Notes to Accounts of Spenta International Ltd.

Mar 31, 2025

z) Provisions, Contingent Liabilities and Contingent Assets
^ Provisions

Provisions are recognized when there is a present obligation (legal or constructive) as a result of
a past event and 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.

> Contingent Liabilities

Contingent liability is a possible obligation arising from past events and 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 but is not recognized because it is not possible that an outflow of resources embodying
economic benefit will be required to settle the obligations or reliable estimate of the amount of
the obligations cannot be made. The Company discloses the existence of contingent liabilities in
Other Notes to Financial Statements.

^ Contingent Assets: Contingent assets usually arise from unplanned or other unexpected events
that give rise to the possibility of an inflow of economic benefits. Contingent Assets are not
recognized though are disclosed, where an inflow of economic benefits is probable.

aa) Intangible Assets:

^ Recognition and Measurement

Intangible asset are stated at cost on initial recognition and subsequently measured at cost less
accumulated amortization and accumulated impairment loss, if any.

^ Amortization

1. Software’s are amortized over a period of three years.

2. The amortization period and the amortization method are reviewed at least at the end
of each financial year. If the expected useful life of the assets is significantly different
from previous estimates, the amortization period is changed accordingly.

bb) Operating Segment

Operating segments are reported in a manner consistent with the internal reporting provided
to the chief operating decision maker. The chief operating decision maker of the Company
is responsible for allocating resources and assessing performance of the operating segments
and accordingly is identified as the chief operating decision maker.

The Company has identified one reportable segment “Knitted Socks” based on the
information reviewed by the CODM.

cc) Significant Judgments and Key Sources of Estimation in Applying Accounting Policies

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

^Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized
is based on an assessment of the probability of the Company’s future taxable income against which
the deferred tax assets can be utilized. In addition, significant judgement is required in assessing the
impact of any legal or economic limits.

^ Classification of Leases: The Company enters into leasing arrangements for various assets. The
classification of the leasing arrangement as a finance lease or operating lease is based on an
assessment of several factors, including, but not limited to, transfer of ownership of leased asset at
end of lease term, lessee’s option to purchase and estimated certainty of exercise of such option,
proportion of lease term to the asset’s economic life, proportion of present value of minimum lease
payments to fair value of leased asset and extent of specialized nature of the leased asset.

> Defined Benefit Obligation (DBO):

Employee benefit obligations are measured on the basis of actuarial assumptions which
include mortality and withdrawal rates as well as assumptions concerning future
developments in discount rates, medical cost trends, anticipation of future salary increases
and the inflation rate. The Company considers that the assumptions used to measure its
obligations are appropriate. However, any changes in these assumptions may have a material
impact on the resulting calculations.

^ Provisions and Contingencies:

The assessments undertaken in recognising provisions and contingencies have been made in
accordance with Indian Accounting Standards (Ind AS) 37, ‘Provisions, Contingent Liabilities and
Contingent Assets’. The evaluation of the likelihood of the contingent events is applied best
judgement by management regarding the probability of exposure to potential loss.

^ Impairment of Financial Assets:

The Company reviews its carrying value of investments carried at amortized cost annually, or more
frequently when there is indication of impairment. If recoverable amount is less than its carrying
amount, the impairment loss is accounted for.

> Allowances for Doubtful Debts:

The Company makes allowances for doubtful debts through appropriate estimations of
irrecoverable amount. The identification of doubtful debts requires use of judgment and estimates.
Where the expectation is different from the original estimate, such difference will impact the
carrying value of the trade and other receivables and doubtful debts expenses in the period in which
such estimate has been changed.

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot
be measured based on quoted prices in active markets, their fair value is measured using valuation
techniques including the Discounted Cash Flow model. The input to these models are taken from
observable markets where possible, but where this not feasible, a degree of judgement is required
in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit
risk and volatility.

39 Some of the sundry debtors, sundry creditors and loans & advances are subject to confirmation and reconciliation. Consequential adjustment thereof, if any, will be given
effect into the books of accounts in the year of such adjustment.

40 In the opinion of the Board, the Current Assets, Loans & Advances are approximately of the value stated and are realizable in the ordinary course of business

41 The items of inventories are measured at lower of cost or net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost
of conversion and other costs incurred in bringing them to their respective present location and condition. Raw material comprises of Yarn and packing material at cost,
Wastage is valued at net realizable value. Cost of Raw material, finished goods, Spare and Consumables are determined on First in First out basis. (FIFO)

44 a) Insurance claim of Rs. 89.35 Lacs alongwith interest theron upto date of settlement is filed by the company on account of fire occurred at the Company''s Godown at
Aliyali - Palghar, Maharashtra on 26 th August, 2008 damaging complete Building and Stock in hand and the same is still pending with the insurance company. The
Company has filled a case against the insurance company in the National Consumer Court, New Delhi. The case is under hearing as on March 31, 2025.

b) The Company had filied an Appeal before Income Tax Appellate Tribunal, Mumbai against Income Tax Demand of Rs. 74,46,117/- for A.Y. 2005-06 and A.Y. 2006-07
against which an amount of Rs. 28,61,057/-had been paid by the Company in 2012. The said ITAT appeal has been decided in favor of company vide consolidated ITAT
Appeal order dated 15/09/2016 and refund of Rs. 32,81,628/- received in May''2022. Interest on the said amount is short received, and Company has filed a appeal with CP
Gram for recovery of said amount - Rs. 23,36,863/-, which is outstanding as on 31.3.25.

