabh V Shah

III Enterprise on which Key Managerial Personnel has Control :

i. Manubhai & Sons Investment Co. Pvt. Ltd.

ii. Hiren Bros. Investment Co. Pvt. Ltd.

iii. M.C. Shah & Sons Investment Co. Pvt. Ltd.

iv. Risha Dying & Printing Pvt. Ltd

v. Ruby Sales & Services Pvt. Ltd.

5. Disclosure in accordance with Accounting Standard (AS 19) on Accounting for Leases :

5.1 Where the company is a Lessee :

i. The Company has taken motor cars under operating leases. These are generally cancellable and range between three and five years and are renewable by mutual consent on mutually agreeable terms.

ii. Lease / Rent payments are recognised in the Statement of Profit and Loss as 'Rent' under 'Other Expenses' in Note 27.

iii. Future minimum lease rental payable is as under :

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Mar 31, 2013

1.1 Where the Company is a Lessor :

i. The Company has given premises under leave and licence agreements under operating lease. These are generally cancellable and are for 14 months to 9 years and are renewable by consent on mutually agreeable terms. Licence Fees are recognised in the Statement of Profit and Loss under Note 21.

ii. Future minimum lease rental receivable is as under :

2. Previous year''s figures, wherever necessary, have been regrouped / reclassified to conform to the current year''s presentation.

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Mar 31, 2012

1. Share Capital:

1.1 Rights, preferences and restrictions :

i. The Company has only one class of shares referred to as equity shares having par value of Rs. 10. Each holder of equity shares Is entitled to one vote per share.

ii. The Company declares and pays dividend In Indian Rupees. The dividend proposed by the Board of Directors Is subject to the approval of the Shareholders In the ensuing Annual General Meeting. The Board of Directors, In their meeting on August 14,2012, proposed a final dividend of Rs. 5 per equity share. The proposal is subject to the approval of shareholders at the Annual General Meeting. The total dividend appropriation for the year ended March 31,2012 amounted to Rs. 2,42,90,000 including corporate dividend tax of Rs. 33,90,000. During the year ended March 31, 2011, the amount of per share dividend recognised as distribution to equity shareholders is Rs. 5. The Dividend appropriation for the year ended March 31, 2011 amounted to Rs. 2,43,71,229 including corporate dividend tax of Rs. 34,71,229.

iii. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Long-term Borrowings :

2.1 Nature of Security and Terms of Repayment of Long-term Borrowings (including of Current maturities shown in Note 10):

3. Short-term Borrowings:

3.1 Cash Credit Facilities are secured by :

i. Bank of India - Rs. 11,96,75,067

a. First pari passu charge on Current Assets (including Stock and Book Debts)

b. Second pari passu charge on residual value of Fixed Assets.

c. Personal guarantee of Directors of the Company.

ii. State Bank of India - Rs. 90774092 : Bank of Baroda Rs. 305,82,455

a. First pari passu charge on entire Current Assets, both present and future of the Company.

b. Second pari passu charge on Land and Building and Plant and Machinery on Company's Assets at Dhamini and Kharsundi.

c. Personal guarantee of Directors of the Company.

4. Short-term Provisions :

4.1 While making the Provision for Current Tax, the Company has relied on the opinion of an expert for the tax treatment of the gains earned from the grant of the Development Rights and availability of certain tax benefits in respect of the capital expenditure incurred on shifting of the industrial undertaking, as per the provisions of the Income- tax Act, 1961.

5. Long-term Loans and Advances :

5.1 The balance with Central Excise Authorities Includes Rs. 96,37,761 (Previous Year Rs. 96,37,761), being the amount of unutilised credit of additional duty of Central Excise claimed as refund by the Company. The Central Excise Department rejected the refund of this amount against which the Company filed an appeal before the Honourable High Court of Bombay on March 29,2007 which is subsequently admitted by the Honourable High Court on March 25,2008.

