Notes to Accounts of Valson Industries Ltd.

Mar 31, 2025

2.18 PROVISIONS AND CONTINGENT LIABILITY:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a
result of past events and it is probable that there will be an outflow of resources.

When the Company expects part or entire provision to be reimbursed, the same is recognised as a separate asset, but only
when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss
net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due
to the passage of time is recognised as a finance cost.

A Contingent Liability is a possible obligation that arises from past events and the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of enterprise or a present
obligation that arises from past events that may, but probably will not, require an outflow of resources.

Both provisions and contingent liabilities are reviewed at each Balance Sheet date and adjusted to reflect the current best
estimates. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised
nor disclosed in the Financial Statements.

2.19 GOVERNMENT GRANTS, SUBSIDIES:

Grant from Government under Technology Up-gradation Fund Scheme (TUFS) is recognised at fair value where there is
reasonable assurance that the grant will be received and the Company will comply with all attached condition.

2.20 SEGMENT REPORTING:

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The Board of Director of the Company has been identified as being the Chief Operating Decision Maker (CODM) by the
management of the Company.

As the Company''s business activity falls within a single business segment viz. ''Yarns'' and the sales substantially being in the
domestic market, the financial statements are reflective of the information required by Accounting Standard 108 “Segment
Reporting”, notified under the Companies (Indian Accounting Standards) Rules, 2015.

2.21 EARNINGS PER SHARE:

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by
the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares
outstanding during the year are adjusted for events including a bonus issue, bonus element in right issue to existing shareholders,
share split, and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders
and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive
potential equity shares.

2.22 CASH AND CASH EQUIVALENT:

Cash and cash equivalent for the purpose of Cash Flow Statement comprise cash at bank and in hand and short term highly
liquid investments which are subject to insignificant risk of changes in value.

2.23 CASH FLOW STATEMENT:

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash
flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.24 COMMITMENTS:

Commitments are future liabilities for contractual expenditure. The commitments are classified and disclosed as follows:

(a) The estimated amount of contracts remaining to be executed on capital account and not provided for; and

(b) Other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of the
Management.

2.25 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS:

The preparation of Financial Statements is in conformity with the recognition and measurement principles of Ind AS which
requires the management to make judgements for estimates and assumptions that affect the amounts of assets, liabilities and
the disclosure of contingent liabilities on the reporting date and the amounts of revenues and expenses during the reporting
period and the disclosure of contingent liabilities. Differences between actual results and estimates are recognized in the period
in which the results are known/ materialize.

Estimates, Assumptions and Judgments:

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are described below. The Company based its assumptions and estimates on parameters available when the financial
statements were prepared. Existing circumstances and assumptions about future developments, however, may change due
to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.

In the process of applying the Company''s accounting policies, management has made the following judgements, which have
the most significant effect on the amounts recognised in the financial statements:

a) Estimation of current tax expense and deferred tax:

The calculation of the Company''s tax charge necessarily involves a degree of estimation and judgement in respect of
certain items whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax
authority or, as appropriate, through a formal legal process. The final resolution of some of these items may give rise to
material profits/losses and/or cash flows. Significant judgments are involved in determining the provision for income taxes,
including amount expected to be paid/recovered for uncertain tax positions.

b) Recognition of deferred tax assets/ liabilities:

The recognition of deferred tax assets/ liabilities is based upon whether it is more likely than not that sufficient and suitable
taxable profits will be available in the future against which the reversal of temporary differences can be deducted. To
determine the future taxable profits, reference is made to the latest available profit forecasts.

c) Estimation of Provisions & Contingent Liabilities:

The Company exercises judgement in measuring and recognising provisions and the exposures to contingent liabilities
which is related to pending litigation or other outstanding claims. Judgement is necessary in assessing the likelihood that
a pending claim will succeed, or a liability will arise, and to quantify the possible range of the financial settlement. Because
of the inherent uncertainty in this evaluation process, actual liability may be different from the originally estimated as
provision

d) Estimated useful life of Property, Plant and Equipment:

