Notes to Accounts of Sportking India Ltd.

Mar 31, 2025

2.3.18 Provisions, Contingent Liabilities and Contingent Assets

(i) Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

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

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement is recognised
when, and only when, it is virtually certain that reimbursement will be received if the Company settles the obligation. The reimbursement is treated as
a separate asset. The expense relating to a provision is presented in the statement of profit or loss net of any reimbursement.

(ii) A contingent liability is not recognised in the financial statements, however, is disclosed, unless the possibility of an outflow of resources embodying
economic benefits is remote. If it becomes probable that an outflow of future economic benefits will be required for an item dealt with as a contingent
liability, a provision is recognised in the financial statements of the period (except in the extremely rare circumstances where no reliable estimate can
be made).

(iii) A contingent asset is not recognised in the financial statements, however, is disclosed, where an inflow of economic benefits is probable.

(iv) Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

2.1.19 Segment Reporting

Segments are identified based on the manner in which the Company''s Chief Operating Decision Maker (‘CODM'') decides about resource allocation and
reviews performance.

(1) Segment Revenue includes sales and other income directly identifiable with/ allocable to the segment including inter- segment revenue.

(2) Income and Expenses that are directly identifiable with/ allocable to the segments are considered for determining the segment result. Income and
Expenses not allocable to segments are included under unallocable expenditure.

(3) Segment results includes margin on inter segment sales.

(4) Segment assets and Liabilities include those directly identifiable with the respective segments. Assets and liabilities not allocable to any segment are
classified under unallocable category.

2.4 Current - Non-Current Classification

All assets and liabilities have been classified as current and non-current on the basis of the following criteria:

Assets

An asset is classified as current when it satisfies any of the following criteria:

a) it is expected to be realised in, or is intended for sale or consumption in, the company''s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realised within twelve months after the reporting date;
or

d) it is cash or cash equivalent unless it is restricted from being exchanged or use to settle a liability for at least twelve months after the reporting date.
Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

a) it is expected to be settled in the company''s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is due to be settled within twelve months after the reporting date; or

d) there is no unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the
option of the counterpart, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include current portion of non-current financial liabilities

All other liabilities are classified as non-current

Operating Cycle

Operating cycle is the time between the acquisition of assets for processing/servicing and their realisation in cash or cash equivalents. Based on the nature
of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its
operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities.

2.5 Use of Accounting Estimates, Judgements and Assumptions

The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) require management to make judgements, estimates and
assumptions in the application of accounting policies that affect the reported amount of income, expenses, assets and liabilities and disclosure of contingent
liabilities.

The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ
from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis and the effect of revision to accounting estimates is
recognized prospectively from the period in which the estimate is revised.

Significant accounting estimates, Judgements, and assumptions

i. Income taxes

Significant judgement is required in determination of provision for current tax and deferred tax e.g. determination of taxability of certain incomes and
deductibility of certain expenses etc. The carrying amount of income tax assets/liabilities is reviewed at each reporting date. The factors used in
estimates may differ from actual outcome which could lead to signification adjustment to the amounts reported in financial statements.

ii Defined Benefit Plans and other post-employment benefits

The cost of the defined benefit plan and other post-employment benefits and the present value of such 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, mortality rates and future pension increases. Due to the complexities involved in the
valuation and its long-term nature, the obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting
date.

iii. Inventories

Management has estimated the net realizable values of inventories, taking into account the most reliable evidence available at each reporting date.
The future realization of these inventories may be affected by market driven changes.

iv. Fair value measurement

Some of the Company''s assets and liabilities are measured at fair value for financial reporting purposes. When the fair values of financial assets and
financial liabilities cannot be measured based on quoted prices in active markets, their fair values are measured using valuation techniques specified
in the accounting standard, which involve certain judgements and assumptions.

v. Provisions / Contingencies

Significant judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claims/litigations against the
Company which involves judgements around estimating the ultimate outcome of such past events and measurement of the obligation amount etc.
The Company assesses such claims and monitors the legal environment on an ongoing basis, with the assistance of external legal counsel, wherever
necessary.

vi. Useful lives of property plant and equipment and Intangible assets

The estimated useful lives of property plant and equipment and intangible assets are based on a number of factors including the effects of obsolescence,
internal assessment of user experience and other economic factors (such as the known technological advancements, commercial obsolescence of
the asset etc.). The useful life of property plant and equipment and intangible assets is reviewed on an ongoing basis.

vii. Recoverable amount of property, plant and equipment

The recoverable amount of property plant and equipment is based on estimates and assumptions regarding the expected market outlook and
expected future cash flows. Any changes in these assumptions may have a material impact on the measurement of the recoverable amount and could
result in impairment.

2.6 Applicability of new and revised Ind AS

Ministry of Corporate Affairs (“MCA”) notifies new accounting standards or amendments to the existing standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. As at March 31, 2025, MCA has not notified any new standards or amendments to the existing standards
applicable to the Company.

* On the recommendation of the Board of Directors of the Company, the Shareholders of Company in the annual general meeting
held on 17.08.2024 approved the sub-division/ split of existing 1 Equity Share of face value of t10/- each fully paid up into 10 Equity
Shares of face value of t1/- each fully paid up by alteration of Capital Clause of the Memorandum of Association of the Company.
Accordingly, on and from the record date i.e.13th September 2024, the equity shares of the Company have been sub- divided, such
that 1 (one) equity share having face value of t 10/- (t ten only) each, fully paid-up, stands sub-divided into 10 (ten) equity shares
having face value of t1/- (t one only) each, fully paid-up, ranking pari-passu in all respects.

On account of sub-division of equity Shares of the Company, the the Authorized Capital of the Company has changed to t35,00,00,000/-
(Rupees Thirty Five Crore only) divided into 15,00,00,000 (Fifteen Crore Only) Equity Shares of t1/- each and 2,00,00,000 (Two
Crores only) Redeemable Preference Shares of t10/- each.

i) Rights,preferences and restrictions attached to Equity Shares

The Company has only one class of equity shares having a par value of t 1 per share. Each share holder is entitled for one vote
per share. The dividend if any proposed by the Board of Directors will be subject to approval of the share holders in the ensuing
Annual General Meeting except interim dividend which is approved by Board of Director In the event of the liquidation of the
company, the holders of the equity shares will be entitled to receive the remaining assets of the company, after distribution of all
preferential amounts. The distribution will be in proportion of number of equity shares held by each equity share holder.

* On the recommendation of the Board of Directors of the Company, the Shareholders of Company in the annual general meeting
held on 17.08.2024 approved the sub-division/ split of existing 1 Equity Share of face value of t10/- each fully paid up into 10
Equity Shares of face value of t1/- each fully paid up by alteration of Capital Clause of the Memorandum of Association of the
Company. Accordingly, on and from the record date i.e.13th September 2024, the equity shares of the Company have been
sub- divided, such that 1 (one) equity share having face value of t 10/- (t ten only) each, fully paid-up, stands sub-divided into
10 (ten) equity shares having face value of t1/- (t one only) each, fully paid-up, ranking pari-passu in all respects.

Footnotes:

(i) Nature and Purpose of Reserve

1) Equity Component of Compound Financial Instruments

The fair value of the liability component of non- convertible preference shares issued by the company has been determined using a
effective interest rate for an equivalent non-convertible instrument at the inception and the said amount has been classified as a financial
liability.The remainder of the proceeds is recognised as ''Equity Component of Compound Financial Instruments'' in other equity as per
provisions of Ind AS 32.

2) Capital Redemption Reserve

Capital redemption reserve is created out of profits for redemptions of capital.

3) Securities Premium

This represents amount of premium recognised on issue of shares to shareholders at a price more than its face value. The reserve can
be utilised in accordance with the provisions of the Companies Act 2013.

4) General Reserve

This represents retained earnings which are kept aside out of company''s profits. It is a free reserve which can be utilized to meet any future
contingencies and to pay dividend to shareholders.

5) Retained Earnings

Retained earnings repersents to net earnings not paid out as dividend. The amount is available for distribution of dividend to its equity
shareholders It also includes balance of remeasurment of net defined benefit obligation (net of taxes)

‘Liability Component of Compound Financial Instruments pertains to 5% redeemable non-cumulative non-convertible preference
shares of face value of ?10/- each fully paid up issued by the Company which have been accounted for as Compound Financial
Instruments in accordance with applicable Ind AS. For other details of such preference shares, refer footnote (ii) of note 13 ''Other
Equity''.

Further, liability component of such Compound Financial Instruments includes adjustment on account of modification of terms of
redemption of preference shares.

Refer Note 48 for Classification of Financial liabilities.

Refer note 50 for information about market risk and liquidity risk in respect of financial liabilities.

Notes:

i) Nature of security against loans

A. Term Loans
Primary Security:-

Hypothecation of entire Property, Plant and Equipment of the Company except some part of land at Bathinda (both present
and future) on first pari passu charge basis.

Collateral Security:-

a) Hypothecation of entire Current assets of the company (both present and future) on second pari passu charge basis.
Further loans are also secured by equitable mortagage of industrial plots situated at Village Barmalipur, Ludhiana
owned by Sh. Munish Avasthi, Chairman and Managing Director of the Company.

b) All term loans (other than vehicle loans) are further guaranteed by Sh. Munish Avasthi, Chairman and Managing
Director of the Company.

B. Vehicle Loan

The vehicle loans are secured against hypothecation of respective vehicles.

# In case of discounted trade receivables, where the significant risks and rewards related to discounted trade receivables are not
transferred, the Company continues to recognize the carrying amount of discounted trade receivables in current assets and the
amount received from bank is recognized as unsecured borrowings.

Refer Note 48 for Classification of Financial liabilities.

Refer note 50 for information about market risk and liquidity risk in respect of financial liabilities.

i) Nature of security against Working Capital Loans
Primary Security:-

Hypothecation of stocks of raw material,stock in process and finished goods, receivables/book debts and other current assets
(both present and future) on first pari passu charge basis.