5.2

a. "In an earlier year, the Company entered into a Development Agreement ("the DA") with a Developer whereby the Company granted the development rights to develop approximately 36,000 square metres of constructed area ("the Development Rights") on 12,204 square metres out of its freehold land at Dadar ("the said property").

b. In terms of the DA and further agreements/understandings between the Company and the Developer, any cost of construction incurred by the Company and such further costs (including interest on borrowings for the said construction) that may be incurred by the Company for the development of the above referred to area is to be reimbursed by the Developer. Accordingly, the cost incurred by the Company upto March 31,2012 for the construction (net of amounts received from the developer in terms of the DA) amounting to Rs. 576,13,19,136 (Previous Year Rs. 478,97,16,403) is shown as "Due from developer" under Long-term Loans and Advances (Refer Note 14).

c. Subsequently, the Company has received from the Government of Maharashtra, the approval for the development of additional constructed area of approximately 5,000 square metres over and above the area covered under the DA; the Developer and the Company have agreed that such additional area is to be owned by the Company. The related cost of such area to be owned by the Company is mutually agreed upon with the Developer on an appropriate basis. As on March 31,2012, the Company has capitalised the cost (which includes the cost of common area facilities) of Rs. NIL (Previous Year Rs. 40,04,63,254), under the head "Buildings" based on receipt of the Occupation Certificate for such additional area and has entered into a Leave and License Agreement with a party in respect of the said constructed area. The Company has also carried forward the amount of Rs. 18,99,75,613 (Previous Year Rs. 15,38,88,533) in Capital Work In Progress. The said cost may be adjusted/increased when the Developer completes the construction of the total area including the construction of the common areas.

d. The proportionate carrying cost of 12,204 square meters of land of Rs. 92,912 (Previous Year Rs. 92,912), in respect of which the Development Rights are granted, is shown as "Freehold Land (under development)" under "Fixed Assets" in Note 10.

e. Further, the consideration for the Grant of the Development Rights is based on the specified percentage of the revenue received by the Developer (in terms of the DA) from the Purchasers/Licensees, etc. irrespective of the completion of construction/handing over the possession of the said constructed area to the Purchasers/Licensees and reflected as "Grant of Development Rights" in the Statement of Profit and Loss. The DA does not contemplate a transfer or an intention to transfer the ownership or possession of the said property at present and the same continue to remain with the Company.

5.3 Other Loans and Advances are in the nature of Advances recoverable in cash or in kind or for the value to be received which include Duty Drawback, Export Incentives receivable, Sales tax set off receivable, PF paid under protest and Prepaid expenses.

6. Short-term Loans and Advances :

6.1 Other Loans and Advances are in the nature of Advances recoverable in cash or in kind or for the value to be received which include Prepaid expenses and Advances to Employees.

7. Revenue From Operations :

7.1 During the year under review, the Company has provided services of giving part of Office Building on Leave and Licence basis.

8. Other Income:

8.1 The Company has relied on the opinion of an expert for the tax treatment of the gains earned from the Grant of Development Rights and availability of certain tax benefits in respect of the capital expenditure incurred on shifting of the industrial undertaking, as per the provisions of Income-tax Act, 1961. The provision for Current tax is made in accordance thereof.

9. Finance Costs:

9.1 Interest on Term Loans - Under TUFS is after reducing:

a. Interest Subsidy of Rs. 4,28,99,474 (Previous Year Rs. 5,25,48,120)

b. Reimbursement of excess interest charged of Rs. 1,93,22,362 (Previous Year Rs. NIL)

10. Contingent Liabilities and Commitments:

As At As At March 31, 2012 March 31, 2011 Rs. Rs.

10.1 Contingent Liabilities : (to The Extent Not Provided For)

I. Matters under disputes/appeals :

a. Claims against the Company by Ex-employees pending in Labour Court not acknowledged as debts Amount Amount unascertainable unascertainable

b. Amount claimed by Bank as Term Loan Pre-payment charges including interest thereon not acknowledged as debt. 1,85,24,585 NIL

c. Income Tax (Amount deposited Rs. 20 lakhs (Previous Year Rs. NIL)) 6,76,69,000 6,96,69,000

d. Excise Duty/Service Tax 3,67,63,000 3,67,63,000

e. Amount paid under protest in respect of Employees' PF under section 8F of EPF Act, 1952 15,65,934 15,65,934

f. Water Charges under dispute 38,37,075 27,25,369

ii. Bank Guarantees (In Lieu of Cash Deposits) 1,21,10,300 1,32,09,100

10.2 Commitments :

i. Related to contracts :

a. Estimated amount of contracts remaining to be executed on capital account 13,32,88,641 11,54,30,347

