Notes to Accounts of Shree Rajasthan Syntex Ltd.

Mar 31, 2025

n. Provisions and Contingencies

A provision is recognized when there is a present obligation as a result of past event and it is
probable that there will be an outflow of resources in respect of which a reliable estimate can be
made. Contingent liabilities are disclosed when there is a possible obligation arising from past
events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company or a present obligation
that arises from past events where it is either not probable that an outflow of resources will be
required to settle or a reliable estimate of the amount cannot be made. Information on contingent
liability is disclosed in the Notes to the Financial Statements. Contingent assets are not recognised.

o. Recent Accounting Pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing
standards. There is no such notification which would have been applicable from April 1, 2020.

2.2. Significant accounting judgements, estimates and assumptions

The preparation of the company''s financial statements requires management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty
about these assumptions and estimates could result in outcomes that require a material adjustment
to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the company''s accounting policies, management has made the following
judgements, which have the most significant effect on the amounts recognised in the financial
statements:

a) Contingent Liabilities:

Contingent liabilities may arise from the ordinary course of business in relation to claims against
the Company, including legal and constructive claims. By their nature, contingencies will be
resolved only when one or more uncertain future events occur or fail to occur. The assessment of
the existence and potential quantum of contingencies inherently involves the exercise of significant
judgement and the use of estimates regarding the outcome of future events

b) Estimates and Assumptions:

The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year, are described below. Existing circumstances
and assumptions about future developments, however, may change due to market changes or
circumstances arising that are beyond the control of the company. Such changes are reflected in the
assumptions when they occur.

Impairment exists when the carrying value of an asset or cash generating unit exceeds its
recoverable amount, which is the higher of its fair value less costs of disposal and its value in use.
The fair value less costs of disposal calculation is based on available data from binding sales
transactions, conducted at arm''s length, for similar assets or observable market prices less
incremental costs for disposing of the asset. The value in use calculation is based on a DCF model.
The cash flows are derived from the budget for the next five years and do not include restructuring
activities that the company is not yet committed to or significant future investments that will
enhance the asset''s performance of the CGU being tested. The recoverable amount is sensitive to
the discount rate used for the DCF model as well as the expected future cash-inflows and the
growth rate used for extrapolation purposes. These estimates are most relevant to goodwill and
other intangibles with indefinite useful lives recognised by the company.

c) Taxes:

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable
profit will be available against which the losses can be utilised. Significant management judgement
is required to determine the amount of deferred tax assets that can be recognised, based upon the
likely timing and the level of future taxable profits together with future tax planning strategies.

d) Defined benefit plans:

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

The parameter most subject to change is the discount rate. In determining the appropriate discount
rate for plans operated in India, the management considers the interest rates of government bonds
in currencies consistent with the currencies of the post-employment benefit obligation.

a) Details of security for term loan

The Company has repaid all Secured Term Loans in line with the Resolution Plan approved vide Order dated 22.08.2023 of the Hon. NCLT, Jaipur.One minority
Secured Financial Creditor had filed an Appeal before the Hon. NCLAT, New Delhi. The Hon. NCLAT vide Order dated 10.02.2025 has upheld the approved
Resolution Plan. In line with the above mentioned Order of Hon. NCLAT, New Delhi, the Company has paid the required amount to the dissenting Financial
Creditor. No further Appeal has been filed by the Financial Creditor and thus ending the Litigation.

b) Terms and conditions for preference shares

1.7 Lakhs (March 31, 2022: 1.7 Lakhs) 11% non convertible cumulative redeemable preference shares of Rs. 100 each are redeemable at par on or before
September 05, 2027.

d) The Company has received Assessment Orders from the Income Tax Department upto AY 2023-24. The Annual Returns for GST have been filed upto FY

2023-24. The

Company has successfully implemented Pre Package Insolvency Resolution Process ( PPIRP ) and thus all matters for the period prior to 19.04.2023 (
Date of admission before the Hon. NCLT, Jaipur ) stand extinguished as per the Provisions of the IBC.

e) All Contingent Liabilities of the Company have been extinguished as per the approved Resolution plan vide order dated 22.08.2023 of NCLT jaipur. Hon.
NCLAT, New Delhi vide its’ judgement dated 10.02.2025 has further upheld the approved Resolution Plan and shall be governed accordingly before the
various Courts.

Legal Cases

1 As per legal opinion Urban Cess and Water Cess levied by State of Rajasthan is not leviable on the company being established at RIICO Industrial land.
The Company has deposited a sum of Rs 1228.20 lakhs from financial year 2010-11 to 2019-20 towards urban Cess and Water Cess, which is being
contested legally for recovery along with Interest. The company has filed SLP in Supreme Court for the recovery of entire amount. From the financial
year 2018-19 the AVVNL has stopped charging Urban Cess.

2 AVVNL has unilaterally charged 3% transformation losses amounting to Rs. 12.56 Lakhs on entire consumption instead of over and above of 5 MVA on
pro-rata basis as per the earlier notification date 19.07.2004. Being aggrieved with the order, the Company has filed civil writ petition before the Hon’ble
Rajasthan high Court.

3 As legally opined, the electricity duty levied by AVVNL on electricity supplied by Tata Power Trading Co. Ltd is unconstitutional and hence illegal and
not leviable. The Company has filed writ petitions against this levy with Hon’ble High Court of Rajasthan . The Company disputes this levy and has
deposited Rs 471.97 Lakhs under protest up to financial year 2017-18.

4 The company has paid Rs. 18.70 Lakhs to M/s TUSCON ENGINEERS LTD. as per arbitration award given against the company. The company has filed
an appeal with Hon’ble High Court of Rajasthan against the arbitration award. The amount will be refunded to the Company in case of a favourable
judgment.

5 The company has deposited an amount of Rs 63.72 Lakh towards SP Fuel Surcharge of PDC Connection under dispute to AVVNL. LT, Jaipur ). The
matter is being contested before the Hon. NCLT, Jaipur for clarity and interpretation of it’s earlier Order dated 14.06.2024 vide which this Liability is no
longer payable. The amount would be refunded to the Company in case of a favourable judgement.

6 The Company has filed refund application of Rs 483.38 Lakhs paid as Entry Tax for the year 2001-02 to 2014-15. On 11th Nov 2016 Hon''ble Supreme
court has decided the SLP confirming that state can levy entry tax, however state cannot discriminate levy of entry tax. On the basis of legal opinion
obtained Company has filed writ petition before Hon''ble High court of Rajasthan, Jodhpur on the merits of discrimination on 12th July 2017. The
Company is contesting for a refund of total sum of Rs. 483.38 Lakhs.

44 Income tax expense

a) Management reviewed the deferred tax assets/liabilities on temporary differences between the tax base of assets and liabilities and their carrying amounts for
financial reporting purpose at reporting date and in view of virtual uncertainty of taxable profits in near future, the deferred tax (net assets) on temporary
differences, business losses and unabsorbed depreciation for the reporting financial year i.e. 01.04.2020 to 31.03.2025 has not been considered.

45 Leases

Effective April 1, 2019, the Company adopted Ind AS 116, Leases and applied the standard to all lease contracts existing on April 1, 2019 using the modified retrospective
method on the date of initial application. The disclosures under Ind AS 116 as a lessee in relation to leases are as follow: -

The Company is primarily engaged in Production of Textile products having similar economic characteristics, Revenue from other segment is less
than 10% of total revenue.