Collateral Security:-

Hypothecation of entire fixed assets except some part of land situated at Bathinda of the company (both present and future) on
second pari passu charge basis. Further loans are also secured by equitable mortagage of industrial plots situated at Village
Barmalipur, Ludhiana owned by Sh. Munish Avasthi, Chairman and Managing Director of the Company. All loans are further
guaranteed by Sh. Munish Avasthi, Chairman and Managing Director of the Company.

*Amount deposited/adjusted against outstanding demand is ?110.90 Lakhs (Previous year ?110.90 Lakhs) shown under refund
receivable in note no. 24 of Income Tax Liabilities/Assets.

**Amount deposited/adjusted against outstanding demand is Nil (Previous year ?0.034 Lakhs) shown under Recoverable from
Govt authorities in note no. 11 of Other Current Assets.

Above figures are exclusive of interest accrued.

Note: Based on legal advice, discussions with the solicitors, etc., the management believes that there is fair chance of decision
in the company''s favour in respect of all the items listed above and hence no provision is considered necessary against the
same. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the
company''s financial position and results of operations. Future cash flows in respect of above will be determined only on receipt
of judgments/decisions pending with revenue/ judicial authorities.

NOTE - 39

Impairment of Assets

In accordance with Ind AS-36 on “Impairment of Assets” the Company has assessed as on the balance sheet date, whether there
are any indications with regard to the impairment of any of the assets. Based on such assessment there is no such indication and
therefore, formal estimate of recoverable amount has not been made. Accordingly, no impairment loss has been provided in the
books of account.

Defined Benefit Plan
Gratuity:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. This defined
benefit plan of gratuity is administered by a separate trust that is a legally separate entity. The Company makes annual
contributions to the trust and trust is responsible for investments with regard to the assets of the trust. The contributions are
invested by the trust in a scheme with Life Insurance Corporation of India. The Company accounts for the liability for gratuity
benefits payable in the future based on actuarial valuation using projected unit credit method.

These plans typically expose the Company to actuarial risks such as investment risk,salary risk, interest rate risk and longevity
risk.

(i) Investment risk

If the actual return on plan assets is below the expected return, it will create plan deficit

(ii) Salary risk

The present value of defined benefit plan is calculated with the assumption of salary increase of participants in future.
Deviation in rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the
present value of obligation will have a bearing on the plan''s liability.

(iii) Interest risk

The plan exposes the company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate
cost of providing the above benefit and will thus result in an increase in value of the liability.

(iv) Longevity risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan
participants. An increase in the life expectancy of the plan participants will increase the plans liability.

The Following table set out the funded status of the gratuity plan and amounts recognised in the balance sheet and other
disclosures as required under Ind AS 19 ''Employee benefits'':

---

Mar 31, 2024

i) Rights,preferences and restrictions attached to Equity Shares

The Company has only one class of equity shares having a par value of ? 10 per share. Each share holder is entitled for one vote per share. The dividend if any proposed by the Board of Directors will be subject to approval of the share holders in the ensuing Annual General Meeting except interim dividend which is approved by Board of Directors. In the event of the liquidation of the company, the holders of the equity shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion of number of equity shares held by each equity share holder.

# During the year ended 31st March, 2022, the Company allotted 99,65,400 equity shares as fully paid up bonus shares in proportion of 3:1 (i.e. three bonus shares for every one equity share held) to the eligible members/beneficial owners as on 24th September, 2021, i.e. record date, by capitalisation of amount of '' 996.54 Lakhs which was by way of transfer from Capital Redemption Reserve '' 553.80 Lakhs and Securities Premium Reserve '' 442.74 Lakhs.

## The Board of Directors in its meeting held on January 28, 2023, has approved the proposal to buy-back upto 580000 fully paid up equity shares of the face value of '' 10/- at a price of '' 950/- per share payable in cash (“Buyback Price”) for a maximum amount not exceeding '' 5510 lakhs. This amount represents 7.18% of the paid-up equity share capital and free reserves as per audited financial statements of the Company for the financial year ended 31st March, 2022. The buy-back process was completed subsequent to the year end on 17th April, 2023 and 580000 shares have been extinguished.

1) Equity Component of Compound Financial Instruments

The fair value of the liability component of non- convertible preference shares issued by the company has been determined using a effective interest rate for an equivalent non-convertible instrument and the said amount is classified as a financial liability.The remainder of the proceeds is recognised as ''Equity Component of Compound Financial Instruments'' in other equity as per provisions of Ind AS 32.

2) Capital Redemption Reserve

Capital redemption reserve is created out of profits for redemptions of capital.

3) Securities Premium

This represents amount of premium recognised on issue of shares to shareholders at a price more than its face value. The reserve can be utilised in accordance with the provisions of the Companies Act 2013.

4) General Reserve

This represents retained earnings which are kept aside out of company''s profits. It is a free reserve which can be utilized to meet any future contingencies and to pay dividend to shareholders.

5) Retained Earnings

Retained earnings repersents to net earnings not paid out as dividend but retained by the company to be reinvested in its core business. The amount is available for distribution of dividend to its equity shareholders. It also includes balance of remeasurment of net defined benefit obligation (net of taxes)

Preference shares are having preference over equity shares in respect of payment of dividend and repayment of capital over equity shareholders and is entitled to voting rights in the resolutions directly affecting their interest.Preference shares are redeemable within 20 years from the date of allotment.The Board of directors has not decided the date of redemption yet.

A. Term Loan Primary Security:-

First pari passu charge on hypothecation of entire Property, Plant and Equipment of the Company (both present and future). Collateral Security:-

a) Second pari passu charge on hypothecation of entire Current assets of the company (both presen and future).Further loans are also secured by First pari paassu charge on industrial plot situated at Village Barmalipur,Ludhiana owned by promoters and First pari passu charge on Building owned by the Company on same land.

b) All term loans (other than vehicle loans) are further guaranteed by Sh. Munish Avasthi (Managing Director).

B. Vehicle Loan

The vehicle loans are secured against hypothecation of respective vehicles.

In case of Buyer''s Credit Foreign Currency Loans (FCL), the above rate of interest does not include foreign exchange fluctuation treated as interest cost as per Ind AS 23. i) Nature of security against Working Capital Loans Primary Security:-

First pari passu charge on hypothecation of stocks of raw material,stock in process and finished goods,recoverables/book debts and other current assets (both present and future).

Collateral Security:-

Second pari passu charge on hypothecation of entire fixed assets of the company (both present and future).First pari paassu charge on industrial plot situated at Village Barmalipur,Ludhiana owned by promoters and First pari passu charge on Building owned by the Company on same land.

The Company has availed benefit under Export Promotion Capital Goods (EPCG) scheme amounting to ? 570.00 lakhs during the financial year ended March 31, 2024 (March 31, 2023 ? 1974.81 lakhs) on import of Property, Plant and Equipment and Spares parts which pertains to the duty saved for which input tax credit is not allowed under Goods and Service tax Act, 2017.

NOTE-38: Contingent Liabilities and Commitments (a) Contingent Liabilities
	Sr. No.	Particulars	As at 31st March, 2024	As at 31st March, 2023
	a)	Disputed Income Tax Liabilities of cases pending with appellate authorities.*	752.85	989.63
	b)	Disputed Excise Liabilities of cases pending with appellate authorities	44.87	44.87
	c)	Disputed Service Tax Liabilities of cases pending with appellate authorities**	0.44	0.00
	d)	Disputed Electricity Liabilities of cases pending with appellate authorities.	415.00	415.00

*Amount deposited/adjusted against outstanding demand is '' 110.90 Lakhs (Previous year '' 105.13 Lakhs) shown under refund receivable in note no. 24 of Income Tax (Liabilities)/Assets.

**Amount deposited/adjusted against outstanding demand is '' 0.034 Lakhs (Previous year Nil) shown under Recoverable from Govt authorities in note no. 11 of Other Current Assets.

Above figures are exclusive of interest accrued.

Note: Based on legal advice, discussions with the solicitors, etc., the management believes that there is fair chance of decision in the company''s favour in respect of all the items listed above and hence no provision is considered necessary against the same. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the company''s financial position and results of operations. Future cash flows in respect of above will be determined only on receipt of judgments/decisions pending with revenue/ judicial authorities.

(b)	Commitments (Amount ? in Lakhs unless otherwise stated)
	Sr.No.	Particulars	As at 31st March, 2024	As at 31st March, 2023
	a)	Commitments on account of Capital account remaining to be executed(Net of Advances) (out of which Letter of Credits Nil PY '' 1172.31 Lakhs) net of margin.(Figures are exclusive of GST)	565.46	6786.40
	b)	Bonds against un-fulfilled export obligations under Export Promotion Capital Goods/Duty Exemption scheme	6119.98	5507.91

NOTE - 39: Impairment of Assets

In accordance with Ind AS-36 on “Impairment of Assets” the Company has assessed as on the balance sheet date, whether there are any indications with regard to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly, no impairment loss has been provided in the books of account.

Defined Benefit Plan Gratuity:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. This defined benefit plan of gratuity is administered by a separate trust that is a legally separate entity. The Company makes annual contributions to the trust and trust is responsible for investments with regard to the assets of the trust. The contributions are generally invested by the trust in a scheme with Life Insurance Corporation of India or other insurer as permitted by Law. The Company accounts for the liability for gratuity benefits payable in the future based on actuarial valuation using projected unit credit method.

These plans typically expose the Company to actuarial risks such as investment risk,salary risk, interest rate risk and longevity risk.

(i) Investment risk

If the actual return on plan assets is below the expected return, it will create plan deficit

(ii) Salary risk

The present value of defined benefit plan is calculated with the assumption of salary increase of participants in future. Deviation in rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

(iii) Interest risk

The plan exposes the company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in value of the liability.

(iv) Longevity risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the plans liability.

