Notes to Accounts of Shekhawati Industries Ltd.

Mar 31, 2025

c. Terms/rights attached to equity shares

The Company has one class of equity shares having a par value of Rs 10 (PY ''1) 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 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.

a) During the previous year the JM Financial Assets Reconstruction Company Limited (JMFARC) had sold the property plant and equipment of '' 6,987.27 lakhs (Including capital work in progress on which provision has been created) acting as in its capacity as a trustee of JMFARC -Textile gama under Securitisation and reconstruction Financial Assets and Enforcement of Security Interest ( SARFAESI ) Act 2002 for '' 6,046.00 lakhs. The company has recognised loss of '' 942.08 lakhs on sale of such Property plant and equipment.

Further the JMFARC had settled the loan outstanding of '' 20,101.70 lakhs (including interest amounting to '' 1,132.21 lakhs) under one time settlement (OTS) for '' 6,046.00 lakhs. The company has recognised the gain of '' 14,055.70 lakh on settlement of such transaction.

b) During the previous year the company has written of trade recievebles and advances of Rs 5,496.67 lakhs and according the provision created on the same has been reversed.

Note 41 : Disclosure relating to employee benefits as per Ind AS 19 ‘Employee Benefits’

A - Defined benefit obligations - Gratuity (unfunded)

The gratuity plan is governed by the Payment of Gratuity Act, 1972 under which an employee who has completed five years of service is entitled to specific benefits. The level of benefits provided depends on the member’s length of service and salary at retirement age.

I) Assumptions :

With the objective of presenting the plan assets and plan liabilities of the defined benefits plans at their fair value on the balance sheet, assumptions under Ind AS 19 are set by reference to market conditions at the valuation date.

The significant actuarial assumptions were as follows:

b) Demographic Assumptions

Mortality in service : Indian Assured Lives Mortality 2012-14 (Urban) (PY 2006-08 Ultimate)

The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption,the same method used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

The above figures of remuneration and salary does not include provisions for gratuity as the same is determined at the company

level and is not possible to determine for select individuals.

Note 43 : Segment Reporting

(i) Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director of the Company. The Company operates only in one Business Segment i.e. “Textile Business”, hence does not have any reportable Segments as per Ind AS 108 “Operating Segments”.

(ii) Further, from Two external customers in current year and one external customer in previous year the company has revenue of Rs. 6,249.75 lakhs (March 31, 2024: Rs. 6,359.53 lakhs ) more than 10% of the total revenue from operations.

(iii) All the Non-current assets of the company are held in India

Operating Segments

Textile operations

Real estate operations

Segment revenue and results:

The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure (net of allocable income).

Segment assets and Liabilities:

Segment assets include all operating assets used by the operating segment and mainly consist of inventory. Common assets and liabilities which can not be allocated to any of the business segment are shown as unallocable assets / liabilities.

Note 46 : IND AS 115 - Revenue from Contracts with Customers

Ind AS 115 Revenue from contracts with customer has been notified by Ministry of Corporate Affairs (MCA) on 28 March 2018 and is effective from accounting period beginning on or after 1 April 2018, replace existing revenue recognition standard. The adoption of standard did not have any impact on the standalone financials results of the Company.

b) Disaggregation of revenue from contracts with customers

The Company believes that the information provided under note 27- Revenue from operations and note 45- Segment reporting best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by industry, market and other economic factors.

(d) Transaction price allocated to remaining performance obligation

The Company has recognised revenue as the amount that the entity has a right to invoice, thus there are no unsatisfied performance obligation.

Note 48 : Financial instruments - Fair values and risk management

The fair value of the financial assets are included at amounts at which the instruments could be exchanged in a current transaction

between willing parties other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair value:

(a) Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments

(b) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for the expected losses of these receivables.”

B. Fair Value Hierarchy.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

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

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

Financial risk management objectives and policies Risk management framework

A wide range of risks may affect the Company’s business and operational / financial performance. The risks that could have significant influence on the Company are market risk, credit risk and liquidity risk. The Company’s Board of Directors reviews and sets out policies for managing these risks and monitors suitable actions taken by management to minimise potential adverse effects of such risks on the company’s operational and financial performance.

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 other price risk.

Currency risk

The Company is not much exposed to currency risk.

Credit risk

Credit risk is the risk offinancial loss to the Company ifa 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. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends and analysis of historical bad debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.

(a) Trade and other receivables from customers

Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in the credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on assets as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business

ii) Actual or expected significant changes in the operating results of the counterparty

iii) Financial or economic conditions that are expected to cause a significant change to the counterparties ability to meet its obligation

iv) Significant increase in credit risk on other financial instruments of the same counterparty

v) Significant changes in the value of the collateral supporting the obligation or in the quality of third party guarantees or credit enhancements.

Financial assets are written off when there is a no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. When loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due, When recoverable are made, these are recognised as income in the statement of profit and loss.

The Company measures the expected credit loss of trade and other 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. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

(b) Cash and cash equivalents and other bank balances

The Company held cash and cash equivalents and other bank balances amounting to '' 41.75 Lakhs and '' 11.05 Lakhs respectively (March 31, 2024: '' 29.22 and 5.73 Lakhs respectively). The cash and cash equivalents are held with bank with good credit ratings and financial institution counterparties with good market standing.

i. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk through the impact of rate changes on interest-bearing liabilities and assets. The Company manages its interest rate risk by monitoring the movements in the market interest rates closely.

ii. Exposure to interest rate risk

Since there is no borrowing so relevant disclosure of Company’s interest rate risk and cash flow sensitivity analysis for variable is not applicable.

iii. Liquidity risk

Liquidity is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company’s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s net liquidity position through rolling forecasts on the basis of expected cash flows.

The table below provides details regarding the contractual maturities of significant financial liabilities :

iv) 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 of the Company’s short, medium and longterm funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and other borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.

v) Commodity Price Risk

The company is exposed to the risk of price fluctuations of Raw Material as well as Finished Goods as it is not engagged in manufacturing activity.

vi. 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 other price risk.

vii. Currency risk

The Company is exposed to insignificant foreign exchange risk as at the respective reporting dates.