The Board of Directors of the Company, which has been identified as being the Chief Operating Decision Maker (CODM), evaluates the Company’s
performance, allocate resources based on analysis of the various performance indicator of the Company as a single unit. Therefore, there is no
reportable segment for the Company as per the requirement of Ind-AS 108 ‘Operating Segments’. The entity wide disclosures required by Ind-AS
108 are made as follows: -

a) Capital management

The accumulated losses of the Company as at 31 March 2025 amounting to Rs. 6281.96 Lakhs (Previous Year : Rs. 4873.59 Lakhs) have eroded the net worth of the
Company as at 31 March , 2025.

The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by funding from
borrowings from banks,financial institutions,others and liquidation of its assests.

The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing loans and borrowings less cash and
cash equivalents, bank balances other than cash and cash equivalents while equity includes all capital and reserves of the Company.

Fair value hierarchy

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

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)

The Company has an Audit Committee of the Boards which has the responsibility to identify the risk and suggest the management the mitigation plan for the identified risks in accordance with the risk
management policy of the Company. The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls
against these risks, monitor the risks and their limits, improve risk awareness and transparency.

These risks include market risk (including currency risk and interest rate risk), liquidity risk and credit risk.

(i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprise three types of risk: foreign currency risk, interest
rate risk, investment risk.

Foreign currency risk management

The Company is currently not dealing in foregin currency,therefore no risk arising from foregin currency transactions
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 because funds
are borrowed at both fixed and floating interest rates. The borrowings of the Company are principally denominated in rupees and the Company has exposure to interest rate risk, arising principally on changes
in base lending rate.

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Customer credit risk is managed centrally by the Company and subject to
established policy, procedures and control relating to customer credit risk management. The company also assesses the creditworthiness of the customers internally to whom goods are sold on credit terms in
the normal course of business. The credit limit of each customer is defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to overseas
customers are generally covered by letters of credit.

The impairment analysis is performed on client to client basis for the debtors that are past due at the end of each reporting date.

51. Borrowinng secured against current asset

N.A.

52. Registration of charge of staisfaction with Registrar of Companies (ROC)

There are no charges yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

53. Title deeds of immovable properties

The title deeds of all the immovable properties, as disclosed in note 3 to the financial statements, are held in the name of the company.

54. Valuation of Property Plant & Equipment, intangible asset

The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.

55. Loans or Advances to specified persons

No loans or advances in the nature of loans are granted to promoters, directors, KMPS and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are
repayable on demand or without specifying any terms or period of repayment.

56. Details of Benami property held

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.

57. Wilful defaulter

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

58. Relationship with struck off companies

The Company has no transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

59. Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of layers) Rules,

2017.

60. Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

61. Utilisation of borrowed funds and share premium

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including
foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company
(Ultimate Beneficiaries). The Company has not received any fund from any party(Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other
persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

62. Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded previously in the books of
account.

63. Details of crypto currency or virtual currency

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

64. Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the company from banks and financial institutions had been applied for the purposes for which such loans were taken.

65. Ratios

The following are analytical ratios for the year ended March 31, 2025 and March 31, 2024 : -

66. Other Accounting Policies-

(a) Revenue recognition

1. Export Incentives - Export benefits/incentives are accounted for on accrual basis

2. Insurance and Other Claims- In accordance with the consistent practice, insurance and other claims, to the extent considered recoverable, are accounted for in the year relevant to claim
while the balance is accounted for on settlement.

(b) Impairment of assets-

1. Financial Assets- The company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss.

Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured
at an amount equal to 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.

The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognized as an impairment
gain or loss in Statement of Profit or Loss.

2. Non-financial assets- The carrying amounts of assets are reviewed at each balance sheet date in accordance with Ind AS 36 ‘Impairment of Assets’

to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss
is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses are

recognised in the Statement of Profit and Loss. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would
have been determined net of depreciation or amortisation, if no impairment loss had been recognised.

67. Previous year figures have been regrouped/rearranged, wherever considered necessary to conform to current year’s classification.

See accompanying notes to the financia 1 to 67

As per our report of even date

For Doogar & Associates For and on behalf of the Board of Directors

Chartered Accountants Shree Rajasthan Syntex Limited

Firm''s registration No. 000561N

Vardhman Doogar Vikas Ladia Anubhav Ladia

Partner Managing Director & CEO Whole Time Director & CFO

M. No 517347 DIN: 00256289 DIN: 00168312

Rahul Bolia

Place : New Delhi Place : Udaipur Company Secretary & Compliance Officer

Dated: 23.05.2025 Dated: 23.05.2025 M.No A62766

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Mar 31, 2024

n. Provisions and Contingencies

A provision is recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources in respect of which a reliable estimate can be made. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Information on contingent liability is disclosed in the Notes to the Financial Statements. Contingent assets are not recognised.

o. Recent Accounting Pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards. There is no such notification which would have been applicable from April 1, 2020.

2.2. Significant accounting judgements, estimates and assumptions

The preparation of the company''s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the company''s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

a) Contingent Liabilities:

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal and constructive claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence and potential quantum of contingencies inherently involves the exercise of significant judgement and the use of estimates regarding the outcome of future events

b) Estimates and Assumptions:

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the company. Such changes are reflected in the assumptions when they occur.

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the company is not yet committed to or significant future investments that will enhance the asset''s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to goodwill and other intangibles with indefinite useful lives recognised by the company.

c) Taxes:

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

d) Defined benefit plans:

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

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

(a) Details of security for working capital loans

Borrowings for Working Capital from State Bank of India, Bank of Baroda , State Bank of India (Erstwhile SBBJ) and IDBI Bank Ltd. are secured by hypothecation of raw materials, stock-in-process, stock-in-transit, finished goods, consumable stores and spares and book debts and are further secured by way of second charge on immovable assets of the Company ranking pari-passu inter-se amongst the Bankers and along with personal guarantee of two directors.

The Company has repaid all Working Capital Borrowings in line with the Resolution Plan approved vide Hon. NCLT, Jaipur Order dated 22.08.2023. BOB has filed an Appeal against the Order before the Hon. NCLAT, New Delhi. In case of decision in favour of the Company, the NOC and release of all Charges / guarantees shall be given / completed by the Secured Financial Lenders.

48 Segment reporting

The Company is primarily engaged in Production of Textile products having similar economic characteristics, Revenue from other segment is less than 10% of total revenue.

The Board of Directors of the Company, which has been identified as being the Chief Operating Decision Maker (CODM), evaluates the Company’s performance, allocate resources based on analysis of the various performance indicator of the Company as a single unit. Therefore, there is no reportable segment for the Company as per the requirement of Ind-AS 108 ‘Operating Segments’. The entity wide disclosures required by Ind-AS 108 are made as follows: -

49 Financial instruments a) Capital management

The accumulated losses of the Company as at 31 March 2024 amounting to Rs. 4873.59 Lakhs (Previous Year : Rs. 16161.50 Lakhs)

The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by funding from others and liquidation of its assests.