Less: Advances 4,12,36,764 1,11,98,853

Net Estimated Amount 9,20,51,877 10,42,31,494

b. In addition, commitment of share of construction costs and related expenses for 13,000 square feet under a project. Amount Amount unascertainable unascertainable

ii. Other Commitments NIL NIL

11. Disclosure In Accordance With Accounting Standard (as 15) On Employee Benefits:

11.1 The estimate of future competation increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

11.2 Relationships:

I Key Managerial Personnel:

i. Shri Manaharlal C. Shah (Executive Chairman)

ii. Shri Hiren M. Shah (Managing Director)

iii. Shri Bharat M. Shah (Jt. Managing Director)

iv. Shri Viraj M. Shah (Executive Director)

v. Shri PuravH. Shah (President)

II Relatives of key Managerial Personnel:

i. Smt. Aruna M. Shah ii. Shri Rishabh V. Shah

III Enterprise on which key Managerial Personnel has Control:

i. Manubhai & Sons Investment Co. Pvt. Ltd.

ii. Hiren Bros. Investment Co. Pvt. Ltd.

iii. M C Shah & Sons Investment Co. Pvt. Ltd.

iv. Risha Dying & Printing Pvt. Ltd

v. Ruby Sales & Services Pvt. Ltd.

12. Disclosure in Accordance with Accounting Standard (as 19) on Accounting for Leases :

12.1 Where the Company is a Lessee:

i. The Company has taken motor cars under operating leases. These are generally cancellable and range between three and five years and are renewable by mutual consent on mutually agreeable terms.

ii. Lease/Rent payments are recognised in the Statement of Profit and Loss as 'Rent' under 'Other Expenses' in Note 27.

12.2 Where the Company is a Lessor:

i. The Company has given premises under leave and licence agreements under operating lease. These are generally cancellable and are for 14 months to 9 years and are renewable by consent on mutually agreeable terms. Licence Fees are recognised in the Statement of Profit and Loss under Note 21.

13. The balances of Trade Receivables and Trade Payables as at March 31st, 2012 are subject to confirmation/reconciliation wherever applicable.

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Mar 31, 2011

As at As at

March 31, 2011 March 31, 2010

Rupees Rupees

b) Contingent Liabilities not provided for :

i) Bank Guarantees (In Lieu of Cash Deposits) 1,32,09,100 1,31,49,675

ii) Disputed liability in respect of Income Tax demand (including interest) matters under appeal. 6,96,69,000 6,31,26,000

iii) Disputed liability in respect of Excise Duty matters under appeal (Amount deposited Rs. NIL) 3,67,63,000 3,67,63,000

iv) Claims by Ex-employees pending in labour court Amount unascertainable Amount unascertainable

v) Disputed Liability paid under protest in respect of Employees' PF under section 8F of EPF Act, 1952 15,65,934 NIL

2) The balance of Sundry Debtors and Sundry Creditors as at March 31, 2011 are subject to confirmation / reconciliation, where applicable.

3) The balance with Central Excise Authorities includes Rs.96,37,761 being the amount of unutilised credit of additional duty of Central Excise claimed as refund by the Company. The Central Excise Department had rejected the refund of this amount against which the company had filed an appeal before the Honourable High Court of Bombay on March 29, 2007 which is subsequently admitted by the Honourable High Court on March 25, 2008.

b) The estimate of future compentation increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors

4) a) i) The Company has entered into a Development Agreement ("the DA") with a Developer whereby the Company has granted the development rights to develop approximately 36,000 square metres of constructed area ("the Development Rights") on 12,204 square metres out of its freehold land at Dadar ("the said property").

ii) In terms of the DA and further agreements/undertakings between the Company and the Developer, since the Developer is to reimburse the cost of construction incurred by the Company and such further costs (including interest on borrowings for the said construction) that may be incurred by the Company, the cost incurred upto March 31, 2011 for construction of Information Technology ("IT/ITES") Park (net of amounts received from the developer in terms of DA) amounting to Rs.478,97,16,403 (Previous year Rs. 398,88,53,108 ) is shown as "Due from developer" under "Loans and Advances" in Schedule 11.

iii) The proportionate carrying cost of 12,204 square metres of land of Rs. 92,912 (Previous year Rs. 92,912), in respect of which the Development Rights are granted, is shown as "Freehold Land (under development)" under "Fixed Assets" in Schedule '5'.

iv) Further, the consideration for the Grant of the Development Rights is based on the specified percentage of the revenue received by the Developer (in terms of the DA) from the Purchasers/Licencees, etc. irrespective of the completion of construction/handing over of the possession of the said constructed area to the Purchasers / Licensees and reflected as "Grant of Development Rights" in the Profit and Loss Account. The DA does not contemplate a transfer or an intention to transfer the ownership or possession of the said property at present and the same continue to remain with the Company.