Note 49 : Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that they can maximise returns for the shareholders and benefits for other stake holders. The aim to maintain an optimal capital structure and minimise cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may return capital to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted). Consistent with others in the industry, the Company monitors its capital using the gearing ratio which is total debt divided by total capital plus total debts.

Note : For the purpose of computing total debt to total equity ratio, total equity includes equity share capital and other equity and total debt includes long term borrowings, short term borrowings, long term lease liabilities and short term lease liabilities.

Note 50 : Corporate Social Responsibility

The Provision for CSR are applicable as per Section 135 of Companies act 2013. During the year company is not liable to make the expenditure towards CSR Activity, hence expenditure is not incurred towards CSR Activity.

Note 51 : ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT, 2013

The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

Utilisation of borrowed funds and share premium

“The Company has 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:

(a) 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

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.”

“The Company has 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.”

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

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

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

During the year, the company has not announced any dividend during the year

The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 (as amended) or section 560 of the Companies Act, 1956.

The Company has not been declared wilful defaulter in current year however declared as wilful defaulter in previous year by the some of the banks hence the Company had made relevant representations to the banks in this regard.

Note 54: Prior year comparatives

Previous year’s figures have been regrouped or reclassified, to conform to the current year’s presentation wherever considered necessary.

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Mar 31, 2024

xvii Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the Company has a present obligation (legal or constructive) as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made of the amount of obligation. Provisions (excluding gratuity and compensated absences) are determined based on management''s estimate required to settle the obligation at the Balance Sheet date. In case the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimates.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. A contingent liability also arises, in rare cases, where a liability cannot be recognised because it cannot be measured reliably.

xviiiCash 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.

xix Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Company as a lessee

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.

For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease. xx Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2024.

MCA has not notified any new standards or amendments to the existing standard applicable to the company.

c. Terms/rights attached to equity shares

The Company has one class of equity shares having a par value of '' 1 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 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.

a) Term Loan of ''Nil (31^st March, 2023 : 5.166.50 Lakhs) from State Bank of India and Term loans of ''Nil Lakhs (31^st March, 2023 : 534.90 Lakhs), has been assigned to Asset Restructuring Company (“ARC”) - J. M. Financial Asset Reconstruction Company Limited. These loans were secured by way (i) Equitable Mortgage of Land &Building, Plant & Machinery,Furniture & Fixtures situated at Unit III at Village Naroli on Pari-Passu basis with other consortium Members (ii) Equitable Mortgage of land & Building,Plant & Machinery,Furniture & Fixturres situated at Unit II at Village Masat, Silvassa, D&N Haveli (UT), office situated at Goregaon (E). These loans were also secured by second charge over entire current assets of the Company.

b) Term Loan of ''Nil (31^st March, 2023 : '' 251.44 Lakhs) from Dena Bank (merged with Bank of Baroda) has been assigned to Asset Restructuring Company (“ARC”) - Omkara Asset Reconstruction Private Limited which was assigned to JM Financial Assets Reconstruction company during the current year. The said loan was secured primarily by first paripassu mortgage charge on Land & Building, Plant & Machinery, Furniture & fixtures, Office Equipments,etc at Unit III, Village Naroli, Silvassa, D&N Haveli (UT) both present and future and Second pari passu charge with other lenders over the entire Current Assets of the Company.

c) Term Loan of ''Nil (31^st March, 2023 : 1,306.32 Lakhs from Allahabad Bank (merged with Indian Bank) has been assigned to Asset Restructuring Company (“ARC”) - J. M. Financial Asset Reconstruction Company Limited during the year.The said loan was secured primarily by first paripassu mortgage charge on Land & Building, Plant & Machinery, Furniture & fixtures, Office Equipments,etc at Unit III, Village Naroli, Silvassa, D&N Haveli (UT) both present and future and Second pari passu charge with other lenders over the entire Current Assets of the Company.

d) Term Loan '' Nil (31st March, 2023 :- '' 2,149.69 Lakhs from Union Bank of India has been assigned to Asset Restructuring Company (“ARC”) - J. M. Financial Asset Reconstruction Company Limited during the year.The said loan was secured primarily by first paripassu mortgage charge on Land & Building, Plant & Machinery, Furniture & fixtures, Office Equipments,etc at Unit III, Village Naroli, Silvassa, D&N Haveli (UT) both present and future and Second pari passu charge with other lenders over the entire Current Assets of the Company.

e) During the year ended March 31, 2024, the company has not provided for interest amounting to '' 1,837.98 lakhs (March 31,2023 : '' 2,183.10 Lakhs) ('' 17,235.68 lakhs till March 31,2024) on the borrowings outstanding which have been classified as “”Non-Performing Assets”” (NPA) by the banks which has been assigned to Asset Restructuring Company (‘ARC''). The company has also not provided penal interest and other charges, as the same are not ascertainable.

f) During the earlier year, the Company has filed an application with the Debts Recovery Tribunal (“DRT”) u/s 17 of Securitisation and Reconstruction of Financial Assets and Enforcement of Securiy Interest Act, 2002 (“SARFAESI Act, 2002”) against intimation u/s 13(4) SARFAESI Act, 2002 for handing over possession of secured assets issued by the lenders. The said matter is pending before DRT.

g) During the year the above borrowings (including interest ) were settled by JM financials Asset Reconstruction under one time settlement by sale of Property, Plant and Equipment under SARAFESI Act, 2002 . (Refer note 40)

h) During the year personal guarantees of Mr Ramniranjan N. Ruia and Mr.Mukesh R. ruia has been released as per terms of OTS scheme.(Previous year all the loans were personally Guaranteed by Mr Mukesh Ruia (Promoter and Director) and Mr.Ramniranjan R. Ruia.”

A - Defined benefit obligations - Gratuity (unfunded)

The gratuity plan is governed by the Payment of Gratuity Act, 1972 under which an employee who has completed five years of service is entitled to specific benefits. The level of benefits provided depends on the member''s length of service and salary at retirement age.

I) Assumptions :

With the objective of presenting the plan assets and plan liabilities of the defined benefits plans at their fair value on the balance sheet, assumptions under Ind AS 19 are set by reference to market conditions at the valuation date.