The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents, bank balances other than cash and cash equivalents while equity includes all capital and reserves of the Company.

c) Financial risk management

The Company has an Audit Committee of the Boards which has the responsibility to identify the risk and suggest the management the mitigation plan for the identified risks in accordance with the risk management policy of the Company. The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency.

These risks include market risk (including currency risk and interest rate risk), liquidity risk and credit risk.

(i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprise three types of risk: foreign currency risk, interest rate risk, investment risk.

Foreign currency risk management

The Company is currently not dealing in foregin currency,therefore no risk arising from foregin currency transactions 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 because funds are borrowed at both fixed and floating interest rates. The borrowings of the Company are principally denominated in rupees and the Company has exposure to interest rate risk, arising principally on changes in base lending rate.

51. Borrowinng secured against current asset

The Company has repaid all Working Capital Borrowings in line with the Resolution Plan approved vide Hon. NCLT, Jaipur Order dated 22.08.2023. BOB has filed an Appeal against the Order before the Hon. NCLAT, New Delhi. In case of decision in favour of the Company, the NOC and release of all Charges / guarantees shall be given / completed by the Secured Financial Lenders.

52. Registration of charge of staisfaction with Registrar of Companies (ROC)

There are no charges yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

53. Title deeds of immovable properties

The title deeds of all the immovable properties, as disclosed in note 3 to the financial statements, are held in the name of the company.

54. Valuation of Property Plant & Equipment, intangible asset

The Company has not revalued its property, plant and equipment or intangible assets or both during the current year.

55. Loans or Advances to specified persons

No loans or advances in the nature of loans are granted to promoters, directors, KMPS and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.

56. Details of Benami property held

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.

57. Wilful defaulter

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

58. Relationship with struck off companies

The Company has no transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

59. Compliance with number of layers of companies

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

60. Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

61. Utilisation of borrowed funds and share premium

N o funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

62. Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded previously in the books of account.

63. Details of crypto currency or virtual currency

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

64. Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the company from banks and financial institutions had been applied for the purposes for which such loans were taken.

66. Other Accounting Policies-

(a) Revenue recognition

1. Export Incentives - Export benefits/incentives are accounted for on accrual basis

2. Insurance and Other Claims- In accordance with the consistent practice, insurance and other claims, to the extent considered recoverable, are accounted for in the year relevant to claim while the balance is accounted for on settlement.

(b) Impairment of assets-

1. Financial Assets- The company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss.

Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.

The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognized as an impairment gain or loss in Statement of Profit or Loss.

2. Non-financial assets- The carrying amounts of assets are reviewed at each balance sheet date in accordance with Ind AS 36 ‘Impairment of Assets’

to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses are

recognised in the Statement of Profit and Loss. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortisation, if no impairment loss had been recognised.

67. Previous year figures have been regrouped/rearranged, wherever considered necessary to conform to current year’s classification.

See accompanying notes to the financial 1 to 67

As per our report of even date

For Doogar & Associates For and on behalf of the Board of Directors

Chartered Accountants Shree Rajasthan Syntex Limited

Firm''s registration No. 000561N

V ardhman Doogar Vikas Ladia Anubhav Ladia

Partner Managing Director & CEO Whole Time Director & CFO

M. No 517347 DIN: 00256289 DIN: 00168312

Place : New Delhi Place : Udaipur Rahul Bolia

Dated: 28.05.2024 Dated: 28.05.2024 Company Secretary & Compliance Officer

M.No A62766

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Mar 31, 2015

1. Contingent Liabilities And Commitments:

a. Claims not acknowledged as debts by the Company Rs. 88.25 Lacs (Previous Year Rs 215.97 Lacs)

b. Bills discounted with Banks and outstanding Rs. 657.22 lacs (Previous Year Rs.486.37 Lacs)

c. Counter guarantees given by the Company in respect of guarantees and Letter of Credits given by the Bankers on behalf of the Company Rs. 1590.64 Lacs (Previous year Rs. 1358.06 Lacs)

d. Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances Rs. 159.53 lacs (Previous Year Rs. 319.67 lacs).

e. Demands issued by the Excise/Custom Authorities amounting to Rs. 205.43 Lacs ( Previous Year 349.65 Lacs) besides other penalties in law. The company is contesting the issues under legal advice. The company has however deposited Rs.89.93 Lacs (Previous year 92.03 lacs ) under protest.

2. Assessment of Sales Tax For The Assessment Years 2012-13, 2013-14 & 2014-15 Are Pending, Liabilities If Any, Arising Thereon Shall Be Accounted For In The Year of Assessment.

3. A. Assessment of Income Tax Has Been Completed Up To The Assessment Year 2012-13.

B. In View of Carry Forward Losses No Provision Is Required Towards Income Tax.

4. Legal Cases:

a.) The Company has received various demands of ESI aggregating to Rs. 24.44 Lacs. (Previous year Rs.24.44 Lacs). Since the matter is pending in appeal and the Company does not envisage any liability, no provision has been made. Amount deposited under Protest Rs 0.93 lacs. (Previous year Rs. 0.93 Lacs).

b.) The Company suffered losses due to breaches/non- fulfillment of the terms and conditions of the Contract with M/s. Kirloskar Oil Engines Ltd. in respect of 2 Nos. DG set of 2.5 M W supplied by them. These losses have been partly recovered by the Company by encashment of Bank Guarantee taken under the Contract with the party. For balance recovery of Rs. 234.23 lacs suit against KOEL is filed.

c) (i) The Hon'ble Supreme court in the case of Jindal Stainless Ltd. Has held levy of Entry Tax unconstitutional. It has also directed all the High Courts to look in to the constitutional validity of respective Entry Tax. Consequent to that 5 High Courts namely Allahabad, Punjab, Haryana, Jharkhand and Kerla has held the respective Entry Tax to be constitutionally invalid . The Hon'ble High Court of Rajasthan in the case of Dinesh Pouches has also held the levy of Entry Tax by the Government of Rajasthan as unconstitutional. As per legal opinion obtained amount paid by the company towards Entry Tax pursuant to Rajasthan Entry Tax Act 1999 has become refundable since inception. It filed refund claim of Entry Tax aggregating to Rs.252.32 Lacs , for the year 2001-02 to 2005-06. (ii) The Company is not liable to pay Entry Tax pursuant to the above said decision of Supreme Court, as such the Company has not provided for Entry Tax for the year 2006-2007 to 2014-15 aggregating to Rs.233.71 Lacs & interest Rs. 80.62 Lacs. (iii) The aggrieved State Governments including Government of Rajasthan filed appeals with Hon'ble Supreme Court of India. (iv) During the year various Hon'ble High Courts, including the Hon'ble High Court of Rajasthan rejected all the cases relating to Entry Tax. Aggrieved by the judgement of Hon'ble High Court of Rajasthan, the "Trade" had filed S LP with Hon'ble Supreme Court of India with Stay Application, While disposing off stay petition Hon'ble Supreme Court has given Interim Order for deposit of 50% of demand and for balance 50% Bank Guarantee to be submitted to Govt through assessing authorities. The company has deposited Rs. 121.31 Lacs against demand of Rs 303.40 Lacs.upto 2012-13 and has given bank guarantee of balance 50% Rs. 98.34 Lacs. From February 2015 the company is regularly paying Entry Tax.

