Notes to Accounts of Shree Bhavya Fabrics Ltd.

Mar 31, 2024

P. Provisions, Contingent liabilities, Contingent assets and
Commitments General

Provisions are recognized 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.
When the company expects some or all of a provision to be reimbursed, for example, under an
insurance contract, the reimbursement is recognized as a separate asset, but only when the
reimbursement is virtually certain. The expense relating to a provision is presented in the statement
of profit and loss net of any reimbursement.

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

Contingent liability is disclosed in the case of:

1. A present obligation arising from the past events, when it is not probable that an outflow of
resources will be required to settle the obligation;

2. A present obligation arising from the past events, when no reliable estimate is possible;

3. A possible obligation arising from the past events, unless the probability of outflow of resources
is remote. Commitments include the amount of purchase order (net of advances) issued to parties for
completion of assets.

The company provides for the expenses to reclaim the quarries used for mining. The total estimate of
reclamation expenses is apportioned over the estimate of mineral reserves and a provision is made
based on the minerals extracted during the year. Mines reclamation expenses are incurred on an
ongoing basis and until the closure of the mine. The actual expenses may vary based on the nature
of reclamation and the estimate of reclamationexpenditure.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance
sheet date.

Q. Dividend

Provision is made for the amount of any dividend declared, being appropriately authorized and no
longer at the discretion of the entity, on or before the end of the reporting period but not distributed
at the end of the reporting period.

The Company recognizes a liability to make cash distributions to equity holders of the Company
when the distribution is authorized, and the distribution is no longer at the discretion of the
Company. Final dividends on shares are recorded as a liability on the date of approval by the
shareholders and interim dividends are recorded as a liability on the date of declaration by the
Company’s Board of Directors. The interim dividends declared during the year are approved by the
Board of Directors.

However no dividend has been paid by Company during the year.

R. Earnings per share

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. Earnings
considered in ascertaining the company’s earnings per share is the net profit for the period after
deducting preference dividends and any attributable tax thereto for the period. The weighted average
number of equity shares outstanding during the period and for all periods presented is adjusted for
events, such as bonus shares, other than the conversion of potential equity shares that have
changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the profit or loss for the period
attributable to equity shareholders and the weighted average number of shares outstanding during
the period is adjusted for the effects of all dilutive potential equity shares. Dilutive potential equity
shares are deemed converted as of the beginning of the period, unless they have been issued at a
later date. The diluted potential equity shares have been arrived at, assuming that the proceeds
receivable were based on shares having been issued at the average market value of the outstanding
shares. In computing dilutive earnings per share, only potential equity shares that are dilutive and
that would, if issued, either reduce future earnings per share or increase loss per share, are
included.

S. Use of estimates and judgements

The presentation of the financial statements is in conformity with the Ind AS which requires the
management to make estimates, judgments and assumptions that affect the reported amounts of
assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates
and assumptions are based on management’s evaluation of relevant facts and circumstances as on
the date of financial statements. The actual outcome may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the
accounting estimates are recognized in the period in which the estimates are revised and in any
future periods affected.

Information about assumptions and estimation uncertainties that have a significant risk of
resulting in a material adjustment within the next financial year are included in the following notes:

• Current tax

• Fair valuation of unlisted securities

T. Statement of cash flows

Cash flow are reported using the indirect method, whereby net profit before tax is adjusted for the
effects of transactions of a non-cash nature, any deferrals of 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, 0investing and finance activities of the company are
segregated.

U. Current and non-current classification

The company presents assets and liabilities in the balance sheet based on current/ non-current
classification. An asset is treated as current when it is:

Expected to be realized or intended to be sold or consumed in normal operating cycle;

i. Held primarily for the purpose of trading;

ii. Expected to be realized within twelve months after the reporting period, or

iii. 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 current when:

i. It is expected to be settled in normal operating cycle;

ii. It is held primarily for the purpose of trading;

iii. It is due to be settled within twelve months after the reporting period, or

iv. 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.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Operating Cycle

The operating cycle is the time between the acquisition of assets for processing and their realization
in cash and cash equivalents. The company has identified twelve months as its operating cycle.