Note 45 : Segment Reporting

(i) Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director of the Company. The Company operates only in one Business Segment i.e. “Textile Business”, hence does not have any reportable Segments as per Ind AS 108 “Operating Segments”.

(ii) Further, from one external customers the company has revenue of ''6,359.53 lakhs (March 31, 2023: Nil ) more than 10% of the total revenue from operations.

(iii) All the Non-current assets of the company are held in India

Note 48 : Financial instruments - Fair values and risk management

The fair value of the financial assets are included at amounts at which the instruments could be exchanged in a

current transaction between willing parties other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair value

(a) Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments

(b) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for the expected losses of these receivables.”

Financial Risk Management Risk management framework

A wide range of risks may affect the Company''s business and operational / financial performance. The risks that could have significant influence on the Company are market risk, credit risk and liquidity risk. The Company''s Board of Directors reviews and sets out policies for managing these risks and monitors suitable actions taken by management to minimise potential adverse effects of such risks on the company''s operational and financial performance.

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 other price risk.

Currency risk

The Company is not much exposed to currency risk.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s trade and other receivables, cash and cash equivalents and other bank balances. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends and analysis of historical bad debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.

(a) Trade and other receivables from customers

Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in the credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on assets as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwardinglooking information such as:

i) Actual or expected significant adverse changes in business

ii) Actual or expected significant changes in the operating results of the counterparty

iii) Financial or economic conditions that are expected to cause a significant change to the counterparties ability to meet its obligation

iv) Significant increase in credit risk on other financial instruments of the same counterparty

v) Significant changes in the value of the collateral supporting the obligation or in the quality of third party guarantees or credit enhancements

Financial assets are written off when there is a no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. When loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due, When recoverable are made, these are recognised as income in the statement of profit and loss.

The Company measures the expected credit loss of trade and other 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. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

(b) Cash and cash equivalents and other bank balances

The Company held cash and cash equivalents and other bank balances amounting to ''29.22 Lakhs and '' 5.73 Lakhs respectively (March 31, 2023: ''106,91 and 5.50 Lakhs respectively). The cash and cash equivalents are held with bank with good credit ratings and financial institution counterparties with good market standing.

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 is exposed to interest rate risk through the impact of rate changes on interest-bearing liabilities and assets. The Company manages its interest rate risk by monitoring the movements in the market interest rates closely.

Liquidity risk

Liquidity is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

Commodity Price Risk

The company is exposed to the risk of price fluctuations of Raw Material as well as Finished Goods. The company manage its commodity risk by maintaining adequate stock of Raw Material and Finished Goods through inventory management and proactive vendor development practices.

Note 49 : Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that they can maximise returns for the shareholders and benefits for other stake holders. The aim to maintain an optimal capital structure and minimise cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may return capital to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted). Consistent with others in the industry, the Company monitors its capital using the gearing ratio which is total debt divided by total capital plus total debts.

'' In Lakhs)

The Provision for CSR are not applicable as per Section 135 of Companies act 2013.

Note 51 : ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT, 2013

1. The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

2. The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

3. Utilisation of borrowed funds and share premium

I The Company has 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:

(a) 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

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

II The Company has 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.”

4. There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.

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

6. The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory period.

7. During the year, the company has not announced any dividend during the year

8. The Company has been declared wilful defaulter by the some of the banks. However, the Company has made relevant representations to the banks in this regard.

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

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

For Ajay Shobha & Co. Shekhawati Poly- Yarn Limited

Chartered Accountants Firm Registration No. 317031E

Sd/- Sd/- Sd/-

Ajay Kumar Gupta Mukesh Ruia Ravi Jogi

Partner Chairman & Managing Director Whole Time Director

Membership No. 53071 (DIN : 00372083 ) (DIN : 06646110 )

Sd/- Sd/-

Suresh Chandra Gattani Meena Agal

Chief Financial Officer Company Secretary & Compliance Officer

Place : Mumbai Place : Mumbai

Date : May 7, 2024 Date : May 7, 2024

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Mar 31, 2015

Note 1 : Corporate Information

Shekhawati Poly-Yarn Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India (BSE & NSE). The Company is principally engaged in the manufacturing of Texturising Yarn, Twisting Yarn and Knitted Fabrics. The Company caters to both domestic and international markets.

2 The Company is consistently following the accounting of excise duty on closing stock of finished goods on clearance of finished goods from the factory and such treatment has no impact on Statement of Profit & Loss for the year.

3 In the opinion of the Board the Current Assets (other than those doubtful & provided for) and Loans and Advances are approximately of the value stated and realizable in the ordinary course of business. The Provisions of all known liabilities is adequate and not in excess of the amount reasonably necessary.

Note: Company has obtained license under Export Promotion Capital Goods Scheme (EPCG) for purchase of capital goods on zero percent custom duty. Under the EPCG the Company needs to fulfill certain export obligations, failing which, it is liable for payment of custom duty . Expor t Ob ligations at the end of current financial year is Rs. 25,438.56 lacs (includes Rs. 21,265.03 lacs towards average maintainable exports) (PY Rs. 7315.10 lacs) which needs to be fulfilled within 6/8 years from the date of purchase of respective license.

4 : Commitments

Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for is Rs. 8,189.61 lacs (PY: Rs. Nil/-).

5 The Company has revised depreciation rates on fixed assets w.e.f. April 01, 2014 as per the useful life specified in Schedule II of the Companies Act, 2013. As prescribed in Schedule II, an amount of Rs 5.22 lacs (net of deferred tax) has been charged to the opening balance of retained earnings for the assets in respect of which the remaining useful life is NIL as on April 01, 2014 and in respect of other assets on that date, depreciation has been calculated based on the remaining useful life of those assets. Had the Company continued with the previously applicable rates mentioned in Schedule XIV of the Companies Act, 1956, charge for depreciation for the year would have been higher and net profit would have been lower by Rs. 97.41 lacs respectively.