d.) The company has filed writ petitions with hon'ble high court of Rajasthan against disallowances of benefits receivable by it under Rajasthan Investment Promotion Scheme 2003 (RIPS) for expansion and modernization towards interest subsidy and wage and employment subsidy aggregating to Rs.261.05 Lacs for the assessment year 2007-08 to 2011-12 inclusive of interest Rs. 63.64 Lacs. As per legal opinion obtained by the company, it is accounting these benefits in its books of account it has also filed appeal before appellate authority and deposited under protest Rs. 60.85 Lacs (Previous year Rs.60.85Lacs).

e.) As per legal opinion Urban Cess and Water Cess levied by State of Rajasthan is not leviable on the company being established at RIICO Industrial land. The entire amount Rs.245.95 lacs paid upto 31.03.2012 has become recoverable. The company has charged Rs.245.95 lacs paid upto 31.03.2012 to Profit & Loss Account. However Rs.479.68 lacs paid during 2012-13, 2013-14 & 2014-15 stands recoverable under the head Urban Cess / Water Cess deposited under Protest recoverable Account. The company has filed SLP in Supreme Court for the recovery of entire amount.

f. ) The company has paid Rs. 18,69,956/- to M/s TUSCON ENGINEERS LTD. as per arbitration award given against the company. The company has filed an appeal with Hon'ble High Court of Rajasthan against the arbitration award.

5. Since the company is upgrading its main Plant & Machinery under Technology Up gradation Fund scheme regularly, it is not carrying any asset of which carrying cost is more than its recoverable amount / value in use on the Balance Sheet date. Hence there is no impairment loss.

6. Balances appearing under the head Creditors, Debtors, Advances and Deposits are subject to confirmations yet to be received by the company.

7. All the investments of the company have been considered by its management to be of long term nature.

No provision for decline in the carrying amount of investment is made in this year's accounts as in the management's considered opinion, such decline is not of a permanent nature.

8. The company has fulfilled its export obligation under all EPCG Licenses. Hence no obligation is pending.

9. Primary Segment Information : As per Accounting Standard 17 , the requirement of Segment reporting is not applicable to the Company both in respect of Geographical Segment and Product Segment , The Company is engaged in Production of Textile products, Revenue from other segment is less than 10% of total revenue.

10. Depreciation

(i) Pursuant to the enactmant 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 /amortised over the revised remaining useful lives. The written down value of Fixed asstes whole lives have expired as at 1st April 2014 have been adjusted, in the opening balance of Profit and Loss Account amounting to Rs. 136.25 Lacs.

(ii) The company has provided depreciation as per Schedule II to the companies Act 2013 based on useful life of the Assets on straight line basis as under:-

(a) Where the useful life as per this schedule remains, it has been depreciated over the remaining useful life.

(b) Where the useful life is NIL, and there remains a balance after retaining the residual value, it is recognised in the opening balance of retained earnings.

(iii) The company continue to provide 100% depreciation on assets below Rs. 5000.

11. Change Valuation Method Of Inventory Of Stores & Spares.

Observing the difficulties in Computer programming the company has changed method of valuation of Inventories of Stores Spares etc. from moving weighted average cost to FIFO. This change in the basis of valuation does not have material impact on inventory cost & profit/loss of the year.

12. Exceptional Item.

Profit on Account of sale of fixed asstes shown under other non operating income includes:

Non factory building: 248.74 Lacs.

Plant & Machinery : 74.61 Lacs

Total 323.35 Lacs

13. Related Party Transactions :

Name of the Companies/Firms with whom transactions have taken place during the year :

Associate Company: Nil

Related to the Key Management Personnel :

14. The National Highway Authority has acquired 2450 Sq Meters of land situated at Bagru Ravan. The Company has filed legal case for recovery of adequate compensation. The matter is sub judice.,

15. Figures have been rounded off to the nearest rupees in Lacs.

16. Figures for previous year have been regrouped /reclassified, wherever necessary to confirm to this year's classification.

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Mar 31, 2014

1. CONTINGENT LIABILITIES AND COMMITMENTS:

a. Claims not acknowledged as debts by the Company Rs. 215.97 Lacs (Previous Year Rs 645.15 Lacs)

b. Bills discounted with Banks and outstanding Rs. 486.37 lacs (Previous Year Rs.225.53 Lacs)

c. Counter guarantees given by the Company in respect of guarantees and Letter of Credits given by the Bankers on behalf of the Company Rs. 1358.06 Lacs (Previous year Rs. 1826.97 Lacs)

d. Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances Rs. 319.67 lacs (Previous Year Rs.835.48 lacs).

e. (I) Demands issued by the Excise/Custom Authorities amounting to Rs. 349.65 Lacs ( Previous Year 232.63 Lacs) besides other penalties in law. The company is contesting the issues under legal advice. The company has however deposited Rs.92.03 Lacs (Previous year 84.88 lacs ) under protest.

(II) The company has not provided for various sales tax demands for the assessment years 2003-04, 2004-05 aggregating to Rs. 34.11 lacs (Previous year Rs 32.63 lacs) as these are disputed and are pending under appeal/reconsideration with appropriate authorities. Rs. 13.69 lacs (Previous Year Rs. 13.69 lacs) deposited under protest.

2. Assessment of Sales Tax for the assessment years 2012-13 & 2013-14 are pending, liabilities if any, arising thereon shall be accounted for in the year of assessment.

3. a. Assessment of Income Tax has been completed up to the assessment year 2011-12

b. In view of carry forward losses no provision is required towards Income Tax.

4. The Company has received various demands of ESI aggregating to Rs. 24.44 Lacs. (Previous year Rs. 24.44 Lacs). Since the matter is pending in appeal and the Company does not envisage any liability, no provision has been made. Amount deposited under Protest Rs. 0.93 lacs. (Previous year Rs. 0.93 Lacs).

5. The Company suffered losses due to breaches/non-fulfillment of the terms and conditions of the Contract with M/s. Kirloskar Oil Engines Ltd. in respect of 2 Nos. DG set of 2.5 MW supplied by them. These losses have been partly recovered by the Company by encashment of Bank Guarantee taken under the Contract with the party. For balance recovery of Rs. 234.23 lacs suit against KOEL is filed.

6. Since the company is upgrading its main Plant & Machinery under Technology Up gradation Fund scheme regularly, it is not carrying any asset of which carrying cost is more than its recoverable amount / value in use on the Balance Sheet date. Hence there is no impairment loss.

7. Balances appearing under the head Creditors, Debtors, Advances and Deposits are subject to confirmations yet to be received by the company..

8. All the investments of the company have been considered by its management to be of long term nature.

No provision for decline in the carrying amount of investment is made in this year''s accounts as in the management''s considered opinion, such decline is not of a permanent nature.