45 The Company has to fulfil export obligations under EPCG licence granted to the same on conversion from EOU status to DTA status. Since the Machineries required for
completion of the said obligation had been destroyed in fire in Dec'' 2004, the Company has taken up the matter with the relevant authorities for cancellation of the said
Licence. The matter is still pending with relevant Authority as on March 31, 2025.

^Remuneration is being disclosed based on actual payment made on retirement/resignation of services, but does not includes provision made on actuarial basis as the same
is available for all the employees together.

Note: Related party relationship is as identified by the Company and relied upon by the Auditors

48 Segment Reporting

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the Chief Operating
Decision Maker, in deciding how to allocate resources and assessing performance. Operating segments are reported in a manner consistent with the internal reporting
provided to the chief operating decision maker. Based on the management approach as defined in Ind AS 108, the Chief Operating Decision Maker evaluates the Company’s
performance based on only one segment i.e. Knitted Socks

49 During the FY 24-25, the Company has 2 customers doing individual business of 10% or more of the revenue and such customers accounted for
53.20% of revenue (FY 23-24, the Company had 1 such customers accounting for 47.66°% of revenue)

50 Other Statutory Information

a) Disclosure of transactions with Struck off companies - NIL

b) Title deeds of Immovable Property not held in name of the Company - NIL

c) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

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

e) The Company is not declared wilful defaulter by any bank or financials institution or lender during the year.

f) The Company does not have any charges which is yet to be registered with ROC beyond the statutory period.

g) The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under the Companies Act,
2013), either severally or jointly with any other person

h) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that
the Intermediary shall : (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate
beneficiaries) or (b) provide any guarantee, security or the like to, or on behalf of the ultimate beneficiaries.

i) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing
or otherwise) that the Company shall : (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
funding party (ultimate beneficiaries) or (b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

j) The Company does not have any such 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).

k) Clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 does not apply to the Company.

For M/s. A K Kochar & Associates For and behalf of the Board of Director

Chartered Accountants

(CA Abhilash Darda) Sanjay S. Gadodia Danny F. Haosotia

Partner (Chairman) (Managing Director)

Membership No.: 423896 DIN - 00203433 DIN - 00203497

Firm Registration No. 120410W

Place :- Mumbai Place :- Palghar Priti Shukla

Date : 26th May, 2025 Date : 26th May, 2025 (Company Secretary)

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Mar 31, 2024

Note: Trade Receivables Over 6 months & above include amounts receivable from Future Enterprises Ltd, Future Retail Ltd and Future Lifestyle Fashion Ltd amounting to Rs. 1,08,52,590/-, Rs. 50,43,248/- and Rs. 88,23,286/- respectively for which no provision is done in books of accounts, awaiting decision from The National Company Law tribunal (NCLT) (previous year figures are Rs. 1,08,52,590/-, Rs. 50,43,248/- and Rs. 88,23,286/- respectively.

b) Terms /rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10. The equity shares have rights, preferences and restrictions which are in accordance provisions of law, in particular the Companies Act, 2013.

Details of Security:-

First and exclusive mortgage charge on immoveable properties in name of the Company situated at: a) Factory L and B on Plot nos. 13-16, Dewan, Palghar, Thane, b) Flat no. 302, Shree Raj apartment, Janaki nagar, Palghar and c) Office no. B-1303, Naman Midtown, Elphinstone road, Mumbai 400013.

Second charge on property in name of the Company situated at a) Flat No 802, 8th Floor, A Wing, Lodha Evoq, New Cuffe Parade, Wadala East, Mumbai

Personal Guarantee of Promoter Director of the Company, Mr. Danny Hansotia

Terms of Re-payment:- Loan to be repaid in 116 equated monthly instalment beginning from 05.05.2022 and ending till 05.11.2031

WCTL from Kotak Bank under ECLGS1 : (takeover from DCB Bank Ltd.)

DCB Bank, in terms of Government of India''s Emergency Credit Line Guarantee Scheme (ECLGS) has sanctioned a Guaranteed Emergency Credit Line (GECL) by way of Working Capital Term Loan, which has been subsequently taken over by Kotak Bank Ltd w.e.f 07.04.22

Details of Security :- WCTL under ECLGS is taken from Kotak Bank for Working Capital purposes and secured by Extension of charge over existing primary and collateral securities, including mortgage created in favour of the bank, on second charge basis and personal guarantee of promoter director of the Company, Mr. Danny Hansotia

Terms of Repayment :- Loan to be repaid in 26 equated monthly instalment beginning from 05.05.2022 and ending till 05.06.2024

ICICI Bank, in terms of Government of India''s Emergency Credit Line Guarantee Scheme (ECLGS) has sanctioned a Guaranteed Emergency Credit Line (GECL) by way of Working Capital Term Loan, which has been subsequently taken over by Kotak Bank Ltd w.e.f 07.04.22

Details of Security :- WCTL under ECLGS is taken from Kotak Bank for Working Capital purposes and secured by Extension of charge over existing primary and collateral securities, including mortgage created in favour of the bank, on second charge basis and personal guarantee of promoter director of the Company, Mr. Danny Hansotia

Terms of Repayment :- Loan to be repaid in 26 equated monthly instalment beginning from 05.05.2022 and ending till 05.06.2024

Provision for Gratuity is made on the assumption that such benefits are payable on termination of employment and method adopted for its calculation has been worked on Acturial Valuation basis.

