Notes to Accounts of SPL Industries Ltd.

Mar 31, 2024

Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a par value of ^10 per share. Each holder of equity is entitled to one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Defined Benefit Plan

The employee''s gratuity fund scheme managed by a trust (LIC of India and SBI ) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Project Unit Credit Method, which recognises 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.

39 SEGMENT REPORTING

The Segment reporting of the Company has been prepared in accordance with IND AS-108, " Operating Segment" (Specified Under section 133 of the companies Act 2013, read with Rule 7 of Companies (Accounts) Rules 2015), For management purposes, the company is organized into business units based on its products and services and has two reportable segments as follows:-

(a) Manufacturing cotton knitted garments and made ups and Processing Charges b) Trading of garments

Segments have been identified as reportable segments by the Company chief operating decision maker ("CODM"). Segment profit amounts are evaluated by the board, which has been identified as the CODM, in deciding how to allocate resources and in assessing performance.

Segments Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amount allocated on a reasonable basis. Unallocated expenditure consist of common expenditure incurred for all the segments and expenses incurred at corporate level. The assets and liabilities that cannot be allocated between the segments are shown as unallocated corporate assets and liabilities respectively.

The accounting policies of the reportable segments are the same as the Company''s accounting policies described in Note 3. Segment profit (Earnings before interest, depreciation and amortization, and tax) amounts are evaluated regularly by the Board that has been identified as its CODM in deciding how to allocate resources and in assessing performance. The Company financing (Including finance costs and finance income) and income taxes are reviewed on an overall basis and are not allocated to operating segments.

42 Current Assets, loans & advances

Sundry debtors, loans & advances are subject to confirmation and adjustment theron (if any)

43 MSME DISCLOSURE

MSME Disclosure as required under Notification No. G.S.R. 679 (E) dated 04th September, 2015 issued by the Ministry of Corporate Affairs (as certified by the Management)

The company has received intimation from its suppliers regarding their Status as Micro, Small and Medium Enterprise (MSME). The auditor has been relied upon the management for identification for MSME. There are certain overdue amounts as on 31st March, 2023 payables to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (''MSMED Act''). The disclosures pursuant to the said MSMED Act are as follows:-

44. As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, need to spent at least 2% of average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are as per CSR Policy of the Company. A CSR committee has been formed by the company as per the Act. During the year the funds were donated/ spent as per detailed below which are specified in Schedule VII of the Companies Act, 2013:

45. The previous year figures have been regrouped/ reclassified, wherever necessary to conform to the current year presentation.

46. Financial Instruments

i) Financial assets measured at fair value through profit/loss

This section gives an overview of the significance of financial instruments for the Company and provides additional information on the balance sheet. Details of Material accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income

and expenses are recognised, in respect of each class of financial assets and financial liabilities are disclosed in Note 3

The carrying value of trade receivables, trade payables, cash and cash equivalents, Other Bank Balance approximate their fair values largely due to the short-term maturities.

Fair V alue Hierarchy

The table shown below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined below:

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 asset or liability that are not based on observable market data (unobservable inputs).

The fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

Other non-current financial assets and liabilities: Fair value the carrying value as considered to approximate to fair value.

Derivativefinancial as sets/liabilities: TheComp any entersintoderivativecontractswith various counterparties, principallyfinancial institutions. Forwardforeign currencycontracts are valuedusingvaluationtechniques withmarket observable inputs. Themostfrequently applied valuation techniques for such derivatives include forward pricing using present value calculations, foreign exchange spot and forward premium rates. However, company did not enter into any forward contract during the FY 2023-24 & FY 2022-23

There has been no transfer between level 1 and level 2 during the above periods

48 Financial risk management objectives and policies

The Company''s activities expose it to the following risks:

a) Credit risk

b) Liquidity risk

c) Market risk

a) Credit Risk

Credit risk is the risk that counter party will not meet its obligations under a financial instruments or customer contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

i) T rade receiv ab les

Customer credit risk is managed by the Company subject to the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and major customers are generally secured by obtaining other forms of credit insurance. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivable disclosed in Note 12.

ii) Financial instrument and cash deposit

Credit risk is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Counterparty credit limits are reviewed by the Company periodically and the limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. Typically the Company ensures that it has sufficient cash on demand to meet expected short term operational expenses. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans/ internal accruals.

c) 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 comprises two types of risk: interest rate risk and foreign currency risk. Financial instruments affected by market risk include borrowings, trade receivable and trade payable.

Interest rate risk is the risk that the fair value or future cash flows of the Company''s financial instruments will fluctuate because of changes in market interest rates. The Company does not have significant debt obligations with floating interest rates, hence, is not exposed to any significant interest rate risk.

