Notes to Accounts of Santosh Fine - Fab Ltd.

Mar 31, 2024

3.11 Provisions, Contingent Liabilities, Contingent Assets and Commitments:

Provisions are recognised when the Company has 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.

If the effect of the time value of money is material, provisions are discounted using equivalent period government
securities interest rate. Unwinding of the discount is recognised in the statement of profit and loss as a finance cost.
Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimate.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within
the control of the Company or a present obligation that arises from past events where it is either not probable that an
outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Information on
contingent liability is disclosed in the Notes to the Financial Statements. Contingent assets are not recognised. However,
when the realisation of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognised
as an asset.

3.12 Borrowing Costs:

Borrowing costs comprises of interest and other costs incurred in connection with the borrowing of the funds. All
borrowing costs are recognized in the Statement of Profit and Loss using the effective interest method except to the extent
attributable to qualifying Property Plant and Equipment (PPE) which are capitalized to the cost of the related assets. A
qualifying PPE is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.
Borrowing cost also includes exchange differences to the extent considered as an adjustment to the borrowing costs.

3.13 Impairment of Assets:

An asset is considered as impaired when at the date of Balance Sheet, there are indications of impairment and the carrying
amount of the asset, or where applicable, the cash generating unit to which the asset belongs, exceeds its recoverable
amount (i.e. the higher of the net asset selling price and value in use).The carrying amount is reduced to the recoverable
amount and the reduction is recognised as an impairment loss in the statement of profit and loss. The impairment loss
recognised in the prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
Post impairment, depreciation is provided on the revised carrying value of the impaired asset over its remaining useful
life.

3.14 Financial instruments - initial recognition, subsequent measurement and impairment:

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.

a) Financial Assets

Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. 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 or loss, are
adjusted to the fair value on initial recognition.

Subsequent measurement

Financial assets carried at amortised cost (AC)

A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset
in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal amount outstanding. For trade receivables
and other financial assets maturing within one year from the balance sheet date, the carrying amounts approximate fair
value due to the short maturity of these instruments.

Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at FVTPL.

b) Financial Liabilities
Initial recognition and measurement

All financial liabilities are recognized at fair value.

Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. 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.

Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire
or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a
part of a financial liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the
contract is discharged or cancelled or expires.

Impairment of financial assets

Trade receivables

In respect of trade receivables, the Company applies the simplified approach of Ind AS 109, which requires measurement
of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected credit losses are the expected
credit losses that result from all possible default events over the expected life of trade receivables.

Other financial assets

In respect of its other financial assets, the Company assesses if the credit risk on those financial assets has increased
significantly since initial recognition. If the credit risk has not increased significantly since initial recognition, the

Company measures the loss allowance at an amount equal to 12-month expected credit losses, else at an amount equal
to the lifetime expected credit losses.

When making this assessment, the Company uses the change in the risk of a default occurring over the expected life of
the financial asset. To make that assessment, the Company compares the risk of a default occurring on the financial asset
as at the balance sheet date with the risk of a default occurring on the financial asset as at the date of initial recognition
and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of
significant increases in credit risk since initial recognition. The Company assumes that the credit risk on a financial asset
has not increased significantly since initial recognition if the financial asset is determined to have low credit risk at the
balance sheet date.

Write-offs

Financial assets are written off either partially or in their entirety to the extent that there is no realistic prospect of
recovery. Any subsequent recoveries are credited to impairment on financial instrument on statement of profit and loss.

3.15 Cash and cash equivalents:

Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as
defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash
management.

3.16 Current and Non-Current classification:

The Company presents assets and liabilities in statement of financial position based on current/non-current classification.

The Company has presented non-current assets and current assets before equity, non-current liabilities and current
liabilities in accordance with Schedule III, Division II of Companies Act, 2013 notified by MCA.

An asset is classified as current when it is:

a) Expected to be realised or intended to be sold or consumed in normal operating cycle,

b) Held primarily for the purpose of trading & manufacturing.

c) Expected to be realised within twelve months after the reporting period, or

d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when it is:

a) Expected to be settled in normal operating cycle,

b) Held primarily for the purpose of trading, & manufacturing.

c) Due to be settled within twelve months after the reporting period, or

d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period.

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash
equivalents. Deferred tax assets and liabilities are classified as non-current assets and liabilities. The Company has
identified twelve months as its normal operating cycle.

3.17 Earnings per share:

Basic earnings per share is computed using the ‘net profit for the year attributable to the shareholders (Before and After
Exceptional Items)’ and weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed using the ‘net profit for the year attributable to the shareholder (Before and After
Exceptional Items)’ and weighted average number of equity and potential equity shares outstanding during the year
including share options, convertible preference shares and debentures, except where the result would be anti-dilutive.
Potential equity shares that are converted during the year are included in the calculation of diluted earnings per share,
from the beginning of the year or date of issuance of such potential equity shares, to the date of conversion.

3.18. Significant Accounting Judgements, Estimates and Assumptions:

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates,
judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies
and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the

financial statements and reported amounts of revenues and expenses during the period. Actual results could differ from
those estimates.