9. The company has fulfilled its Export obligation under all EPCG licenses. In respect of current Licences for which the obligation comes to Rs. 1487.76 Lacs (USD 24.83 Lacs) to be fulfilled within 6 Years commencing from 10.05.2013 onwards towards Custom Duty saved to the extent of Rs.265.70 Lacs. Against these Licences, export obligation has been fulfilled to the extent of Rs. 359.52 Lacs (USD 6.00 lacs)

10. (a) The Hon''ble Supreme court in the case of Jindal Stainless Ltd. Has hold levy of Entry Tax unconstitutional. It has also directed all the High Courts to look in to the constitutional validity of respective Entry Tax. Consequent to that 5 High Courts namely Allahabad, Punjab, Haryana, Jharkhand and Kerla has held the respective Entry Tax to be constitutionally invalid. The Hon''ble High Court of Rajasthan in the case of Dinesh Pouches has also held the levy of Entry Tax by the Government of Rajasthan as unconstitutional. The aggrieved State Governments including Government of Rajasthan filed appeals with larger bench of Hon''ble Supreme Court of India. The Hon''ble Supreme Court has recommended to constitute a bigger bench to decide the matter as it involves huge amount of Government funds.

As per legal opinion obtained amount paid by the company towards Entry Tax pursuant to Rajasthan Entry Tax Act 1999 has become refundable since inception.

(b) The Company is not liable to pay Entry Tax pursuant to the decision of Supreme Court, as such the Company has not provided for Entry Tax for the year 2006-2007 to 2013-14 aggregating to Rs.227.16 Lacs & interest Rs. 78.95 Lacs.

(c) The Hon''ble High Court has given interim order to deposit 50% of original entry tax liability and for remaining tax, interest & penalty a solvent security be provided accordingly company has deposited Rs. 1,08,34,422/- under protest & provided solvent security for Rs. 2,01,67,021/- for the year from 2006-07 to 2011-12. The assessment for the year 2012-13 & 2013-14 are pending.

(d) The company has filed refund claim of Entry Tax aggregating to Rs.252.32 Lacs , for the year 2001-02 to 2005-06.

11. (a) The company has filed writ petitions with Hon''ble High Court of Rajasthan against disallowances of benefits receivable by it under Rajasthan Investment Promotion Scheme 2003 (RIPS) for expansion and modernization towards interest subsidy and wage and employment subsidy aggregating to Rs.358.25 Lacs for the assessment year 2007-08 to 2011-12 inclusive of interest Rs. 115.14 Lacs. As per legal opinion obtained by the company, it is accounting these benefits in its books of account it has also filed appeal before appellate authority and deposited under protest Rs. 60.85 Lacs (Previous year Rs. 26.84 Lacs).

12. As per legal opinion Urban Cess and Water Cess levied by State of Rajasthan is not leviable on the company being established at RIICO Industrial land. The entire amount Rs. 245.95 lacs paid upto 31.03.2012 has become recoverable. The company has charged Rs.245.95 lacs paid upto 31.03.2012 to Profit & Loss Account. However Rs.310.01 lacs paid during 2012-13 and 2013-14 stands recoverable under the head Urban Cess / Water Cess deposited under Protest recoverable Account. The company has filed SLP in Supreme Court for the recovery of entire amount.

13. The company has paid Rs. 18,69,956/- to M/s TUSCON ENGINEERS LTD. as per arbitration award given against the company. The company has filed an appeal with Hon''ble High Court of Rajasthan against the arbitration award.

14. Assessments of TC Cess from 1996 for Shree Rajasthan Texchem Division is pending. The TC Cess is not payable and appeals are pending before Hon''ble TC Cess Tribunal Mumbai. The demand so created by TC Cess office for Rs.10.14 lacs are not payable.

15. PRIMARY SEGMENT INFORMATION : As per Accounting Standard 17, the requirement of Segment reporting is not applicable to the Company both in respect of Geographical Segment and Product Segment , The Company is engaged in Production of Textile products, Revenue from other segment is less than 10% of total revenue.

16. RELATED PARTY TRANSACTIONS :

Name of the Companies/Firms with whom transactions have taken place during the year :

Associate Company: Nil

Related to the Key Management Personnel :

1 Shree Shyam Distributors & Marketing Pvt Ltd.

2 SRSL Employees Welfare Trust

3 Kunawat & Associates

4 Sh. Vikas Ladia

5 V.K. Texchem Pvt. Ltd.

6 Sh. Anubhav Ladia

7 Shanti Trading Corporation.

8 Smt Monika Ladia

9 Sh Aman Ladia

10 Sh. V.K. Ladia

11 Sh. Pranav Ladia

12 Mrs. Puja Ladia

13 Mrs. Poonam Ladia

14 Shree Shyam Industries Pvt. Ltd.

15 M/s A.M. Traders

16 M/s A.P. Enterprises

Name of Directors :

V.K. Ladia Amita

Narain N.N. Agarwala

Vikas Ladia R.S. Nirwan Sunil Goyal

Anubhav Ladia R.L. Kunawat R.K. Pandey

17. The National Highway Authority has acquired 2450 Sq Meters of land situated at Bagru Ravan. The Company has filed legal case for recovery of adequate compensation. The matter is sub judice.,

18. The Company has acquired industrial lease of 7800 Sq. Meters at Bagru Ravan, Jaipur, Legal formalities are under way.

19. Figures have been rounded off to the nearest rupees in Lacs.

20. Figures for previous year have been regrouped/reclassified, wherever necessary to confirm to this year''s classification.

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Mar 31, 2013

1.1 The employees gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

2. CONTINGENT LIABILITIES AND COMMITMENTS:

a. Claims not acknowledged as debts by the Company Rs. 645.15 Lacs (Previous Year Rs 651.96 Lacs)

b. Bills discounted with Banks and outstanding Rs. 225.53 lacs (Previous Year Rs.446.04 Lacs)

c. Counter guarantees given by the Company in respect of guarantees and Letter of Credits given by the Bankers on behalf of the Company Rs. 1826.97 Lacs (Previous year Rs. 1897.87 Lacs)

d. Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances Rs. 835.48 lacs (Previous Year Rs.571.60 lacs).

b. (I) Demands issued by the Excise/Custom Authorities amounting to Rs.232.63 Lacs ( Previous Year Rs.192.48 Lacs) besides other penalties in law. The company is contesting the issues under legal advice. The company has however deposited Rs.84.88 Lacs (Previous year Rs.73.68 lacs ) under protest. (II) The company has not provided for various sales tax demands for the assessment years 2003-04, 2004-05 aggregating to Rs. 32.63 lacs (Previous year Rs 34.38 lacs) as these are disputed and are pending under appeal/reconsideration with appropriate authorities. Rs 13.69 lacs (Previous Year Rs.13.69 lacs) deposited under protest.

3. Assessment of Sales Tax for the assessment years 2011-12 & 2012-13 are pending, liabilities if any, arising thereon shall be accounted for in the year of assessment.

4. a. Assessment of Income Tax has been completed up to the assessment year 2010-11

b. In view of carry forward losses no provision is required towards Income Tax.

5. The Company has received various demands of ESI aggregating to Rs. 24.44 Lacs. (Previous year Rs.24.44 Lacs). Since the matter is pending in appeal and the Company does not envisage any liability, no provision has been made. Amount deposited under Protest Rs 0.93 lacs. (Previous year Rs. 0.93 Lacs).

6. The Company suffered losses due to breaches/non- fulfillment of the terms and conditions of the Contract with M/s. Kirloskar Oil Engines Ltd. in respect of 2 Nos. DG set of 2.5 MW supplied by them. These losses have been partly recovered by the Company by encashment of Bank Guarantee taken under the Contract with the party. For balance recovery of Rs. 234.23 lacs suit against KOEL is filed.