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company having a foreign currency risk majorly for trade receivables. The company mitigate the forex risk in relation to trade receivables by entering into the derivative instrument i.e. forward sale contract.

48.1 Foreign currency risk management

The company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The carrying amount of the company foreign currency dominated monetary assets and monetary liabilities at the end of the reporting period are as follows:

48.2 Foreign currency sensitivity analysis

The Company is mainly exposed to the currency : USD

The following table details the Company''s sensitivity to a 5% increase and decrease in the INR against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. A positive number below indicates an increase in the profit or equity where the INR strengthens 5% against the relevant currency. For a 5% weakening of the INR against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.

49 Capital management

The Company''s objective is to maintain a strong capital base to ensure sustained growth in business. The Capital Management focusses to maintain an optimal structure that balances growth and maximizes shareholder value.

The Company is predominantly equity financed. Further, the Company has sufficient cash, cash equivalents, current investments and financial assets which are liquid to meet the debts.

50 Critical estimates and judgements in applying accounting policies

The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Information about estimates and judgements made in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are as follows:

i) Property, plant and equipment and useful life of property, plant and equipment and intangible assets

The carrying value of property, plant and equipment is arrived at by depreciating the assets over the useful life of assets. The estimate of useful life is reviewed at the end of each financial year and changes are accounted for prospectively.

ii) Provisions and contingencies

"The assessments undertaken in recognising provisions and contingencies have been made in accordance with the applicable Ind AS. A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the effect of time value of money is material, provisions are determined by discounting the expected future cash flows. The Company has significant capital commitments in relation to various capital projects which are not recognized on the balance sheet.

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Guarantees are also provided in the normal course of business. There are certain obligations which management has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Although there can be no assurance regarding the final outcome of the legal proceedings in which the Company involved, it is not expected that such contingencies will have a material effect on its financial position or profitability (Refer Note 40 and 41),

tit) Defined benefit plan

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases 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. The mortality rate is based on publicly available mortality table. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. (Refer note no. 30)

(iv) Taxes

Deferred tax assets and liabilities are recognised for deductible temporary differences and 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.

53 Additional Regulatory Information

i). The Company has valued the Investment Property as per the valuation report issued by the registered valuer as defmed under rule 2 of companies (Registered Valuers and Valuation) Rules,, 2017

54 Supreme Court Ruling on PF

The Hon''ble Supreme Court in a recent ruling dated 28th February,. 2019 has passed a judgement on the definition and scope of "Basic Wages" under the Employee''s Provident Fund & Miscellaneous Provision Act, 1952. Pending issuance of guidelines by the regulatory authorities on the application of this ruling, the impact on the financial statements, if any, cannot be ascertained.

55 There are no any proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

56 The company has not done any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

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

5S Events Occurring After Balance Sheet Date

The Company has evaluated all events or transactions that occurred after 31st March 2024 up to the date the financial statements were issued. Based on this evaluation, the Company is not aware of any events or transactions that would require recognition or disclosure in the financial statements.

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Mar 31, 2023

Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a par value of DIO per share. Each holder of equity is entitled to one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

‘Property, Plant & Equipment of the company were revalued as on 31st March, 2012 except for Car (vehicles), furniture & fixture and other equipments whose total net carrying amount before revaluation of Property, Plant & Equipment is less than 5% of the total net carrying amount of total Property, Plant & Equipment. The effect of revaluation of Property, Plant & Equipment have been taken by restating the Net Book Value by adding there in the net increase on account of revaluation.

Defined Benefit Plan

The employee''s gratuity fund scheme managed by a trust (LIC of India and SBI ) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Project Unit Credit Method, which recognises 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.

SEGMENT REPORTING

The Segment reporting of the Company has been prepared in accordance with IND AS-108, " Operating Segment" (Specified Under section 133 of the companies Act 2013, read with Rule 7 of Companies (Accounts) Rules 2015). For management purposes, the company is organized into business units based on its products and services and has two reportable segments as follows:-

(a) Manufacturing cotton knitted garments and made ups and Processing Charges b) Trading of garments

Segments have been identified as reportable segments by the Company chief operating decision maker ("CODM"). Segment profit amounts are evaluated by the board, which has been identified as the CODM, in deciding how to allocate resources and in assessing performance.

Segments Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amount allocated on a reasonable basis. Unallocated expenditure consist of common expenditure incurred for all the segments and expenses incurred at corporate level. The assets and liabilities that cannot be allocated between the segments are shown as unallocated corporate assets and liabilities respectively.

The accounting policies of the reportable segments are the same as the Company''s accounting policies described in Note 3. Segment profit (Earnings before interest, depreciation and amortization, and tax) amounts are evaluated regularly by the Board that has been identified as its CODM in deciding how to allocate resources and in assessing performance. The Company financing (Including finance costs and finance income) and income taxes are reviewed on an overall basis and are not allocated to operating segments.

