Notes to Accounts of Super Tex Industries Ltd.

Mar 31, 2024

(r) Provisions, contingent liabilities and contingent assets :

(i) Provision: is recognized when there is a present obligation as a result of past event and it is probable that an
outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.
Provisions are determined (as provided/charged to the Statement of Profit and Loss) based on estimate of the
amount required to settle the obligation at the Balance Sheet date and are not discounted to present value.

(ii) Contingent Liabilities: are not recognized but are disclosed in the financial statements. Claims against the
Company where the possibility of materialization is remote are not considered as contingent liabilities.

(iii) Contingent Assets: are neither recognized nor disclosed in the financial statements.

(s) Segment Reporting: The Company deals in only one product i.e.''Textiles". The Company has identified and
reported two reportable operating segments, "Domestic" and "International" in accordance with the requirements
of Ind-AS 108.

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

The Chief Operational Decision Maker monitors the operating results of its business segments separately for the
purpose of making decisions about resource allocation and performance assessment. Segment performance is
evaluated based on profit and loss and is measured consistently with profit and loss in the financial statements.
The Operating segments have been identified on the basis of the nature of products/services.

i) Segment revenue includes sales and other income directly identifiable with the segment including intersegment
revenue.

ii) Expenses that are directly identifiable with the segments are considered for determining the segment results.

Expenses which relate to the Group as a whole and not allocable to segments are included under unallocable
expenditure.

iii) Income which relates to the Group as a whole and not allocable to segments is included in unallocable income.

iv) Segment result includes margins on inter-segment and sales which are reduced in arriving at the profit before tax
of the Group.

v) Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable assets
and liabilities represent the assets and liabilities that relate to the Group as a whole and not allocable to any
segment.

(t) Other Disclosure:

a. There are no proceedings initiated or are pending against the Company for holding any benami property under the
Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

b. The Company has not entered into any transactions with struck off companies during the year.

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

d. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

e. The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such
as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

f. The Company has not been declared as a willful defaulter by any lender who has powers to declare a company as
a willful defaulter at any time during the financial year or after the end of reporting period but before the date when
the financial statements are approved.

g) The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies
Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.

h) The company has not entered into any scheme of arrangement which has an accounting impact on current
financial year

i) The company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign
entities(intermediaries), with the understanding that the intermediary shall;

i. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries), or

ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

j) The Company has not received any funds 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;

i. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate beneficiaries), or

ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

12.2 The Company has a Working Capital limit of ? 850 Lakhs from Axis Bank comprising of Fund-based limits. For the said
facility, the Company has submitted Stock and debtors statement to the bank on monthly basis.

12.3 Capital management : The Company’s capital requirement is mainly to fund its capacity expansion and repayment of
principal and interest on its borrowings. The principal source of funding of the Company has been, and is expected to
continue to be, cash generated from its operations supplemented by funding from bank borrowings. The Company is
not subject to any externally imposed capital requirements

12.4 In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
requirements. Breaches in meeting the financial covenants would permit the bank to immediately call back loans and
borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in
the current period.

12.5 The Company monitors its Capital using Gearing ratio, which is Net Debt divided to Total Equity. Net Debt includes,
Interest bearing Loans and Borrowings less Cash and Cash Equivalents, Bank balance other than Cash and Cash
Equivalents and Current Investments.

Note No. 34

Financial risk management

The Company has exposure to the following risks arising from financial instruments:

• Credit risk;

• Liquidity risk;

• Market risk;

• Currency risk; and

• Interest Rate Risk.

(i) Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company risk
management framework. The board of directors is responsible for developing and monitoring the Company risk
management policies.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training
and management standards and procedures, aims to maintain a disciplined and constructive control environment in which
all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the company''s risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The
audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of
risk management controls and procedures, the results of which are reported to the audit committee.

(ii) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company''s receivables from customers and investments in debt
securities, cash and cash equivalents, mutual funds, bonds etc.

The carrying amount of financial assets represents the maximum credit exposure.

Trade and other receivables :

The customer credit risk is managed by requiring domestic and export customers to pay advances before transfer of
ownership, therefore substantially eliminating the Company''s credit risk in this respect.