V. Foreign currency translation

Items included in the financial statements of the entity are measured using the currency of the
primary economic environment in which the entity operates (‘the functional currency’). The financial
statements are presented in Indian rupee (INR), which is company’s functional and presentation
currency.

Transactions and balances

Transactions in foreign currencies are initially recorded by the company’s entities at their respective
functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional
currency spot rates of exchange at the reporting date.

Non-monetary items that are measured in terms of historical cost in a foreign currency are
translated using the exchange rates at the dates of the initial transactions. Non-monetary items
measured at fair value in a foreign currency are translated using the exchange rates at the date
when the fair value is determined. The gain or loss arising on translation of non-monetary items
measured at fair value is treated in line with the recognition of the gain or loss on the change in fair
value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in
OCI or profit or loss are also recognized in OCI or profit or loss, respectively).

W. Fair value measurement

The company measures financial instruments, such as, derivatives at fair value at each balance
sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:

i. In the principal market for the asset or liability, or

ii. In the absence of a principal market, in the most advantageous market for the asset or
liability. The principal or the most advantageous market must be accessible by the

company.

The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their
economic best interest.

The company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable inputs
and minimizing the use ofunobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that
is significant to the fair value measurement as a whole:

i. Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or
Liabilities.

ii. Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

iii. Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the
company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting period.

The company’s Valuation Committee determines the policies and procedures for both recurring fair value
measurement, such as derivative instruments and unquoted financial assets measured at fair value,
and for non-recurring measurement, such as assets held for distribution in discontinued operations.
The Valuation Committee comprises of the head of the investment properties segment, heads of the
company’s internal mergers and acquisitions team, the head of the risk management department,
financial controllers and chief finance officer.

External valuers are involved for valuation of significant assets, such as unquoted financial assets.
Involvement of external valuers is decided upon annually by the Valuation Committee after
discussion with and approval by the management. Selection criteria include market knowledge,
reputation, independence and whether professional standards are maintained. Valuers are normally
rotated every three years. The management decides, after discussions with the company’s external
valuers, which valuation techniques and inputs to use for each case.

At each reporting date, the management analyses the movements in the values of assets and
liabilities which are required to be remeasured or re-assessed as per the company’s accounting
policies. For this analysis, the management verifies the major inputs applied in the latest valuation
by agreeing the information in the valuation.

The management, in conjunction with the Company’s external valuers, also compares the change in
the fair value of each asset and liability with relevant external sources to determine whether the
change is reasonable.

On an interim basis, the Valuation Committee and the Company’s external valuers present the
valuation results to the Audit Committee and the company’s independent auditors. This includes a
discussion of the major assumptions used in the valuations.

For the purpose of fair value disclosures, the company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of
the fair value hierarchy as explained above.

This note summarizes accounting policy for fair value. Other fair value related disclosures are given in
the relevantnotes.

i. Disclosures for valuation methods, significant estimates and assumptions.

ii. Quantitative disclosures of fair value measurement hierarchy.

iii. Investment in unquoted equity shares (discontinued operations).

iv. Financial instruments (including those carried at amortized cost).

X. Earnings Per Share

Basic earnings per share is computed and disclosed by dividing the net profit after tax by using the
weighted average number of common shares outstanding during the year. Dilutive earning per
share is computed and disclosed using the weighted average number of common and dilutive
common equivalent shares outstanding during the year, except when the results would be anti¬
dilutive.

Y. Exceptional items

Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the
ordinary activities of the company is such that its disclosure improves the understanding of the
performance of the company, such income or expense is classified as an exceptional item and
accordingly, disclosed in the notes accompanying to the financial statements.

Z. Rounding off

All amounts disclosed in the financial statements and notes have been rounded off to the nearest
Lakhs as per the requirements of Schedule III, unless otherwise stated.

• Recent accounting pronouncements

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, 2023, MCA amended the Companies (Indian Accounting Standards)
Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023,
applicable from April 1, 2023, as below:

Ind AS 1 - Presentation of Financial Statements The amendments require companies to
disclose their material accounting policies rather than their significant accounting policies.
Accounting policy information, together with other information, is material when it can
reasonably be expected to influence decisions of primary users of general purpose financial
statements. The Group does not expect this amendment to have any significant impact in its
financial statements.