Details of Security:-

1) Working capital - CC/OD taken from Kotak Bank Ltd. is secured by:

a) First pari-passu hypothecation charge to be shared with DCB Bank on all existing and future receivables / current assets of the Company

b) First and exclusive hypothecation charge on all moveable fixed assets of the Company

c) First and exclusive mortgage charge on immoveable properties situated at:

i. Factory L and B on plot no.13-16, Dewan, Palghar, Thane, in the name of the Company

ii. Flat no.302, Shree Raj Apartment, Janaki Nagar, Bhausaheb Dabdekar Marg, Tal. Palghar, Dist. Thane, in the name of the Company

iii. Office no. 1303-B wing, Elphinstone, Naman Midtown, Off Senapati Bapat Marg, Mumbai-400013, owned by the Company

d) Second Charge on Flat no.802, 8th floor, A wing, Lodha EVOQ, New Cuffe Parade, Wadala (E), Mumbai, in the name of the Company. The security is currently held with DCB Bank Limited.

e) Personal guarantee of promoter director of the Company, Mr. Danny Hansotia

2) Working capital - CC/STL taken from DCB Bank Ltd. is secured by:

a) First pari-passu hypothecation charge to be shared with Kotak Bank on all existing and future receivables / current assets of the Company

b) Equitable Mortgage of Flat no.802, 8th floor, A wing, Lodha EVOQ, New Cuffe Parade, Wadala (E), Mumbai, in the name of the Company.

3) Working capital - Overdraft against FD from DCB Bank Ltd. & ICICI Bank Ltd. is secured by:

a) 100% Lien on Fixed Deposit with respective Banks.

Dues to micro and small enterprises have been determined to the extent such parties have been identified on the basis of intimation received from the " suppliers" regarding their status under the Micro, small and Medium Enterprises Development Act, 2006.

Dues to micro and small enterprises have been determined to the extent such parties have been identified on the basis of intimation received from the " suppliers" regarding their status under the Micro, small and Medium Enterprises Development Act, 2006.

Note 36: Contingent Liabilities

i) Claims against the Company not acknowledgement as debts

a) Income tax matters TDS Default on Traces

There is old TDS default towards Short deduction, Interest, Late Fees etc. of Rs. 3,68,056/-not yet claimed by TDS department (previous year - Rs. 364,429/-)

39. Some of the sundry debtors, sundry creditors and loans & advances are subject to confirmation and reconciliation. Consequential adjustment thereof, if any, will be given effect into the books of accounts in the year of such adjustment.

40. In the opinion of the Board, the Current Assets, Loans & Advances are approximately of the value stated and are realizable in the ordinary course of business

41. The items of inventories are measured at lower of cost or net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition. Raw material comprises of Yarn and packing material at cost, Wastage is valued at net realizable value. Cost of Raw material, finished goods, Spare and Consumables are determined on First in First out basis. (FIFO)

42. Previous year figure have been regrouped / reclassified to confirm with current year

presentation, whenever considered necessary.

Installed capacity for the year has been calculated on the basis of machines in use and running in production. As of March 31, 2024, out of the 267 machines, 178 machines have been put to use in production. Installed capacity of machines in production during the year is taken on a pro rata basis based on the number of days machines were put to use.(Previous year figures are 270 and 227 respectively)

43. a) Insurance claim of Rs. 89.35 Lacs along with interest theron upto date of settlement is filed by the company on account of fire occurred at the Company''s Godown at Aliyali - Palghar, Maharashtra on 26 th August, 2008 damaging complete Building and Stock in hand and the same is still pending with the insurance company. The Company has filled a case against the insurance company in the National Consumer Court, New Delhi. The case is under hearing as on March 31, 2024.

i) The Company had filied an Appeal before Income Tax Appellate Tribunal, Mumbai against Income Tax Demand of Rs. 74,46,117/- for A.Y. 2005-06 and A.Y. 2006-07 and paid Rs. 28,61,057/- had been paid by the Company in 2012. The said ITAT appeal decided in favor of company vide consolidated ITAT Appeal order dated 15/09/2016 and refund of Rs. 32,81,628/- received in May''2022. Interest on the said amount is short received, and Company has filed a appeal with CP Gram for recovery of said amount - Rs. 23,36,863/- which is outstanding on 31/03/2024.

45. The Company has to fulfil export obligations under EPCG licence granted to the same on conversion from EOU status to DTA status. Since the Machineries required for completion of the said obligation has destroyed in fire in Dec'' 2004, the Company has taken up the matter with the relevant authorities for cancellation of the said Licence. The matter is still pending with relevant Authority as on March 31, 2024

^Remuneration is being disclosed based on actual payment made on retirement/resignation of services, but does not includes provision made on actuarial basis as the same is available for all the employees together.