Based on prior experience and an assessment of the current economic environment, management believes that no
provision is required for credit risk wherever credit is extended to customers.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company
manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when
due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation.

The Company has obtained fund and non-fund based working capital lines from the bank. The Company also constantly
monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.

Exposure to liquidity risk :

The table below analyses the Company''s financial liabilities into relevant maturity groupings based on their contractual
maturities for:

* all non derivative financial liabilities

* net and gross settled derivative financial instruments for which the contractual maturities are essential for the
understanding of the timing of the cash flows.

(iv) Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in
market rates and prices (such as interest rates, foreign currency exchange rates ) or in the price of market risk-sensitive
instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-
sensitive financial instruments, all foreign currency receivables and payables and all short term and long-term debt. The
Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of
its investments. Thus, the Company''s exposure to market risk is a function of investing and borrowing activities and revenue
generating and operating activities in foreign currencies.

(v) Currency risk:

The company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales,
purchase, other expenses and borrowings are denominated and the functional currency of the company. The functional
currency of the company is Indian Rupees (INR). The currencies in which these transactions are primarily denominated are
USD.

From time to time, the Company uses forward exchange contracts to hedge its currency risk.

The Company, as per its risk management policy, uses foreign exchange forward contract primarily to hedge foreign
exchange. The Company does not use derivative financial instruments for trading or speculative purposes.

(vi) Interest Rate Risk:

a) Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both
fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in
variable interest rate. The Company has exposure to interest rate risk, arising principally on changes in base
lending rate. The Company uses a mix of interest rate sensitive financial instruments to manage the liquidity and
fund requirements for its day to day operations. The risk is managed by the Company by maintaining an appropriate
mix between fixed and floating rate borrowings.

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Mar 31, 2015

1. Corporate Information:

The Company was formed in 1986 and manufactures draw warped and sized yarn beams of polyester and nylon. It also manufactures textured and twisted yarns of polyester and nylon. The Company also exports these yarns and trades in textiles fabrics.

2. Related Party Disclosures

As per Accounting Standard 18, the disclosures of transactions with related parties (with whom transaction exist) are given below:

i Related Party relationships :

a Where control exists

Super Infincon P. Ltd Super Polyester Yarns Ltd.

b Key Management Personnel

G D Mishra R K Mishra S K Mishra

c Relatives of Key Management Personnel

G D Mishra A R Mishra R S Dhandh S B Sharma R S Mishra

H V Mishra R A Sharma S D Mishra U K Sharma

As At As At 31st March, 31st March, 2015 Rupees 2014 Rupees in Lacs in Lacs

3. Contingent Liabilities and Commitments

I Contingent Liabilities

A Claims against the Company/disputed liabilities not acknowledged as debt nor provided for :

i Excise duty appeal before the Gujarat 792.11 792.11 High Court*

ii Excise appeal before the Appellate 67.32 67.32 Tribunal,WZB, Ahmedabad

Total 859.43 859.43

* Excise duty of Rs 792.11 lacs (Previous Year Rs 792.11 lacs), relating to certain sales made from 4/7/1995 to 22/10/1996, was demanded by the Commissionerate, Daman, alongwith equal penalty, interest thereon and a fine of Rs 21 lacs (Previous Year Rs 21 lacs). The Company appealed against the said order with CESTAT, Ahmedabad. The CESTAT has decided in favour of the Company. The Excise department has appealed before the Gujarat High Court.

II Commitments

i Estimated amount of contracts remain to be executed on capital account and not provided 0.00 0.00 for

ii No provision for Minimum Alternate Tax(MAT) under section 115JB of the Income Tax Act, 1961 has been made in view of legal opinion received by the Company.

4. The Sales Tax assessments at Silvassa and Dharampur are completed upto F.Y. 2011-12 and F.Y. 2010-11 respectively. The income tax assessment of the Company is completed upto A.Y.2011-12.

5. Previous Year's figures have been re-grouped/re-arranged wherever necessary.

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Mar 31, 2014

1 Corporate Information :

The Company was formed in 1986 and manufactures draw warped and sized yarn beams of polyester and nylon. It also manufactures textured and twisted yarns of polyester and nylon. The Company also exports these yarns and trades in textiles fabrics.