7. Profit on Disposal of Fixed Assets is - Net of loss of Rs.144 lacs on sale of Fixed Assets.

8. Balances appearing under the head Creditors, Debtors, Advances and Deposits are subject to confirmations yet to be received by the company..

9. All the investments of the company have been considered by its management to be of long term nature. No provision for decline in the carrying amount of investment is made in this year''s accounts as in the management''s considered opinion, such decline is not of a permanent nature.

10. The company has fulfilled its Export obligation under all EPCG licenses. During the year no new licenses issued.

11. (a) The Hon''ble Supreme court in the case of Jindal Stainless Ltd. Has hold levy of Entry Tax unconstitutional. It has also directed all the High Courts to look in to the constitutional validity of respective Entry Tax. Consequent to that 5 High Courts namely Allahabad, Punjab, Haryana, Jharkhand and Kerla has held the respective Entry Tax to be constitutionally invalid . The Hon''ble High Court of Rajasthan in the case of Dinesh Pouches has also held the levy of Entry Tax by the Government of Rajasthan as unconstitutional. The aggrieved State Governments including Government of Rajasthan filed appeals with larger bench of Hon''ble Supreme Court of India. The Hon''ble Supreme Court has recommended to constitute a bigger bench to decide the matter as it involves huge amount of Government funds.

As per legal opinion obtained amount paid by the company towards Entry Tax pursuant to Rajasthan Entry Tax Act 1999 has become refundable since inception.

(b) The Company is not liable to pay Entry Tax pursuant to the decision of Supreme Court, as such the Company has not provided for Entry Tax for the year 2006-2007 to 2012-13 aggregating to. Rs.222.57 Lacs & interest Rs. 77.92 Lacs.

(c) The Hon''ble High Court has given interim order to deposit 50% of original entry tax liability and for remaining tax, interest & penalty a solvent security be provided accordingly company has deposited Rs.1,06,47,663/- under protest & provided solvent security for Rs.2,01,67,021/- for the year from 2006-07 to 2010-11. The assessment for the year 2011-12 & 2012-13 are pending.

(d) The company has filed refund claim of Entry Tax aggregating to Rs.252.32 Lacs, for the year 2001-02 to 2005-06.

12. The company has filed writ petitions with hon''ble high court of Rajasthan against disallowances of benefits receivable by it under Rajasthan Investment Promotion Scheme 2003 (RIPS) for expansion and modernization towards interest subsidy and wage and employment subsidy aggregating to Rs.189.76 Lacs for the assessment year 2007-08 to 2010-11. As per legal opinion obtained by the company, it is accounting these benefits in its books of account it has also filed appeal before appellate authority and deposited against this disallowance Rs.26.84 lacs under protest (Previous year Rs. 19.02 Lacs).

13. As per legal opinion Urban Cess and Water Cess levied by State of Rajasthan is not leviable on the company being established at RIICO Industrial land. The entire amount Rs. 245.95 lacs paid in earlier years and Rs. 140.09 lacs paid in current year has become recoverable. The company has charged Rs. 245.95 lacs paid for earlier years to Profit & Loss Account. However Rs. 140.09 lacs paid during the year stands recoverable under the head Urban Cess / Water Cess deposited under Protest recoverable Account. The company has filed SLP in Supreme Court for the recovery of entire amount.

14. The company has paid Rs. 18,69,956/- to M/s TUSCON ENGINEERS LTD. as per arbitration award given against the company. The company has filed an appeal with Hon''ble High Court of Rajasthan against the arbitration award.

15. Assessments of TC Cess from 1996 for Shree Rajasthan Texchem Division is pending. The TC Cess is not payable and appeals are pending before Hon''ble TC Cess Tribunal Mumbai. The demand so created by TC Cess office for Rs.10.14 lacs are not payable.

16. PRIMARY SEGMENT INFORMATION: As per Accounting Standard 17 , the requirement of Segment reporting is not applicable to the Company both in respect of Geographical Segment and Product Segment , The Company is engaged in Production of Textile products, Revenue from other segment is less than 10% of total revenue.

17. RELATED PARTY TRANSACTIONS :

Name of the Companies/Firms with whom transactions have taken place during the year: Associate Company: Nil

Name of Directors :

V.K. Ladia Vikas Ladia, Anubhav Ladia, Jitendra Balakrishnan, R S Nirwan, R L Kunawat, N N Agarwala, Sunil Goyal

18. The National Highway Authority has acquired 2450 Sq Meters of land situated at Bagru Ravan. The Company has filed legal case for recovery of adequate compensation. The matter is sub judice.,

19. The Company has acquired industrial lease of 7800 Sq. Meters at Bagru Ravan, Jaipur, Legal formalities are under way.

20. Since the company is upgrading its main Plant & Machinery under Technology Up gradation Fund scheme regularly, it is not carrying any asset of which carrying cost is more than its recoverable amount / value in use on the Balance Sheet date. Hence there is no impairment loss.

21. Figures have been rounded off to the nearest rupees in Lacs.

22. Figures for previous year have been regrouped/rearranged, wherever considered necessary.

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Mar 31, 2012

1.1 Out of above equity shares, 37,59,899 equity shares of Rs.10/~ each fully paid have been alloted to erstwhile share holders of the amalgamating Company M/s Shree Rajasthan Texchem Ltd., pursuant to the scheme of amalgamation as approved by the Honb'le High Court of Rajasthan , Jodhpur without payment being received in cash.

2.1 The company has issued and allotted 6,50,000 warrants of Rs.14/- each on 21st March, 2012 convertible into one equity share of Rs.10/- each at the option of the holder at any time on or before 20th September 2013 on payment of balance of 710.50 per warrant. Failure to exercise the conversion right shall entitle the company to forfeit the amount of Rs.3.50 per warrant received on allotment.

3.1 Term Loans from IDBI Bank Ltd. (IDBI), State Bank of India (SBI), Bank of Baroda (BOB) and ICICI Bank Ltd. (eBOR) are secured by a joint equitable mortgage, by deposit of title'deeds, over the company's immovable assets and a charge by way of hypothecation of all movable assets (except Plant & Machinery exclusively charged in favour of SBI for Loan of Rs. 492.20 Lacs, Previous year 573.79 Lacs ) present and future subject to prior charges on specified movables created in favour of company's Bankers and personal guarantee of two directors. The mortgage and charges created shall rank pari-passu inter-se amongst the financial Institution and Banks.

4.1 The Company has estimated the deferred tax charge using the applicable rate of taxation based on the impact of timing difference between financial Statements and estimated taxable income for the current year. The component of the deferred tax balance as on 31.03.2012 and 31.03.2011 are as follows :

5.1 Borrowings for Working Capital from State Bank of India, Bank of Baroda , State Bank of Bikaner & Jaipur and IDBI Bank Ltd. are secured by hypothecation of raw materials, stock-in-process, stock-in-transit, finished goods, consumable stores and spares and book debts and are further secured by way of second charge on immovable assets of the Company ranking pari-passu inter-se amongst the Bankers and personal guarantee of two directors.