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The charge in respect
of periodic depreciation is derived after determining an estimate of an asset''s expected useful life, its expected usage
pattern and the expected residual value at the end of its life. The useful lives, usage pattern and residual values of
Company''s assets are determined by management at the time the asset is acquired and reviewed periodically, including
at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future
events, which may impact their life, such as changes in technology etc.

e) Estimation of Provision for Inventory:

The Company writes down inventories to net realisable value based on an estimate of the realisability of inventories.
Write downs on inventories are recorded where events or changes in circumstances indicate that the carrying value may
not be realised. The identification of write-downs requires the use of estimates of net selling prices of the down-graded
inventories. Where the expectation is different from the original estimate, such difference will impact the carrying value of
inventories and write-downs of inventories in the periods in which such estimate has been changed.

f) Estimation of Defined Benefit Obligation:

The present value of the defined benefit obligations depends on a number of factors that are determined on an actuarial
basis using a number of assumptions. The assumptions used in determining the net cost (income) for post-employment
plans include the discount rate. Any changes in these assumptions will impact the carrying amount of such obligations.

The Company determines the appropriate discount rate at the end of each year. This is the interest rate that should be
used to determine the present value of estimated future cash outflows expected to be required to settle the defined benefit
obligations. In determining the appropriate discount rate, the Company considers the interest rates of government bonds
of maturity approximating the terms of the related plan liability.

g) Estimated fair value of Financial Instruments.

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The
Management uses its judgement to select a variety of methods and make assumptions that are mainly based on market
conditions existing at thess end of each reporting period.

Nature of Security

a) Primary Security: First and excusive charge on all existing and future Current Assets including Stocks and movable fixed
assets of Borrower with Kotak Mahindra Bank

b) Collateral Security : Registered Mortgage on Movable and Immovable assets of Vapi Unit for Kotak Mahindra Bank, Silli Unit
for HDFC Bank and Personal Guarantee of Directors to both banks

Working Capital Term Loan II funded under Emergency credit link scheme (tenure 48 months including 12 months moratorium
period Rate of Interest 9.20%).

The said disubrement of WCTL had done in month of January 2022. The installment will be start from February''2023 and
last installment will be on January''2026

B. Defined Benefit Plan

The company provides gratuity benefits to its employees as per the statute. Present value of gratuity obligation (Non-Funded)
based on actuarial valuation done by an independent valuer 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 compensated absences (Non-funded) is recognized in the same manner as
gratuity.

xiv. Risks associated with defined benefit plan:

Gratuity is a defined plan and company is exposed to the following Risks:

Interest rate risk: A fall in the discount rate which is linked to the Government Securities Rate will increase the
present value of the liability requiring higher provision.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of
members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Company has to manage
payout based on pay as you go basis from our own funds.

Mortality Risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan
does not have any longevity risk.

xv. Expected future benefit payments:

The following is the maturity profile of the benefit expected to be paid for each of the next five years and the aggregate
five years thereafter:

xvi. Sensitivity Analysis:

The Sensitivity analysis has been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit
obligation. As it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same method
as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

V. Financial Risk Management:

Financial risk management objectives and policies

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s
financial risk management policy is set by the Board of Directors. Market risk is the risk of loss of future earnings, fair values or
future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may
change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes
that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including
investments and deposits, foreign currency receivables, payables and loans and borrowings.

A. Interest rate risk:

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes
in market interest rates. In order to optimize the Company''s position with regards to interest income and interest expenses
and to manage the interest rate risk, management performs a comprehensive corporate interest rate risk management by
balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio. The Company''s interest rate
risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming the amount
of the liability outstanding at the end of the reporting period was outstanding for the whole year.

C. Equity Price Risk

The company does not have any investment in equity instruments and hence equity price risk does not affect the company
materially.