The Following table set out the funded status of the gratuity plan and amounts recognised in the balance sheet and other disclosures as required under Ind AS 19 ''Employee benefits'':

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in employment market.

(h) Sensitivity analysis

Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected salary increase. The sensitivity is computed by varying one actuarial assumption used for valuation of defined benefit obligation by 1.00% keeping all other actuarial assumptions constant. There is no change from the previous period in the methods and assumptions used in preparing the sensitivity analysis.

The quantitative sensitivity analysis on net liability recognized on account of change in significant actuarial assumptions is as hereunder:

(g) The payment in respect of lease liabilties amounting '' 14.03 Lakhs ( Previous year '' 12.62 Lakh )and in respect of interest liabilties amounting '' 6.63 Lakh (Previous year '' 8.03 Lakh have been showned under cash flows from financing activity in statement of cash flows.

(h) Rental expense recognized for short-term leases was '' 6.66 Lakhs for the year ended 31st March , 2024 (31st March 23''0.60 Lakhs) has been disclosed as rent under the head ''Other expenses''.

Company as lessor

The Company has given on lease certain portion of its office / factory premises under operating leases. These leases are not noncancellable and are extendable by mutual consent and at mutually agreeable terms. The gross carrying amount, accumulated depreciation and depreciation for the year in respect of such portion of the leased premises are not separately identifiable. These assets have not been classified as Investment property as it does not meet the criteria specified in INDAS 40. Rental income amounting to ''4.55 Lakhs (Previous year is ''4.51 Lakhs) in respect of these leases is recognised in the statement of profit and loss under “Other income”.

1. Managerial remuneration does not include provisions made for Gratuity and Compensated absence amounts as these are determined on actuarial basis for the company as a whole. Further remuneration does not include value of non-cash perquisites.

2. Terms and conditions of transactions with related parties

All related party transactions entered during the year were in ordinary course of the business and on arm''s length basis. Outstanding balances at the year-end are unsecured and settlement occurs in cash

3. There have been no guarantees provided or received for any related party.

4. For the year ended 31st March, 2024, the Company has not recorded any impairment in respect of any bad or doubtful debts due from related parties (31st March, 2023: Nil).

(C) Detail of amount due from/to directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member

1. The trade receivables include '' 48.73 Lakhs is (previous year Nil) due from the firms and private companies in which any director is a partner or a director or a member.

2. The advances to suppliers include Nil (previous year Nil) paid to the firms and private companies in which any director is a partner or a director or a member.

3. The trade payables include '' 1.00 Lakhs (previous year '' 202.29 Lakhs) due to the firms and private companies in which any director is a partner or a director or a member.

4. The advances from customers include Nil (previous year '' 257.83 Lakhs) received from the firms and private companies in which any director is a partner or a director or a member.

Revenue in respect of the export incentives is recognised on post export basis and it is reasonable to expect ultimate collection.

(ii) Trade receivables and Contract Balances

The company classifies the right to consideration that are unconditional in exchange for deliverables as receivable. Trade receivables are presented net of impairment in balance sheet.

The balances of trade receivables and advance from customers at the beginning and end of the reporting period have been disclosed at note no. 7 and 22 respectively.

The revenue recognised during the year ended 31st March 2024 includes revenue against advances from customers amounting to '' 787.14 Lakhs (Previous Year '' 612.71 lakhs) at the beginning of the year.

(iii) Performance obligations and remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue.

The revenue of Nil has been recognised during the year ended 31st March 2024 (previous year Nil ) against performance obligations satisfied (or partially satisfied) in previous periods.

NOTE -46: Segment Reporting

The Company is primarily in the business of manufacturing, purchase and sale of textile yarns. The Managing Director of the Company, which has been identified as being the Chief Operating Decision Maker (CODM), evaluates the Company''s performance, allocate resources based on the analysis of the various performance indicators of the Company as a single unit. Therefore, there is only one reportable segment for the Company.

The Company has disclosed financial instruments such as cash and cash equivalents, other bank balances, trade receivables and trade payables at carrying value because their carrying amounts are a reasonable approximation of the fair values due to their short term nature.

(b) Fair Value Measurement

(i) Fair Value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are measured, subsequent to initial recognition, at fair value. The below is the fair value measurement hierarchy used by the Company to determine the fair value of financial instruments, grouped into Level 1 to Level 3 :-

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

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

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

NOTE 49: Capital Management

For the purposes of the Company''s capital management, capital includes equity share capital, securities premium and all other reserves attributable to the equity shareholders. The primary objective of the Company''s Capital Management is to maximize the return to shareholders and also maintain an optimal capital structure to reduce cost of capital.

The Company''s policy is to maintain a strong capital base so as to maintain investors, creditors and market confidence and to sustain future development of the business.

The Company monitors capital using a ratio of ''Net debt'' to ''Total Equity''. For this purpose, net debt is defined as total interest-bearing loans and borrowings less cash and cash equivalents. The Company''s Net debt to equity ratio is as follows.

(b) Loan Covenants

In order to achieve overall objective of capital management, amongst other things, the management aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings. The management carefully negotiates the terms and conditions of the loans and ensures adherence to all the financial covenants. Breaches in meeting the financial covenants would permit the bank to call loans and borrowings or charge some penal interest. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing during the year ended 31st March, 2024 and 31st March, 2023.

NOTE-50: Financial Risk Management

The principal financial assets of the Company include trade and other receivables, loans and advances and cash and bank balances that derive directly from its operations. The principal financial liabilities of the company include loans and borrowings, trade and other payables and the main purpose of these financial liabilities is to finance the day to day operations of the company.

The Company is exposed to market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. There are appropriate policies and procedures in place through which such financial risks are identified, measured and managed by the Company. The Audit Committee and the Board are regularly apprised of these risks and measures used to mitigation these risks.

I. Market risk

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

a) Foreign Currency Risk

The company operates internationally and business is transacted in several currencies. The export sales of company comprise around 46% of the total sales of the company, Further the company also imports certain assets and raw material/ stores etc. from outside India. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the company is exposed to foreign currency risk and the results of the company may be affected as the rupee appreciates/ depreciates against foreign currencies. Foreign exchange risk arises from the future probable transactions and recognized assets and liabilities denominated in a currency other than company''s functional currency.

The company measures the risk through a forecast of highly probable foreign currency cash flows and manages its foreign currency risk by appropriately hedging the transactions. The Company uses derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

As the Company has no significant interest -bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates.

II. Liquidity Risk

Liquidity risk arises from the Company"s inability to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring that it will always have sufficient liquidity to meet its liabilities when due.

The financial liabilities of the company, other than derivatives,include loans and borrowings,trade and other payables.

The company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations.

The Company''s finance department is responsible for liquidity and funding arrangements. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company"s net liquidity position on the basis of expected cash flows in near future.

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss.The exposure to the credit risk at the reporting date is primarily from trade receivables which are typically unsecured. Credit risk on cash and bank balances is limited as the company generally invests in deposits with banks and financial institutions with high credit ratings assigned by credit rating agencies.The Company''s credit risk in case of all other financial instruments is negligible.

The company assesses the credit risk based on external credit ratings assigned by credit rating agencies.The company also assesses the creditworthiness of the customers internally to whom goods are sold on credit terms in the normal course of business.The credit limit of each customer is defined in accordance with this assessment.Outstanding customer receivables are regularly monitored and shipments to overseas customers are generally covered by letter''s of credit of foreign bank.

The Company''s maximum exposure to credit risk as at 31st March, 2024 and 31st March, 2023 is the carrying value of the financial assets.

NOTE - 57

Other disclosures required as per Schedule III to the Companies Act, 2013

(i) The company has not been declared as wilful defaulter by any bank or financial Institution or other lender.

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

(iii) The company does not have any such transactions 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).

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency, during the financial year ended 31st March, 2024 and 31st March,2023.

(v) There are no loans or advances in the nature of loans granted to Promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

(vi) No funds that 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 persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Company; or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) No funds have been received by the company 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 directly or indirectly lend or invest in other persons or entities in any manner whatsoever by or on behalf of the funding party (“Ultimate beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(viii) The company does not have any charge or satisfaction which is yet to be registered with ROC beyond the statutory period.

(ix) The company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

(x) The company has used the borrowings from banks and fincacial institutions for the purpose for which it was taken.

NOTE - 58

The Board of Directors in its meeting held on January 28, 2023, has approved the proposal to buy-back upto 580000 fully paid up equity shares of the face value of '' 10/- at a price of '' 950/- per share payable in cash (“Buyback Price”) for a maximum amount not exceeding '' 5510 lakhs. This amount represents 7.18% of the paid-up equity share capital and free reserves as per audited financial statements of the Company for the financial year ended 31st March, 2022. The buy-back process was completed subsequent to the year end on 17th April, 2023 and 580000 shares have been extinguished.

NOTE - 59

The Board has recommended a Final Dividend of Rs. 5/- per equity share of face value of Rs. 10/- each on fully paid equity shares amounting to Rs. 635.36 Lakhs and 5% on Non-Cumulative Non- Convertible Redeemable Preference Shares of face value of Rs.10/- each amounting to Rs. 34.16 Lakhs for FY 2023-24.

---

Mar 31, 2023

2.3.18 Provisions, Contingent Liabilities and Contingent Assets

(i) Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

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

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement is recognised when, and only when, it is virtually certain that reimbursement will be received if the Company settles the obligation. The reimbursement is treated as a separate asset. The expense relating to a provision is presented in the statement of profit or loss net of any reimbursement.

(ii) A contingent liability is not recognised in the financial statements, however, is disclosed, unless the possibility of an outflow of resources embodying economic benefits is remote. If it becomes probable that an outflow of future economic benefits will be required for an item dealt with as a contingent liability, a provision is recognised in the financial statements of the period (except in the extremely rare circumstances where no reliable estimate can be made).