b) The Company has received from the Government of Maharashtra the approval for the development of an additional constructed area of approximately 5000 square metres over and above the area covered under the DA; the Devel- oper and the Company have agreed that such additional area shall be owned by the Company. The related cost of such area to be owned by the Company is mutually agreed upon with the Developer on an appropriate basis. As on March 31, 2011, the Company has capitalised the cost of Rs. 40,04,63,254 (which includes the cost of common area facilities) under the head "Buildings" based on receipt of the Occupation Certificate and has entered into a Leave and License Agreement with a party in respect of the said constructed area. The Company has also carried forward an amount of Rs. 15,38,88,533 in Capital Work In Progress. The said cost shall be increased when the Developer completes the construction of the total area including the construction of the common areas.

5) While making the Provision for Current Tax, the Company has relied on the expert opinion for the tax treatment of the gains earned from the grant of the Development Rights and availability of certain tax benefits in respect of the capital expenditure incurred on shifting of the industrial undertaking, as per the provisions of the Income Tax Act, 1961.

6. Disclosure on Lease as per Accounting Standard 19 on "Accounting for Leases":

a Where the company is the lessee:

i) The Company has taken residential & office premises under leave & licence agreements and car under oper- ating lease. These are generally not non-cancellable and are for 11 to 18 months and are renewable by mutual consent on mutually agreeable terms.

ii) Lease/Rent payments are recognised in the Profit & Loss Account under 'Rent Account' in Schedule 19.

iv) Under all the agreements, refundable interest free deposit has been given.

v) Such agreement provide for increase in rent.

vi) All the agreements provide for an termination by either party with a notice which varies from month to six months.

b. Where the Company is a Lessor:

i) The Company has given premises under leave and licence agreements under operating lease. These are generally not non-cancellable and are for 11 to 33 months and are renewable by consent on mutually agreeable terms.

iii) Under all the agreements, refundable interest free deposit has been taken.

iv) Such agreement provide for increase in rent.

v) All the agreements provide for early termination by either party with a notice period which varies from 1 month to 6 months.

7) The Company has entered into an agreement on May 27, 2011 with the workers in Processing, Folding and Engineering Departments at Dadar Unit for the purposes of Voluntary Retirement. The total commitment on this account is Rs.12,60,45,615/-.

8) Figures for the previous year have been regrouped to confirm with current year's grouping.

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Mar 31, 2010

As at As at March 31, 2010 March 31, 2009 Rupees Rupees



a) Contingent Liabilities not provided for :

i) Bank Guarantees (In lieu of Cash Deposits) 1,31,49,675 95,55,675

ii) Disputed liability in respect of Income Tax

(including interest) matters under appeal. 6,31,26,000 2,81,21,000

iii) Disputed liability in respect of Excise Duty matters

under appeal (Amount deposited Rs. NIL) 3,67,63,000 3,79,41,000

iv) Claims by Ex-employees pending in labour court Amount unascertainable Amount unascertainable

v) Claim for refund by the intending purchaser contested by the Company (Refer Note No.17 to Accounts under Schedule 22) NIL 1,50,00,000

2) The balance of Sundry Debtors and Creditors as at March 31, 2010 are subject to confirmation / reconciliation where applicable.

3) The Balance with Central Excise Authorities includes Rs. 96,37,761, being the amount of unutilised credit of additional duty of Central Excise claimed as refund by the Company. The Central Excise Department had rejected the refund of this amount against which the Company had filed an appeal before the Honourable High Court of Bombay on March 29, 2007 which is subsequently admitted by the Honourable High Court on March 25, 2008.

b) The estimate of future compentation increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