D. Liquidity Risk

The principal sources of liquidity of the Company are cash and cash equivalents, borrowings and the cash flow that is
generated from operations. The Company believes that current cash and cash equivalents, tied up borrowing lines and
cash flow that is generated from operations is sufficient to meet its requirements. Accordingly, liquidity risk is perceived to
be low. The following table shows the maturity analysis of financial liabilities of the Company based on contractually agreed
undiscounted cash flows as at the Balance Sheet date:

VI. Capital risk management
(a) Risk Management

The Company aims to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to
optimise returns to its shareholders

The capital structure of the Company is based on management''s judgment 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.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity to maintain investor,
creditors and market confidence and to sustain future development and growth of its business. The Company will take
appropriate steps in order to maintain, or if necessary, adjust, its capital structure.

VII. Financial Instrument:

The significant accounting policies, including the criteria of recognition, the basis of measurement and the basis on which income
and expenses are recognised, in respect of each class of financial asset, financial liability, and equity instrument are disclosed
in note 2.9 of the Ind AS financial statements.

Fair Value Hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either
observable or unobservable and consist of the following three levels:

Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities

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

Level 3: Inputs are not based on observable market data unobservable inputs. Fair value are determined in whole or in
part using a valuation model based on assumptions that are neither supported by prices from observable current market
transactions in the same instrument nor are they based on available market data

The following table summarizes financial assets and liabilities measured at fair value on a recurring basis and financial
assets that are not measured on fair value on recurring basis (but fair value disclosures are required).

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

IX. 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.

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

XI. The Company''s financial statements were authorized for issue in accordance with a resolution of the Board of Directors on 28^th
May, 2025 in accordance with the provisions of the Companies Act, 2013 and are subject to the approval of the shareholders at
the Annual General Meeting.

XII. The figures in the financial statements are rounded off to the nearest lakhs and indicated in lakhs of Rupees.

Note:

All the ratios (performance measures & measures of financial status) have improved compare to last year and the
performance of the company has improved.

Signatures to Notes “1” to “26”

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

For Bastawala and Associates Valson Industries Limited

Chartered Accountants

Firm Registration No. 121789W Suresh N. Mutreja Kunal S. Mutreja

Chairman & MD Whole Time Director & CEO

Harsh Parekh DIN No: 00052046 DIN No: 07022857

Partner

Membership No.: 148354 Varun S. Mutreja Ankit S. Mutreja

Whole Time Director & CFO Whole Time Director
DIN No: 07022832 DIN No: 07022852

Place: Mumbai Neeti Alwani

Date: 28^th May, 2025 Company Secretary

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Mar 31, 2024

Nature of Security for all financial facilities Nature of Security

a) Primary Security: First and excusive charge on all existing and future Current Assets including Stocks and movable fixed assets of Borrower with Kotak Mahindra Bank

b) Collateral Security : Registered Mortgage on Movable and Immovable assets of Vapi Unit for Kotak Mahindra Bank, Silli Unit for HDFC Bank and Personal Guarantee of Directors to both banks

Working Capital Term Loan II funded under Emergency credit link scheme (tenure 48 months including 12 months moratorium period Rate of Interest 9.20%).

The said disubrement of WCTL had done in month of January 2022. The installment will be start from February''2023 and last installment will be on January''2026

II.	Contingent Liabilities in respect of:			('' in Lakhs)
	Sr.	Particulars	31 March, 2024	31 March, 2023
	A)	Claims against the Company not acknowledged as debts:	2.39	2.39
	B)	Penalty for non-compliance of BSE Ltd.	4.77	4.77
III.	Earnings Per Share:
	Particulars		31 March, 2024	31 March, 2023
	Profit /(Loss) after Tax ('' in lakhs)		98.21	1.80
	Weighted Average number of Equity Shares (Shares in Lakhs)		76.608	76.608
	Nominal Value per Share (Amount in '')		10	10
	Earnings per Share (of '' 10/- each)		1.28	0.02

IV. Employee Benefits: As per Ind AS-19, “Employee Benefits”, the disclosure of employee benefits is given below:

A. Defined Contribution Plans:

“Contribution to Provident and other funds” is recognised as an expense in “Employee Benefit Expenses” of the Statement of Profit and Loss.