(iii) A contingent asset is not recognised in the financial statements, however, is disclosed, where an inflow of economic benefits is probable. When the realisation of income is virtually certain, then the asset is no longer a contingent asset, and is recognised as an asset.

(iv) Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

2.3.19 Segment Reporting

Segments are identified based on the manner in which the Company''s Chief Operating Decision Maker (''CODM'') decides about resource allocation and reviews performance.

(1) Segment Revenue includes sales and other income directly identifiable with/ allocable to the segment including intersegment revenue.

(2) Expenses that are directly identifiable with/ allocable to the segments are considered for determining the segment result. Expenses not allocable to segments are included under un allocable expenditure.

(3) Income not allocable to the segments is included in un allocable income.

(4) Segment results includes margin on inter segment and sales which are reduced in arriving at the profit before tax of the company.

(5) Segment assets and Liabilities include those directly identifiable with the respective segments. Assets and liabilities not allocable to any segment are classified under unallocable category.

NOTE- 2.4: Current - Non-Current Classification

All assets and liabilities have been classified as current and non-current on the basis of the following criteria:

Assets

An asset is classified as current when it satisfies any of the following criteria:

a) it is expected to be realised in, or is intended for sale or consumption in, the company''s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realised within twelve months after the reporting date; or

d) it is cash or cash equivalent unless it is restricted from being exchanged or use to settle a liability for at least twelve months after the reporting date.

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

a) it is expected to be settled in the company''s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is due to be settled within twelve months after the reporting date; or

d) there is no unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterpart, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include current portion of non-current financial liabilities All other liabilities are classified as non-current Operating cycle

Operating cycle is the time between the acquisition of assets for processing/servicing and their realisation in cash or cash equivalents. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities.

NOTE- 2.5: Significant Accounting Estimates, Judgements and Assumptions

The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) require management to make judgements, estimates and assumptions in the application of accounting policies that affect the reported amount of income, expenses, assets and liabilities and disclosure of contingent liabilities.

The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis and the effect of revision to accounting estimates is recognized prospectively from the period in which the estimate is revised.

Critical accounting estimates, Judgements, and assumptions

i. Income taxes

Significant judgement is required in determination of provision for current tax and deferred tax e.g. determination of taxability of certain incomes and deductibility of certain expenses etc. The carrying amount of income tax assets/liabilities is reviewed at each reporting date. The factors used in estimates may differ from actual outcome which could lead to signification adjustment to the amounts reported in financial statements

ii. Defined Benefit Plans and other post-employment benefits

The cost of the defined benefit plan and other post-employment benefits and the present value of such 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, mortality rates and future pension increases. Due to the complexities involved in the valuation and its long-term nature, the obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

iii. Inventories

Management has estimated the net realizable values of inventories, taking into account the most reliable evidence available at each reporting date. The future realization of these inventories may be affected by market driven changes.

iv. Fair value measurement

Some of the company''s assets and liabilities are measured at fair value for financial reporting process. In estimating the fair value of an asset or liability, the company uses market-observable data to the extent is available.

v. Provisions / Contingencies

Significant judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claims/ litigations against the Company which involves judgements around estimating the ultimate outcome of such past events and measurement of the obligation amount etc. The Company assesses such claims and monitors the legal environment on an ongoing basis, with the assistance of external legal counsel, wherever necessary.

vi. Useful lives of property plant and equipment and Intangible assets

The estimated useful lives of property plant and equipment and intangible assets are based on a number of factors including the effects of obsolescence, internal assessment of user experience and other economic factors (such as the known technological advancements, commercial obsolescence of the asset etc.). The useful life of property plant and equipment and intangible assets is reviewed on an ongoing basis.

vii. Recoverable amount of property, plant and equipment

The recoverable amount of property plant and equipment is based on estimates and assumptions regarding the expected market outlook and expected future cash flows. Any changes in these assumptions may have a material impact on the measurement of the recoverable amount and could result in impairment.

NOTE- 2.6 Ind AS notified but not yet effective.

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian

Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting

Standards) Amendment Rules, 2023, as below:

i. Ind AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its financial statements.The Company does not expect this amendment to have any significant impact on its financial statements.

ii. Ind AS 1 - Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023.

iii. Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of ''accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023.

(g) The payment in respect of lease liabilties amounting Rs 12.62 Lakhs ( Previous year Rs 6.27 Lakh and in respect of interest liabilties amounting Rs 8.03 Lakh (Previous year Rs 14.39 Lakh have been showned under cash flow from financing activity in statement of cash flow.

(h) Rental expense recognized for short-term leases was '' 0.60 Lakhs for the year ended 31st March , 2023 (31st March 22 ''0.50 Lakhs) has been disclosed as rent under the head ''Other expenses''.

Company as lessor

The Company has given on lease certain portion of its office / factory premises under operating leases. These leases are not noncancellable and are extendable by mutual consent and at mutually agreeable terms. The gross carrying amount, accumulated depreciation and depreciation for the year in respect of such portion of the leased premises are not separately identifiable. These assets have not been classified as Investment property as it does not meet the criteria specified in INDAS 40. Rental income amounting to ''4.51 Lakhs (Previous year is ''4.45 Lakhs) in respect of these leases is recognised in the statement of profit and loss under “Other income”.

NOTE-43: Related Party Transactions:

1 Related Parties and their relationship: a) Key Management Personnel

i) Whole Time Directors

* Raj Kumar Avasthi (deceased on 23.07.2022)

* Munish Avasthi

* Naresh Kumar Jain

ii) Non Executive Non Independent Director

* Anjali Avasthi (w.e.f. 03.09.2022) iiI) Independent Directors

* Sandeep Kapur

* Prashant Kochar

* Harpreet Kaur Kang

iv) Chief Financial Officer

* P K. Gupta (Retired on 03.10.2022)

* Sandeep Sachdeva (w.e.f. 21.03.2023)

v) Company Secretary

* Lovlesh Verma

b) Close Family Members of Key Managerial Personnel

* Anjali Avasthi Parveen Avasthi

(b) Loan Covenants

In order to achieve overall objective of capital management, amongst other things, the management aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings. The management carefully negotiates the terms and conditions of the loans and ensures adherence to all the financial covenants. Breaches in meeting the financial covenants would permit the bank to call loans and borrowings or charge some penal interest. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing during the year ended 31st March, 2023 and 31st March, 2022.

NOTE-50: Financial Risk Management

The principal financial assets of the Company include trade and other receivables, loans and advances and cash and bank balances that derive directly from its operations. The principal financial liabilities of the company include loans and borrowings, trade and other payables and the main purpose of these financial liabilities is to finance the day to day operations of the company.

The Company is exposed to market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. There are appropriate policies and procedures in place through which such financial risks are identified, measured and managed by the Company. The Audit Committee and the Board are regularly apprised of these risks and measures used to mitigation these risks.

I. Market risk

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

a) Foreign Currency Risk

The company operates internationally and business is transacted in several currencies. The export sales of company comprise around 46% of the total sales of the company, Further the company also imports certain assets and raw material/ stores etc. from outside India. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the company is exposed to foreign currency risk and the results of the company may be affected as the rupee appreciates/ depreciates against foreign currencies. Foreign exchange risk arises from the future probable transactions and recognized assets and liabilities denominated in a currency other than company''s functional currency.

The company measures the risk through a forecast of highly probable foreign currency cash flows and manages its foreign currency risk by appropriately hedging the transactions. The Company uses derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures.

NOTE - 57

Other disclosures required as per Schedule III to the Companies Act, 2013

(i) The company has not been declared as wilful defaulter by any bank or financial Institution or other lender.

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

(iii) The company does not have any such transactions 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).

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency, during the financial year ended 31st March, 2023.

(v) There are no loans or advances in the nature of loans granted to Promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are:

(a) Repayable on demand; or

(b) Without specifying any terms or period of repayment

(vi) No funds that 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 persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Company; or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) No funds have been received by the company 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 directly or indirectly lend or invest in other persons or entities in any manner whatsoever by or on behalf of the funding party (“Ultimate beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(viii) The company does not have any charge or satisfaction which is yet to be registered with ROC beyond the statutory period. NOTE - 58

The Board of Directors in its meeting held on January 28, 2023, has approved the proposal to buy-back upto 580000 fully paid up equity shares of the face value of '' 10/- at a price of '' 950/- per share payable in cash (“Buyback Price”) for a maximum amount not exceeding '' 5510 lakhs. This amount represents 7.18% of the paid-up equity share capital and free reserves as per audited financial statements of the Company for the financial year ended 31st March, 2022. The buy-back process was completed subsequent to the year end on 17th April, 2023 and 580000 shares have been extinguished.

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

For SCV & Co. LLP

Chartered Accountants

Firm Regn. No. 000235N/N500089

Munish Avasthi Naresh Jain

Chairman-cum-Managing Director Executive Director

(Sanjiv Mohan) DIN No.00442425 DIN No.00254045

Partner M.No.086066

Sandeep Sachdeva Lovlesh Verma

Place: Ludhiana Chief Financial Officer Company Secretary

Date : April 29, 2023 Membership No. A34171

---

Mar 31, 2018

NOTE 1. CORPORATE INFORMATION

Sportking India Limited (the Company) is a public limited company domicited in India and incorporated under the provisions of the Companies Act, 1956 on 15th February 1989 and has its registered office at 5/69, Guru Mansion, Padam Singh Road, Karol Bagh, New Delhi-110005. The company is engaged in manufacturing of Cotton Yarn, Synthetic Yarn and Blended Yarn and of Dyeing Activity. The Company has manufacturing units at Ludhiana and at Bathinda. The company is listed at BSE Limited (Bombay Stock Exchange)

The financial statements are approved for issue by the Company''s Board of Directors on 21st May 2018.

1. The tangible assets are hypothecated/mortgaged to secure borrowings of the company (refer note no.12)

2. All property, plant and equipment and intangible assets carried in balance sheet as at April 1,2016 are in accordance with previous GAAP.