2. 15,00,000 Shares of Rs. 10/- each out of the Issued, Subscribed and Paid-up Share Capital were alloted in the last five years pursuant to exercise of warrants.

3. Buildings include cost of 15 shares of Rs. 50/- each in Balkrishna Krupa Co-operative Hsg. Soc. Ltd.

3.1 $ includes Office Equipments

4. General description of Lease terms:

(a) Lease rentals are charged on the basis of agreed terms

(b) Assets are taken on lease over a period of 3 to 5 years

5. Defined Benefit Plan :

Group Gratuity Scheme of LIC of India

Assumptions used for Acturial valuation (Gratuity) : Discount Rate : 8%, Salary Escalation Rate : 5%, Rol on PA : 7.28% Assumption used for Acturial valuation (Leave) : Discount Rate : 8%, Salary Escalation Rate : 5%, RetirementAge : 65 Yrs, Withdrawal Rates 1% p.a., Mortality Table (LIC1994-96) Ultimate, Projected Unit Credit Method

As At As At 31st March, 2014 31st March, 2013 Rupees in Lacs Rupees in Lacs

6. Contingent Liabilities and Commitments

I Contingent Liabilities

A Claims against the Company/ disputed liabilities not acknowledged as debt nor provided for :

i) Excise duty appeal before the Gujarat High Court* 792.11 792.11

Total 792.11 996.04

*Excise duty of Rs. 792.11 lacs (Previous Year Rs. 792.11 lacs), relating to certain sales made from 4/7/1995 to 22/10/1996, was demanded by the Commissionerate, Daman, alongwith equal penalty, interest thereon and a fine of Rs. 21 lacs (Previous Year Rs. 21 lacs). The Company appealed against the said order with CESTAT, Ahmedabad. The CESTAT has decided in favour of the Company. The Excise department has appealed before the Gujarat High Court.

II Commitments

i) Estimated amount of contracts remaining to be executed on capital account and not provided for 0.00 12.00

ii) No provision for Minimum Alternate Tax(MAT) under section 115JB of the Income Tax Act, 1961 has been made in view of legal opinion received by the Company.

7. The Sales Tax assessments at Silvassa and Dharampur are completed upto F.Y. 20011-12 and F.Y. 2009-10. The income tax assessments of the Company are completed upto A.Y.2011-12.

8. Previous Year''s figures have been re-grouped/re-arranged wherever necessary.

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Mar 31, 2013

1. Corporate Information :

The Company was formed in 1986 and manufactures draw warped and sized yarn beams of polyester and nylon. It also manufactures textured and twisted yarns of polyester and nylon. The Company also exports these yarns and trades in textile fabrics.

1.1 The Share warrants convertible into equity shares within 18 months from 23/11/2010 got lapsed due to non-exercise of right by the allotees by 23/05/2012. The application money received thereon Rs. 531.00 lacs has been transferred to Capital Reserve.

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Mar 31, 2012

1.1 15,00,000 Shares of Rs. 10/- each out of the Issued, Subscribed and Paid-up Share Capital were alloted in the last five years pursuant to exercise of warrants.

2.1 The Company had allotted 9 crore equity share warrants on 23/11/2010. These share warrants were convertible into equal number of equity shares at the option of the holder within 18 months from the date of allotment. As per SEBI (ICDR) Regulations, the Company had received upfront money towards consideration from the allottees. Since the holders of the warrants did not exercise their right to convert their warrants into equity shares by the last date of exercise of such right which was 23/05/2012, the share warrants issued got lapsed. The Company will take the necessary steps in this regard in the ensuing year.

3.1 Buildings include cost of 30 shares of Rs. 50/- each in Balkrishna Krupa Co-operative Hsg. Soc.Ltd

3.2 Additions to Buildings include reversal of excess write-off during 2010-11

3.3 $ includes Office Equipments

3.4.1 In respect of Fixed Assets acquired on finance lease on or after 1st April, 2001, the minimum lease rentals outstanding as on 31st March, 2012 are as follows :