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the Company and that are believed to be reasonable
under the circumstances. Information about Significant judgements and Key sources of estimation made in applying
accounting policies that have the most significant effects on the amounts recognized in the financial statements is
included in the following notes:

Property, plant and equipment and Intangible Assets

Management reviews the estimated useful lives and residual values of the assets annually in order to determine the
amount of depreciation to be recorded during any reporting period. The useful lives and residual values as per Schedule
II of the Companies Act, 2013 or are based on the Company’s historical experience with similar assets and taking into
account anticipated technological changes, whichever is more appropriate.

Recognition of deferred tax assets

The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the future
taxable income against which the deferred tax assets can be utilized.

Contingencies

Management has estimated the possible outflow of resources at the end of each annual reporting financial year, if any, in
respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending
matters with accuracy.

Fair value measurements and Impairment of financial assets:

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss.
The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based
on Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting
period.

Defined benefits plan

The Cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are
determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from
actual developments in the future. These include the determination of the discount rate, future salary increases, mortality
rates and attrition rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Recoverability of trade receivable

Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision
against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and
timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

Provisions

Provisions and liabilities are recognised in the period when it becomes probable that there will be a future outflow of
funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of
recognition and quantification of the liability require the application of judgement to existing facts and circumstances,
which can be subject to change. Since the cash outflows can take place many years in the future, the carrying amounts
of provisions and liabilities are reviewed regularly and adjusted to take account of changing facts and circumstances.

In the opinion of Management the company is engaged only in the business of fabrics. As such there is no Reportable Segment
as per IND AS 108 "Operating Segments" notified by Ministry Of Corporate Affairs".

Note 31- Financial Instruments
1.Capital Management

The primary objective of the Company’s capital management is intended to maximise the return to shareholders for meeting the
long-term and short-term goals of the Company through the optimization of the debt and equity balance. The Company is
monitoring capital using debt equity ratio as its base which is debt to equity. For the purpose of capital management, capital
includes issued equity capital, securities premium and all other reserves attributable to the equity shareholders of the Company.
Net debt includes all long and short-term borrowings (including current maturities of long term debt) as reduced by cash and
cash equivalents.

2.Financial Risk Management Objective And Policies

The Company is exposed to market risk, credit risk and liquidity risk. Risk management is carried out by the company under
policies approved by the board of directors. The Company’s documented risk management policies are effective tool in
mitigating the various financial risk to which the business is exposed to in the course of daily operations This Risk management
plan defines how risks associated with the Company will be identified, analysed, and managed. It outlines how risk management
activities will be performed, recorded, and monitored by the Company. The basic objective of risk management plan is to
implement an integrated risk management approach to ensure all significant areas of risks are identified, understood and
effectively managed, to promote a shared vision of risk management and encourage discussion on risks at all levels of the
organisation to provide a clear understanding of risk/benefit trade-offs, to deploy appropriate risk management methodologies
and tools for use in identifying, assessing, managing and reporting on risks, and to determine the appropriate balance between
cost and control of risk and deploy appropriate resources to manage/optimize key risks. Activities are developed to provide
feedback to management and other interested parties (e.g. Audit committee, Board etc.). The results of these activities ensure
that risk management plan is effective in the long term.

a)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 prices comprise three types of risk: foreign currency rate risk, interest rate risk and other price risks, such as equity
price risk and commodity risk.

i) Foreign Exchange Risk and Sensitivity

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument 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. The Company transacts business primarily in USD. The Company obtains foreign currency loans
and has foreign currency trade payables, derivative instruments and receivables and is therefore, exposed to foreign exchange risk.
The Company regularly reviews and evaluates exchange rate exposure arising from foreign currency transactions.

ii) Interest Rate Risk and Sensitivity

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 .In order to optimize the Company’s position with regards to interest expenses and to manage the interest rate
risk treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating
rate financial instruments in its total portfolio.

iii) Commodity Price Risk

The Company’s raw materials i.e.Yarn & Grey Fabric and finished goods i.e. Finished Fabric. Commodity price risk arises due to
fluctuation in prices of textile products. The Company mitigate the risk by natural hedge as any increase/decrease in raw materials price
directly reflect the finished goods price.

b) Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk for trade receivables, other bank balances, loans, other financial assets and financial
guarantees.

i) Trade Receivables

The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in
the market and past dealings with the Company for extension of credit to customers. The Company monitors the payment track record of
the customers. Outstanding customer receivables are regularly monitored. The Company evaluates the concentration of risk with respect
to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.
Sales made to customers on credit are secured through Letters of Credit in some cases to mitigate the credit risk to an extent.

ii) Bank Balances

The Company seeks to limit its credit risk with respect to banks by only dealing with reputable banks.

c) Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring
unacceptable losses. The Company’s objective is to, at all times, maintain optimum levels of liquidity to meet its cash and collateral
requirements. The Company limits its liquidity risk by ensuring funds from trade receivables and bank facilities are available.

