Notes to Accounts of United Textiles Ltd.

Mar 31, 2024

3.14 Provisions and contingencies
Provisions

Provisions are recognised 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 equivalent period government securities interest rate. Unwinding of the discount is recognised in the

Statement of Profit and Loss as a finance cost. Provisions are reviewed at each balance sheet date and are adjusted to
reflect the current best estimate.

Contingencies

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which wil I
be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the Company ora present obligation that arises from past events where It Is either not probable that an outflow
of resources will be required to settle or a reliable estimate of the amount cannot be made. Information on contingent
liability Is disclosed In the Notes to the Financial Statements. Contingent assets are not recognised. However, when the
realisation of Income Is virtually certain, then the related asset Is no longer a contingent asset, but It Is recognised as an
asset.

3.15 Leases

The Company assesses whether a contract Is or contains a lease, at Inception of a contract A contract Is, or contains, a
lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration.

To assess whether a contract conveys the right to control the use of an Identified asset, the Company assesses whether
(1) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the
lease and

(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognises a right-of-use asset (''ROU") and a corresponding
lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short
term leases} and leases of low value assets. For these short term and leases of low value assets, the Company recognises
the lease payments as an operating expense on a straight-line basis over the term of the lease.

And in case entity is lessor, it Identifies whether the lease is defined as finance or operating lease as per the criteria given In
Ind As 116.

In case of Operating lease, an entity recognises lease payment as Income on straight line basis
In case of Finance lease, an entity initial measurement
(i) derecognises the carrying amount of underlying assets
(It) recognise the net investment in lease
(iii) recognise profit and loss on selling profit or selling loss

and on subsequent measurement, entity recognises finance income over the lease period and reduces the net investment
in the lease for lease payment received and recognise income from any variable lease payments and recognises any
impairment of the net investment In the lease

3.16 Current /non-current classification

The Company presents assets and liabilities In statement of financial position based on current/non-current classification.

The Company has presented non-current assets and current assets before equity, non-current liabilities and current
liabilities in accordance with Schedule III, Division II of Companies Act, 2013 notified by MCA.

An asset Is classified as current when It Is:

a) Expected to be realised or intended to be sold or consumed in normal operating cycle,

b) Held primarily for the purpose of trading,

c) Expected to be realised within twelve months after the reporting period, or

d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability lor at least twelve

months after the reporting period.

All other assets are classified as non-current.

A liability Is classified as current when:

a) It Is expected to be settled In normal operating cycle,

b) It Is held primarily for the purpose of trading,

c) It is due to be settled within twelve months after the reporting period, or

d) There Is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period.

All other liabilities are classified as non-current.

The operating cycle Is the time between the acquisition of assets for processing and their realisation in cash or cash
equivalents.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

3.17 Recent accounting pronouncements:

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies
[Indian Accounting Standard} Rules as issued from time to time. For the year ended March 31,2024, MCA has not notified
any New Standard or amendments to the existing standard applicable to Company.

4. Critical accounting estimates, assumptions and Judgements

In the process of applying the Company''s accounting policies, management has made the following estlmates,assumpt!ons
and judgements, which have significant effect on the amounts recognised in the financial statement:

(a) Allowance for uncollected accounts receivable and advances

Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate allowances for
estimated irrecoverable amounts. Individual trade receivables are written off when management deems them not to be
collectible.

(b) Income taxes

Management judgment is required for the calculation of provision for Income taxes and deferred tax assets and liabilities.
The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates
may differ from actual outcome which could lead to significant adjustment to the amounts reported in the financial
statements.

(c) Contingencies

Management judgement is required for estimating the possible outflow of resources, if any, in respect of
contingencies/clalrri/llegations against the Company as it is not possible to predict the outcome of pending matters with
accuracy.

5. Finandal risk management
Financial risk factors

The Company''s principal financial liabilities, comprise borrowings, trade and other payables. The main purpose of these
financial liabilities Is to manage finances for the Company''s operations. The Company has short term current Investments
only. The Company''s activities expose it to a variety of financial risks:

i) Market risk

Market risk Is the risk that the fair value or future cash flows of a financial Instrument will fluctuate because of changes In
market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other risk which is equity
price risk and commodity risk.The Company is not exposed to the aforesaid risk as the Company does not have any
transactions In foreign currency and its borrowings accounted for on account of preference capital is at fixed rate of
interest.

ii) Credit risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss.

iii} Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet Its present and future cash and collateral obligations
without Incurring unacceptable lasses.

The Company''s overall risk management programme focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the Company''s financial performance.

Market Risk

The sensitivity analysis excludes the Impact of movements in market variables on the carrying value of post-employment
benefit obligations provisions and on the non-financial assets and liabilities. The sensitivity of the relevant Statement of
Profit and Loss item is the effect of the assumed changes in the respective market risks. The Company’s activities expose it
to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates.
However, such effect Is not material.

(a) Interest rate risk and sensitivity

The Comapny''s exposure to the risk of changes In market Interest rates relates primarily to the
Company''s long term debt obligations with floating interest rates, any changes in the Interest rate
environment may Impact future cost of borrowing.