3.4.2 General description of Lease terms:

(a) Lease rentals are charged on the basis of agreed terms

(b) Assets are taken on lease over a period of 3 to 5 years

Assumptions used for Actuarial valuation (Gratuity) : Discount Rate : 8%, Salary Escalation Rate : 4%, Assumption used for Actuarial valuation (Leave) : Discount Rate : 8%, Salary Escalation Rate : 5%, Retirement Age : 65 Yrs, Withdrawal Rates 1% p.a., Mortality Table (LIC1994-96) Ultimate, Projected Unit Credit Method

4 Related Party Disclosures

As per Accounting Standard 18, the disclosures of transactions with related parties are given below:

i Related Party relationships :

a Where control exists Super Infincon P. Ltd Super Polyester Yarns Ltd.

b Key Management Personnel

S S Mishra R K Mishra

S K Mishra

c Relatives of Key Management Personnel

B K Sharma

S B Sharma A B Sharma R S Dhandh

5 Contingent Liabilities and Commitments I Contingent Liabilities

A Claims against the Company/disputed liabilities not acknowledged as debt nor provided for :

i) Claims by the Sales tax department in respect of earlier years. appealed by the Company - 2,18,36,704

Less : Paid/provided for out of the above - 14,43,911

Total - 2,03,92,793

ii) Excise duty of Rs. 792.11 lacs (Previous Year Rs. 792.11 lacs), relating to certain sales made from 4/7/1995 to 22/10/1996, was demanded by the Commissionerate, Daman, alongwith equal penalty, interest thereon and a fine of Rs. 21 lacs (Previous Year Rs. 21 lacs). The Company appealed against the said order with CESTAT, Ahmedabad. The CESTAT has decided in favour of the Company. The Excise department has appealed before the Gujarat High Court.

ii) No provision for Minimum Alternate Tax(MAT) under section 115JB of the Income Tax Act, 1961 has been made in view of legal opinion received by the Company.

6 Segment Reporting

As the Company deals in only one segment i.e."Textiles", there are no reportable business segments. There are also no reportable geographical segments.

7 The Sales Tax assessment at Silvassa is completed upto F.Y 2004-05 and at Dharampur upto F.Y. 2008-09. The income tax assessment of the Company is completed upto A.Y.2010-11.

8 Previous Year's figures have been re-grouped/re-arranged wherever necessary.

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Mar 31, 2011

Contingent liabilities :

(a) Guarantees given by bank Rs Nil (Previous Year Rs Nil)

(b) Claims against the Company not acknowledged as debt nor provided for:

31.03.2011 31.03.2010 Rs.Lacs Rs. Lacs

i. Claims raised by the Sales Tax department in respect of earlier years disputed by the Company and appealed against 218.36 167.72

Less : Paid/(Provided)for out of the above 14.43 11.28

Total 203.93 156.44

Note : Excise duty of Rs 792.11 lacs, relating to certain sales made, from 4.07.1995 to 22.10.1996, was demanded by the Commissionerate, Daman, alongwith equal penalty, interest thereon and a fine of Rs 21 lacs. The Company appealed against the said order with CESTAT, Ahmedabad. The CESTAT had decided in favour of the Company. The Excise department has appealed before the High Court.

(c) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 683.82 lacs (Previous Year Rs. Nil).

(d) No provision for Minimum Alternate Tax (MAT) under the Income tax Act, 1961, has been made in view of the legal opinion received by the Company.

2. Disclosures pursuant to Accounting Standard-15 "Employee Benefits" :

3. The Sales tax assessment at Silvassa and Dharampur is completed upto F.Y. 2004-05 and 2006-07 respectively. The Income tax assessment of the Company is completed upto A.Y. 2008-09.

4. The Company is not required to obtain any licence under the Industrial Development and Regulations Act. Therefore the details of licenced capacity are not applicable. The installed capacity could not be worked out due to complexity of different deniers used. However, the Company has registered itself with the Textile Commissioner as a medium scale unit for Texturising, Twisting and Doubling of Art Silk yarns at Silvassa. The Company is also registered with the Secretariat of Industrial Approvals for its unit at Dharampur.

5. The Company is no longer a sick industrial company within the meaning of section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985. It was discharged from the purview of the Act vide order dated 18/06/2010.

6. The Company has issued 900 lacs equity share warrants of Rs 2,124 lacs @ Rs 2.36 per warrant on preferential basis to be converted into equity shares of Re 1/- each at a premium of Rs 1.36 per share within 18 months from the date of allotment. Rs 531.00 lacs has been paid up on the warrants.