6 Segment Reporting

In accordance with the requirements of Accounting Standard 17 "Segmental Reporting", the Company's business consist of one reportable segment of textile business, hence no separate disclosure pertaining to attributable Revenues, Profits, Assets, Liabilities, Capital employed are given.

7 Figures of previous year have been re-grouped, reclassified and/or rearranged as and wherever necessary.

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Mar 31, 2014

Note 1 : Corporate Information

Shekhawati Poly-Yarn Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India (BSE & NSE). The Company is principally engaged in the manufacturing of Texturising Yarn, Twisting Yarn and Knitted Fabrics. The Company caters to both domestic and international markets.

2 The Company is consistently following the accounting of excise duty on closing stock of finished goods on clearance of finished goods from the factory and such treatment has no impact on Statement of Profit & Loss for the year.

3 In the opinion of the Board the Current Assets (other than those doubtful & provided for) and Loans and Advances are approximately of the value stated and realizable in the ordinary course of business. The Provisions of all known liabilities is adequate and not in excess of the amount reasonably necessary.

4 Contingent Liabilities

a) Outstanding Bank Guarantee Rs. 232.50 Lakhs (P. Y. Rs. 220.00 Lakhs)

b) Outstanding Letter of Credit Rs. 953.51 Lakhs ( P. Y. Rs. 520.97 Lakhs )

c) The Company has purchased Machinery under the EPCG Scheme whereby it has obligation of exporting goods on FOB basis amounting to 8 times the Import duty saved within a period of 8 years. The amount of duty saved till 31st March, 2014 is Rs. 1749.67 Lakhs (P.Y. Rs. 1749.67 Lakhs). Accordingly, the Company has exported goods amounting to Rs. 10,619.65 Lakhs (P.Y. Rs. 5,637.46 Lakhs) on FOB Basis and export obligations as on 31st March 2013 is Rs. 7,315.11 Lakhs (P.Y. Rs. 8,359.88 Lakhs).

5 Segment Reporting

In accordance with the requirements of Accounting Standard 17 "Segmental Reporting", the Company''s business consist of one reportable segment of textile business, hence no separate disclosure pertaining to attributable Revenues, Profits, Assets, Liabilities, Capital employed are given.

6 Figures of previous year have been re-grouped, reclassified and/or rearranged as and wherever necessary.

7 Figures less than Rs.500/- have been shown at actual wherever statutory required to be disclosed since figures have been rounded off to the nearest thousands.

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Mar 31, 2013

1 Corporate Information

Shekhawati Poly-Yarn Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on both the principal stock exchanges in India. The Company is engaged in the manufacturing and selling of Texturising Yarn, Twisting Yarn and knitted Fabrics. The Company caters to both domestic and international markets.

2 Provision for taxation for the accounting year has been computed on the basis of Minimum Alternate Tax (MAT) in accordance with Section 115 JB of the Income Tax Act, 1961. Considering the future profitability and taxable positions in the subsequent years, the Company has recognized "MAT credit entitlement "of Rs. 141.64 Lacs (P.Y. Rs. 129.10 Lacs) as an asset by crediting to the Statement of Profit and Loss an equivalent amount and included the same under "Long term Loans and Advances "in accordance with the Guidance Note on "Accounting for credit available in respect of Minimum Alternate Tax under Income Tax Act, 1961" issued by the Institute of Chartered Accountants of India.

* Pursuant to approval of the members dated March 15, 2013 through postal ballots, 1 Equity Share having face value of Rs. 10 each has been subdivided into 10 Equity Shares of Re. 1 each. Hence, Previous year Basic and Diluted earning per share has been restated accordingly.

3 The Company is consistently following the accounting of excise duty on closing stock of finished goods on clearance of finished goods from the factory and such treatment has no impact on Statement of Profit & Loss for the year

4 In the opinion of the Board the Current Assets (other than those doubtful & provided for) and Loans and Advances are approximately of the value stated and realizable in the ordinary course of business. The Provisions of all known liabilities is adequate and not in excess of the amount reasonably necessary.

5 Few of the balances appearing under the head of Trade receivables, Trade Payables and Loans and Advances are subject to confirmation and reconciliation. Consequential adjustment thereof, if any, will be given effect into the books of accounts in the year of such adjustment. The management, however, does not expect any material adjustment.

6 Contingent Liabilities

a) Outstanding Bank Guarantee Rs. 220 Lacs (P. Y. Rs. 248.65 Lacs)

b) Outstanding Letter of Credit Rs. 520.97 Lacs (P. Y. Rs. 489.37 Lacs)

c) The Company has purchased Machinery under the EPCG Scheme whereby it has obligation of exporting goods on FOB basis amounting to 8 times the Import duty saved within a period of 8 years. The amount of duty saved till March 31, 2013 is Rs.1749.67 Lacs (P.Y. Rs.1245.82 Lacs ). Accordingly, the Company has exported goods amounting to Rs. 5637.46 Lacs (P.Y. Rs.3947.01 Lacs) on FOB Basis and export obligations as on March 31, 2013 is Rs. 8359.88 Lacs (P.Y. Rs.6019.56 Lacs).

d) Estimated amount of Contracts remaining to be executed on Capital Account Rs. 829.86 Lacs (Net of Advances) (P. Y. Rs. 1252.55 Lacs).

e) Excise Duty refund contested in appeal Rs. Nil (P.Y 159.02 Lacs)

7 Segment Reporting

In accordance with the requirements of Accounting Standard 17 ''''Segmental Reporting", the Company''s business consist of one reportable segment of textile business, hence no separate disclosure pertaining to attributable Revenues, Profits, Assets, Liabilities, Capital employed are given.

8 During the year, the Company has passed Special Resolution through postal ballot on March 15, 2013 for change of registered office from Express Zone,"A" wing, Unit No. 1102/1103, Patel Vatika, Off.Western Express Highway, Malad (East), Mumbai, Maharashtra to Plot No. 185/1, Naroli Village, Near Kanadi Phatak, Dadra & Nagar Haveli (Union Territory). The Company is in the process of complying with the various ROC formalities in this regard.

9 Figures of previous year have been re-grouped, reclassified and/or rearranged as and wherever necessary.

10 Figures less than Rs. 500/- have been shown at actual wherever statutory required to be disclosed since figures have been rounded off to the nearest thousands.