B. Defined Benefit Plan

The company provides gratuity benefits to its employees as per the statute. Present value of gratuity obligation (Non-Funded) based on actuarial valuation done by an independent valuer 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 compensated absences (Non-funded) is recognized in the same manner as gratuity.

The following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at 31^st March, 2024:

xiii. There is no contribution under defined contribution plans and defined benefit plans in respect of Key Management Personnel.

xiv. Risks associated with defined benefit plan:

Gratuity is a defined plan and company is exposed to the following Risks:

Interest rate risk: A fall in the discount rate which is linked to the Government Securities Rate will increase the present value of the liability requiring higher provision.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Company has to manage payout based on pay as you go basis from our own funds.

Mortality Risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

xvi. Sensitivity Analysis:

The Sensitivity analysis has been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation. As it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

The sensitivity analysis presented above may not be representative of the actual change in the defined obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some assumption may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the project unit credit method at the end of the reporting period, which is same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

VI. Financial Risk Management

Financial risk management objectives and policies

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Board of Directors. Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.

A. Interest rate risk:

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regards to interest income and interest expenses and to manage the interest rate risk, management performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio. The Company''s interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year.

A 50-basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

B. Market Risk- Foreign Currency risk:

The Company has international operations and portion of the business is transacted in USD/EURO and consequently the Company is exposed to foreign exchange risk through its sales to foreign customers and purchases of goods & purchase of services from overseas suppliers.

C. Equity Price Risk

The company does not have any investment in equity instruments and hence equity price risk does not affect the company materially.

D. Liquidity Risk

The principal sources of liquidity of the Company are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet its requirements. Accordingly, liquidity risk is perceived to be low. The following table shows the maturity analysis of financial liabilities of the Company based on contractually agreed undiscounted cash flows as at the Balance Sheet date:

VII. Capital risk management (a) Risk Management

The Company aims to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders

The capital structure of the Company is based on management''s judgment 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.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary, adjust, its capital structure.

VIII. Financial Instrument:

The significant accounting policies, including the criteria of recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability, and equity instrument are disclosed in note 2.9 of the Ind AS financial statements.

Carrying amounts of cash and cash equivalents, trade receivables, loans and trade payable as at 31^st March, 2024 and 31^st March, 2023 approximate the fair value because of their short-term nature. Difference between the carrying amount and fair values of other financial liabilities subsequently measured at amortized cost is not significant in each of the year''s presented.

Fair Value Hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consist of the following three levels:

Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities

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

Level 3: Inputs are not based on observable market data unobservable inputs. Fair value are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data

The following table summarizes financial assets and liabilities measured at fair value on a recurring basis and financial assets that are not measured on fair value on recurring basis (but fair value disclosures are required).

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

X. 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.

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

XII. The Company''s financial statements were authorized for issue in accordance with a resolution of the Board of Directors on 29^th May, 2024 in accordance with the provisions of the Companies Act, 2013 and are subject to the approval of the shareholders at the Annual General Meeting.

XIII. The figures in the financial statements are rounded off to the nearest lakhs and indicated in lakhs of Rupees.

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Mar 31, 2015

Note 1 : Corporate Information

Valson Industries Limited was incorporated on 2nd June, 1983 with Registrar of Companies, Maharashtra State. It's processing manufacturing Units are located at Vapi in Gujarat and Silvassa in UT. Dadra Nagar & Haveli. It is engaged in Texturising, Twisting of Polyester yarns and Dyeing of Polyester, Cotton and other fancy Yarns.

Note 2 Long-term loans and advances:

Note 2.1 Additional information to the financial statements :

Particulars As at As at 31 March, 2015 31 March, 2014 Rs. in Lacs Rs. in Lacs

2.2 Contingent Liabilities and Commitments

i) Claims against the Company not acknowledged as debts : 1710.57 1134.99

The disputed demands of VAT & Entry Tax on the Yarn received for Dyeing Job Work by the Vapi Unit for FY 2008-2009, 2009-2010 and 2010-2011 wherein the company is in appeal before the appellate authority and applied for the stay of demand.