The balances of Sundry Creditors, Debtors & other advances are subject to confirmation and subsequent reconciliation, if
any required and the management consider that the carrying amounts of financial assets and financial liabilities recognised
in the financial statements and recoverable and payable during the normal course of business. The Management does not
expect any material difference affecting the current year’s financial statement due to the same.

Note 38- Information regard to other matter specified in Schedule III of Companies Act, 2013 is either nil or not applicable to the
company for the year.

Note 39- There have been no events after the reporting date that require disclosure in these financial statements.

Note 40- Previous year figure has been regrouped and rearranged whenever necessary and to make them comparable with current
year''s figures.

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

For Jhunjhunwala Jain & Associates LLP Santosh R. Tulsiyan Subhash R. Tulsiyan

Chartered Accountants Managing Director Executive Director

Firm''s Registration No: 113675W/W100361 (DIN : 00310573) (DIN : 00308899)

(CA Randhir Kumar Jhunjhunwala) Sunil R. Tulsiyan Niti Nilesh Jain

Partner Chief Financial Officer Company Secretary &

Membership No : 047058 Compliance Officer

Place : Mumbai (M No. 35060)

Date:22^nd May,2024

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Mar 31, 2014

NOTE NO.1- GRATUITY

Company has not gone for the actuarial valuation of gratuity which is the only form of long term defined benefits to the employee. Provision of the same has been thus not provided as the amount is uncertain. The company has a policy of accounting for gratuity as and when it is paid. However, during the year company has paid Rs. 106088 (Previous Year Rs. 147917) as gratuity which has been accounted for in the corresponding year

NOTENO.2- SEGMENT REPORTING

In the opinion of Management the company is engaged only in the business of fabrics, As such there is no Reportable Segment as per AS 17 "Segment Reporting" notified by Ministry Of Corporate Affairs".

NOTENO.3- CAPITAL COMMITMENTS & CONTINGENT LIABILITIES

i) Estimated amount of contracts remaining to be executed on Capital Accounts Nil (P.Y. Nil),

ii) The Banker of company has given guarantee of Rs 90000/-(P YNil) to the DGFT for wchich company has given conter guarantee & FDR of Rs 90000/-.

NOTENO.4- SUNDRY CREDITORS, DEBTORS & OTHER ADVANCES

The balances of Sundry creditor, Debtors & other advance are subject to confirmation

NOTENO.5- Previous year figure has been regrouped and rearranged whenever necessary and to make them comparable with current year''s figures.

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Mar 31, 2013

NOTE NO.1. GRATUITY

Company has no! gone for the actuarial valuation of gratuity which is the only form of long term defined benefits to the ennoble Provision to the same- has been thus not provided as the amount is uncertam. The company has a policy of accounting for gratuity as and when it is paid. However, dung the year company has paid Rs. 147917 (Previous Year Rs.370215) as gratuity which has been accounted for in the corresponding year

NOTE NO.2- SEGMENT REPORTING

In the opinion of Management the company is engaged only in the business of fabrics. As such there is no Reportable Segment as per AS 17 "Segment Reporting" notified by Ministry Of Corporate Affaire".

NOTE NO 3. CAPITAL COMMITMENTS & CONTINGENT LIABILITIES

Fs tainted amount of contracts remaining lo be executed on Capital Accounts Nil IP.Y. Nil), Further there is no contingent lmbilii.es identified as on the Balance Sheet date. Further there are no Comment Liabilities as on 3Ist March 2011''

NOTE NO.4. SUNDRY CREDITORS. DEBTORS & OTHER ADVANCES

The balances old Sundry creditor. Debtor* & other advance arc subject to contention and reconciliation.

NOTE NO.5. Previous year figure has been regrouped and rearranged whenever necessary and to nuke them comparable with cement year''s figures.

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Mar 31, 2012

Not Available

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Mar 31, 2011

1.The Company has not provided Gratuity during the year as the same will be accounted as and when paid, however, during the year Company has paid Rs. 162877/-(P.Y. 166971 /-) as gratuity.

2. Deferred tax working

Major Components of Deferred Tax Balances

Net current deferred tax assets of Rs.8.09/- lacs have been credited to Profit & Loss Account.

3. The balances of Sundry debtors, Sundry creditors and other advances are subject to confirmation and reconciliation.

4. Previous year figures have been regrouped and rearranged wherever necessary to make them comparable with current year's figures.

e) GENERIC NAMES OF THREE PRINCIPAL PRODUCTS/SERVICES OF COMPANY (AS PER MONETARY TERMS)

The Company generates and sells only one product i.e. FABRIC.

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Mar 31, 2010

1.The Company has not provided Gratuity during the year as the same will be accounted as and when paid, however, during the year Company has paid Rs. 166971/-(P.Y. 24844 /-) as gratuity.

Net current deferred tax assets of Rs.7.52 lacs have been credited to Profit & Loss Account.

2. The balances of Sundry debtors, Sundry creditors and other advances are subject to confirmation and reconciliation.

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

4. During the year company has received electricity rebate amounting to Rs.23.42 lacs shown as other income against payment made in earlier year, to the extend income has been increased for the year.

5. Previous year figures have been regrouped and rearranged wherever necessary to make them comparable with current years figures.