Note: Related party relationship is as identified by the Company and relied upon by the Auditors Note 48: Segment Reporting

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the Chief Operating Decision Maker, in deciding how to allocate resources and assessing performance. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. Based on the management approach as defined in Ind AS 108, the Chief Operating Decision Maker evaluates the Company''s performance based on only one segment i.e. Knitted Socks

Note 49: During the FY 23-24, the Company has 1 customers doing individual business of 10% or more of the revenue and such customers accounted for 47.66% of revenue (FY 22-23, the Company had 2 such customers accounting for 64.23% of revenue)

Note 49 (A): Other Statutory Information

a) Disclosure of transactions with Struck off companies - NIL

b) Title deeds of Immovable Property not held in name of the Company - NIL

c) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

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

e) The Company is not declared wilful defaulter by any bank or financials institution or lender during the year.

f) The Company does not have any charges which is yet to be registered with ROC beyond the statutory period.

g) The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person

h) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall : (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or (b) provide any guarantee, security or the like to, or on behalf of the ultimate beneficiaries.

i) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall :

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

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

j) The Company does not have any such 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).

k) Clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 does not apply to the Company.

Note 51.1 : ''''The management assessed that the fair values of cash and cash equivalents, trade receivables, trade payables, current borrowings, current loans and other financial assets & liabilities approximates their carrying amounts largely due to the short-term maturities of these instruments. Trade Receivables Over 6 months & above include amounts receivable from Future Enterprises Ltd, Future Retail Ltd and Future Lifestyle Fashion Ltd amounting to Rs. 1,08,52,590/-, Rs. 50,43,248/- and Rs. 88,23,286/- respectively for which no provision is done in books of accounts, awaiting decision from The National Company Law tribunal (NCLT) (previous year figures are Rs. 1,08,52,590/-, Rs. 50,43,248/- and Rs. 88,23,286/- respectively)

Note 51.2 : ''The management considers that the carrying amounts of Financial assets and Financial liabilities recognised at nominal cost/amortised cost in the Financial statements approximate their fair values.

Note 51.3 : Non current borrowings has been contracted at floating rates of interest, which are reset at short intervals. Fair value of floating interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost.

Note 52 : Fair Value Hierarchy

''The following are the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113 "Fair Value Measurement". An explanation of each level follows underneath the tables.

Note 52.1: During the year ended March 31, 2024 and March 31, 2023, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

Note 52.2: Explanation to the Fair Value hierarchy

The Company measures Financial instruments, such as, quoted investments and interest free security deposit at fair value at each reporting 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. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. The valuation of quoted shares have been made based on level 1 inputs as per the hierarchy mentioned in the Accounting Policies. The valuation of quoted equity instruments have been valued based on the closing price at each reporting date from BSE. The valuation of interest free security deposit have been made based on level 3 inputs as per the hierarchy mentioned in the Accounting Policies. The valuation of interest free security deposit have been valued based on valuation technique applicable.

Note 53: Financial risk management objectives and policies

The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also holds investments. Various kinds of financial risks and their mitigation plans are as follows:

Note 53.1: Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of Foreign Exchange Risk and Interest Rate Risk.

Note 53.1.1: Foreign Exchange Risk

Foreign Exchange Risk is the exposure of the Company to the potential impact of the movement in foreign exchange rate. The Company does not have any material foreign currency exposure at the balance sheet date. The Foreign currency exposure is Unhedged at the balance sheet date.

Note 53.1.2: Interest Exchange Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market rates. The company''s exposure to the risk of changes in market interest rate relates primarily to company''s borrowing with floating interest rates. The Company do not have any significant interest rate risk on its current borrowing due to their short tenure.

The Company is also exposed to interest rate risk on surplus funds parked in loans. To manage such risks, such loans are granted for short durations with fixed interest rate in line with the expected business requirements for such funds.

Note 53.2: Liquidity Risk

The Company determines its liquidity requirement in the short, medium and long term. This is done by drawing up cash forecast for short term and long term needs.

The Company manage its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalent position. The management has arranged for funding from banks and inter corporate and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a regular basis. The table below summarises the maturity profile of Company''s financial liabilities based on contractual undiscounted payments.

The interest payments on variable interest rate loans in the tables above reflect market forward interest rates at the respective reporting dates and these amounts may change as market interest rates change. Except for these financial liabilities, it is not expected that cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts. When the amount payable is not fixed, the amount disclosed has been determined with reference to conditions existing at the reporting date.

Note 53.3: Credit Risk

The credit risk is the risk of financial loss arising from counter party failing to discharge an obligation. The credit risk is controlled by analysing credit limits and credit duration for customers on continuous basis. Further, in order to manage the credit risk, the security deposits are obtained from customers where ever considered necessary.

On account of adoption of Ind AS 109, the Company uses an expected credit loss model to assess the impairment loss. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables.

The ageing of trade receivables and expected credit loss analysis on these trade receivables is given in below table:

Trade receivables outstanding more than 365 days includes Rs. 2,47,19,124/-(previous year - Rs. 2,47,19,124/-) receivable from Future group and the same are not provided for in the books of accounts awaiting decision from The National Company Law tribunal (NCLT).

Note 54: Capital Management

Risk management

The Company''s objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, Company may adjust the amount of dividends paid to shareholders.

Note 55: The Board of Directors at its meeting held on 28th May,2024 recommended final dividend of Rs 1.00 per equity share of face value of Rs. 10 each for the financial year ended 31st March, 2024. The same amounts to Rs. 27,64,326/- (No dividend distribution tax to be provided). The above is subject to approval at the ensuing Annual General Meeting of the Company and hence not recognized as a liability.