The remission order for Entry Tax dated 22nd January 2015 granting theremission for Entry Tax on receipt of yarns in state of Gujarat is w.e.f. 22nd Jan 2015 onwards. For the past liabilities the company has made an application to the appellate authority. The company is hopeful that the levy of Entry Tax for above said liabilities will be reco sidered and liability will be NIL.

Textile Cess claim against the claim not admitted as debts 2.39 2.39

1712.96 1137.38

ii) Commitments :

Estimated amount of contracts remaining to be executed on capital account and not provided for :

(a) Tangible Assets 120.00 90.00

(b) Intangible Assets Nil Nil

(c) Advances given to the suppliers of the Capital goods is shown in Short term loan & advances pending to be capitalized and will be capatilised on completion/

commencement of production 47.64 Nil

Iii) Derivatives Contracts entered into by the Company for hedging and outstanding as on 31/03/2015:

Forward Contracts 77.93 102.20

Note 3 Disclosures under Accounting Standards :

Segment information

As the Company's business activity falls within a single business segment viz. 'Yarns' and the sales substantially being in the domestic market, the financial statements are reflective of the information required by Accounting Standard 17 "Segment Reporting", notified under the Companies (Accounting Standards) Rules, 2006.

Inter divisional transfer

Inter divisional transfer for Sales/ Processing charges for Texturising, Twisting and Dyeing of 2044.81 Lacs (Previous Year Rs.1836.70 Lacs ) are not considered for sales as well as manufacturing expenses as per Accounting Standard (AS-9) 'Revenue Recognition' issued by The Institute of Chartered Accoutants of India.

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Mar 31, 2014

Note 1 Additional information to the financial statements :

Particulars As at As at 31 Mar 2014 31 Mar 2013 Rs.in Lacs Rs.in Lacs

1.1 Contingent Liabilities and Commitments

i) Claims against the Company not acknowledged as debts :

The disputed demands of VAT & Entry Tax on the Yarn received 1,134.99 509.65

for Dyeing Job Work by the Vapi Unit for FY 2008-2009 and 2009-2010 wherein the company is in appeal before the appellate authority and has also obtained for the stay of demand.

The Company has made the representation to the Gujarat Govt. for Remission.

Textile Cess claim against the claim not admitted as debts 2.39 2.39

1,137.38 512.04

Note 2 Disclosures under Accounting Standards :

Segment information

As the Company''s business activity falls within a single business segment viz. ''Yarns'' and the sales substantially being in the domestic market, the financial statements are reflective of the information required by Accounting Standard 17 "Segment Reporting", notified under the Companies (Accounting Standards) Rules, 2006.

Inter divisional transfer

Inter divisional transfer for Sales/ Processing charges for Texturising, Twisting and Dyeing of Rs. 1836.70 Lacs (Previous Year Rs. 1459.30 Lacs ) are not considered for sales as well as manufacturing expenses as per Accounting Standard (AS-9) ''Revenue Recognition'' issued by The Institute of Chartered Accountants of India.

Related party disclosures as per (AS-18)

Details of related parties:

Description of relationship Names of related parties

Key Management Personnel (KMP)

Mr. Suresh Mutreja (Chairman & Managing Director)

Mr. Lalit Mutreja (Executive Director)

Relatives of Key Management Personnel

Mrs. Sheeladevi Mutreja - Mother of CMD

Mrs. Kajal Mutreja - Wife of Executive Director

Mrs. Tina Mutreja - Daughter in law of CMD

Mr. Kunal Mutreja - Son of CMD

Mr. Varun Mutreja - Son of CMD

Mr. Ankit Mutreja - Son of CMD

Note: Related parties have been identified by the Management.