6.1 The employees gratuity fund scheme managed by a Trust is a defined l:tenefit plan.The present value of obligation is determined based on actinia valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately the build up the final obligation. The obligation for leave encashment is recognized in the same manneras gratuity

6.2. Extraordinary Item - The dispute with Shree Shyam Filaments Labour Union Bagru has been settled during the year with tripartite settlement before Labour Commissioner Rajasthan Jaipur, The amount settled as golden hand shakes has been shown as extraordinary item.

7. CONTINGENT LIABILITIES AND COMMITMENTS:

a. Claims not acknowledged as debts by the Company Rs.192.48 Lacs (Previous Year Rs.383.63 Lacs)

b. Bills discounted with Banks and outstanding 1446.04 lacs (Previous Year Rs.343.88 Lacs)

c. Counter guarantees given by the Company in respect cf guarantees and Letter of Credits given by the Bankers on behalf of the Company1897.87 Lacs (Previous yearRs. 1369.87 Lacs)

d. Estimated amount of contratts remaining to be executed on capita! account and not provided for net of advancesRs. 571.60 lacs (Previous YearRs. 261.26 lacs)

e. (I) Demands issued by the Excise/Custom Authorities amounting to Rs. 651.96 Lacs ( Previous Year f 491.08 Lacs) besides other penalties in law. The company is contesting the issues under legal advice. The company has however deposited Rs. 73.68 Lacs (Previous year Rs. 13.86 lacs) under protest.

(ll)The company has riot provided for various sales tax demands for the assessment years 2003-04 & 2004 05 aggregating to Rs. 34.38 lacs (Previous year Rs. 33.00 iacs) as these are disputed and are pending under appeal/reconsideration with appropriate authorities. Rs. 13.69 lacs (Previous Year Rs. 13.69 lacs) deposited under protest.

8. Assessment of Sales Tax for the assessment years 2010-11 & 2011-12 are pending, liabilities if any, arising thereon shal; be accounted for in the year of assessment.

9. a. Assessment of Income Tax has been completed up to the assessment year 2009-10

b. In view of carry forward losses no provision is required towards income Tax.

c. In view of amendment in income Tax Acts with retrospective date the Income tax liability on deferred tax in SRT unit are being assessed. The notice u/s 154 received from Income Tax Dept. The liability of MAT works out to Rs. If. 17 Lacs is contingent

10. The Company has received various demands of ESS aggregating to Rs. 24,44 Lacs, (Previous year Rs. 24.64 Lacs). Since the matter is pending in appeal and the Company does not envisage any liability, no provision has been made. Amount deposited under ProtestRs.0.93 lacs. (PreviousyearRs.0.90 Lacs)

11. The Company suffered losses due to breaches/non fulfillment of the terms and conditions of the Contract with M/s. Kirloskar Oil Engines Ltd. in respect of 2 Nos. DG set of 2.5 MW supplied by them. These losses have been partly recovered by the Company by encashment of Bank Guarantee taken under the Contract with the 'party. For balance recovery of Rs. 234.23 lacs suit against KOEL is filed

12. Balances appearing under the head Creditors, Debtors, Advances and Deposits are subject to confirmations yet to be received by the company.

13. All the investments of the company have been considered by its management to be of long term nature.

No provision for decline in the carrying amount of investment is made in this year's accounts as in the management's considered opinion, such decline is not of a permanent nature.

14. The company has fulfilled its fexport obligation under all EPCG iiences. Du ring the year no new licences issued.

15. (a) The Hon'ble Supreme court in the case of Jindal Stainless Ltd. Has hold levy of Entry Tax unconstitutional. It has also directed all the High Courts to look in to the constitutional validity of respective Entry Tax. Consequent to that 5 High Courts namely Allahabad, Punjab, Haryana, Jharkhand and Kerla has held the respective Entry Tax to be constitutionally invalid. The Hon'ble High Court of Rajasthan in the case of Dinesh Pouches has also held the levy of Entry Tax by the Government of Rajasthan as unconstitutional. The aggrieved State Governments including Government of Rajasthan filed appeals with larger bench of Hon'ble Supreme Court of India. The Hon'ble Supreme Court has recommended to constitute a bigger bench to decide the matter as it involves huge amount of Government funds. As per legal opinion obtained amount paid by the company towards Entry Tax pursuant to Rajasthan Entry Tax Act 1999 has become refundable since inception.

(b) The Company is not liable to pay Entry Tax pursuant to the decision of Supreme Court, as such the Company has not provided for Entry Tax for the year 2006-2007 to 2011-12 aggregating to. Rs. 216.63 Lacs.

(C) The Hon'ble High Court has given interim order to deposit 50% of original entry tax liability and for remaining tax, interest & penalty a solvent security be provided accordingly company has deposited Rs. 97,48,433/- on 13.04.2011 under protest & provided solvent security for Rs. 2,01,67,021/- for the year from 2006-07 to 2008-09. The assessment for the year 2009-10,2010-11 & 2011-12 are pending.

(d) The company has filed refund claim of Entry Tax aggregating to Rs. 252.32 Lacs, for the year 2001-02 to 2005-06.

16. The company has filed writ petitions with hon'ble high court of Rajasthan against disallowances of benefits receivable by it under Rajasthan Investment Promotion Scheme 2003 (RIPS) for expansion and modernization towards interest subsidy and wage and employment subsidy aggregating to Rs. 188.79 Lacs for the assessment year 2007-08 to 2011-12. As per legal opinion obtained by the company, it is accounting these benefits in its books of account it has also filed appeal before appellate authority and deposited against this disallowance Rs. 19.02 lacs under protest.

17. The company has paid Rs. 18,69,956/- to M/s TUSCON ENGINEERS LTD. as per arbitration award given against the company. The company has filed an appeal with Hon'ble High Court of Rajasthan against the arbitration award.

18. Assessments of TC Cess from 1996forShree Rajasthan Texchem Division is pending. The TC Cess is not payable and appeals are pending before Hon'ble TC Cess Tribunal Mumbai. The demand so created by TC Cess office for Rs. 10.14 lacs are not payable.

19. PRIMARY SEGMENT INFORMATION : As per

Accounting Standard 17, the requirement of Segment reporting is not applicable to the Company both in respect of Geographical Segment and Product Segment, The Company is engaged in Production of Textile products, Revenue from other segment is less than 10% of total revenue.

20. RELATED PARTY TRANSACTIONS : Name of the Companies/Firms with whom transactions have taken place during the year:

Associate Company: Nil

Related to the Key Management Personnel:

Name of Directors:

V.K. Ladia, Vikas Ladia, Anubhav Ladia, Jitender Balakrishnan, R S Nirwan, R L Kunawat, N N Agarwala, Sunil Goyal, R.K.Pandey

21. The National Highway Authority has acquired 2450 Sq Meters of land situated at Bagru Ravan. The Company has filed legal case for recovery of adequate compensation. The matter is sub judice.,

22. The company has acquired industrial lease of 7800 Sq. Meters at Bagru Ravan, Jaipur, Legal formalities are underway.

23. Since the company is upgrading its main Plant & Machinery under Technology Upgradation Fund scheme regularly, it is not carrying any asset of which carrying cost is more than its recoverable amount / value in use on the Balance Sheet date. Hence there is no impairment loss.