The company has elected to regard such carrying value as deemed cost at the date of transition.

3.The company has availed the exemption available under Ind AS 101, whereas the carrying value of Property, plant and equipment has been carried forwarded at the amount as determined under the previous GAAP netting of Ind AS adjustment such as government grants and processing fee etc.. Considering the FAQ issued by the ICAI, regarding application of deemed cost, the company has disclosed the cost as at 1st April 2016 net of accumulated depreciation. However, information regarding gross block of assets, accumulated depreciation has been disclosed by the company separately as follows:

b) Rights, preferences and restrictions attached to equity shares

Each holder of Equity share is entitled to one vote per share. In the event of liquidation of the company, the holders are entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 1 :-The amount remaining unpaid on account of calls in arrear of Equity Shares of Rs. 10/- each at a premium of '' 25/- per share have been apportioned between Share Capital and Securities Premium Reserve Account in the ratio of three to seven.

The equity share capital and securities premium of Rs.14.80 Lacs and Rs.34.53 Lacs respectively are yet to be received on account of calls unpaid as on 31st March 2018 (Rs.16.20 Lacs and Rs.37.81 Lacs as on 31st March 2017)

Rights, preferences and restrictions attached to preference shares

Preference shares are having preference over equity shares in respect of payment of 5% dividend and repayment of capital over equity shareholders and is entitled to voting rights in the resolutions directly affecting their interest and on all resolution at every meeting of the company if the dividends to them are in arrears for the two financial years immediately preceding the last meeting or for any three years during the period of six years ending with the financial years preceeding the last meeting. Preference shares are redemable within 20 years from the date of allotment.

# Liability component of 5% Redeemable Non Cumulative Preference Shares includes unwinding of interest of Rs.49.99 Lacs upto 31st March 2018 (Rs. 24.38 Lacs upto 31st March 2017) using effective interest method to the liability component.

i) The term loans from State Bank of India, Punjab National Bank, Central Bank of India, Punjab and Sind Bank and Allahabad Bank are secured against a) first pari-pasu charge on hypothecation and Mortgage of all present and future Plant and Machinery and Land/Building of the Company situated at Village Meharban / Village Kanech / Village Barmalipur, Ludhiana and Village Jeeda, Bathinda. b) second pari-pasu charge on hypothecation of current assets of the company and c)first pari pasu charge on equitable mortgage of commercial land and building situated at Village Barmalipur, Ludhiana owned by Sh. Raj Kumar Avasthi (Chairman and Managing Director)and Sh.Munish Avasthi (Managing Director)

These term loans are further guaranteed by Sh. Raj Kumar Avasthi (Chairman and Managing Director) and Sh. Munish Avasthi (Managing Director).

ii) The term loans from ICICI Bank Limited,AXIS Bank Limited are secured against hypothecation of respective vehicles.

iii) The Loan of Rs.100.00 Lacs from Sh. Munish Avasthi (Managing Director) carry NIL interest and is not repayable before 31.03.2019

iv) The Company has not defaulted in repayment of loans and interest .

v) Terms of repayment of term loans including acceptance payable / buyer credit forming part of term loans.

ii) The Working capital borrowings (Cash Credit / Export Packing Credit) and Acceptances Payable/ Buyer Credit/Letter of Credit from consortium member banks viz. State Bank of India,(Earlier State Bank of Patiala also), Punjab and Sind Bank, Central Bank of India and Punjab National Bank are secured against first pari-pasu charge on all the current assets of the company including raw material, consumable stores and spares, stock in process, finished goods, bills, book debts and receivables and further collaterally secured against second charge on the Property, Plant and Equipment of the company at Village Meharban, Village Kanech, Village Barmalipur, Ludhiana, Village Jeeda Bathinda and equitable mortgage of commercial land and building situated at Village Barmalipur, Ludhiana owned by Sh. Raj Kumar Avasthi (Chairman and Managing Director) and Sh. Munish Avasthi (Managing Director)

iii) The working capital borrowings (Pledge of Warehouse Receipts) from State Bank of India and Punjab National Bank are secured against pledge of warehouse receipts of the raw cotton bales stored in approved warehouse.

These working capital borrowings are further guaranteed by Sh. Raj Kumar Avasthi (Chairman cum Managing Director) and Sh. Munish Avasthi (Managing Director)

iv) Working capital loans are repayable on demand.

NOTE 2. First time adoption of Ind AS

This financial statement is the first financial statement that has been prepared in accordance with Ind AS together with the comparative period data as at and for the year ended 31st March 2017, as described in the summary of significant accounting policies. The transition to Ind AS has been carried out in accordance with Ind AS 101 -''First time adoption of Indian Accounting Standards'' with 1st April 2016 as the transition date.

This note explains the exemptions availed by the company on first time adoption of Ind AS and the principal adjustments made by the Company in restating its Indian GAAP financial statements as at 1st April 2016 and financial statements as at and for the year ended 31st March 2017 in accordance with Ind AS 101.

Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has, accordingly, applied following exemptions:

a) The Company has elected to consider carrying amount of all items of property, plant and equipments measured as per Indian GAAP as recognized in the financial statements as at the date of transition, as deemed cost at the date of transition. The effect of consequential changes arising on the application of other Ind AS has been adjusted to the deemed cost of Property, Plant & Equipment.

b) The Company has availed the exemption of fair value measurement of financial assets or liabilities at initial recognition and accordingly will apply fair value measurement of financial assets or liabilities at initial recognition prospectively to transactions entered into on or after 01st April 2016.

c) The estimates at 1st April 2016 and at 31st March, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items under Indian GAAP did not require estimation:

- Fair values of Financial Assets & Financial Liabilities

- Impairment of financial assets based on expected credit loss modal

- Discount rates

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions as at 1st April, 2016 and 31st March, 2017.

Notes to the reconciliation of equity as at 1st April 2016 and 31st March 2017 and Total comprehensive income for the year ended 31st March 2017

1. Financial instruments measured at amortized cost

Under Indian GAAP, interest free loan from directors are recorded at their transaction value. Under Ind AS, these loans are to be measured at amortized cost on the basis of effective interest rate method. Due to this, long term borrowings have been decreased with Rs.13.47 lakhs as on 31st March 2017 (1st April 2016 Rs.19.50 lakhs). The difference between carrying amount and amortized cost has been recognized as ''Deferred interest income''. The said deferred interest income has been recognized under the head ''Other non current liabilities'' (31st March 2017 Rs.6.98 lakhs 1st April 2016 Rs.13.47 lakhs) and ''Other current liabilities'' (31st March 2017 Rs.6.49 lakhs 1st April 2016 Rs.6.03 lakhs).

Further, finance cost for the year ended 31st March 2017 has been increased by Rs.6.03 lakhs which is offset by the notional interest income of Rs.6.03 lakhs under the head ''Other Income''

2. Borrowings

Under Indian GAAP, transaction costs incurred in connection with borrowings are amortised upfront and are either charged to profit or loss for the period or are capitalized in property, plant and equipments.

Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and are either charged to profit or loss or are capitalized in property, plant and equipments using the effective interest method over the period of loan. This has resulted a decrease in long term borrowings on account of unamortized amount of processing charges with Rs.85.45 lakhs as on 31st March 2017 (1st April 2016 Rs.117.55 lakhs). This has resulted a corresponding decrease in retained earnings and property, plant and equipments with Rs.40.27 lakhs and Rs.125.71 lakhs respectively as on 31st March 2017 (1st April 2016 Rs.32.07 lakhs and Rs.149.62 lakhs respectively). This has also resulted in net decrease of Rs.8.17 lakhs in the profit for the year ended 31st March 2017 having effect of decrease of Rs.23.91 lakhs in depreciation and amortization expenses and increase in finance cost of Rs.32.10 lakhs

3. Capital grant

Under Indian GAAP, certain capital grant received from Government as ''Promoter Contribution'' is shown under the head ''Capital reserve''. Under Ind AS, such grant is treated as deferred income and is recognized as income over the useful life of the assets for which such grant is received. This has resulted a decrease in Capital reserve of Rs.90.00 lakhs as on 31st March 2017(1st April 2016 Rs.90.00 lakhs) with a corresponding adjustment in retained earnings.

4. Defined benefit obligation

Under Ind AS, remeasurements i.e actuarial gains and losses are to be recognized in ''Other comprehensive income'' and are not to be reclassified to profit and loss in a subsequent period. Under the Indian GAAP, these remeasurements were forming part of the profit or loss. Therefore, actuarial loss amounting to Rs.6.50 lakhs for the financial year ended 31st March 2017 has been recognized in OCI (net of taxes of Rs.2.25 lakhs) which was earlier recognized Employee benefits expense. However, the same has no impact on the total equity as at 31st March, 2017.

5. Sale of goods

Under I ndian GAAP, sale of goods was presented as net of excise duty. However, under I nd AS, sale of goods includes excise duty. Thus, sale of goods under Ind AS has increased by Rs.145.47 lakhs with a corresponding increase in other expenses as on 31st March, 2017.

6. Bill discounted against debtors

Under Indian GAAP, bills discounted against debtors were shown as contingent liability. How ever, the same falls under the category of ''Financial instruments'' under Ind AS. Therefore, the bills discounted amounting to Rs.9,573.14 lakhs and Rs.10,993.75 lakhs as on 31st March 2017 and 1st April 2016 respectively have been shown under ''Short term borrowings'' with a corresponding adjustment in ''Trade receivables''. However, the same has no impact on the total equity as at 31st March, 2017 and 1st April, 2016.