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Mar 31, 2012

1. Corporate Information

Shekhawati Poly-Yarn Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in the manufacturing and selling of Texturising Yarn, Twisting Yarn and knitted Fabrics. The Company caters to both domestic and international markets.

a Term loan from banks amounting to Rs. 4,94,00,000 (P.Y. 6,62,00,000) was taken during the financial year 2007- 08 and carries Interest @ Base Rate 5% p.a. The loan is repayable in 81 monthly installments starting from September 2008. The Loan is Secured By 1st equitable mortgage charge on Company's Land admeasuring 3000 sq.mtrs. & Building,Plant & Machinery, Furniture & Fixtures, Office Equipments & all other Fixed assets situated at Plot No 44,Government Industrial Estate Masat Silvassa. 2nd charge on paripassu basis with other Bank on the Land,Building, Plant & Machinery, Office Equipments and all other Fixed Assets situated at plot, Suvery No 185/Padm 47900 sq mtrs village Naroli, Silvassa. 1st Charge on office No 1102 & 1103 (carpet area 115.29 sq.mt each)Express Zone, A wing, Western Express Highway, Goregoan (East) and 2nd charge on parripassu basis with other lenders over the entire current assets of the company.

b Term Loan from banks amounting to Rs.5,01,33,073 (P.Y. 6,02,13,067) was taken during the financial year 2009-

10 and carries interest @ Base rate 5% p.a. The loan is repayable in 78 monthly insttallments starting from October 2010. The Loan is Secured By 1st Equitable mortgage on pari-passu basis with other Bank on the Land & Building (Ground Floor),Plant & Machinery, Office Equipment (10 texturising machines) and all other Fixed Assets to be situated on ground floor plot, Survey no 185/P adm 47900 sq mtrs, village Naroli Silvassa.2nd charge on pari passu basis over entire fixed assets land & building at Plot No 44 adm 3000 sqmtrs, Govt Industrial Estate Masat, Silvassa and other location.1st Charge on office No 1102 & 1103 (carpet area 115.29 sq.mt each) Express Zone, A wing, Western ExpressHighway, Goregoan (East) and 2nd charge on parripassu basis with other lenders over the entire current assets of the company.

c Term Loan from banks amounting to Rs.4,76,00,000 was taken during the current year and carries interest @ Base rate 5.65% p.a. The Loan is repayable in 80 monthly installments starting from April 2012. The Loan is secured by 1st equitable charge on Building (1st & 2nd Floor) constructed on Plot No 185/P adm 47900 sqmtrvillage Naroli, Silvassa owned by the company. 2nd charge on paripassu basis with other Bank on the Land,Building, Plant & Machinery, Office Equipments and all other Fixed Assets situated at plot, Suvery No 185/Padm 47900 sq mtrs village Naroli, Silvassa. 2nd parripassu charge with other Bank Ltd on entire fixed assets(other than 1st charge on assets to be created out of TL-IV from SBI) at Plot No 44, Govt Industrial Estate Masat,Silvassa and S.No. 185/P adm 47900 sqmtrs village Naroli Silvassa. 1st Charge on office No 1102 & 1103 (carpet area 115.29 sq.mt each) Express Zone, A wing, Western Express Highway, Goregoan (East) and 2nd charge on parripassu basis with other lenders over the entire current assets of the company.)

d Term Loan from banks amounting to Rs. 28,18,89,545 was taken during the current year and carries interest @ Base rate 4.50% p.a. The loan is repayable in 76 monthly installments starting from October 2012. However, the Company has approached the bank in May 2012 for the revision of repayment schedule and requested to extend the Commencement of the repayment schedule from April 2013 instead of October 2012.The Loan is secured by 1st hyothecation charge on shed, plant & machinery to be installed on 1st & 2nd Floor, Plot No 185/P, adm 47900 sqmtr,village Naroli, Silvassa owned by the company and extension of 1st charge on Building (1st & 2nd Floor)constructed on Plot No 185/P, Naroli. 2nd charge on paripassu basis with other Bank on the Land,Building, Plant & Machinery, Office Equipments and all other Fixed Assets situated at plot, Suvery No 185/Padm 47900 sq mtrs village Naroli, Silvassa. 2nd parripassu charge with other Bank Ltd on entire fixed assets(other than 1st charge on assets to be created out of TL-IV from SBI) at Plot No 44, Govt Industrial Estate Masat,Silvassa and S.No. 185/P adm 47900 sqmtrs village Naroli Silvassa. 1st Charge on office No 1102 & 1103 (carpet area 115.29 sq.mt each) Express Zone, A wing, Western Express Highway, Goregoan (East) and 2nd charge on parripassu basis with other lenders over the entire current assets of the company.

e Term Loan from banks amounting to Rs. 12,45,98,196 (P.Y. 15,00,90,062) was taken during the financial year 2010-11 and carries interest @ Base rate 3.50% p.a The loan is repayable in 78 monthly installments starting from January 2011. The loan is secured by Secured By Equitable mortgage of land and building & hypothecation of Plant & Machinery(both acquired out of TL and installed at S No 185/1, Near Silavassa ,D&N Haveli (UT) on parripassu with SBI.Second parripassu charge on entire fixed assets of teh company with SBI (for land & building at plot No 44, Govt Industrial Estate Masat,Silvassa to the extent of Rs.10 Crore).Second parripassu charge on entire current assets of the company with SBI.

f All the above term loans are guaranteed by both the Chairman & Managing Director of the Company.

g Vehicle Loan amounting to Rs.22,02,618 (P.Y. Rs 29,87,838) was taken during the fiancial year 2009-10 and carries interest @ 8.67% p.a.The loan is repayable in 60 monthly instalments along with interest starting from Oct 2010.The loan is secured by 1st charge on the vehicle specifically finanaced out of loan

h Loan from Companies includes

I) Rs.25,00,000 (P.Y Rs.25,00,000 ) taken during the financial year 2010-11 and carries interest @15% p.a..The loan is unsecured and is repayable on demand after a period of one year.