Ind AS 12 - Income Taxes The amendments clarify how companies account for deferred tax on
transactions such as leases and decommissioning obligations. The amendments narrowed the
scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition
exemption) so that it no longer applies to transactions that, on initial recognition, give rise to
equal taxable and deductible temporary differences. The Group is evaluating the impact, if any,
in its financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors The amendments
will help entities to distinguish between accounting policies and accounting estimates. The
definition of a change in accounting estimates has been replaced with a definition of accounting
estimates. Under the new definition, accounting estimates are “monetary amounts in financial
statements that are subject to measurement uncertainty”. Entities develop accounting
estimates if accounting policies require items in financial statements to be measured in a way
that involves measurement uncertainty.

The Group does not expect this amendment to have any significant impact in its financial
statements.

• Other Statutory Information:

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

2. Details of Charges: The Company does not have any charges or satisfaction which is yet
to be registered with ROC beyond the statutory period.

3. Details of crypto currency or virtual currency: The Company has not traded or invested
in Crypto currency or Virtual Currency during the financial year.

4. Utilization of borrowed funds and share premium:

The Company has not received any fund from any person(s) or entity(is), 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.

5. Undisclosed income: 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.

6. Willful Defaulter: The Company is not declared as willful defaulter by any bank or
financial institution (as defined under the Companies Act, 2013) or consortium thereof or
other lender in accordance with the guidelines on willful defaulters issued by the Reserve
Bank of India.

7. Compliance with number of layers of companies: As the company has no holding or
subsidiary company, requirement with respect to number of layers prescribed under
clause 87 of sub section 2 of the Companies Act, 2013 read with companies (restriction on
number of layers) rules, 2017 is not applicable.

8. Valuation of PP&E. intangible asset and investment property: The Company has not
revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during
the year.

9. Compliance with approved scheme(s) of arrangements: The Company has not entered
into any scheme of arrangement which has an accounting impact on current financial
statements.

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Mar 31, 2015

1 Share Capital

b. Terms/rights attached to equity shares

The company has only one class of equity shares having par value of Rs. 10/- (Previous year Rs. 10/-) per share. Each holder of equity shares is entitled to one vote per share.

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure

2 Figures have been rounded off to nearest rupee.

2014-2015 2013-2014 in Rs. in Rs.

3 Contingent liabilities & Commitments 9441193/- 9441193/-

4 Provision for income-tax is based on the taxable profits of the company in accordance with the Income - tax Act, 1961.

5 Estimated amounts of contracts remaining to be executed on capital account and not provided for Rs. 39,73,849/ - (Previous year Rs. 2,57,07,867/-).

6 Contingent Liability on account duty saved due to import against EPCG license is Rs. 94,41,193/- (Previous Year Rs. 94,41,193/-), which has to be met by fulfilling an export obligation of Rs. 6,67,67,544/- (Previous Year Rs. 6,67,67,544/-) in eight years.

7 Amount of borrowing cost capitalized as per "Accounting Standard-16", during the year was Rs. NIL/- (Previous Year Rs. NIL)

8 There are no separate reportable segments as per Accounting Standard 17 as the entire operations of the Company relate to one segments, viz. the Textile.

9 There is no lease transaction during the year as per "Accounting Standard - 19".

10 As required by "Accounting Standard -20" the basic Earning Per Share (EPS) is Rs. 0.43 arrived at by dividing the Profit After Tax (PAT) by the total number of shares issued and subscribed as at the end of the year.

11 Break up of expenditure incurred on employe's who were in receipt of remuneration aggregating Rs. 6000000/ - or more for year or Rs. 500000/- or more, where employed for a part of the year. Nil (Previous Year Rs. Nil).

12 Pursuant to the enactment of Companies Act 2013, the Company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortised carrying value is being depreciated over the revised/remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted in the opening balance of Profit and Loss Account amounting of Rs. 755598/-

13 Disclosures in respect of related parties as defined in Accounting Standard 18, with whom transactions have taken place during the year are given below:-

a. Associate Companies Balhanuman Fabrics Pvt. Ltd

in which directors or their relatives Anunay Fab Ltd. are interested Gujarat Investa Ltd.

b. Directors and their relatives:

Purshottam Radheshyam Agarwal

Anjani R. Agarwal

Aman Purshottam Agarwal

14 Micro & Small Enterprises Dues

As per information given to us there were no amount overdue and remaining outstanding to small scale and /or ancillary Industrial suppliers on account of principal and /or interest as at the close of the year. Based on the information available with company, there are no dues outstanding to Micro and Small Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 for more than 45 days as at March 31, 2015.