Current Assets, loans & advances

Sundry debtors, loans & advances are subject to confirmation and adjustment theron (if any)

MSME DISCLOSURE

MSME Disclosure as required under Notification No. G.S.R. 679 (E) dated 04th September, 2015 issued by the Ministry of Corporate Affairs (as certified by the Management).

The company has received intimation from its suppliers regarding their Status as Micro, Small and Medium Enterprise (MSME). The auditor has been relied upon the management for identification for MSME. There are certain overdue amounts as on 31st March, 2023 payables to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (''MSMED Act''). The disclosures pursuant to the said MSMED Act are as follows:-

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, need to spent at least 2% of average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are as per CSR Policy of the Company. A CSR committee has been formed by the company as per the Act. During the year the funds were donated/ spent as per detailed below which are specified in Schedule VII of the Companies Act, 2013:

The company could not spend amount of INR 0.3 (in Lakhs) for F.Y 2021-22. The Company has balance of INR 16.77 (in Lakhs) relates to F.Y 2020-21 has been expended on 30th September 2021 as donation to Prime Minister''s National Relief Fund, as required by section 135 of the Companies Act 2013.

46. The previous year figures have been regrouped/ reclassified, wherever necessary to conform to the current year presentation.

47. Financial Instruments

i) Financial assets measured at fair value through profit/loss

This section gives an overview of the significance of financial instruments for the Company and provides additional information on the balance sheet. Details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial assets and financial liabilities are disclosed in Note 3

The carrying value of trade receivables, trade payables, cash and cash equivalents, Other Bank Balance approximate their fair values largely due to the short-term maturities.

Fair V alue Hierarchy

The table shown below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined below:

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 asset or liability that are not based on observable market data (unobservable inputs).

The fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

Other non-current financial assets and liabilities: Fair value the carrying value as considered to approximate to fair value. Derivativefinancial as sets/liabilities: TheComp any entersintoderivativecontractswith various counterparties, principallyfinancial institutions. Forwardforeign currencycontracts are valuedusingvaluationtechniques withmarket observable inputs. Themostfrequently applied valuation techniques for such derivatives include forward pricing using present value calculations, foreign exchange spot and forward premium rates. However, company did not enter into any forward contract during the FY 2022-23 & FY 2021-22.

There has been no transfer between level 1 and level 2 during the above periods

49 Financial risk management objectives and policies

The Company''s activities expose it to the following risks:

a) Credit risk

b) Liquidity risk

c) Market risk

a) Credit Risk

Credit risk is the risk that counter party will not meet its obligations under a financial instruments or customer contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

i) Trade receivables

Customer credit risk is managed by the Company subject to the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and major customers are generally secured by obtaining other forms of credit insurance. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivable disclosed in Note 12.

ii) Financial instrument and cash deposit

Credit risk is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Counterparty credit limits are reviewed by the Company periodically and the limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. Typically the Company ensures that it has sufficient cash on demand to meet expected short term operational expenses. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans/internal accruals.

c) 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 comprises two types of risk: interest rate risk and foreign currency risk. Financial instruments affected by market risk include borrowings, trade receivable and trade payable.

Interest rate risk is the risk that the fair value or future cash flows of the Company''s financial instruments will fluctuate because of changes in market interest rates. The Company does not have significant debt obligations with floating interest rates, hence, is not exposed to any significant interest rate risk.

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company having a foreign currency risk majorly for trade receivables. The company mitigate the forex risk in relation to trade receivables by entering into the derivative instrument i.e. forward sale contract.

49.1 Foreign currency risk management

The company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The carrying amount of the company foreign currency dominated monetary assets and monetary liabilities at the end of the reporting period are as follows.

49.2 Foreign currency sensitivity analysis

The Company is mainly exposed to the currency : USD

The following table details the Company''s sensitivity to a 5% increase and decrease in the INR against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. A positive number below indicates an increase in the profit or equity where the INR strengthens 5% against the relevant currency. For a 5% weakening of the? against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.

50 Capital management

The Company''s objective is to maintain a strong capital base to ensure sustained growth in business. The Capital Management focusses to maintain an optimal structure that balances growth and maximizes shareholder value.

The Company is predominantly equity financed. Further, the Company has sufficient cash, cash equivalents, current investments and financial assets which are liquid to meet the debts.