ii) Rs.1,00,00,000 taken during the current year and carries interest @ 18% p.a..The loan is unsecured and is repayable on demand after a period of one year.

a Cash credit and letter of credit from banks amounting to Rs. 39,72,02,878 (P.Y. 26,93,50,315) is secured by 1st Hypothecation charge on entire current assets of the company on parripassu basis. 2nd charge on pari passubasis on Land & Building, Plant & Machinery, Office Equipments and all other Fixed Assets situated at plot, Survey No 185/P adm 47900 sq mtrs village Naroli Silvassa. 2nd charge on pari passu basis over entire fixed assets Land & Building at Plot No 44 adm 3000 sqmtrs, Govt Industrial Estate, Masat, Silvassa and othe location(for land and building to the extent of Rs.10 Crores). 2nd charge on building Shed, Plant & Machinery of Proposed Project at Unit-3 situated at Naroli (under New project) 1st charge in office No 1102 & 1103, situated at Express Zone, A wing, Western Express Highway, Goregoan (East).The cash credit is repayable on demand and carries interest @ Base Rate 4% p.a.

b Cash credit from banks amounting to Rs.2,02,14,234 (P.Y. 1,80,00,800) is secured by 1st parripassu charge over entire current assets of the company, present & future. 2nd parripassu charge over the entire fixed assets of the company, present, future (for land & building at Plot No 44, Govt Industrial Estate Masat, Silvassa to the extent of Rs 10 crores. The cash credit is repayable on demand and carries interest @Base Rate 3.5% p.a.

2 INTANGIBLE ASSETS UNDER DEVELOPMENT

The Administration of Dadra and Nagar Haveli (U.T.), Electricity Department, Silvassa has granted permission of 66KV Power supply line with 66KV Multi Circuit Tower Line from 220/66/11 Kharadpada sub station to the factory premises of the Company. They have approved the same on the condition that entire cost in respect of the said arrangement will be incurred by the Company. Till March 2012, the Company has incurred a sum of Rs. 2,07,29,597 and the same has been reflected as Intangible Assets under Development.

3. Provision for taxation for the accounting year has been computed on the basis of Minimum Alternate Tax (MAT) in accordance with Section 115 JB of the Income Tax Act, 1961. Considering the future profitability and taxable positions in the subsequent years, the Company has recognized "MAT credit entitlement "of Rs.1,29,09,589(P.Y. Rs. 43,68,893) as an asset by crediting to the Profit and Loss Account an equivalent amount and included the same under "Long term Loans and Advances "in accordance with the Guidance Note on "Accounting for credit available in respect of Minimum Alternate Tax under Income Tax Act, 1961” issued by the Institute of Chartered Accountants of India.

4 The Company is consistently following the accounting of excise duty on closing stock of finished goods on clearance of finished goods from the factory and such treatment has no impact on Profit & Loss for the year.

5 In the opinion of the Board the Current Assets (other than those doubtful & provided for) and Loans and Advances are approximately of the value stated and realizable in the ordinary course of business. The Provisions of all known liabilities is adequate and not in excess of the amount reasonably necessary.

6. Few of the balances appearing under the head of Trade receivables, Trade Payables and Loans and Advances are subject to confirmation and reconciliation. Consequential adjustment thereof, if any, will be given effect into the books of accounts in the year of such adjustment. The management, however, does not expect any material adjustment.

7. Contingent Liabilities not provided for:

a) Outstanding Bank Guarantee Rs. 2,48,65,000 ( P. Y. Rs. 79,15,000)

b) Estimated amount of Contracts remaining to be executed on Capital Account Rs.12,52,55,061 (Net of Advances) ( P. Y. Rs.2,24,05,593).

c) The Company has purchased Machinery under the EPCG Scheme whereby it has obligation of exporting goods on FOB basis amounting to 8 times the Import duty saved within a period of 8 years. The amount of duty saved till 31st March, 2012 is Rs.12,45,82,059(P.Y. Rs.7,05,90,564 ). Accordingly, the Company has exported goods amounting to Rs.39,47,00,691(P.Y. Rs.18,99,55,383) on FOB Basis and export obligations as on 31st March 2012 is Rs.60,19,55,783 (P.Y. Rs.37,47,69,127).

d) Excise Duty refund contested in appeal Rs. 1,59,02,117 (P.Y Nil)

8. Related Party Disclosures

As required under Accounting Standard 18 "Related Party Disclosure” (AS-18), following are details of transactions during the year with the related parties of the Company as defined in AS 18:

9. Segmental Information:

In accordance with the requirements of Accounting Standard 17 ”Segmental Reporting”, the Company's business consist of one reportable segment of textile business, hence no separate disclosure pertaining to attributable Revenues, Profits, Assets, Liabilities, Capital employed are given.

10. Till the year ended 31st March 2011, the Company was using Pre-revised Schedule VI to the Companies Act, 1956 for the preparation and presentation of its financial statements. During the year ended 31st march, 2012 the Revised Schedule VI notified under the Companies Act, 1956 have become applicable to the Company. The Company has reclassified previous year figures to confirm to this year classification. Although the adoption of Revised Schedule VI does not impact recognition and measurement principles, it does significantly impacts the presentation of presentation and disclosures made in financial statements. The summary of effects that Revised Schedule VI had on presentation of Balance Sheet of the Company for the year ended 31st March 2011 is given in Annexure 1.

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Mar 31, 2011

1. During the year, in order to comply with Accounting Standard (AS) 15 (Revised 2005) "Employee Benefits" as notified by the Companies Accounts Standard, Rule 2006, the method of accounting of Gratuity and Bonus has been changed from cash basis to accrual basis of accounting and accordingly provision has been made as on 31st March 2011. Gratuity has been provided on the basis of actuarial valuation. Due to change in this accounting policy, the profit for the year is lower by Rs. 13.58 Lacs having consequential effect on the Reserves and Surplus and Current Liabilities.

2. The Company is consistently following the accounting of excise duty on closing stock of finished goods on clearance of finished goods from the factory and such treatment has no impact on Profit & Loss for the year.