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Mar 31, 2016

Term Loan 1 :

Detai ls of Security :- 1. Term loan from bank is taken from DCB Bank and secured by : a) Hypothection of Machineries and Other Assets purchsed under this term loan b) Equitable mortgage on the factory Land and Building of Plot nos. 13 to 16 standing in the name of the Company at Palghar and c) Personal Guarantees of Promoter Directors of the Company - Mr. Sanjay Gadodia and Mr. Danny Hansotia.

Terms of Repayment :- Loan to be repaid in quarterly installment within 4 years upto 31 May 2016

Term Loan 2 :

Details of Security :- 1. Term loan from bank is taken from DCB Bank and secured by : a) Hypothection of Machineries and Other Assets purchsed under this term loan b) Equitable mortgage on the factory Land and Building of Plot nos. 13 to 16 standing in the name of the Company at Palghar and c) Personal Guarantees of Promoter Directors of the Company - Mr. Sanjay Gadodia and Mr. Danny Hansotia.

Terms of Repayment :- Loan to be repaid in equated monthly installment beginning from December 2015 and ending on November 2019

Easy Business Term Loan 3:

Details of Security :- 4. Term loan from bank is taken from DCB Bank and secured by : a) Equitable mortgage of commercial property situated at B 1303 Naman midtown purchsed under this term loan b) Equitable mortgage on the factory Land and Building of Plot nos. 13 to 16 standing in the name of the Company at Palghar and c) Personal Guarantees of Promoter Directors of the Company - Mr. Sanjay Gadodia and Mr. Danny Hansotia.

Terms of Repayment :- Loan to be repaid in equated monthly installment beginning from August 2015 and ending on July 2025

Easy Business Term Loan 5 :

Details of Security :- 1. Term loan from bank is taken from DCB Bank and secured by : a) Equitable mortgage of commercial property situated at B 1303 Naman midtown purchsed under this term loan b) Hypothecation of furniture and fixtures purchased against this term loan c) Equitable mortgage on the factory Land and Building of Plot nos. 13 to 16 standing in the name of the Company at Palghar and d) Personal Guarantees of Promoter Directors of the Company - Mr. Sanjay Gadodia and Mr. Danny Hansotia.

Terms of Repayment :- Loan to be repaid in equated monthly installment beginning from September 2015 and ending on August 2018

Details of Security:- Working capital loans is taken from DCB Bank and the same is 1) secured by hypothecation of inventories and Book Debts, 2) Equitable mortgage on the factory Land and Buildings of Plot Nos. 13 to 16 standing in the name of the Company at Palghar, 3) Personal Guarantees of Promoter Directors of the Company - Mr. Sanjay Gadodia and Mr. Danny Hansotia and 4) Hypothecation of entire Plant & Machinery, Furniture and Fixtures including spares, tools and accessories etc.

(The Company has filed an Appeal before Income Tax Appellate Tribunal, Mumbai against Income Tax Demand of Rs. 7,446,117/- for A.Y. 2005-06 and A.Y. 2006-07 and paid Rs. 2861057/- against these)

b) Sales Tax matter disputed in appeal - NIL

In the above matter the Company is hopeful of succeeding and as such does not expect any significant liability to crystallize

33) EMPLOYEE BENEFITS PLAN

Disclosure as required by Accounting Standard 15

Liability in respect of gratuity and leave encashment are accounted on payment basis which is not in conformity with Accounting Standard (AS)15 (Revised 2005) on Employee Benefits as issued by the institute of Chartered Accountant of India, which requires that gratuity and Leave Encashment Liabilities be accounted for on accrual basis and as per actuarial basis.

6) The items of inventories are measured at lower of cost or or net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition. Raw material comprises of Yarn and packing material at cost, Wastage is valued at net realized value. Cost of Raw material, finished goods, Spare and Consumables are determined on First in First out basis. (FIFO)

7) Previous year figure have been regrouped / reclassified to conform with current year presentation, whenever considered necessary

Installed capacity has been calculated on the basis of machines running on production of pouch Heel Socks & real Heel Socks. For the year the number of machines making such production as of March 31, 2016 is 6 & 157 respectively (previous year as of March 31, 2015 is 6 & 136 respectively).

8 Insurance claim of Rs. 89.35 Lacs filed by the company on account of fire occurred at the Company''s Go down at Aliyali -Palghar, Maharashtra on 26th August, 2008 damaging complete Building and Stock in hand is still pending with the insurance company. The Company has filled a case against the insurance company in the National Consumer Court, New Delhi. The case is still pending as on March 31, 2016.

9 The Company has to fulfill export obligations under EPCG license granted to the same on conversion from EOU status to DTA status. Since the Machineries required for completion of the said obligation has destroyed in fire in Dec'' 2004, the Company has taken up the matter with the relevant authorities for cancellation of the said License. The matter is still pending with relevant Authority as on March 31, 2016.

10 The Company has received a notice from the Octroi department for recovery Octroi duty for goods cleared under "N" form for the period ended 2008, 2009, & 2010. The Company has however disputed the same and has filled a FIR in the FY 2013-14 against a courier company who have fraudulently forged the Company''s documents to clear such goods. The matter is pending with the Octroi authorities as on March 31, 2016.