15 Previous year's figures have been regrouped/rearranged wherever necessary so as to make them comparable with the figures of the current year.

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Mar 31, 2014

1 Provision for income-tax is based on the taxable profits of the company in accordance with the Income - tax Act, 1961.

2 Estimated amounts of contracts remaining to be executed on capital account and not provided for RS. 2,57,07,867/ - (Previous year RS.19,75,000/-).

3 Contingent Liability on account duty saved due to import against EPCG license is RS. 94,41,193/- (Previous Year RS. 50,60,193/-), which has to be met by fulfilling an export obligation of RS. 6,67,57,544/- (Previous Year RS. 4,04,81,544/-) in eight years.

4 Amount of borrowing cost capitalized as per ''Accounting Standard-16'', during the year was RS. NIL/- (Previous Year RS.NIL)

5 There are no separate reportable segments as per Accounting Standard 17 as the entire operations of the Company relate to one segments, viz. the Textile.

6 There is no lease transaction during the year as per "Accounting Standard - 19''.

7 As required by ''Accounting Standard -20'' the basic Earning Per Share (EPS) is RS. 0.38 arrived at by dividing the Profit After Tax (PAT) by the total number of shares issued and subscribed as at the end of the year.

8 Break up of expenditure incurred on employess who were in receipt of remuneration aggregating RS.6000000/ - or more for year or RS. 500000/- or more, where employed for a part of the year. Nil (Previous Year Rs.Nil)

9 Disclosures in respect of related parties as defined in Accounting Standard 18, with whom transactions have taken place during the year are given below: -

a. Associate Companies Balhanuman Fabrics Pvt.Ltd in which directors or their Anunay Fab Ltd. relatives are interested Gujarat In vesta Ltd.

c. Directors and their relatives: Purshottam Radheshyam Agarwal Anjani Radheshyam Agarwal Aman Purshottam Agarwal

10 Micro & Small Enterprises Dues

As per information given to us there were no amount overdue and remaining outstanding to small scale and /or ancillary Industrial suppliers on account of principal and /or interest as at the close of the year. Based on the information available with company, there are no dues outstanding to Micro and Small Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 for more than 45 days as at March 31,2014.

Previous year''s figures have been regrouped/ rearranged necessary so as to make them comparable with the figures of the current year.

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Mar 31, 2010

1. Quantitative Information

a) Class of Goods Manufactured i) Fabric ii) Printing & Dying Grey Cotton & MM Fabrics

e) CIF Value of Imports during the year Rs. 3,27,34,651/- (Previous Year Rs. 2,69,63,508.)

f) Expenditure in foreign currency: remittance in foreign Currency and earnings in foreign currency during the year Rs. 3,23,84,080/- (Previous Year Rs. 2,44,15,894/-)

g) Value of Export (FOB) Rs. NIL (Previous Year Rs. 30,58,938)

2. Micro & Small Enterprises Dues

As per information given to us there were no amount overdue and remaining outstanding to Small scale and/or ancillary Industrial suppliers on account of principal and/or interest as at the close of the year. Based on the information available with Company, there are no dues outstanding to Micro and Small Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 for more than 45 days as at March 31, 2010.

3. Figures have been rounded off to nearest rupees.

4. Balances of Sundry Creditors, Debtors, Loans & Advance and Receivables are subject to confirmation.

5. Previous years figures have been regrouped/rearranged wherever necessary so as to make them comparable with the figures of the current year.

6. Provision for income-tax is based on the taxable profits of the company in accordance with the Income - tax Act, 1961.

7. Estimated amounts of contracts remaining to be executed on capital account and not provided for Rs.16,91,631/- (Previous year Rs.42,61,843/-).