With all other variables held constant, the following table demonstrates the impact of borrowing cost
on floating rate portion of loans and borrowings.

Credit risk

The Company is exposed to credit risk from its operating activities [primarily trade receivables) and from its financing activities,
including deposits with banks and financial Institutions and other financial instruments.

¦ Trade Receivables

The Company extends credit to customers In normal course of business. The Company considers factors such as credit track
record in the market and past dealings for extension of credit to customers. The Company monitors the payment track record
of the customers. Outstanding customer receivables are regularly monitored. The Company evaluates the concentration of
risk with respect to trade receivables as low, as Its customers are located in several Jurisdictions and industries and operate in
largely Independent markets.

Liquidity risk

The Company''s objective Is to maintain optimum levels of liquidity to meet Its cash and collateral requirements.. In case of
temporary short fall In liquidity to repay the bank borrowlng/operatlonal short fall , the company uses mix of capital
Infusion and borrowing from Its holding company. However, the company envisage that such short fall Is temporary and
the company would generate sufficient cash flows as per approved projections.

The Company is required to maintain ratios (including total debt to EBITDA / net worth, EBfTDA to gross interest, debt
service coverage ratio and secured coverage ratio) as mentioned in the loan agreements at specified levels. In the event of
failure to meet any of these ratios these loans become callable at the option of lenders, except where exemption is
provided by lender.

Capital risk management

The Company aim to manage Its capital efficiently so as to safeguard Its ability to continue as a going concern and to
optimise returns to our shareholders. 20

The capital structure of the Company Is based on management''s Judgement of the appropriate balance of key elements In
order to meet its strategic and day-to-day needs. We consider the amount of capital In proportion to risk and manage the
capital structure In light of changes In economic conditions and the risk characteristics of the underlying assets. In order to
maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return
capital to shareholders or issue new shares.

Fair Value hierarchy

The Company measures financial instruments at fair value in accordance with the accounting policies mentioned above.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement Is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:

Fair values are categorised Into different levels In a fair value hierarchy based on the Inputs used In the valuation
techniques as follows:

• Level 1: Quoted prices/NAV for Identical Instruments in an active market;

• Level 2: Directly or Indirectly observable market inputs, other than Level 1 Inputs; and

• Level 3: Inputs which are not based on observable market data.

For assets and liabilities which are measured at fair value as at Balance Sheet date, the classification of fair

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the
inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the
lair value measurement Is categorised In Its entirety In the same level of the lair value hierarchy as the lowest level Input
that is significant to the entire measurement. The Company recognises transfers between levels of the fair value hierarchy
at the end of the reporting period during which the change has occurred.

Fair value hierarchy

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities, grouped Into Level 1
to Level 2 as described below:

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

Following table describes the valuation techniques used and key inputs to valuation for level 2
March 31,2024 and March 31,2023 respectively:

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In
practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the
sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit
method) has been applied as when calculating the defined benefit obligation recognised within the Balance Sheet.

OCI presentation of defined benefit plan

-Gratuity Is in the nature of defined benefit plan. Re-measurement gains/(losses] on defined benefit plans Is shown under
OCI as Items that will not be reclassified to profit or loss and also the Income tax effect on the same.

-Leave encashment cost Is In the nature of shortterm employee benefits.

Presentation In Statement of Profit ft loss and Balance Sheet

Expense for service cost; net Interest on net defined benefit liability (asset) Is charged to Statement of Profit ft Loss.

IND AS 19 do not require segregation of provision in current and non-current, however net defined liability (Assets) is
shown as current and non-current provision in balance sheet as per IND AS 1.

VII. The Company is not declared wilful defaulter by any bank orfinancial Institution or other lender.

VIII. 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.

IX. The company do not have any secured borrowings on which charge with Registrar of Companies Is to be
credited.

X. The provisions related to number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017 are not applicable on the company.

XI. There is no Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230
to 237 of the Companies Act, 2013.

XII. Utilisation of Borrowed funds and share premium:

The company has not advanced/ loaned/ invested funds (borrawed/share premiurn/any other sources of kind
of funds) to any other person(s) or entity(ies), including foreign entities (intermediaries), with the
understanding (whether recorded In writing or otherwise) that the Intermediary shall (a) directly/ indirectly lend
or Invest In other persons or entitles Identified In any manner by or on behalf of the company (ultimate
beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

XIII. Undisclosed Income

No income has been surrendered or disclosed tor which transaction was 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).

XIV. During the year, the Company doesn''t fulfil the threshold limit criteria covered under section 135 of the
Companies Act, 2013. Therefore, the provision related to Corporate Social Responsibility Is not applicable to the
company.

XV. There Is no transaction related to Crypto Currency or Virtual Currency. Hence, Not applicable.

21. Notes 1 to 20 are annexed and form Integral part of Financial Statements.

For N.C Aggarwal & Co.

Chartered Accountants
Firm Registration No. 003273N

G. K. Aggarwal SONU AGGARWAL VTVEK AGGARWAL

Partner (Director) (Director)

Dated: 29® May, 2024
Place: Hisar

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Mar 31, 2014

1 Internal Salaries and wages incurred during the year on repairs and maintenance have been charged directly to Salaries and wages, the separate amounts of which are not ascertainable.

