Notes to Accounts of Vippy Spinpro Ltd.

Mar 31, 2025

Provisions arc recognised when the company has a present obligation (legal or constructive) as a
result of a past event. Ll is probable tint an out flow of resources embodying economic benefits will he required

Li''s sethc i he obligation acid a reliable tsi Lrnsuu can bo made of the amount of the obligation. When the company
expects some oral] of a provision to be reimbursed, ihe reimbursement is recognised ns a separate asset, but
only when the reimbursement is virtually certain. The expense relating to a provision is presented in the
StflEtaneiii pfpmfijfiiiKl loss net utility reimbursement.

Con hrtgerit liability is disposed irt the case o h

* a present obi i gal i oil a ri si ng from pasl events, when i t i s nol probab Ic til at an out flow of resources wi11 be
required 10 scltle the obligation:

* ftpresent obligation arising front past eveiLts. when no reliable estimate Ls possible;

* a possible obligation arising from post events, unless the probability of outflow of resources is remote,
Provisions, cont i ngenl 1 i ubi I n i es and eonl i ngenl assets are reviewed at eadi balance sheet date.

{xviii} Financial Instrument?

A Financial 1 ns I rumen t is liny conlritcl fhnl gives ri se to II financial HSSCt of one en1 i ty and a fi mint i ul I iab i Eily or
equity instrument of a Mother entity,

Financial Assets

I nil iul RcCOgniliim and Measurement

At initial recognition, mil financial assets are measured at fair value. Such financial assets are subsequently
classified under following three categories according to the purpose for which they are held. The classification
is.reviewed at the end oTeach reportirig period.

) Fin a ne i a IAssets at A mortised Cusl

At the date of initial recognition, arc held to collect contractual cash flows of principal and interest on
principal amount outstanding oil specified dates. These financial assets arc intended to be hold
until maturity Therefore, (hey are subsequently measured ul amortised cosl by applying the FlTecLive
Interest Rate (El R.J method to the gross tarrying amount of the financial assel, The EIR amortisation
is included an interests income in the profit or loss. I he leases arising from impainiienlaie recognised in the
pm fit or loss.

{b | Financial Assets at Fair value through Other Comprehend velMome

At the date of initial recognition, arc held to collect contractual cash flown of principal and interest on
principal amount outstanding on specified dates, as well as held for selling. Therefore, they aie
subsequently measured m each reporting dale ul fair value, with all fair value movements recognised in
Other Comprehensive Income (OCI). inlcrcst income calculnlcd using the effective inlcrcsl rale (EIR}
method, i mpa i rment ga i n or loss and foreign e \chango gain or loss, if any, are recogn i sod in the slate incnl
of pro fit and less. On derecognition of the assel, cumulative gain or loss previously recognised in other
comprehensive Income in reclassified from the OCI to statement of profit and loss.

(c) Financial Assets nt Fair v nEue through Profit nr Loss

At the date of initial recognition, financial assets are lleld tin- trading, or which are measured neither at
amortised cost nor ul fair value through GO. Therefore, they are subsequently measured at each
reporting dale at fair value, with all fair value movement recognised in the sta Lenient of; profit and loss.

Investment in Equity Shu res

Investments in equity securities are initially measured at cost. Any subsequent fair value gpin or
loss Is recogn tied th m ugh cther cn nijirc hen sive I ncome.

Investments in Mutual Funds

Investments ib mutual funds arc accounted tor at cost. Any subsequent (air value gain or loss is recogn bed
thmugh profit and lossaeeomU.

Impairment of HmncJtL Assets

toaccordanee with [nd AS 109. the Company uses ''Expected Credit Loss’(ECU mudel, for evaluating impairment of
fi natic i a I assets other than those measured at fair va I tic through profit and I ofs (FV l P L V

liftpec Led crcd il losses are measured t hrough n loss al lowanw at an amoiml cqua I to:

(a) The 12-months uprated e noli I losses (expected enedil losses lhal result from those default events
oo the II nanc i al in slrutnent that are jvossih lu w i thin L 2 months alter the reporting dalopor

(b) Full fife-lime expected credit losses (expected credit losses that result from ail possible default
events over thelife of the financial instrument).