3. Purchases are inclusive of Cenvat after deducting purchase returns, discounts, rebates and incentives, if any.

4. Sales are exclusive of Excise Duty after deducting sales returns and discounts if any.

5. In the opinion of the Board the Current Assets, Loans & Advances (other than those doubtful & provided for) are approximately of the value stated and realizable in the ordinary course of business. The Provisions of all known liabilities is adequate and not in excess of the amount reasonably necessary.

6. Few of the balances appearing under the head Sundry Debtors, Sundry Creditors, Advances to Creditors, Other Loans and Advances, Deposits and Other Liabilities are subject to confirmation and reconciliation. Consequential adjustment thereof, if any, will be given effect into the books of accounts in the year of such adjustment. The management, however, does not expect any material adjustment.

7. There are no dues to the Micro, Small and Medium Enterprises which are outstanding as at the Balance Sheet Date. The information regarding Micro Small and Medium Enterprises has been determined on the basis of information available with the Company.

8. Secured Loans:

i. Term Loan From Banks:

Rs.3,354.71 lacs (PY Rs.2,786.44 lacs) Secured by mortgage of land and building, plant & machinery, furniture & fixtures (to be acquired for the new project) situated at Plot No.20,Sheetal Industrial Estate,Demini Road,dadra & Nagar Haveli which is further collaterally secured by entire stocks of imported/indigenous raw materials, finished goods, stock in process, and other current assets of the company and Personal Guarantee of Promoter Directors.

ii. Working Capital Loans From Banks:

Rs.2,873.51 lacs (PY Rs.1,204.03 lacs) First Hypothecation charge over Company's entire stocks of Imported/ Indigenous raw materials, finished goods, stock-in- process and other current assets and Second charge on pari passu with other lenders on the proposed Land & building, Plant & machinery, Office Equipments, and all other fixed assets and Personal Guarantee of Promoter Directors.

iii. Vehicle Loans:

Rs.37.08 Lacs(PY Rs.Nil) Secured by specific asset financed.(Vehicles)

9. Unsecured Loan in Schedule "4" includes Interest free loan from Alidhra Machines Private Limited amounting to Rs. 175 lacs (PY. Rs. Nil).

10. Contingent Liabilities not provided for:

a) Outstanding Bank Guarantee Rs. 79.15 lacs (Previous year Rs. 49.55 lacs).

b) Estimated amount of Contracts remaining to be executed on Capital account Rs. 224.06 lacs (Net of Advances) (Previous Year Rs. 791.44 lacs).

c) The Company has purchased Machinery under the EPCG Scheme whereby it has obligation of exporting goods on FOB basis amounting to 8 times the Import duty saved within a period of 8 years. The amount of duty saved till 31st March, 2011 is Rs.705.91 lacs (P.Y. Rs. 593.36 lacs). Accordingly, the Company has exported goods amounting to Rs. 1899.55 lacs ( P.Y. 236.02 lacs) on FOB Basis and export obligations as on 31st March 2011 is Rs.3747.69 lacs (P.Y.Rs. 4510.89 lacs).

11. Miscellaneous Expenses in Schedule "19" include Donation amounting to Rs.1 lacs (PY Rs. Nil) given to Bhartiya Janta Party.(Politcal Party)

12. Miscellaneous Expenses in Schedule "19" includes Excise Duty Receivable of Rs. 0.13 lacs on and Excise Duty Receivable of Rs. 10.95 lacs on Raw Material and Packing material relating to Unit I written off during the year as the balances are no more recoverable as the Company has surrendered the Excise Registration certificate on 19th October,2010.

13. Other Liabilities in Schedule "12" includes Rent Deposit (Interest free) against Factory Premises of Unit I amounting to Rs. 150 lacs (PY Rs. Nil).

14. Taxes on Income

Provision for taxation for the accounting year has been computed on the basis of Minimum Alternate Tax (MAT) in accordance with section 115 JB of the Income Tax Act, 1961. Considering the future profitability and taxable positions in the subsequent years, the Company has recognized "MAT credit entitlement "of Rs.40.15 lacs (P.Y. Rs. 9.90 lacs) as an assets by crediting to the Profit and Loss Account an equivalent amount and included under "Loans and Advances " in accordance with the Guidance Note on "Accounting for credit available in respect of Minimum Alternate Tax under Income Tax Act, 1961" issued by the Institute of Chartered Accountants of India

In terms of Accounting Standard on "Accounting for Taxes on Income" (AS 22) the Company has recognized Deferred Tax Liability (net) amounting to Rs. 110.41 lacs (P.Y. Rs. 72.13 lacs) for the year ended on 31st March, 2011 in the Profit & Loss Account.

15.Related Party Disclosures

As required under Accounting Standard 18 "Related Party Disclosure" (AS-18), following are details of transactions during the year with the related parties of the Company as defined in AS 18:

i) For the year ended 31st March, 2011

a) Key Management Personnels :

Shri Ramniranjan Ruia Chairman

Shri Mukesh Ruia Managing Director

b) Relative of Director and Name of the enterprises having same Key Management Personnel and / or their relatives as the reporting enterprise with whom the company has entered into transactions during the period.

SKI Buildcon Pvt. Ltd.

Sanjay Jogi.

ii) For the year ended 31st March, 2010

a) Key Management Personnels and their Relatives :

Shri Ramniranjan Ruia Chairman

Shri Mukesh Ruia Managing Director

b) Name of the enterprises having same Key Management Personnel and / or their relatives as the reporting enterprise with whom the Company has entered into transactions during the year.

Ruia Rayons Private Limited

16. During the year the Company has been converted into a Public Limited Company and accordingly the name of the Company has been changed to Shekhawati Poly-Yarn Limited from Shekhawati Poly-Yarn Private Limited and fresh certificate of incorporation dated 19th April, 2010 has been received from Registrar of Companies, Maharashtra.

17. During the year, the Authorized Share Capital has been increased to Rs.2500 lacs divided into 2,50,00,000 equity share of Rs.10/- each from Rs.1100 lacs divided into 1,10,00,000 equity shares of Rs. 10/- each vide resolution passed in Extra Ordinary General Meeting held on 11th June,2010.