7. Non-Convertible preference shares

The Company has issued non cumulative non convertible redeemable preference shares. Under Indian GAAP, the preference shares were classified as equity. Under Ind AS, the same has been treated as a financial liability as per criteria mentioned in Ind AS 32 and interest on said financial liability is recognised using the effective interest method. On account of this, the share capital is reduced by Rs.851.62 lakhs as on 31st March, 2017 (1st April 2016: Rs.851.62 lakhs) with a corresponding increase in long term borrowings of Rs.512.06 lakhs as on 31st March 2017 (1st April 2016 Rs.487.67 lakhs) and other equity of Rs.339.56 lakhs as on 31st March 2017 (1st April 2016 Rs.363.95 lakhs).This has also resulted increase in finance cost of Rs.24.39 lakhs for the year ended 31 st March 2017on account of unwinding of interest which has lead to decrease in the net profit with the said amount.

8. Deferred tax

Under Indian GAAP, deferred tax was recognized for the temporary timing differences which focus on differences between taxable profits and accounting profits for the period. Ind AS requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. Further, the application of Ind AS has resulted in recognition of deferred tax on certain temporary differences which was not required under Indian GAAP Accordingly, deferred tax adjustments have been recognised in correlation to the underlying transactions in retained earnings/OCI in accordance with Ind AS. This has resulted decrease in deferred tax liability of Rs.14.00 lakhs and Rs.11.00 lakhs as at 31st March 2017 and 1st April 2016 respectively. The net profit for the year ended 31st March 2017 has been decreased with Rs.3.00 lakhs with a corresponding adjustment in ''Deferred tax liability''.

9. Statement of cash flows

The transition from Indian GAAP to Ind AS has not had a material impact on statement of cash flows.

3 (A) Fair Value Measurement

(i) Fair Value hierarchy

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

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly(i.e. as prices) or indirectly (i.e. derived from prices) Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Note: Based on legal advice, discussions with the solicitors, etc., the management believes that there is fair chance of decisions in the company''s favour in respect of all the items listed above and hence no provision is considered necessary against the same. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the company''s financial position and results of operations.

Note: During the financial year 2017-18, the amount of Duty saved on import of spares under EPCG license has been charged to expense for Rs.16.45 Lakhs and duty saved on import of Capital goods under EPCG license has been capitalized for Rs.1.16 Lakhs and corresponding effect of the both amounts has been offset with Deferred Income EPCG Obligations account.

NOTE - 4

Amortization of Intangible Assets

Software purchased and expenditure on power lines have been amortized @20% on straight line basis as the useful life has been estimated to be not more than five years.

NOTE - 5

Impairment of Assets

In accordance with Ind AS-36 on "Impairment of Assets" the Company has assessed as on the balance sheet date, whether there are any indications with regard to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.

NOTE-6

Earning Per Share

The calculation of Earning per Share (EPS) as disclosed in the statement of profit and loss has been made in accordance with Indian Accounting Standard (Ind AS)-33 on "Earning per Share"

NOTE – 7 LEASE EXPENSES

The company has entered into operating leases for its godowns, land, building, guest house and residential house that are renewable on a periodic basis. The company has not entered into sub-lease agreements in respect of these leases. The lease rentals charged in the statement of profit and loss for the year is Rs.20.87 Lacs (Previous year is Rs.17.50 Lacs).

LEASE INCOMES

The company has entered into operating leases for its land and building that are renewable on a periodic basis. The lease rentals incomes booked in the statement of Profit and Loss for the year is Rs.4.03 Lakhs (Previous year is Rs.4.22 Lakhs).

(j) The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 13.00 years (Previous Year: 14.00 years).

(k) The expected contribution to the trust during the next year is Rs.680.56 Lakhs (Previous Year Rs.605.66 Lakhs)

NOTE-8 Financial Risk Management

The principal financial assets of the Company include loans, trade and other receivables, and cash and bank balances that derive directly from its operations. The principal financial liabilities of the company include loans and borrowings, trade and other payables and the main purpose of these financial liabilities is to finance the day to day operations of the company.

The company is exposed to market risk, credit risk and liquidity risk. The company''s senior management oversees the management of these risks and that advices on financial risks and the appropriate financial risk governance framework for the company

This note explains the risks which the company is exposed to and policies and framework adopted by the company to manage these risks:

(i) Market Risk

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

a) Foreign currency risk

The company operates internationally and business is transacted in several currencies. The export sales of company comprise around 55% of the total sales of the company, Further the company also imports certain assets and material from outside India. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently the company is exposed to foreign currency risk and the results of the company may be affected as the rupee appreciates/ depreciates against foreign currencies. Foreign exchange risk arises from the future probable transactions and recognized assets and liabilities denominated in a currency other than company''s functional currency.

The company measures the risk through a forecast of highly probable foreign currency cash flows and manages its foreign currency risk by appropriately hedging the transactions. The Company uses a combination of derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The following table summarizes the company''s exposure foreign currency risk from financial instruments at the end of each reporting period:

b) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates.

As the Company has no significant interest-bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates, which are included in interest bearing loans and borrowings in these financial statements. The company''s fixed rate borrowings are not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Cash flow sensitivity analysis for variable rate instruments

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. A change of 100 basis points in interest rates for variable rate instruments at the reporting date would have increased/(decreased) profit or loss for the below years by the amounts shown below. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

c) Investment Risk:

Company has not made any investments hence it is not exposed to investment risk.

(ii) Liquidity Risk

The financial liabilities of the company, other than derivatives, include loans and borrowings, trade and other payables. The company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations.

The company monitors its risk of shortage of funds to meet the financial liabilities using a liquidity planning tool. The company plans to maintain sufficient cash and marketable securities to meet the obligations as and when fall due.

The below is the detail of contractual maturities of the financial liabilities of the company at the end of each reporting period:

(iii) Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables which are typically unsecured. Credit risk on cash and bank balances is limited as the company generally invests in deposits with banks and financial institutions with high credit ratings assigned by credit rating agencies. The Company''s credit risk in case of all other financial instruments is negligible.

The company assesses the credit risk based on external credit ratings assigned by credit rating agencies. The company also assesses the creditworthiness of the customers internally to whom goods are sold on credit terms in the normal course of business. The credit limit of each customer is defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to overseas customers are generally covered by letters of credit.

The impairment analysis is performed on client to client basis for the debtors that are past due at the end of each reporting date. The company has not considered an allowance for doubtful debts in case of trade receivables that are past due but there has not been a significant change in the credit quality and the amounts are still considered recoverable.

The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables as disclosed at Note 6.

Write off policy

The financials assets are written off in case there is no reasonable expectation of recovering from the financial asset.

NOTE-9

Capital Management

The capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The primary objective of the company''s capital management is to maintain optimum capital structure to reduce cost of capital and to maximize the shareholder value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants which otherwise would permit the banks to immediately call loans and borrowings. In order to maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

(a) The trade receivables include Rs.2854.17 lakhs due from the firms and private companies in which any director is a partner or a director or a member.

(b) The advances to suppliers include Rs.1183.13 lakhs due from the firms and private companies in which any director is a partner or a director or a member.

(c) The trade payables include Rs.1.36 lakhs due to the firms and private companies in which any director is a partner or a director or a member.

NOTE -10

Segment Reporting

The Company''s Chief Operational Decision Makers consisting of chief executive officer and chief finance officer examines the company''s performance both from product and geographic perspective.

From product perspective, the company is a single segment company operating in textile business and disclosure requirements as contained in Ind AS- 108 ''Operating Segments'' are not required.

The transactions with any single external customer do not exceed 10% of the company''s total revenue.

NOTE -11

In accordance with provisions of section 135 of the Companies Act, 2013, a company meeting the applicable threshold, need to spend at least 2% of the average net profit for the immediate preceding three financial years on Corporate Social Responsibility (CSR) activities as defined in schedule-VII of the Companies Act 2013. The company has spent a sum of Rs. Nil (previous year Rs. Nil) towards approved Corporate Social Responsibility (CSR) activities. The unspent amount as at reporting date is Rs.38.55 Lakhs (Previous year Rs.43.92 Lakhs.)

NOTE -12

In accordance with Ind AS 18 on "Revenue" and Schedule III to the Companies Act, 2013, Sales for the previous year ended 31 March 2017 and for the period 1 April to 30 June 2017 were reported gross of Excise Duty and net of VAT/ CST. Excise Duty was reported as a separate expense line item. Consequent to the introduction of Goods and Services Tax (GST) with effect from 1 July 2017, VAT/CST, Excise Duty etc. have been subsumed into GST and accordingly the same is not recognized as part of sales as per the requirements of Ind AS 18. This has resulted in lower reported sales in the current year in comparison to the sales reported under the pre-GST structure of indirect taxes. With the change in structure of indirect taxes, certain expenses where credit of GST is available are also being reported net of taxes.

Recent Accounting pronouncements

(i) Appendix B to Ind AS 21, Foreign currency transactions and advance consideration:

On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, "Foreign Currency Transactions and Advance Consideration" which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income is the date on which an entity initially recognizes the non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration.

The amendment is applicable for annual reporting periods beginning on or after April 1, 2018. The Company has evaluated the effect of this on the financial statements and the impact is not material.

(ii) Ind AS 115- Revenue from Contract with Customers:

On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers.

The Company will adopt the standard on April 1, 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 is expected to be insignificant.

NOTE- 13 Reconciliation of Cash flow from financing Activities

In Pursuant to amendment in the Companies(Indian Accounting Standards) Rules,2017 via MCA notification G.S.R 258(E) dated 17th March, 2017 Para 44A to Para 44E has been inserted after para 44 in Indian Accounting Standard -7 "Statement of Cash Flows", following reconciliation required from beginning on or after 1st April,2017

The previous year figures have been regrouped/ restated wherever necessary.

---

Mar 31, 2014

NOTE - 1 :

CORPORATE INFORMATION

Sportking India Limited (The Company) is a public company incorporated under the provisions of the Companies Act, 1956 on 15 February 1989. The company is engaged in manufacturing of Cotton yarn, Synthetic yarn and Blended Yarn and of dyeing activity. The Company has three manufacturing units at Ludhiana and one at Bathinda.