For trade receivables., company applies ''simplified approach'' which requires expected life time losses to he
recognised from i nil i :il recognition lit I he receivables. The eonipiirv uses historical default rates to tletennire
Impairment loss on the portfolio of trade receivables. At every reporting date, these historical default rates are
reviewed and charges in (he forward looking estimates are analysed.

For other assets, the Company uses 12 month ECL lo provide for impairment loss where there is no
significant increase in credit risk. If there is significant increase in credit risk full li lie time ECL is used.

Financial Liabilities

Initial Recognition and Measurement

All financial liabilities ait; recognized initially at fair value and, in the case of loans and borrowings and payables, net
of directly attributable transaction cosls The Company''s financial liabilities include trade and oilier payables, loans
and borrow i i igs including hank overdrafts, and derivative financial instruments

S Ltbscq tie tit M c asll re rilcilt

F i nunc i al liabilities are c hiss i lied as either financial 3 iabil ities at F VTPL or ''other finoneial 1 i aEii I ities'':
fa) Fin a nc ial J .labilities al FVTPL;

Financial liabilities are classified set at FVTPL when the financial liability is hold for trading or are
designated upon in i tial recognil ion as FVTPL:

Ga i ns or Losses on 1 iabi I il i cs held for trading are recognised in the statement o f pro fil and loss.

(h) Other Financial Liabilities:

Other financial Jiahilities (including borrowings and trade and other payables) are subsequently measured at
amortised cost using the effective interest method.

Derecognition of Financial Instruments

The Company derecognizes a financial asset when the contractual rights to tlie cash flows from (lie financial
asset expire or it transfers (lie financial asset and ihe transfer qualifies for derecognition under Tnd AS 109. A
financial liability (or a part of a financial liability) is derecognized from the Company''s balance sheet when the
obligation specified in the conlracl is discharged or cancelled or expires.

Derivative Financial Instruments

Derivatives are initially recognised at fair Value on the date a derivative contract is entered into and are subsequently
re-measured tu their fair value at the end of each reporting period.

a. The company uses various derivative llnaticial Instruments such as forwards contracts to mitigate the risk
of changes i nexchange rales. Such deri vati vu financial instrumentsarc ini tidily recognised at fair va I ue on
the date on which a derivative contract is entered into and arc also subsequently mcastired at fair vaitic.
Derivatives are carried us financial assets when the fail'' value is positive and as financial liabilities when
the fair value is negative.

b. At the inception of the hedging relationship there is a formal designation and documentation of the
hedging relationship in accordance with the risk management objective and strategy liar undertaking Hie
hedge.

c. Any gains or losses arising from changes in [he fair value of derivatives are taken directly to statement of
profit and loss, except for [he effective portion of cash flow hedges which is recognised in other
comprehensive income and later to statement of profit and loss when the hedged item affects profif or
loss or treated us basis adjustment if a hedged forecast transaction subsequently results in the recognition
y f:j non-linuncial upsets nr mm-tinunci:il Iiubilily.

11 edge Accounting
Cuxfi Fhni''Hedm''