51 Critical estimates and judgements in applying accounting policies

The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Information about estimates and judgements made in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are as follows:

i) Property, plant and equipment and useful life of property, plant and equipment and intangible assets

The carrying value of property, plant and equipment is arrived at by depreciating the assets over the useful life of assets. The estimate of useful life is reviewed at the end of each financial year and changes are accounted for prospectively.

ii) Provisions and contingencies

The assessments undertaken in recognising provisions and contingencies have been made in accordance with the applicable Ind AS. A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the effect of time value of money is material, provisions are determined by discounting the expected future cash flows. The Company has significant capital commitments in relation to various capital projects which are not recognized on the balance sheet. In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Guarantees are also provided in the normal course of business. There are certain obligations which management has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Although there can be no assurance regarding the final outcome of the legal proceedings in which the Company involved, it is not expected that such contingencies will have a material effect on its financial position or profitability (Refer Note 40 and 41).

tit) Defined benefit plan

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases 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. The mortality rate is based on publicly available mortality table. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. (Refer note no. 30).

(iv) Taxes

Deferred tax assets and liabilities are recognised for deductible temporary differences and 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.

54 Additional Regulatory Information

i). The Company has valued the Investment Property as per the valuation report issued by the registered valuer as defmed under rule 2 of companies (Registered Valuers and Valuation) Rules,, 2017

55 Supreme Court Ruling on PF

The Hon''ble Supreme Court in a recent ruling dated 28th February,. 2019 has passed a judgement on the definition and scope of "Basic Wages" under the Employee''s Provident Fund & Miscellaneous Provision Act, 1952. Pending issuance of guidelines by the regulatory authorities on the application of this ruling, the impact on the financial statements, if any, cannot be ascertained.

56 Additional Regulatory Compliance

(i) There are no any proceedings have been initiated or pending against the company for holding any benami property under the Benarni Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder,

(ii) The Company does not have any charges or satisfactions which is yet to be registered with ROC beyond the statutory Period.

(iii) The Company has not traded or Invested in Crypto currency or Virtual Currency During the Financial Year,

(iv) The Company has Utilised the borrowed funds for the purposes for which funds has been obtained.

(v) The Company has not done any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(vi) The Company has not declared wilful defaulter by any bank, financial institution or other lender.

(vii) 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(s) or entities, including foreign entities ("Intermediaries"), with the understanding that the intermediary shall whether directly or indirectly lend or invest in other persons or entities identified in any manner by or on behalf of the company (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of ultimate beneficiaries.

(viii) No funds have been received by the company from any person(s) or entities including foreign entities ("Funding Parties") with the understanding that such company shall whether, 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 provide guarantee, security or the like on behalf of the Ultimate beneficiaries.

(ix) The Company has not surrendered or Disclosed any transactions , previously unrecorded as income in th books of accounts, in the tax assessment under the income tax Act, 1961 as income During the year.

57 Events Occurring After Balance Sheet Date

The Company has evaluated all events or transactions that occurred after 31st March 2023 up to the date the financial statements were issued. Based on this evaluation, the Company is not aware of any events or transactions that would require recognition or disclosure in the financial statements.

58 Code of Social Security

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 13th November 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact.

59 Regrouping

The figures for the previous periods have been regrouped/rearranged wherever necessary to conform to the current periods classification.

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Mar 31, 2018

Primary

Packing Credit:- Hypothecation of stock meant for export and charge on the current assets of the company.

Letter of Guarantee:- Counter guarantee of the company and extension of charge on current assets of the compnay.

Forward contract:- Letter of undertaking from the company to indemnify the bank for loss, if any on account of exchange rate fluctuation.

* Term loan taken from punjab national bank against hypothecation of machinery purchased out of bank loan repayable in 60 equal installmentss after a moratorium perriod of 6 months carrying interest rate @ MCLR(5Yrs) 1.65% i.e. 11.25%.

Collateral

The above facility is collaterally secured against property at Plot no.21, Sector -6, Industrial Area, Faridabad owned by SPL Industries Limited. Loan is secured by the personal guarantee of : (1) Mr.Mukesh Kumar Aggarwal (2) Mrs. Shashi Aggarwal (3) Mr. Vijay Jindal (4) Mr. Narender Aggarwal.

Defined Benefit Plan

The employee’s gratuity fund scheme managed by a trust (LIC of India and SBI ) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Project Unit Credit Method, which recognises 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.

1 SEGMENT REPORTING

The Segment reporting of the Company has been prepared in accordance with IND AS-108, “Opearting Segment” (Specified Under section 133 of the companies Act 2013, read with Rule 7 of Companies (Accounts) Rules 2015). For management purposes, the company is organized into business units based on its products and services and has two reportable segments as follows:-

(a) Manufacturing cotton knitted garments and made ups and Processing Charges

(b) Trading of garments segments have been identified as reportable segments by the Company chief operating decision maker (“CODM”). Segment profit amounts are evaluated by the board, which has been identified as the CODM, in deciding how to allocate resources and in assessing performance.