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Mar 31, 2015

1. SHARE CAPITAL

a) Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10/-. The equity shares have rights, preferences & restrictions which are in accordance provisions of law, in particular the companies Act, 1956.

2. Details of Security: Working Capital loan taken from DCB Bank & same is 1) Secured by hypothecation of inventories and book debts. 2) Equitable mortgage of the factory land & building of plot no. 13 to 16 standing in the name of the Company at Palghar. 3) Personal Guarantees of Executive/ Promoter Directors of the Company.

3. CONTINGENT LIABILITIES

Amount in Rs

March 31,2015 March 31, 2014

i) Claims against the company not acknowledgement as debts

a) Income tax matters disputed in 7,446,117.00 7,446,117.00 appeal

(The Company has filled an Appeal before Income Tax Appellate Tribunal, Mumbai against Income Tax Demand of Rs. 7,446,117/- for A.Y. 2005-06 and A.Y. 2006-07 and paid Rs. 2861057/- against these)

b) Sales Tax matter disputed in appeal - NIL

In the above matter the Company is hopeful of succeeding and as such does not expect any significant liability to crystallize

4. EMPLOYEE BENEFITS PLAN

Disclosure's required by Accounting Standard 15

Liability in respect of gratuity and leave encashment are accounted on payment basis which is not in conformity with Accounting Standard (AS)15 (Revised 2005) on Employee Benefits as issued by the institute of Chartered Accountant of India, which requires that gratuity and Leave Encashment Liabilities be accounted for on accrual basis and as per actuarial basis.

5. Some of the sundry debtors, sundry creditors and loans & advances are subject to confirmation and reconciliation. Consequential adjustment thereof, if any, will be given effect into the books of accounts in the year of such adjustment.

6. In the opinion of the Board, the current assets, loans & advances are approximately of the value stated and are realizable in the ordinary course of business.

7. The items of inventories are measured at lower of cost or or net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in brining them to their respective present location and condition. Raw material comprises of Yarn and packing mate rail at cost, Wastage is valued at net realized value. Cost of Raw material, finished goods, Spare and Consumables are determined on First in First out basis. (FIFO)

8. Previous year figure have been regrouped / reclassified to confirm with current year presentation, whenever considered necessary

9. Insurance claim of Rs. 89.35 Lacs filed by the company on account of fire occurred at the Company's God own at Aliyali * Palghar, Maharashtra on 26 th August, 2008 damaging complete Building and Stock in hand is still pending with the insurance company. The Company has filled a case against the insurance company in the Consumer Court. The case is still pending as on March 31,2015.

10. The Company has to fulfil export obligations under EPCG licence granted to the same on conversion from EOU status to DTA status. Since the Machineries required for completion of the said obligation has destroyed in fire in Dec 2004, the Company has taken up the matter with the relevant authorities for cancellation of the said Licence. The matter is still pending with relevant Authority as on March 31,2015.

11. The Company has received a notice from the Octroi department for recovery Octroi duty for goods cleared under "N" form for the period ended 2008,2009, & 2010. The Company has however disputed the same and has filled a FIR in the current year against a courier company who have fraudulently forged the Company's documents to clear such goods. The matter is pending with the Octroi authorities as on March 31,2015.

12. As per Accounting Standard 18, the disclosures of transaction with the related parties as defined in the Accounting Standard are given below:

Sr.No Name of Related Party Relationship

1 Carnival Properties Pvt Ltd

2 Juvenile Trading Pvt Ltd Group Companies

3 Mr. Sanjay S Gadodia

4 Mr. Danny F Hansotia Key Management Personnel

5 Mr. Sandeep S Gadodia

6 Mr. Firoz M Hansotia

7 Mrs. Sulochana Gadodia Relatives of Key Management Personnel 8 Mrs. Rita Gadodia

13. Segment Reporting

Based on the guiding principles given in Accounting Standards on ' Segment Reporting' [(Accounting Standard -17) issued by the Institute of Chartered Accounts of India] the company's primary business segment is Knitted Socks. As the Company's business activity falls within a single primary business segment the disclosure requirement of As-17 in this regards not applicable.

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Mar 31, 2014

1) CONTINGENT LIABILITIES

Amount In Rs March 31,2014 March 31,2013

i) Claims against the company not acknowledgement as debts

a) Income tax matters disputed in appeal 7,446,117,00 7,446,117.00

(The Company has filled an Appeal before Income Tax Appellate Tribunal, Mumbai against Income Tax Demand of Rs. 7,446,117/- for A.Y. 2005-06 and A.Y. 2006-07 and paid Rs. 2861057/- against these) b) Sales Tax matter disputed in appeal - NIL

In the above matter the Company is hopeful of succeeding and as such does not expect any significant liability to crystalize

2) EMPLOYEE BENEFITS PLAN

Disclosure as required by Accounting Standard 15

Liability In respect of gratuity and leave encashment are accounted on payment basis which is not in conformity with Accounting Standard (AS)15 (Revised 2005) on Employee Benefits as issued by the institute of Chartered Accountant of India, which requires that gratuity and Leave Encashment Liabilities be accounted for on accrual basis and as per actuarial basis.

3) Some of the sundry debtors, sundry creditors and loans & advances are subject to confirmation and reconciliation. Consequential adjustment thereof, if any, will be given effect into the books of accounts in the year of such adjustment.

4) In the opinion of the Board, the current assets, loans & advances are approximately of the value stated and are realizable in the ordinary course of business.