2 Other liabilities includes amount due to Director is Rs. 2,30,200/- (Previous Year Rs. 2,60,000/-).

3 In the opinion of the management the realizable value of assets other than fixed assets and long term investments, in the ordinary course of business would not be less than the amount at which they are stated.

4 The balances in respect of some of the Sundry Debtors/ Creditors and other advances are subject to confirmation. The effect of the same in the opinion of the management, however not material, will be adjusted at the time of confirmation/reconciliation.

5 The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

6 Segment Reporting :

Company operates in a Single Primary Segment (Business Segment ) i.e. Cotton Yarn. The Company does not have any Geographical segment.

7 Related Parties Transactions:

List of Related Parties and Relationship (As identified by the Management)

(A) Key Management Personnel and There Relatives:

1. Sh Sushil Kr. Aggarwal Whole-time Director

2. Sh Arun Kumar Aggarwal Whole-time Director

3. Vivek Kumar Aggarwal Relative of Key Management Personnel

4. Smt. Natho Devi Relative of Key Management Personnel

8 Previous year figures have been regrouped/re-arranged to make them comparable with the Current Year''s figures.

9 Note 1 to 24 are annexed to and from integral part of the Balance Sheet and Statement of Profit and Loss.

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Mar 31, 2013

1. Internal Salaries and wages incurred during the year on repairs and maintenance have been charged directly to Salaries and wages, the separate amounts of which are not ascertainable.

2. Other liabilities includes amount due to Director is Rs. 260000/- (Previous Year Rs. 74400/-).

3. In the qxnicn of the management the realisable value of assets other than fixed assets and long term investments, in the ordinary course of business would not be less than the amount at which they are stated

4. The balances in respect of some of the Sundry Debtors/ Qeditors and other advances are subject to confirmation. The effect of the same in the opinion of the managemert, however not material, will be adjusted at the time of conLrrraticn/reoordiliation

5. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

6 Previous year figure have been regrouped/re-arranged to make them comparable with the Current Year''s figures.

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Mar 31, 2012

1. Internal Salaries and wages incurred during the year on repairs and maintenance have been charged directly to Salaries and wages, the separate amounts of which are not ascertainable.

2. Other liabilities includes amount due to Director is Rs. 74400/- (Previous Year Rs. 39200/-).

3. In the opinion of the management the realisable value of current assets, loans and advances, in the ordinary course of business would not be less than the amount at which th ey are stated .

4. The balances in respect of some ofthe Sundry Debtors/Creditors and other advances are subject to confirmation. The effect of the same in the opinion of the management, however not ma te rial, w ill be adjusted at the time of confirmation/reconciliation.

5. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

6 Segment Reporting :

Company operates in a S ingle Primary Segment (Business Segment) i.e. Cotton Yarn. The Company does not have any Geographical segment.

The additional information pursuant to revised Schedule VI to the Companies Act, 1956 are either Nil or Not

7 Applicable.

The Financial Statements for the year ended 31st March, 2011 were prepared as per then applicable, pre- revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under

8 the Companies Act, 1956, the financial statements for the year ended 31st March 2012 are prepared in compliance with the Revised Schedule VI. Accordingly, the previous year figures have also been reclassified/regrouped to conform to current year's classification.

9 Signature to Notes 1 to 24

In terms of our report of even date annexed hereto

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Mar 31, 2010

1. Internal Salaries and wages incurred during the year on repairs and maintenance have been charged directly to Salaries and wages, the separate amounts of which are not as certainable.

2. Other liabilities includes amount due to Directors is Rs. 1,33,800/- (Previous Year Rs. 1,75,100/-)

3. In the opinion of the management the realisable value of current assets, loans and advances, in the ordinary course of business would not be less than the amount at which they are stated.

4. The balances in respect of some of the Sundry Debtors/ Creditors and other advances are subject to confirmation. The effect of the same in the opinion of the management, however not material, will be adjusted at the time of confirmation/reconciliation.

5. Based on the information available with the Company, Sundry Creditors in Schedule I includes Rs Nil (Previous Year NIL ) due to Small Scale Industrial Undertakings. There is no Small Scale Industrial Undertakings to whom an amount was payable and outstanding for more than 30 days.

6. The company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

7 Segment Reporting:

Company operates in a Single Primary Segment (Business Segment) i.e. Cotton Yam. The Company does not have any Geographical segment.

8 Related Parties Transactions:

List of Reiated Parties & Relationship (As identified by the Management) (A) Key Management Personnel & There Relatives:

1. Sh Sushil Kr. Aggarwal Whole-time Director

2. Sh Arun Kumar Aggarwal Executive Director

3. Vivek Kumar Aggarwal Relative Of Key Management Personnel

4. Smt. NathO Devi Relative Of Key Management Personnel

9 Previous year figures have been regrouped and rearranged wherever considered necessary to make them comparable with the Current years Figures.

10 Schedule A to Q are annexed to and form an integral part of Balance Sheet and Profit and Loss Account.