7. Previous Year's figures have been regrouped/rearranged wherever necessary. Figures in brackets relate to the previous year.

8. Loans and advances include housing loan of Rs 1.11 lacs (Previous Year Rs 2.78 lacs) due from a director(approved by the Central Government). Maximum balance during the year Rs 2.78 lacs (Previous Year Rs 4.44 lacs).

9. Related party Disclosure (as identified by the Management) :

(i) Related party relationships :

a) Where control exists

Super Infincon Pvt. Ltd. Super Polyester Yarns. Ltd. Prajapati Mercantile Pvt. Ltd. P & M Distribution Pvt. Ltd.

b) Key Management Personnel :

Shri S S Mishra Shri R K Mishra Shri S K Mishra

c) Relatives of Key Management Personnel :

Shri B K Sharma

Shri N L Mishra & family

Smt R S Dhandh

Smt. S B Sharma

Ms. A B Sharma

10. Excise credit at the year end of Rs 72.54 lacs (Previous Year Rs 73.16 lacs) has not been accounted as, according to the management, the same is not realizable.

11. Segment Reporting : As the Company deals in only one segment i.e "Textiles", there are no reportable business segments. There are also no reportable geographical segments.

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Mar 31, 2010

1. Contingent liabilities :

(a) Guarantees given by bank Rs Nil (Previous Year Rs Nil)

(b) Claims against the Company not acknowledged as debt nor provided for:

31.03.2010 31.03.2009

Rs.Lacs Rs. Lacs

i. Claims raised by the Sales Tax department in respect of earlier years disputed by the Company and appealed against 167.72 35.03

Less : Paid/(Provided) for out of the above 11.28 7.93

Total 156.44 27.10

Note : Excise duty of Rs 792.11 lacs, relating to certain sales made, from 4.07.1995 to 22.10.1996, was demanded by the Commissionerate, Daman, alongwith equal penalty, interest thereon and a fine of Rs 21 lacs. The Company appealed against the said order with CESTAT, Ahmedabad. The CESTAT had decided in favour of the Company. The Excise department has appealed before the High Court.

2. The Company is not required to obtain any licence under the Industrial Development and Regulations Act. Therefore the details of licenced capacity are not applicable. The installed capacity could not be worked out due to complexity of different deniers used. However, the Company has registered itself with the Textile Commissioner as a medium scale unit for Texturising, Twisting and Doubling of Art Silk yarns at Silvassa. The Company is also registered with the Secretariat of Industrial Approvals for its unit at Dharampur.

3. The Company has implemented all the terms of the sanctioned scheme and its net worth is positive, consequently the Company has made an application for discharge of its case under BIFR, from the purview of SICA.

4. In terms of the sanctioned scheme, the Company has converted share warrants of Rs 150.00 lacs into equity share capital at par on 30/03/2010.

5. Previous Years figures have been regrouped/rearranged wherever necessary. Figures in brackets relate to the previous year.

6. Loans and advances include housing loan of Rs 2.78 lacs (Previous Year Rs 4.44 lacs) due from a director (approved by the Central Government). Maximum balance during the year Rs 4.44 lacs (Previous Year Rs 6.11 lacs).

7. Related party Disclosure (as identified by the Management) :

(i) Related party relationships :

a) Where control exists

Super Infincon Pvt. Ltd.

Super Polyester Yarns. Ltd.

b) Key Management Personnel : Shri. S. S. Mishra

Shri. R. K. Mishra

Shri. S. K. Mishra

c) Relatives of Key Management Personnel :

Shri B.K. Sharma (Related to Shri S.S. Mishra, Shri R.K. Mishra & Shri S.K. Mishra)

8. Excise credit at the year end of Rs 73.16 lacs (Previous Year Rs 73.16 lacs) has not been accounted as, according to the management, the same is not realizable.

9. Segment Reporting : As the Company deals in only one segment i.e "Textiles", there are no reportable business segments. There are also no reportable geographical segments.

10. Debit and credit balances are subject to confirmation and reconciliation.

11. In view of brought forward losses no provision for taxation is considered necessary as per the Income Tax Act, 1961.