18. The Company has allotted 57,72,165 equity shares of Rs. 10/- each as bonus shares in the ratio of 7 equity shares for every 2 equity shares held as per the resolution passed at the Meeting of Board of Directors held on 17th April, 2010.

19. The Company has raised Rs. 3602.67 lacs through a public issue of equity shares during the year. Out of the said proceeds an amount of Rs.3302.67 lacs is deployed partly in expansion of factory building, corporate office building, plant & machinery, working capital requirements, meeting IPO expenses and the balance of Rs. 300 lacs have been temporarily invested in fixed deposits with banks.

20. Segmental Information:

In accordance with the requirements of Accounting Standard 17 "Segmental Reporting", the Company’s business consist of one reportable segment of textile business, hence no separate disclosure pertaining to attributable Revenues, Profits, Assets, Liabilities, Capital employed are given.

21. Additional Information Pursuant to the Provision of Part II of the Schedule VI of the Companies Act 1956 are given in Annexure ‘A’.

22. Previous figures have been regrouped, reclassified and rearranged wherever considered necessary.

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Mar 31, 2010

Notes on Accounts

1. Liabilities in respect of Gratuity & Bonus are accounted for on Payment basis which is not in conformity with Accounting Standard (AS) 15 (Revised 2005) on Employee Benefits as notified by the Companies Accounts Standard, Rule 2006 which requires that Gratuity and Bonus Liabilities be accounted for on accrual basis.

2. Company is consistently following the accounting of excise duty on closing stock of finished goods on clearance of finished goods from the factory and such treatment has no impact on Profit & loss for the year.

3. Purchases are inclusive of Cenvat after deducting purchase return, discount, rebate and Incentive, if any.

4. Sales inclusive of Excise Duty after deducting Sales Return and Discount if any.

5. In the opinion of the board the Current Assets, Loans & Advances are approximately of the value stated and realizable in the ordinary course of business. The Provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

6. The balances appearing under the head sundry debtors, loans and advances, current liabilities are subject to confirmation and reconciliation. Consequential adjustment thereof, if any, will be given effect into the books of accounts in the year of such adjustment.

7. There are no dues to the Micro, Small and Medium Enterprises which are outstanding as at the Balance Sheet Date. This information regarding Micro Small and Medium Enterprises has been determined on the basis of information available with the Company.

8. Contingent liabilities not provided for:

a) Outstanding Bank Guarantee Rs. 49.55 lacs (Previous year Rs. 42.50 lacs).

b) The Company has purchased Machinery under the EPCG Scheme whereby it has obligation of exporting goods on FOB basis amounting to 8 times the Import duty saved within a period of 8 years. The amount of duty saved till 31st March, 2010 is Rs. 593.36 lacs (P.Y. Rs.367.89 lacs). Accordingly the Company has exported goods amounting to Rs. 236.02 lacs ( P.Y. 89.20 lacs) on FOB Basis and export obligation as on 31-03-2010 is Rs. 4510.89 lacs (P.Y.Rs.2853.91 lacs).

c) Estimated amount of Capital contract remaining to be executed on capital account Rs. 791.44 lacs (Net of Advances) (Previous Year Rs.304.25 lacs).

9. Taxes on Income

Provision for taxation for the accounting year has been computed on the basis of Minimum Alternate Tax (MAT) in accordance with I section 115 JB of the Income Tax Act, 1961. Considering the future profitability and taxable positions in the subsequent years, the I Company has recognized "MAT credit entitlement "of Rs.9.90 lacs (P.Y. Rs. 30.37 lacs) as an assets by crediting to the Profit and Loss Account an equivalent amount and included under "Loans and Advances " in accordance with the Guidance Note on "Accounting for credit available in respect of Minimum Alternate Tax under Income Tax Act, 1961" issued by the Institute of Chartered Accountants of India

In terms of Accounting Standard on "Accounting for Taxes on Income" (AS 22) the company has recognized Deferred Tax Liability (net) amounting to Rs.72.13 lacs (P.Y. Rs. 60.68 lacs) for the year ended on 31st March, 2010 in the Profit & Loss Account.

11. Related Party Disclosures

As required under Accounting Standard 18 "Related Party Disclosure" (AS-18), following are details of transactions during the year with the related parties of the Company as defined in AS 18:

I) For the year ended 31st March, 2010

a) Key Management Personnels and their Relatives :

Shri Ramniranjan Ruia Chairman

Shri Mukesh Ruia Managing Director

b) Name of the enterprises having same Key Management Personnel and / or their relatives as the reporting enterprise with whom the Company has entered into transactions during the year.

Ruia Rayons Private Limited

Note : Related Parties are as disclosed by the Management and relied upon by the auditors There is no amount written off / written back due from / to related parties

II) For the year ended 31st March, 2009

a) Key Management Personnels and their Relatives :

Shri Ramniranjan Ruia Ch airman

Shri Mukesh Ruia M a naging Director

Smt. Kalpana M. Ruia Wife of Mukesh Ruia

b) Name of the enterprises having same Key Management Personnel and / or their relatives as the reporting enterprise with whom the Company has entered into transactions during the year.

Ruia Rayons Private Limited

Mukesh Silk Mills

Ruia Silk and Synthetics Private Limited

11. Post Balance Sheet Event

a) The Company has been converted into a Public Limited Company and accordingly the name of the Company has been changed to Shekhawati Poly Yarn Limited from Shekhawati Poly Yarn Private Limited and fresh certificate of incorporation dated 19th April, 2010 has been received from Registrar of Company, Maharashtra.

b) The Company has allotted 57,72,165 equity shares as bonus shares of Rs. 10/- each in the ratio of 7 equity shares for every 2 equity shares held as per the resolution passed at the Meeting of Board of Directors held on 17th April 2010

12. Segmental Information:

In accordance with the requirements of Accounting Standard 17 ''''Segmental Reporting", the Company''s business consist of one reportable segment of textile business, hence no separate disclosure pertaining to attributable Revenues, Profits, Assets, Liabilities, Capital employed are given.

13. Previous years figures have been regrouped, reclassified and rearranged wherever considered necessary.