Details of related party transactions during the year ended 31 March, 2014 and balances outstanding as at 31 March, 2014:

Previous year''s figures :

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2013

Note 1 Corporate information

Valson Industries Limited was incorporated on 2nd June, 1983 with Registrar of Companies, Maharashtra State. It''s processing manufacturing Units are located at Vapi in Gujarat and Silvassa in UT. Dadra Nagar & Haveli. It is engaged in Texturising, Twisting of Polyester yarns and Dyeing of Polyester, Cotton and other fancy Yarns.

Note 2 Disclosures under Accounting Standards :

Segment information

As the Company''s business activity falls within a single business segment viz. ''Yarns'' and the sales substantially being in the domestic market, the financial statements are reflective of the information required by Accounting Standard 17 "Segment Reporting", notified under the Companies (Accounting Standards) Rules, 2006.

Inter divisional transfer

Inter divisional transfer for Sales/ Processing charges for Texturising, Twisting and Dyeing of Rs. 14,59,29,733/- (Previous Year Rs. 13,07,40,984/-) are not considered for sales as well as manufacturing expenses as per Accounting Standard (AS-9) ''Revenue Recognition'' issued by The Institute of Chartered Accountants of India.

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Mar 31, 2012

Note 1 : Corporate Information

Valson Industries Limited was incorporated on 2nd June, 1983 with Registrar of Companies, Maharashtra State. It's processing manufacturing Units are located at Vapi in Gujarat and Silvassa in UT. Dadra Nagar & Haveli. It is engaged in Texturising, Twisting of Polyester yarns and Dyeing of Polyester, Cotton and other fancy Yarns.

* Office Premises includes Rs. 250/- being the cost of five shares of Rs. 50/- each of Udit Mittal Industrial Premises.

** Software to be amortised over a period of Five years due to applicability of AS - 26 on Intangible Assets issued by Institute of Chartered Accountants of India.

Particulars As at As at 31 March, 2012 31 March, 2011 Rs. in Lacs Rs. in Lacs

2.1 Contingent Liabilities and Commitments

i) Claims against the Company not acknowledged as debts : 643.48 643.48

The disputed demands of VAT & Entry Tax on the Yarn received for Dyeing Job Work by the Vapi Unit no longer holds good in view of the representation by Vapi Industries Association to the VAT Authorities & Government of Gujarat for explaining that yarn remains yarn at the end of dyeing process & the matching quantity of such Dyed Yarn is returned back to the sender. Therefore it does not constitute "Sale, Consumption or Use" within the state of Gujarat. The Gujarat VAT Authorities have prima-facie under- stood the matter & have assured to do the needful in the matter. Meanwhile, the Deputy Commissioner of Commercial Tax (Appeals), Division -V, Surat, has granted sine-die Stay against the recovery of demands & also has referred the matter to the pre-audit section for clearance after framing the Appellate Orders for remanding the erroneous assessments back to Assessing Officer.

Textile Cess claim against the claim not admitted as debts 2.39 2.39

Excise duty claim against the company not admitted as debts 0.93 0.93

646.80 646.80

Note 3 Disclosures under Accounting Standards :

Segment information

As the Company's business activities falls within a single business segment i.e. Yarns the disclosure requirements of accounting standard (AS 17) "segment reporting" issued by The Institute of Chartered Accounts of India are not applicable.

Inter divisional transfer

Inter divisional transfer for Sales/ Processing charges for Texturising, Twisting and Dyeing of Rs. 13,07,40,984/- (Previous Year Rs. 12,50,82,903/-) are not considered for sales as well as manufacturing expenses as per Accounting Standard (AS-9) 'Revenue Recognition' issued by The Institute of Chartered Accountants of India.

Previous year's figures :

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2010

1. Contingent Liabilities not provided for:

(A) Excise duty claim against the company not admitted as debts Rs. 0.93 Lacs (Previous year Rs. 65.24 Lacs).