Segments Revenue,Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amount allocated on a reasonable basis. Unalloacted expenditure consits of common expenditure incurred for all the segments and expenses incurred at corporate level.The assets and liabilities that cannot be allocated between the segments are shown as unallocated corporate assets and liabilities respectively.

The accounting policies of the reportable segments are the same as the Company’s accounting policies described in Note 3. Segment profit (Earnings before interest, depreciation and amortization, and tax) amounts are evaluated regularly by the Board that has been identified as its CODM in deciding how to allocate resouces and in assesing performance. The Company financing (Including finance costs and finance income) and income taxes are reviewed on an overall basis and are not allocated to operating segments.

2 Current Assets, loans & advances

Sundry debtors, loans & advances are subject to confirmation and adjustment theron (if any)

3 MSME DISCLOSURE

MSME Disclosure as required under Notification No. G.S.R. 679 (E) dated 04th September, 2015 issued by the Ministry of Corporate Affairs (as certified by the Management)

4 As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, need to spent at least 2% of average net profit for the immediately preceeding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are as per CSR Policy of the Company. A CSR committee has been formed by the company as per the Act. During the year the funds were donated/spent as per detailed above which are specified in Schedule VII of the Companies Act, 2013:

5. The previous year figures have been regrouped/ reclassified, wherever necessary to conform to the current year presentation.

6 Financial Instruments

i) Financial assets measured at fair value through profit/loss

This section gives an overview of the significance of financial instruments for the Company and provides additional information on the balance sheet. Details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial assets and financial liabilities are disclosed in Note 3.

The carrying value of trade receivables, trade payables, cash and cash equivalents and other current financial liabilities approximate their fair values largely due to the short-term maturities.

Fair Value Hierarchy

The table shown below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined below: 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 asset or liability that are not based on observable market data (unobservable inputs)

The fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

- Non-current borrowings including current maturity of long term borrowings: Fair value has been determined by the Company based on parameters such as interest rates.

Other non-current financial assets and liabilities: Fair value the carrying value as considered to approximate to fair value.

Derivative financial assets/liabilities: The Company enters into derivative contracts with various counterparties, principally financial institutions. Forward foreign currency contracts are valued using valuation techniques with market observable inputs. The most frequently applied valuation techniques for such derivatives include forward pricing using present value calculations, foreign exchange spot and forward premium rates. There has been no transfer between level 1 and level 2 duirng the above periods.

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Mar 31, 2016

Provision for leave encashment is recognized on the basis of gross pay per day of an employee multiplied with the accumulated leaves as on the reporting date. No employee has accumulated leaves exceeding 30 days, However same will be paid on future dates. Further, there is no long term provision for compensated absences as on 31st March, 2016.

The employee''s gratuity fund scheme managed by a Trust (LIC of India and SBI ) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Project 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.

1 SEGMENT REPORTING

As per Accounting Standard AS 17 on “Segment Reporting” segment information is as follow:-Primary Segment Reporting (Business Segment):

Primary business segments of the company is sale of cotton knitted garments and made ups and Processing Charges, which in the context of Accounting Standard 17 on “Segment Reporting” as notified in Companies (Accounting Standard ) Rules, 2006 . But the manufacturing relating to cotton knitted garments and processing charges is common therefore the expenditure relating to these two activities can only be bifurcated on estimated basis. Sale relating to sale of knitted garments and processing charges is shown separately.

Secondary Segment Reporting (Geographical Segments):

The Following is the distribution of the company''s consolidated sales by geographical segment, regardless of where the goods were produced:

* Disputed tax liability pertains to tax amount involved in appeals

2. CURRENT ASSETS, LOANS & ADVANCES

Sundry Debtors, Loans & Advances are subject to confirmation and adjustment there on (if any)

3. MSME DISCLOSURE

MSME Disclosure as required under Notification No. G.S.R. 679 (E) dated 04th September, 2015 issued by the Ministry of Corporate Affairs (as certified by the Management)

4. The previous year figures have been regrouped/ reclassified, wherever necessary to conform to the current year presentation.

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Mar 31, 2015

1 General Information

The company was incorporated on December 6, 1991 in India. The company is a garment manufacturing company and majorly deals in exports however during the year, value of exports are INR 124,392,737 and further company has domestic sales and processing income during the year.