5) The items of inventories are measured at lower of cost or or net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in brining them to their respective present location and condition. Raw material comprises of Yarn and packing materail at cost. Wastage is valued at net realized value. Cost of Raw material, finished goods. Spare and Consumables are determi ned on Fi rst in First out basis. (FIFO)

6) Previous year figure have been regrouped / reclassified to confirm with current year presentation, whenever considered necessary

Installed capacity has been calculated on the basis of machines running on production of pouch heel socks & real heel socks. For the year the number of machines making such production as of March 31,2014 is 6 & 123 respectively)

7) Insurance claim of Rs. 89.35 Lacs filed by the company on account of fire occurred at the Company''s Godown at Aliyali - Palghar, Maharashtra on 26 th August, 2008 damaging complete Building and Stock in hand is still pending with the insurance company. The Company has filled a case against the insurance company in the Consumer Court. The case is still pending as on March 31,2014.

8) The Company has to fulfil export obligations under EPCG licence granted to the same on conversion from EOU status to DTA status. Since the Machineries required for completion of the said obligation has destroyed in fire in Dec'' 2004, the Company has taken up the matter with the relevant authorities for cancellation of the said Licence. The matter is still pending with relevant Authority as on March 31,2014.

9) The Company has received a notice from the Octroi department for recovery Octroi duty for goods cleared under" N" form for the period ended 2008,2009, & 2010. The Com pany has however disputed the same and has filled a FIR in the current year against a courier com pany who have fraudulently forged the Company''s documents to clear such goods. The matter is pending with the Octroi authorities as on Ma rch 31,2014.

10. Segment Reporting

Based on the guiding principles given in Accounting Standards on '' Segment Reporting'' [(Accounting Standard -17) issued by the Institute of Chartered Accounts of India] the company''s primary business segment is Knitted Socks. As the Company''s business activity falls within a single primary business segment the disclosure requirment of As-17 in this regards not applicable.

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Mar 31, 2013

1. Contingent Liabilities

In respect of guarantee provided by bank on behalf of the Company Rs. 28,65,910/- (Previous year Rs.28,65,910/-) Income Tax demand of Rs.74,46,117/- for A.Y.2005-06 & A.Y.2006-07 (Previous Year Rs.6,62,248/-) against which the company paid 28,61,057/- in March 2012 (Previous Year Rs. Nil/-) and has filed an appeal with the Income Tax Appellate Tribunal, Mumbai.

2. Insurance claim of Rs. 89.35 Lacs filed by the company on account of fire occurred at the Company''s Godown at Aliyali- Palghar, Maharashtra on 26th August, 2008 damaging complete Building and Stock in hand is still pending with the insurance company. The Company has filled a case against the insurance company in the consumer court. The case is still pending as on March 31, 2013.

3. The company has pending Export obligation under EPCG against Machinery destroyed in fire in Dec''2004. In the current year company has taken up the matter with the relevant authorities for waiver of the said export obligation. The matter is still pending as on March 31, 2013.

4. The Company has received a notice from the Octroi department for recovery of Octroi duty for goods cleared under "N" form for the period ended 2008, 2009, & 2010. The Company has however disputed the same and has filled a FIR in the current year against a courier company who have fraudulently forged the company''s documents to clear such goods. The matter is pending with the Octroi authorities as on March 31, 2013.

5. Segment reporting

Based on the guiding principles given in Accounting Standard on ''Segment Reporting ''[(Accounting Standard - 17) issued by the Institute of Chartered Accounts of India] the company''s primary business segment is Knitted Socks. As the Company''s business activity falls within a single primary business segment the disclosure requirement of AS-17 in this regards are not applicable.

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Mar 31, 2012

A. Subscribed and Paid up Share Capital shown above includes Share forfeited amount of Rs.40,500/- on 8,100 Shares The said amount is transferred to security premium A/c in April 2012

B. Allotment money due on 1,100 Shares amounting to Rs.5,500/- is pending.

CAPITAL RESERVES

Subsidy given by Government is under State Government Subsidy Scheme for setting up Industrial unit in backward area. Since, this is only an incentive, and not for acquiring any specific Capital Asset, the same is treated as Capital Reserve.

SECURED LOANS

(1) Term Loan from banks is taken from DCB Bank and is secured by first charge on Freehold Land situated at Palghar and on the Other Fixed Assets of the company.

(2) Car Loan from Banks & Financial Institution are secured by first charge on the said Cars.

UNSECURED LOANS

(1) Unsecured Loan from Financial Institution is taken from Magma Finance and is guaranteed by the Executive Directors, in their personal capacities.

Provision for Gratuity is made on the assumption that such benefits are payable on termination of employment and method adopted for its calculation has been worked by management internally in place of actuarial valuation method.

Working Capital Loans is taken from DCB Bank and the same is secured by hypothecation of Inventories and Book Debts and are further secured by a second charge on the Fixed Assets of the company

Note :

1 Depreciation is provided on old factory shed building upto 31st December, 2009, after which depreciation is provided on new factory shed building

2 New factory shed building is capitalized in January 2010 in place of old factory shed building (burn by fire).

3 Depreciation is provided on old factory shed building up to 31st December, 2009, after which depreciation is provided on new factory shed building

Investments in Quoted Equity Shares

TELCO ( Tata Motors Ltd) on 13/09/2011 sub divided existing ordinary equity shares from every ONE equity share of Rs.10/- each into FIVE equity shares of Rs.2/- each. Hence, Number of Equity Shares increased from 300 to 1500 Shares.