8. Contingent Liability on account duty saved due to import against EPCG license is Rs.29,73,278/ - (Previous Year Rs.72,24,340/-), which has to be met by fulfilling an export obligation of Rs. 2,38,26,224/- (Previous Year Rs. 5,77,94,739/-) in eight years.

9. Amount of borrowing cost capitalized as per "Accounting Standard-16", during the year was Rs. NIL/- (Previous Year Rs. 8,84,138/-)

10. There are no separate reportable segments as per Accounting Standard 17 as the entire operations of the Company relate to one segments, viz. the Textile.

11. There is no lease transaction during the year as per "Accounting Standard -19".

12. As required by "Accounting Standard -20" the basic Earning Per Share (EPS) is Rs.0.41 arrived at by dividing the Profit After Tax (PAT) by the total number of shares issued and subscribed as at the end of the year,

13. During the year company has paid a sum of Rs. 25 Lacs to Textile Process Association towards contribution to drainage line. The same has been shown as Plant & Machinery WIP pending completion of the project by the association.

14. Disclosures in respect of related parties as defined in Accounting Standard 18, with whom transactions have taken place during the year are given below:-

(a) Associate Bodies Corporate Balhanuman Fabrics Pvt. Ltd.

Anunay Fab Ltd.

Gujarat Investa Ltd.

(c) Directors and their relatives Radheshyam Tilokchand Agarwal

Purushottam Radheshyam Agarwal

Anjani Radheshyam

15. Schedule A to R form integral part of Balance Sheet and Profit and Loss Account and are duly authenticated.

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Mar 31, 2009

1. Quantitative Information

a) Class of Goods Manufactured

i) Fabric

ii) Printing & Dying Grey Cotton & MM Fabrics

f) GIF Value of Imports during the year Rs. 2,69,63,508/- (Previous Year Rs. 4,54,89,121.)

g) Expenditure in foreign currency, remittance in foreign currency and earnings in foreign currency during the year Rs. 2,44,15,894 (Previous Year Rs. 3,86,50,187)

g) Value of Export (FOB) Rs. 30,58,938 (Previous Year Rs. Nil)

2 Micro & Smalt Enterprises Dues

As per information given to us there were no amount overdue and remaining outstanding to Small scale and/or ancillary Industrial suppliers on account of principal and/or interest as at the close of the year. Based on the information available with Company, there are no dues outstanding to Micro and Small Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 for more than 45 days as at March 31, 2009.

3. Figures have been rounded off to nearest rupees.

4. Balances of Sundry Creditors, Debtors, Loans & Advance and Receivables are subject to confirmation.

5. Previous years figures have been regrouped/rearranged wherever necessary so as to make them comparable with the figures of the current year.

6. Provision for income-tax is based on the taxable profits of the company in accordance with the Income - tax Act, 1961.

7. Estimated amounts of contracts remaining to be executed on capital account and not provided for Rs.42,61,843/- (Previous year Rs. 29,00,000/-),

8. Contingent Liability on account duty saved due to import against EPCG license is Rs.72,24,340/ - (Previous Year Rs.49,61,554/-), which has to be met by fulfilling an export obligation of Rs. 5,77,94,739/- (Previous Year Rs. 3,86,96,177/-) in eight years.

9. Amount of borrowing cost capitalized as per "Accounting Standard-16", during the year was Rs.8,84,138/- (Previous Year Rs. 3,89,891/-)

10. There are no separate reportable segments as per Accounting Standard 17 as the entire operations of the Company relate to one segments, viz. the Textile.

11. There is no lease transaction during the year as per "Accounting Standard - 19".

12. As required by "Accounting Standard -20" the basic Earning Per Share (EPS) is Rs.3.66 arrived at by dividing the Profit After Tax (PAT) by the total number of shares issued and subscribed as at the end of the year.

13. Disclosures in respect of related parties as defined in Accounting Standard 18, with whom transactions have taken place during the year are given below:-

(a) Associate Bodies Corporate : Nandini Processors Pvt. Ltd.

(b) Associate Concerns : Kirti Overseas in which directors or their Anurag Fabrics relatives are interested

(c) Directors and their relatives Radheyshyam Tilokchand Agarwal

Rambhagat Radheshyam Agarwal.

14. Schedule A to R form integral part of Balance Sheet and Profit and Loss Account and are duly authenticated.