(B) Textile Cess claim against the claim not admitted as debts Rs. 2.39 Lacs (Previous year Rs. 2.39 Lacs)

(C) Income Tax claim against the claim not admitted as debts Rs. 0.77 Lacs (Previous year Rs. 0.77 Lacs)

During the year, VAT authorities have raised demands amounting Rs. 532.35 lacs for Entry Tax and Rs. 111.13 lacs for Work Contract Tax. The demands raised have been contested by the company before Deputy Commissioner of Commercial Tax, Division 5 - Surat and as per the written opinion of a renowned legal counsel; the demands are not tenable in law. The company is confident of decision coming its favour.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs. 10.00 Lacs. (Previous year Rs. 61.28 Lacs). Rs. 42.26 Lacs (Previous year Rs. 42.20 Lacs)is given as an advance to suppliers for capital goods shown in advances.

3. Excise Duty :

The Company is following the method of accounting according to which the excise duty is generally booked as a liability at the time of removal of manufactured goods i.e. Texturised Yarn, Twisted & Dyed Yarn and paid accordingly.

The Company has opted for optional excise duty of either to take cenvat credit on input and payment of excise duty on removal of goods and accordingly provision for excise duty on closing stock as on 31st March,2010 Rs. NIL (Previous year Rs.Nil ) has been made for the same

4. The Employee Benfit Schemes are as under :

i. Provident Fund

Eligible employees of the Company receive benfits under the Provident Fund Act which is a defined contribution plan wherein both the employee and the Company make monthly contributions equal to specifeid percentage of the covered employees salary. These contributions are made to the Funds administered and manged by the Govt. of India.The Companys monthly contributions are charged to revenue in the period they are incurred.

ii. Gratuity

In accordance with the payment of Gratuity Act,1972 of India, the Company provided for gratuity, a defined retirement benfit plan (the Gratuity Plan) covering eligible employees. Liabilites with regards to such Gratuity Plan are determined by actuarial valuation and are charged to revenue in the period determined.

The actuarial assumptions is arriving at the Provision of gratuity liability for the year amounting to Rs. 5,60,931/- are as follow :

a) Discount Rate (Per Annum) (%) 7.00

b) Salary Excalation (Rate) (%) 6.00

C) Retirement Age (In Years) 60

iii. Provision for Unutilised Leave

The accrual for unutilised leave is determined for the entire available leave balance standing to the credit of the employees at period-end and charged to revenue in the period determined.

The above information regarding Small Scale Industrial undertaking has been determined to the extent such parties have provided information with the company. This has been relied upon by the auditors.

Under the Micro,Small & Medium Enterprises Development Act, 2006, which came into force on 2nd October 2006, certain disclosures are required to be made relating to Micro,Small & Medium Enterprises.

The company is in the process of compiling relevant information from its suppliers about their coverage under the Act. Since the relevant information is not readly available no disclosures have been made in the accounts.

5. Inter divisional transfer for Sales/ Processing charges for Texturising, Twisting and Dyeing of Rs. 12,07,00,420/- (Previous Year Rs. 10,92,62,961/-) are not considerd for sales as well as manufacturing expenses as per Accounting Standard (AS-9) ‘Revenue Recognition issued by Institute of Chartered Accountants of India.

6. Borrowing costs that are attributable to the acquisition or construction of Qualifiying Assets are capitalised as part of the cost of such assets.

A qualifying asset is one that necessarily takes substantial period of time to get ready for internal use. As no assets are falling within the definition of qualifying assets all the borrowing costs are charged to revenue.

7. As the Companys business activities falls within a single primary business segment viz. Dyed and Texturised Yarn, the Disclosure requirement of Accounting Standard (AS-17) Segment Reporting issued by the Institute of Chartered Accountants of India are not applicable.

8. The Company has been following Accounting Standard (AS - 22) Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India. During the year ended 31/03/2010 the Net Deferred Tax of Rs.9.61 lacs is credited to the Profit & Loss Account.

9. Basic and Diluted Earning Per Share has been calculated by dividing the net profit after tax and Preference Share Dividend and tax on dividend for the year as per account which is distributed to Equity Shareholders by 7660800 being weighted average number of equity shares outstanding during the year (Previous year 3830400)

10. a. Figures in bracket in notes to accounts relates to the previous year.

b. Previous years figures have been regrouped to confirm this years classification.