4) The Company has entered into a Development Agreement ("the DA") with a Developer whereby the Company has granted the development rights to develop approximately 32,500 (extendable upto 36,000) square metres of constructed area ("the Development Rights") on 12,200 Square metres out of its freehold land at Dadar ("the said property"). In terms of the DA and further agreements/undertakings between the Company and the Developer, since the Developer is to reimburse the cost of construction incurred by the Company and such further costs (including interest on borrowings for the said construction) that may be incurred by the Company the cost incurred upto March 31, 2010 for construction of Information Technology ("IT/ ITES") Park (net of amounts received from the developer in terms of DA) amounting to Rs. 398,88,53,108 (including Rs. 220,92,99,632 incurred upto March 31, 2009 which was included in the balance of "Capital Work-in-progress") is shown as "Due from Developer" under "Loans and Advances" in Schedule 11 and the proportionate carrying cost of 12,200 square metres of land of Rs. 92,912, in respect of which the Development Rights are granted, is shown as "Freehold Land (under development)" under "Fixed Assets" in Schedule 5. Further, the consideration for the grant of the Development Rights is based on the specified percentage of the revenue received by the Developer (in terms of the DA) from the Purchasers/ Licensees, etc. irrespective of the completion of construction/handling over of the possession of the said constructed area to the Purchasers / Licensees and reflected as ‘Grant of Development Rights in the Profit and Loss Account. The DA does not contemplate a transfer or an intention to transfer the ownership or possession of the said property at present and the same continue to remain with the Company.

5) While making the Provision for Current Tax, the Company has relied on the expert opinion for the tax treatment of the gains earned from the grant of the Development Rights and availability of certain tax benefits in respect of the capital expenditure incurred on shifting of the industrial undertaking, as per the provisions of the Income Tax Act, 1961.

In the absence of adequate profits as per section 198 read with Schedule XIII of the Companies Act, 1956 the aforesaid remuneration is payable subject to the Central Government approval. The requisite shareholders approval for this remuneration has been received. Applications to the Central Government for the approval of the remuneration payable to the Executive Chairman, Managing Director, Joint Managing Director and Executive Director for the period April 01, 2009 to March 31, 2010 have been made for which approvals are awaited.

I) Key Managerial Personnel:

i) Shri Manharlal C. Shah (Executive Chairman) ii) Shri Hiren M. Shah ( Managing Director) iii) Shri Bharat M. Shah (Jt. Managing Director) iv) Shri Viraj M. Shah ( Executive Director) v) Shri Purav H. Shah (President)

II) Relatives of Key Managerial Personnel:

i) Smt. Aruna M. Shah

III) Enterprise on which Key Managerial Personnel has control:

i) Manubhai & Sons Investment Co. Pvt. Ltd.

ii) Hiren Bros. Investment Co. Pvt. Ltd.

iii) M.C.Shah & Sons Investment Co. Pvt. Ltd.

11. Disclosure on Lease as per Accounting Standard 19 on "Accounting for Leases: a Where the company is the lessee:

i) The Company has taken residential, office and godown premises under leave & licence agreements. These are generally not non-cancellable and are for 11 to 18 months and are renewable by mutual consent on mutually agreeable terms.

ii) Lease/Rent payments are recognised in the Profit & Loss Account under ‘Rent Account in Schedule 19.

iv. Under all the agreements, refundable interest free deposit has been given.

v. Such agreements provide for increase in rent.

vi. All the agreements provide for an termination by either party with a notice which varies from month to six months.

b. Where the Company is a Lessor :

i. The Company has given premises under leave and licence agreements. Theseare generally not non - cancellable and are for 11 to 33 months and are renewableby consent on mutually agreeable terms.

iii. Under all the agreements, refundable interest free deposit has been taken. iv. Such agreements provide for increase in rent.

v. All the agreements provide for early termination by either party with a notice period which varies from 1 month to 6 months.

6) Disclosure in terms of Accounting Standard 22 on "Accounting for Taxes on Income", Deferred Taxes have been recognised in respect of the following items:

This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

7) The Company had entered into an agreement dated September 12, 2008 for sale of a specified immovable property for a sum of Rs. 55 Crore on the various terms and conditions under that agreement and had received as advance a sum of Rs.15 Crore. However, in February 2009, the intending purchaser purported to back out of the deal and had sought a refund of such advance, the Company contesting the claim for such refund. The Company was legally advised that on the failure of the purchaser to perform the terms and conditions of the agreement, the Company, inter alia, has the right to forfeit such advance and accordingly, the said sum of Rs. 15 Crore was forfeited and on forfeiture was reflected as ‘Other Income (which is now reclassified as Exceptional item in the Profit and Loss Account for the year ended March 31, 2009).

During the current financial year, the intending purchaser and the Company jointly referred the dispute to the sole arbitrator as permitted under the aforesaid agreement for sale and on the basis of the sole arbitrators award, the said advance was refunded to the intending purchaser which is shown as charge under ‘Exceptional item in the Profit and Loss Account.