NOTE - 2 :

a) Each holder of Equity share is entitled to one vote per share. In the event of liquidation of the company, the holders are entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

b) Prefrence shares are having preference over equity shares in respect of payment of 5% dividend and repayment of capital over equity shareholders and is entitled to voting rights in the resolutions directly affecting their interest and on all resolution at every meeting of the company on the dividends to them are in arrears for the two financial years immediately preceeding the last meeting or for any three years during the period of six years ending with the financial years preceeding the last meeting. Preference shares are redemable within 20 years from the date of allotment.

c) The amount remaining unpaid on account of calls in arrear of public issue 9,28,500 Equity Shares of Rs.10/ - each for cash at a premium of Rs. 25/- per share have been apportioned between Share Capital (Rs. 19,68,000/ - PY. Rs. 19,68,000/-) and Share Premium Account (Rs. 45,92,000/- PY Rs. 45,92,000/-) in the ratio of three to seven.

NOTE - 3 :

i) The term loans from State Bank of India, State Bank of Patiala, Punjab National Bank, Central Bank of India, Punjab & Sind Bank and Allahabad Bank are secured against a) first pari-pasu charge on hypothecation and mortgage of all present and future Plant & Machinery and Land/Building of all the works of the Company situated at Village Meharban, Ludhiana, Village Kanech, Ludhiana, Village Barmalipur, Ludhiana, Village Jida, Bathinda. b) second pari-pasu charge on hypothecation of current assets ofthe company and c) equitable mortgage of commercial land & building situated at Village Barmalipur, Ludhiana owned by Sh. Raj Kumar Avasthi (Chairman & Managing Director)& Sh. Munish Avasthi (Managing Director) These term loans are further guaranteed by Sh. Raj Kumar Avasthi (Chairman & Managing Director) & Sh. Munish Avasthi (Managing Director).

ii) The term loans from HDFC Bank Limited/ ICICI Bank Limited is secured against hypothecation of respective vehicles.

iii) The Loan of Rs. 1,00,00,000/- from Sh. Munish Avasthi (Managing Director) carry NIL interest and is not repayable before 31.03.2015

v) The Company has not defaulted in repayment of loans and interest.

) Terms of repayment of term loans including acceptance payable/ buyer credit forming part of term loans.

NOTE - 4 :

i) The Working capital borrowings (Cash Credit / Export Packing Credit) and Acceptances Payable/ Buyer Credit/ Letter of Credit/ Letter of Comfort/ Bank Guarantee Limit from consortium member banks viz. State Bank of India, State Bank of Patiala, Punjab & Sind Bank, Central Bank of India and Punjab National Bank are secured against first pari-pasu charge on all the current assets of the company including raw material, consumable stores & spares, stock in process, finished goods, bills, book debts and receivables and further collatelly secured against second charge on the fixed assets of the company at Village Meharban, Ludhiana, Village Kanech, Ludhiana, Village Barmalipur, Ludhiana, Village Jida, Bathinda and equitable mortgage of commercial land & building situated at Village Barmalipur, Ludhiana owned by Sh. Raj Kumar Avasthi (Chairman & Managing Director)& Sh. Munish Avasthi (Managing Director).

ii) The working capital borrowings (Pledge of Warehouse Receipts) from Punjab National Bank and Punjab & Sind Bank is secured against pledge of warehouse receipts of the raw cotton bales stored in approved warehouse.

These working capital borrowings are further guaranteed by Sh. Raj Kumar Avasthi (Chairman & Managing Director) & Sh. Munish Avasthi (Managing Director).

iii) Working capital loans are repayable on demand.

NOTE - 5 :

Defined Benefit Plan

The Employees' Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The estimates of rate of escalation in salary's considered in actuarial valuation and other factors such as inflation, seniority, promotion and other relevant factors including supply and demands in the employment market have been taken into account. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considered several applicable factors, mainly the composition of plan asset held, assessed risk, historical results of return on plan asset and the company's policy for the plan asset management.

NOTE - 6 :

CONTINGENT LIABILITIES

(Rs. in Lacs)

Sr. Particulars As at As at No. 31.03.2014 31.03.2013

a) Letter of Credit(s)/Bank Guarantee(s) issued by banks 63.00 63.00

b) Bills discounted with banks 12031.18 7780.09

c) Committments on account of capital account remaining to be executed (Net of Advances) out of which Letter of Credits/Bank Guarantee of Rs. 368.91 Lacs (Pr.Year Rs. 1362.50 Lacs) net of margin. 1312.03 7430.65

d) Bonds against un-fulfilled export obligations under Export Promotion Capital Goods/Duty Exemption scheme. 974.24 670.65

e) Disputed Income Tax Liabilities of cases pending with appellate authorities. 99.58 99.58

f) Provident Fund dispute pending with High Court. (Net of Margin) 8.58 8.58

g) Disputed Sales Taxes liabilities of cases pending with appellate authorities. 11.19 11.19

h) Disputed Service Taxes liabilities of cases pending with appellate authorities. 13.86 -

i) Disputed Excise Taxes liabilities of cases pending with appellate authorities. 44.87 -

j) Disputed Electricity Taxes liabilities of cases pending with appellate authorities. 415.00 -

NOTE - 7

The working capital borrowings and current account balances are net of cheques issued but not presented for payment of Rs.116194348.54 (Previous year Rs. 63568645.57/-) and that of cheques deposited but not credited of Rs. 30636899/- (Previous year Rs. 38831/- ) with net amount of Rs. 85557449.54/- (Previous Year Rs. 63529814.57/-). Accordingly, the trade payables and trade receivables are understated to the extent of Rs.116194348.54/- and Rs. 30636899/- (Previous year Rs. 63568645.57/- and Rs. 38831/-) respectively and working capital borrowings have been overstated to the extent of Rs. 85557449.54/- (Previous Year Rs. 63529814.57) and current account balances of bank are overstated to the extent of Rs. Nil /- (Previous year Nil)

NOTE - 8

Details pertaining to related party transactions in compliance of Accounting Standard-18 "Related Parties Disclosure" issued by the Institute of Chartered Accountants of India, are as under

1) Names of Related Parties and the Nature of Relationship :

a) Associate Concerns

* M/s N.R.S. Knitwear's * M/s Sportking Knitwears

* M/s Sobhagia Clothing Co. * M/s Darling Demons

* M/s Fashionable Attire * M/s Nagesh Classic

* M/s. Sobhagia Sales (P) Ltd. * M/s. Classic Wears (P) Ltd.

* M/s. Aradhana Fabrics (P) Ltd. * M/s.Marvel Dyers & Processors (P) Ltd.

* M/s. N.T.M. Shawls (P) Ltd. * M/s. Namokar Capital Services (P) Ltd.

b) Key Management Personnel

Sh. Raj Kumar Avasthi Chairman & Managing Director

Sh. Munish Avasthi Managing Director

Sh. Naresh Jain Executive Director

NOTE - 8

Accounting for leases has been done in accordance with Accounting Standard -19 issued by the Institute of Chartered Accountants of India. The details of Lease transactions for the year are as follows:

a) Finance Lease :

The Company does not have any finance lease arrangement.

b) Operating Lease;

i) Lease rentals charged in the Profit and Loss account for the year net of rent received is Rs. 12,88,000/ - (Previous year Rs. 13,73,428/-).

ii) The company has entered into operating leases for its godowns, land and machinery that are renewable on a periodic basis and cancellable at company's option. The company has not entered into sub-lease agreements in respect of these leases.

NOTE - 9

In Feburary 2014, the Hon'ble Supreme Court of India up held the order of the Hon'ble Bombay High Court and Arbitrator's award for payment of prinicipal amount of Rs. 5.94 Crs thereon with interest @ 8% p.a. from June,2008 till payment there of and arbitration cost/expenses of Rs.0.12 Crs by the company to HDFC Bank Limited in respect of the certain foreign currency option contracts purported to be entered by the bank with the company. The amount of interest due upto 31.03.2014 is Rs.2.73 Crs and the total amount of Rs.8.79 Crs due to them has now been provided in the books of accounts. The company had already paid a part amount of Rs. 4.72 Crs. to them during March 2014 and balance principal amount of Rs. 4.07 Crs alongwith further interest due will be paid in 16 monthly instalments beginning from April 2014.

NOTE - 10

a) In the opinion of the Board of Directors, the Current Assets and Loans & Advances have been stated at the realizable values.

b) The balance due to or from the parties, on whatever account, are subject to reconciliation & confirmation.

NOTE - 11

As the company is dealing only in textiles, the operations of the company are considered as a single business segment hence segment reporting under AS-17 of ICAI is not applicable.

NOTE - 12

Previous year figures have been regrouped/restated wherever necessary.