2. The above cash flow statement has been prepared under the indirect method set out in AS-3 and notified under Companies Act, 2013

3. Figures in brackets indicate cash outflows

4. The notes to the Financial Statements are an integral part of the Cash Flow Statement This is the Cash Flow Statement referred to in our report of even date

5 Segment Reporting

As per Accounting Standard AS 17 on "Segment Reporting" segment information is as follow:- Primary Segment Reporting (Business Segment):

Primary business segments of the company is sale & export of cotton knitted garments and made ups and Processing Charges, which in the context of Accounting Standard 17 on "Segment Reporting" as notified in Companies (Accounting Standard ) Rules , 2006 . But the manufacturing relating to cotton knitted garments and processing charges is common therefore the expenditure, assets & liabilities relating to these two activities cannot be bifurcated. Sale relating to sale of knitted garments and processing charges is shown separately.

6 The previous year figures have been regrouped/ reclassified, wherever necessary to conform to the current year presentation.

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Mar 31, 2014

1. General Information

The company was incorporated on December 6, 1991 in India. The company is a garment manufacturing company and majorly deals in exports however during the year, value of exports are INR 17,860,290 and further company has domestic sales and processing income during the year.

2.Terms/rights attached to equity shares

The company has only one class of equity shares having a Par Value of Rs. 10/- per share. Each holder of Equity Shares in entitled to one vote per share. There is no dividend proposed by the Board of Directors.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. Segment Reporting

As per Accounting Standard AS 17 on "Segment Reporting" segment information is as follow:- Primary Segment Reporting (Business Segment):

Primary business segments of the company is sale of cotton knitted garments and made ups and Processing Charges, which in the context of Accounting Standard 17 on "Segment Reporting" as notified in Companies (Accounting Standard) Rules , 2006 . But the manufacturing relating to cotton knitted garments and processing charges is common therefore the expenditure relating to these two activities can only be bifurcated on estimated basis. Sale relating to sale of knitted garments and processing charges is shown separately.

4. Contingent Liability and Commitments

Particulars As at As at 31.03.2014 31.03.2013

1. Bills Discounted -

2. Disputed tax liability * 7,77,49,273 8,52,81,903

3. Surety given to Sales Tax Department for third party -

4. Debt not acknowledge as liability - 14,64,353

Total 7,77,49,273 4,74,25,042

* Disputed tax liability includes INR 6.28 crores raised by department relating to AY 2005-06 u/s 147/143(3) of the Income Tax Act on the basis of CAG query which subsequently dropped by CAG but matter still pending before First Appellate Authority

5. The previous year figures have been regrouped/ reclassified, wherever necessary to conform to the current year presentation.

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Mar 31, 2013

1.1 Deferred Tax Assets recognized to the extent of Deferred Tax Liability for the year ending 31st March 2012.

1.2 As the company has substantial losses and value of the business has reduced substantially . Also there is huge fxed cost relating to depreciation. In view of facts stated above and keeping in view the fnancial position of the company the Deferred Tax Assets in respect of carry forward losses has been recognized only to the extent of Deferred Tax Liability.

2 Related Party Disclosure

The names of related parties of the company as required to be disclosed under Accounting Standard 18 are as follows: Key Management Personnel (KMP)

Sh. H. R. Gupta Sh. Vijay Jindal Sh. Mukesh Aggrawal Sh. Anil Garg

During the current and previous year, there are no transactions with the related parties

3 Segment Reporting

As per Accounting Standard AS 17 on "Segment Reporting" segment information is as follow:-

Primary Segment Reporting (Business Segment):

Primary business segments of the company is sale of cotton knitted garments and made ups and Processing Charges, which in the context of Accounting Standard 17 on "Segment Reporting" as notifed in Companies (Accounting Standard ) Rules , 2006 . But the manufacturing relating to cotton knitted garments and processing charges is common therefore the expenditure relating to these two activities can only be bifurcated on estimated basis. Sale relating to sale of knitted garments and processing charges is shown separately.

Secondary Segment Reporting (Geographical Segments):

The Following is the distribution of the company''s consolidated sales by geographical segment, regardless of where the goods were produced:

4 Contingent Liability and Commitments

Particulars As at As at 31.03.2013 31.03.2012

1.Bills Discounted

2.Disputed tax liability * 85,281,903 46,723,000

3.Surety given to Sales Tax Department for third party

4. Debt not acknowledge as liability 1,464,353 702,042

Total 86,746,256 47,425,042

* Disputed tax liability includes INR 6.28 crores raised by department relating to AY 2005-06 u/s 147/143(3) of the Income Tax Act on the basis of CAG query which subsequently dropped by CAG but matter still pending before First Appellate Authority.

5 The previous year fgures have been regrouped/ reclassifed, wherever necessary to conform to the current year presentation. Note 34 Signifcant Accounting Policies & Notes on Financial Statements

6 General Information

The company was incorporated on December 6, 1991 in India. The company is a garment manufacturing company and majorly deals in exports however during the year, the exports are Nil and the company has only domestic sales and processing income.