Investments in Capital of Partnership Firm

Company has made an Investments of Rs.100 Lacs in a Partnership Firm viz. Vyas Developers- Property Developers for developing land in Palghar, in May 2008.

As per information obtained from management, the said Business has not commenced in the current year, hence,

Valuation of inventories

Items of inventories are measured at lower of cost or net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition. Raw material comprises of Yarn and packing material at cost, Wastage is valued at net realizable value. Cost of Raw material, finished goods, Spares and Consumables are determined on First in First out basis.

Investments in Company

Company has Share Application money of Rs.145 Lacs in M/s Spenta Global Pvt Ltd. and as per management, no share have issued or allotted to the company as at 31.03.2012

Fixed Deposits

Fixed Deposits stated above includes Rs.NIL/- (P.Y. Rs. 8,27,601/-) under Lien for Bank Guarantee given to DGFT for EPCG

Balance in Loans and Advances as shown in the accounts are subject to confirmation and reconciliation. However, in the opinion of the Board of Directors all loans and advances would in the ordinary course of business realize at least the value stated.

1. Contingent Liabilities

In respect of guarantee provided by bank on behalf of the Company Rs. 28,65,910/- (Previous year Rs.28,65,910/-) Income Tax demand of Rs.74,46,117/- for A.Y.2005-06 & A.Y.2006-07 (Previous Year Rs.6,62,248/-) against which the company paid 28,61,057/- in March 2012 (Previous Year Rs. Nil/-) and has filed an appeal with the Income Tax Appellate Tribunal, Mumbai.

Installed capacity has been calculated on the basis of machines running on production of pouch Heel Socks & real Heel Socks. For the year the number of machines making such production as of 31st March, 2012 is 6 & 115 respectively (previous year as of 31st March, 2011 is 6 & 98 respectively).

2. Insurance claim of Rs. 89.35 Lacs filed by the company on account of fire occurred at the Company's Godown at Aliyali- Palghar, Maharashtra on 26th August, 2008 damaging complete Building and Stock in hand is still pending with the insurance company. The Company has filled a case against the insurance company in the consumer court. The case is still pending as on 31st March 2012.

3. The company has pending Export obligation under EPCG against Machinery destroyed in fire in Dec'2004. In the current year company has taken up the matter with the relevant authorities for waiver of the said export obligation. The matter is still pending as on 31st March 2012.

4. The Company has received a notice from the Octroi department for recovery of Octroi duty for goods cleared under "N" form for the period ended 2008, 2009, & 2010. The Company has however disputed the same and has filled a FIR in the current year against a courier company who have fraudulently forged the company's documents to clear such goods. The matter is pending with the Octroi authorities as on 31st March 2012.

Note : Related party relationship is as identified by the Company and relied upon by the Auditors

5. Segment reporting

Based on the guiding principles given in Accounting Standard on 'Segment Reporting '[(Accounting Standard - 17) issued by the Institute of Chartered Accounts of India] the company's primary business segment is Knitted Socks. As the Company's business activity falls within a single primary business segment the disclosure requirement of AS-17 in this regards are not applicable.

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Mar 31, 2010

(a) The previous years figures have been regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the proceeding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

(b) Contingent Liabilities

In respect of guarantee provided by bank on behalf of the Company Rs. 11,34,910 (Previous year Rs.11,34,910).

Income Tax demand of Rs.662,248/- (Previous Year Rs.662,248/-) for the previous years, against which the company has filed an appeal with the Income Tax Appellate Tribunal, Mumbai. The matter is still pending with the said authority.

(c) Balance in Loans and Advances as shown in the accounts are subject to confirmation and reconciliation. However, in the opinion of the Board of Directors all loans and advances would in the ordinary course of business realize at least the value stated. During the year under review an amount of Rs.Nil (Previous Year Rs.Nil) has been written off as the same is not recoverable.

(d) Secured Loan from Financial Institution is secured by first charge on Freehold Land situated at Palghar and on the Other Fixed Assets of the company.

(e) Working Capital Loans from Dena Bank are secured by hypothecation of Inventories and Book Debts and are further secured by a second charge on the Fixed Assets of the company. The loans are also guaranteed by the Executive Directors, in their personal capacities.

(f) There is no small scale Industrial Undertakings to whom an amount of more than 1 Lac is outstanding for more than 30 days.

(g) During the previous year company has made Investments in partnership firm (Vyas Developers- Property Developers) for developing land in Palghar. The said Business has not commenced in the current year, hence, no share of profit & loss account of firm is accounted in the companys book.

(a) Insurance claim of Rs. 89.35 Lacs filed by the company on account of fire occurred at the Companys Godown at Aliyali- Palghar, Maharashtra on 26th August, 2008 damaging complete Building and Stock in hand is still pending with the insurance company.

(h) Segment reporting

Based on the guiding principles given in Accounting Standard on Segment Reporting [(Accounting Standard -17) issued by the Institute of Chartered Accounts of India] the companys primary business segment is Knitted Socks. As the Companys business activity falls within a single primary business segment the disclosure requirement of AS-17 in this regards are not applicable.