---

Mar 31, 2013

1. CORPORATE INFORMATION

Sportkmg India Limited (The Company) is a public company incorporated under the provisions of the Companies Act. 1956 on 1& February 1969 The company is engaged in manufacturing of Colton yarn, Synthetic yarn and Blended Yarn and of dyeing activity. The Company has threee manufacturing units at Ludhiana and one at Bathnda

a) Eacn holder of Equity share is entitled to one vde per share. In the event of liquidtion of the company, theholders are entitled to receive ary of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number Of equity st a ei held by the shareholders

b) Prefrenoe shares gre having preference ever equity shares in respect of payment of 5% dividend and repayment of capital over equity shareholders and is entitled to voting rrghls in the 'esolutinns cineclly affecting their interest or besides where the dividends to them ere in arrears for the two financial years immediately preced ng the meeting or far any three years during (he period of sm years ending with the financial years preceding the meeting, on all resolution at every meeting of the company Preference shares are redemable within 20 years from the dalu ol allotment

2. Defined Benefit Plan

The Employees' Gratuity Fund Scheme menaced by Life Insurance Corporation of India is a defined benefil plan. The present value of obligation is determined based on actuansl valuanan using he Projected Unit Credit Method, which recognizes each period of service as giving rtee IP adddional unit of employee benefit entitlement and measures each unit separately to but d up the 'insl obligation The oc icsl on lor leave encashment is recognized in the tame manner as graftiity

3. CONTINGENT LIABILITIES

(Rs. in Lacs)

Sr. No. Particulars As at As at 31.03.2013 31.03 2012

a) Letter of credit (s) bank Guarantee issued by banks 63.00 2.00

b) Bills discounted with banks 7780.09 7036.05

c) committments account of capital account remaining to be executed (Net of Advances) out of whith Latter pf Credit Bank Guarantee of T 1362.52 Lacs (pr year Rs. 3797 Lacs) net of margin. 7430.55 9529.90

d) Bonds against un fulfilled export obligation under Export Promotion capital goodscds.'Dut-j1 exemption scheme. 670.65 3288.55

e) Disputed income Tax liabilities of cases pending with appellate authorities. 99.58 140.42

f) Provident Fund dispute pending with High Court. (Net of Margin) 8.58 8.58

g) Disputed Sales Taxes liabilities of cases pending with appellate authorities. 11.19 11.19

Details pertaining to related party transactions in compliance of Accounting Standard-16 "Related Parties Disclosure1 issued by the- Institute of Chartered Accountants of India, are as under 1) Names of Related Parties and tho Nature of Relationship : a) Associate Concerns

* M/s MRS Knitwear's * M/s Spooking Knitwears

* M/s Sobhagia Clothing Co * M's Darting Demons

* M/S Fashionable Attire * M/s Nagesh Classic

* M/s Sobhagia Sales (P} Ltd * M.'s. Classic Wears (P) Ltd

* M/s. Aradhana Fabrics (Pi Ltd. * M/s.Marval Dyers & Processors (P) Ltd

* M/s. N.T.M. Shawls (P) Ltd. * M/S- Namgkar Cspitel Services(p)Ltd

b) Kay Management Personnel

Sh Raj Kumar Avasthi Chairman & Managing Director

Sh. Murnsh Avastni Managing Director

Sh Naresh Jam Executive Director

Accounting for leases has been done in accordance with Accounting standard -19 issued by the institute of Chartered Accountants of India. The-details ol Lease Iran sections for the year are as follows.

4. Finance Lease:

The Company does not have any finance tease arangement.

5. Operating Lease;

i) Lease rentals charged in the Profit and Loss account for the year net of rent received is Rs 13, 73,428- (Previcus year T 13. 44.975/-h

ii) The company has entered into operating leases for its godawns. land and machinery thal are renewable on a periodic basis and cancellable at companys option. The company has no! entered into sub-lease agreements in respect of these leases

There was a dispute / itigation in respect of carta in foreign currency opton contracts purporled to be entered by HDFC Bank Limited with the Company The Ld Arbilrator Has awarded in favour of the bank for payment of principal amount of Rs 5 94 Cm and interest ( cost of Rs. 1.31 Crs (based @ p a upfo 21.07.2010) and failing which payment of further interest @ 8% p.a. will be applicable for tbe delayed period, vide order dated 30th September 2010 which have bean upheld by Hon'ble High Court of Judicature al Bombay (Singly Judge) on 06lh July, 2012 The Company has Hied an appeal ago nst the said order with the division bench al the Hon'ble High Court of Jud.cature at Bombay, relying on Rtil guidelines issued to commercial banks and the bank has alsofilad a petition wrilhe HoiYble High Court of Delhi under Sec-hon 433 of the Companies Act,1956 which are Si ill pending. Based on legal advice! praceedngs in simi at mailers, the company has opted hot Ip make any provision of the 3aid amount as .

a) In the opinion of me Board of Directors the Current Assets and Loans Advances have been stated at 1he realzable values

b) The balance due lo or from the parties, onwhaieveraccount, are subject to reconciliation & confirmotion

As Ihe company s dealing Only ir teenies, theoperat ons of the company are considered as a single business segmeni hence segment report,ng under AS-17 ol ICAI ,s not applicable

6. Previous year figures have beeri regnoupedi reslated wherever necessary.

---

Mar 31, 2012

NOTE -1

1. CORPORATE INFORMATION

Sportking India Limited (The Company) is a public company incorporated under the provisions of the Companies Act, 1956 on 15 February 1989. The company is engaged in manufacturing of Cotton yarn, Synthetic yarn and Blended Yarn and of dyeing activity. The Company has three manufacturing units at Ludhiana and one at Bathinda.

NOTE -2 SHARE CAPITAL

a) Each holder of Equity share is entitled to one vote per share. In the event of liquidation of the company, the holders are entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

b) Prefrence shares are having preference over equity shares in respect of payment of 5% dividend and repayment of capital over equity shareholders and is entitled to voting rights in the resolutions directly affecting their interest or besides where the dividends to them are in arrears for the two financial years immediately preceding the meeting or for any three years during the period of six years ending with the financial years preceeding the meeting, on all resolution at every meeting of the company. Preference shares are redemable within 20 years from the date of allotment.

c) The amount remaining unpaid on account of calls in arrear of public issue 9,28,500 Equity Shares of Rs. 10/- each for cash at a premium of Rs. 25/- per share have been apportioned between Share Capital (Rs. 19,69,200/-) and Share Premium Account ( Rs. 45,94,800/-) in the ratio of three to seven.

NOTE -3 Defined Benefit Plan

The Employees' Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

NOTE - 4

CONTINGENT LIABILITIES

(Rs. in Lacs)

As at As at Sr. No. Particulars 31.03.2012 3103 2011

a) Letter of Credit(s)/Bank Guarantee(s) 2.00 617.43 issued by banks

b) Bills discounted with banks 7036.05 5182.49

c) Committments on account of capital account remaining to be executed (Net of Advances) out of which Letter of Credits/Bank Guarantee of Rs. 3797.97 Lacs (Pr. Year Rs. 4109.28 Lacs) net of margin. 9529.90 18166.35

d) Bonds against un-fulfilled export 3288.55 3971.94 obligations under Export Promotion Capital Goods/Duty Exemption scheme.

e) Disputed Income Tax Liabilities of cases 144.57 41.83 pending with appellate authorities.

f) Provident Fund dispute pending with 8.58 8.58 High Court

g) Disputed Excise duty penalties/liabilities Nil 56.27 of cases pending with authorities.

h) Disputed Sales Tax Liabilities of cases 11.19 49.12 pending with appellate authorities.

i) Disputed Service Tax Liabilities of cases Nil 22.16 pending with appellate authorities.

NOTE - 5

The working capital borrowings and current account balances are net of cheques issued but not presented for payment of Rs. 18970797/-(Previous year Rs. 119823676.30) and that of cheques deposited but not credited of Rs. 8857/-(Previous year Rs. 16645097/-) with net amount of Rs. 18961940/-(Previous Year Y103178579.30). Accordingly, the trade payables and trade receivables are understated to the extent of Rs. 18970797/- and Rs. 8857/- (Previous year Rs. 119823676.36 & Rs. 16645097/-) respectively and working capital borrowings have been overstated to the extent of Rs. 18551044/-(Previous Year Rs. 93548874.30) and current account balances of bank are overstated to the extent of Rs. 410896/- (Previous year Rs. 9629705/-)

NOTE - 6

Details pertaining to related party transactions in compliance of Accounting Standard-18 "Related Parties Disclosure" issued by the Institute of Chartered Accountants of India, are as under

1) Names of Related Parties and the Nature of Relationship :

a) Associate Concerns

M/s N.R.S. Knitwear's M/s. Sobhagia Sales (P) Ltd.

M/s Sportking Knitwears M/s. Classic Wears (P) Ltd.

M/s Sobhagia Clothing Co. M/s. Aradhana Fabrics (P) Ltd.

M/s Darling Demons M/s.Marvel Dyers & Processors (P) Ltd.

M/s Fashionable Attire M/s. N.T.M. Shawls (P) Ltd.

M/s Nagesh Classic M/s. Namokar Capital Services (P) Ltd.

b) Key Management Personnel

Sh. Raj Kumar Avasthi Chairman & Managing Director

Sh. Munish Avasthi Managing Director

Sh. Naresh Jain Executive Director

NOTE - 7

a) In the opinion of the Board of Directors, the Current Assets and Loans & Advances have been stated at the realizable values.

b) The balance due to or from the parties, on whatever account, are subject to reconciliation & confirmation.

NOTE - 8

As the company is dealing only in yarns, the operations of the company are considered as a single business segment.

NOTE - 9

Accounting for leases has been done in accordance with Accounting Standard -19 issued by the Institute of Chartered Accountants of India. The details of Lease transactions for the year are as follows:

a) Finance Lease: The Company does not have any finance lease arrangement.

b) Operating Lease;

i) Lease rentals charged in the Profit and Loss account for the year is Rs. 13,44,975/- (Previous year Rs. 4,43,230/-).

ii) The company has entered into operating leases for its godowns, land and machinery that are renewable on a periodic basis and cancellable at company's option. The company has not entered into sub-lease agreements in respect of these leases.

There was a dispute / litigation in respect of certain foreign currency option contracts purported to be entered by HDFC Bank Limited with the Company. The Ld. Arbitrator has awarded in favour of the bank for payment of prinicipal amount of Rs. 5.94 Crs and interest / cost of Rs. 1.31 Crs (based @ 8% p.a. upto 21.07.2010) and failing which payment of further interest @ 8% p.a. will be applicable for the delayed period, vide order dated 30th September, 2010 which have been upheld by Hon'ble High Court of Judicature at Bombay (Singly Judge) on 06th July, 2012. The Company has filed an appeal against the said orders with the division bench of the Hon'ble High Court of Judicature at Bombay, relying on RBI guidelines issued to commercial banks and similar cases of various business houses where recovery proceedings have been stayed by the various courts as well as legal proceedings/advice on similar matters, the company has opted not to make any provision of the said amount as awarded/upheld.

NOTE -10

Previous year figures have been regrouped/restated wherever necessary.