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Mar 31, 2012

* Fixed Assets of the company have been revalued as on 31st March, 2012 except for Car (vehicles), furniture & fixture and other equipments whose total net carrying amount before revaluation of fixed assets is less than 5% of the total net carrying amount of total fixed assets. The effect of revaluation of fixed assets have been taken by restating the Net Book Value by adding there in the net increase on account of revaluation. Due to revaluation there is increase in value of Land by Rs. 647,518,624/- and increase in net book value of Building by Rs. 35,731,273/- as per valuation report of Certified/Registered valuer Mr. Ashok Raichand and M/S P & A Valuetech Private Limited. The Plant and Machinery is valued at net book value of Plant and Machinery as on 31st March 2012 as per valuation report of Mr. Ashok Raichand ( certified/ registered valuer).

* Rs. 24,398,043/- are secured by first charge in respect of the immovable property situated at Plot No. 21, Sector 6 Faridabad (Haryana) together with all building and structures there on including plant & machinery. The loan is a Standard Asset as per IRAC norms and carries interest rate at BPLR minus 150 bps. The loan is further secured by personal guarantee of Shri H.R. Gupta and Shri Vijay Jindal.

The balance loan is repayable in monthly equal installment of 1,060,784 /- till 1st February, 2014.

** Rs. 502,498/- (Car Loan from ICICI bank) is secured against the hypothecation of vehicle (Honda City) carrying interest rate of 12.5% per annum. The loan is repayable in 36 installments of 19,169/- each starting from 15th November, 2011 till 15th October, 2014.

a. First pari - passu charge on entire asset of the company including receivables, both present and future as primary security.

b. First exclusive charge as collateral security on factory land & building situated at Plot No. 7, Plot No. 39 and Plot No. 22, sector 6, Faridabad, Haryana.

c. Second pari - passu charge on entire fixed asset of the company on which IDBI is having first charge.

The status of the accounts maintained with the State Bank of India slipped to Non Performing Asset (NPA) on 23rd May, 2011. Notice under SARAFESI Act was issued to the company on 26th December, 2011 raising a demand of Rs. 85,27,33,880/- including undue liability of Rs. 25,79,39,410/- (Rs. 12,99,34,285 relating to MTM derivative losses (not provided for) and Rs. 12,80,05,125 relating to amount of installments, not due on Corporate loan).

The Company has submitted proposal for normalizing the account as Standard with SBI and the same under consideration with SBI.

Rs. 43,35,42,955 against working capital loan in the books of accounts does not account for the derivative loss of Rs. 4,53,82,639 but banks certificate shows amount of Rs. 47,89,25,595 as on 31st March, 2012 including derivative loss of Rs.4,53,82,639.

Also interest on bank borrowing from SBI is charged on the basis of last interest charged by the bank when status of the account slipped to NPA. Any penal or other interests claimed by the bank over and above are not accounted for.

* Investment in Elkay Strips Limited formerly subsidiary NIL(Previous year 255364 Equity Shares of Rs. 100/- each)

The company has disposed off the equity shares of M/s Elkay Strips Ltd On March 19, 2012 (260368 shares) at Rs. 18,04,35,024, based on the valuation report.

** Advances recoverable from Income Tax Authorities are net of provision of Rs. 1,41,83,000/- which has been considered in the financials owing to the various demands by the Income Tax Department which are confirmed as liability.

"Receivable from various statutory departments including Sales Tax, CBEC and Income Tax Authorities.

*** Advance to supplier is net of provision for doubtful amount of Rs. 5,49,57,410/-

Defined Benefit Plan

The employee's gratuity fund scheme managed by a Trust (LIC of India and SBI ) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Project Unit Credit Method, which recognises 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 recognised in the same manner as gratuity. The company had permanently closed down its two units and the other one unit has remained partly closed during the year. Closed unit has not been considered for the purpose of actuarial valuation.

Deferred Tax Assets recognized to the extent of Deferred Tax Liability for the year ending 31st March 2012.

As the company has substantial losses and value of the business has reduced substantially . Also there is huge fixed cost relating to interest and depreciation. In view of facts stated above and keeping in view the financial position of the company the Deferred Tax Assets in respect of carry forward losses has been recognized only to the extent of Deferred Tax Liability.