24. Figures have been rounded off to the nearest rupees in Lacs.

25. Figures for previous year have been regrouped/rearranged, as per new Schedule VI to the Companies Act 1956.

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Mar 31, 2010

1. CONTINGENT LIABILITIES IN RESPECT OF:

a. Claims not acknowledged as debts by the Company Rs. 314.62 lacs (Previous Year Rs 170.54 lacs)

b. Bills discounted with Banks and outstanding Rs. 810.10 lacs (Previous Year Rs. 468.58 lacs)

c. Counter guarantees given by the Company in respect of guarantees and Letter of Credits given by the Bankers on behalf of the Company Rs. 858.37 lacs (Previous year Rs. 1084.12 lacs)

d. Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances Rs. 138.77 lacs (Previous Year Rs. NIL)

e. (i) Demands issued by the Excise Authorities amounting to Rs.510.40 lacs ( Previous Year 389.25 lacs) besides other penalties in law. The Company is contesting the issues under legal advice. The Company has however deposited Rs. 205.35 lacs (Previous year 246.36) under protest.

(ii) The Company has not provided for various sales tax demands for the assessment years 2003-04, 2004-05 & 2007-08 aggregating to Rs. 112.73 lacs (Previous year Rs 33.01 lacs) as these are disputed and are pending under appeal / reconsideration with appropriate authorities. Rs 21.65 lacs (Previous Year Rs 13.68 lacs) deposited under protest.

2. Assessment of Sales Tax for the assessment years 2008-09 & 2009- 10 are pending, liabilities if any, arising thereon shall be accounted for in the year of assessment.

3. a. Assessment of Income Tax has been completed up to the assessment year 2007-08

b. In view of carry forward losses no provision is required towards Income Tax.

c. In view of amendment in Income Tax Act with retrospective date the Income tax liability on deferred tax in SRT unit are being assessed. The notice u/s 154 received from Income Tax Dept. The liability of MAT works out to Rs. 19.17 lacs is contingent.

4. The Company has received various demands of ESI aggregating to Rs. 24.68 lacs. (Previous year Rs. 23.82 lacs). Since the matter is pending in appeal and the Company does not envisage any liability, no provision has been made. Amount deposited under Protest Rs 1.37 lacs. (Previous year 0.35 lacs)

5. The Company suffered losses due to breaches/non-fulfillment of the terms and conditions of the Contract with M/s. Kirloskar Oil Engines Ltd. in respect of 2 Nos. DG set of 2.5 MW supplied by them. These losses have been partly recovered by Company by encashment of Bank Guarantee taken under the Contract with the party. For balance recovery of Rs. 234.23 lacs suit against KOEL is filed.

6. Balances appearing under the head Creditors, Debtors, Advances and Deposits are subject to confirmations yet to be received by the Company.

7. All the investments of the Company have been considered by its management to be of long term nature.No provision for decline in the carrying amount of investment is made in this years accounts as in the managements considered opinion, such decline is not of a permanent nature.

8. The Company has fulfilled its Export obligation under all EPCG Licences. In respect of current Licences for which the obligation comes to Rs. 12603 lacs ( USD 281 lacs) to be fulfilled within 8 years , against these licences export obligation have been fulfilled to the extent of Rs.12436 lacs ( USD 277 lacs), balance outstanding Rs.167 lacs, (USD 4 lacs) from 18.3.2010.

9. (a) The Honble Supreme court in the case of Jindal Stainless Ltd. has held levy of Entry Tax unconstitutional.It has also directed all the High Courts to look in to the constitutional validity of respective Entry Tax.Consequent to that 5 High Courts namely Allahabad, Punjab, Haryana, Jharkhand and Kerala has held the respective Entry Tax to be constitutionally invalid. The Honble High Court of Rajasthan in the case of Dinesh Pouches has also held the levy the Entry Tax by the Government of Rajasthan as unconstitutional. The aggrieved State Governments including Government of Rajasthan filed appeals with larger bench of Honble Supreme Court of India. The Honble Supreme Court has recommended to constitute a bigger bench to decide the matter as it involves huge amount of Government funds. As per legal opinion obtained amount paid by our Company towards Entry Tax pursuant to Rajasthan Entry Tax Act 1999 has become refundable since inception.

(b) The Company is not liable to pay Entry Tax pursuant to the decision of Supreme Court, as such the Company has not provided for Entry Tax for the year 2006-2007, 2007-2008, 2008-09 & 2009-10 aggregating to.Rs. 208.79 lacs.

(c) The Company has filed refund claim of Entry Tax aggregating to Rs. 252.32 lacs, during previous year for the year 2001-02 to 2005-06.

10. The company has filed following writ petitions with Honble high court of Rajasthan against disallowances of certain benefits receivable by it under Rajasthan Investment Promotion Scheme 2003 (RIPS) for expansion and modernization.

(a) Electricity duty exemption aggregating to Rs. 80 lacs

(b) Interest subsidy and wage and employment subsidy aggregating to Rs. 167.05 lacs.

As per legal opinion obtained by the Company, it is accounting these benefits in its books of account.

11. The Company has paid Rs. 18,69,956/- to M/s TUSCON ENGINEERS LTD. as per arbitration award given against the Company. The Company has filed an appeal with Honble High Court of Rajasthan against the arbitration award.

12. Assessments of T C Cess from 1996 for Shree Rajasthan Texchem Division is pending. The TC Cess is not payable and appeals are pending before Honble TC Cess Tribunal Mumbai. The demand so created by TC Cess office for Rs. 10.14 lacs are not payable.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held ,assessed risks, historical results of return on plan assets and the Companys policy for plan assets management.

13. PRIMARY SEGMENT INFORMATION

As per Accounting Standard 17 , the requirement of Segment reporting is not applicable to the Company both in respect of Geographical Segment and Product Segment , The Company is engaged in Production of Textile products, Revenue from other segment is less than 10% of total revenue.

14.RELATED PARTY TRANSACTIONS :

Name of the Companies/Firms with whom transactions have taken place during the year :

Associate Company: Nil

Related to the Key Management Personnel:

1 Shree Shyam Distributors & Markt. Pvt L td.

2 SRSL Employees Welfare Tr ust

3 Kunawat & Associ ates

4 Shri Vikas Ladia

5 Shri Vikas Lad ia (HUF)

6 Shri Anubhav Ladia

7 Shri Anubhav Ladia (HUF)

8 Smt. Monika Ladia

9 Shri Aman Lad ia

10 Shri V.K. Ladia

11 V.K. Texchem (P) Ltd.

12 Shri Pranav Ladia



Name of Directors :

V.K. Ladia

R. S. Nirwan

Vikas Ladia

R. L. Kunawat

S. C. Kuchhal

N. N. Agrawala

Anubhav Ladia

Sunil Goyal

R.K.Pandey

15 The National Highway Authority has acquired 2450 Sq Meters of land situated at Bagru Ravan. The Company has filed legal case for recovery of adequate compensation. The matter is sub judice.,

16. The Company has acquired industrial lease of 7800 Sq. Meters at Bagru Ravan, Jaipur, Legal formalities are under way.

17. Since the company is upgrading its main Plant & Machinery under Technology Up gradation Fund scheme regularly, it is not carrying any asset of which carrying cost is more than its recoverable amount value in use on the Balance Sheet date. Hence there is no impairment loss.

18. Figures have been rounded off to the nearest rupees in lacs.

19. Figures for previous year have been regrouped/rearranged, wherever considered necessary.