1 Related Party Disclosure

AS per accounting Standard 18, the disclosure of transaction with the related parties are given below:

List of related parties where control exists and related parties with whom transaction have taken place and relationships:

1. Subsidiaries

Elkay Strips Ltd. (Up to 19th March 2012)

2. Key Management Personnel (KMP)

Sh. H R Gupta

Sh. Vijay Jindal

Sh. Mukesh Aggrawal

Sh. Anil Garg

2 Segment Reporting

As per Accounting Standard AS 17 on 'Segment Reporting' segment information is as follow:- Primary Segment Reporting (Business Segment):

Primary business segments of the company is sale of cotton knitted garments and made ups and Processing Charges, which in the context of Accounting Standard 17 on 'Segment Reporting' as notified in Companies (Accounting Standard ) Rules , 2006 . But the manufacturing relating to cotton knitted garments and processing charges is common therefore the expenditure relating to these two activities can only be bifurcated on estimated basis. Sale relating to sale of knitted garments and processing charges is shown separately.

(Figures in Rupees)

Particulars As at As at 31st March, 2012 31st March, 2011

3 Contingent Liability and Commitments

1. Bills Discounted Nil 9,900,000

2. Disputed tax liability 46,723,000 14,512,000

3. Surety given to Sales Tax Department for third party - 100,000

4. Debt not acknowledge as liability 702,042 -

Total 47,425,042 24,512,000

4 Financial Derivatives And Instrument:

During the year SBI intimated to the company about the derivative losses amounting to Rs 12,99,34,285/- as on 26-12-2011 but the company has not acknowledged and accepted these liabilities and therefore not provided for in the accounts.

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Mar 31, 2010

1. CONTINGENT LIABILITIES

(Rs. In Lacs)

As At 31.03.2010 As At 31.03.2009

(i) Bank Guarantee for A.E.P.C. and Custom Duty 0.51 28.75

(ii) Bills Discounted 1060.07 2116.98

(iii) Outstanding Letter of Credit (Net of Margin money(P.Y. 167.24 Lacs)) NIL 1296.04

(iv) Income Tax Act 1961 (disallowances) 418.36 412.85

(v) Disputed Liability towards Provident Fund and E.S.I (Net of paid under protest) 15.32 15.32

(vi) Disputed Liability towards Sales Tax (Net of paid under protest) 71.83 71.83

(vii) Surety given to Sales Tax Department for third party 1.00 1.50



2. In case of default in repayment of principal amount of the term loans taken from IDBI or interest thereon IDBI has a right to convert at par at its option 100% of the defaulted amount into fully paid up equity shares of the company. The balance of aforesaid loans as at 31.03.2010 is Rs. 255.12 Lacs. (As at 31.03.2009 is Rs. 449.89 Lacs)

3. (b) The company has been advised that the computation of the net profit for the purpose of remuneration to directors under section 349 of the Companies Act, 1956 need not be enumerated since no commission has been paid to the Directors. Only fixed monthly remuneration has been paid to the Directors as per Schedule XIII of the Companies Act, 1956.

4. The Company has invested Rs. 66.65 Lacs (Previous Year Rs. 66.65 Lacs) in the equity share capital of MS Elkay International Ltd. The company have incurred losses as a result of which the net worth of aforesaid companies has depleted. As investment is held as long term investment and considering the assets base of investee companies, the management is of the opinion that the diminution in value of equity shares is of temporary in nature and accordingly no provision is considered necessary for the same.

5. The Company has given securities of Rs.275 lacs ( Previous Year Rs. 275 lacs) and invested Rs. 343.15 lacs ( Previous Year Rs. 95.75 lacs) in the equity share capital of M/S Elkay Strips Ltd. which has negative NAV but the market value of land and building is high.

6. The company has disposed off the equity shares of M/s Mode prints Ltd. On December 17, 2009.

7. Interest income includes Rs.15.73 Lacs (Previous Year Rs 30.62 Lacs) on loans to body corporate, Rs. 11.36 Lacs (Previous Year Rs. 24.60 Lacs) on fixed deposit with bank.

8. In some cases, the company has received intimation from micro & small enterprises under „The micro, small and medium Enterprises Development Act 2006‰. The amount remaining unpaid as at 31st March 2010 was Rs. 2.29 Lacs (Previous year Rs. 1.71 Lacs) No payments beyond the appointed date were noticed. No interest was paid or payable under the act.

9. Segment Information:

a) Primary Segment Reporting by Business Segment:

Primary business segment of the company is sale of cotton knitted garments and made ups i.e. T-Shirts, Bed Sheets etc, which in the context of Accounting Standard 17 on Segment Reporting‰ as notified in Companies (Accounting Standard ) Rules , 2006 .

10. In opinion of Board of Director; Fixed Assets, Currents Assets, Loans and Advances have a value on realization in ordinary course of business at least equal to the amount at which they are stated in Balance- Sheet and the provision for all the liability have been made in the books of accounts, which have been relied upon by the Auditors.

11. Personal accounts are subject to adjustment / reconciliation / confirmation.

12. Previous year figures have been regrouped/ rearranged, wherever considered necessary.