The Company designates derivative con tracts or non derivative financial assets / liabilities as hedgitig
instruments to mitigate the risk of move meat In foreign exchange rates for foreign exchange exposure on
highly probable future cash flow! attributable to a recognised asset or liability or forecast cash
transactions When a derivative is rlesigtiateil as u cash How hedging instrument, the effective portion of
changes in the lair value of the derivative is recognized in the cash flow hedging reserve being partofgther
comprehensive income. Any ineffective portion of changes in the fair value of thcdenvmivc is recognized
i itimcd iatcly i tt the stalctnc lit of profit and foss. If the hedg.i ng re lat ion sb ip no longer meets the criteria for
hedge accounting, then hedge accounting is discontinued prospectively. [fthe hedging mslnmienE expires
oris sold, terminated or exercised, the cumulative gain or loss on tltc hedging instrument recognized in
cash How hedging reserve till the period the hedge was effective remains iit cash How hedging reserve
until the underlying transaction occurs. The cumulative gain or loss previously recognized in tile cash
flow hedging reserve is transferred to the statement of profit and loss upon the occurrence of the
underlying transaction, if the forecasted transaction is tto longer expected to occur, then (he amount
accumulated in cash flow hedging reserve is reclassified in the statement of profit and loss.

(xis) Signifies nt Accounting Judgments, Esti m ¦ tes and Assu ni prions

In the process Qf applying the Company''s accounting policies, niuriaijemesil has maile the following
estimates, assumptions and judgements which have significant effect on the amounts recognized in tlte
financial statement:

a- In dim* faxes

Judgment olTlie management is required lor the calculation ofprovision for income taxes and deferred tax
assets and liabilities;. The coin puny reviews at each balance sheet date the carrying amount of deferred tax
assets and liabilities. The factors used in estimates may differ from actual outcome which could lead to
significant adjustment to the amounts reported in the financial statements.

b. Contingencies

Judgment of the management is required lor estimating the possihle ouL How of resources, if any, in
respect of eniuiugciieici^laim/litigatinns against the company as it is not possible to predict the outcome
of pending matters with accuracy,
r. Allowance tor uncollected acnmats receivable ami advances

Trade receivables Lire ituted at their Hernia! VidUe as reduced by appreciate UiloWunCoi fur estimated
irrecoverable amounts. Individual trade receivables are written off when management
seems thorn not collectible, Impairment is made on ECL, which are the present value of the cash short foil
eve r the expected I ife of the fi nine i al assets.

d. Provisions

Provisions and linhililies nrc recognised in the period when it becomes probable thm there will ben future
OUtflOW i>f funds resulting from pusl (rpcmtivn! Or events and the amount tiftnsh outflow can he reliably
estimated. The timing of rceognitinn and quunliiicatiim of Lhe liuhilily requires the application of
judgment to existing facts and circumstances, which can he subject to change. The carrying amounts of
provisions and liabilities are reviewed regularly and reviseif to hake account of changing facts and
circumstances.

t*. JltTined 35i''llellt Plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such
obligation are determined using actuarial valuations. An actuarial valuation involves making various
assumptions thul may dilTer from actual developments in falure. These includes Lhe determination of the
discount ralc^ future salary increases, mortality rates and attrition rate. Due 10 (he complexities involved in
the valuation and Us long-tecm nature, a defined benefit obi i gal ion is highly sensitive to changes in these
ass umptions, a! I assumptions are reviewed al each reporting dale.

(xx) Recent ar count inn pPdnounCedteiitt

The Ministry of Corporate Affairs vide notification dated 3^h September 2U24 and 2$" September 202J
noli lied the Companies (Indian Accounting Slandarda) Second Amendment Rides, 2024 and Companies
1 Indian Accounting Standards) Third Amendment Rules, 2024, respectively, which amended.¹'' noliiied
certain accounting standards (see below), and arc effective for annual reporting periods beginning onor after
r April 2024:

1. Insurance Contracts IndAS ll7tand

2. Lease Liability in Sale and Leaseback transactions Amendmciiis to IndAS 11b

These amendments did not have any impact on the amounts recognised in prior periods anil are no!
expected lo affect the current or future periods.

t ''in-cirf rn''dit Iiks (kC I

TbsenoeiiK to utvJLt risk bjuflutiKLJ msiLnlyby thL- indivii^reJetaiacterisiijcjofeadi tusloinet r''ludii list _L; niaiiHjiLd tfimugb a»lil

¦ippiiiviLln, LLLsbl:-- i::i^ I ImiMx »r>J. iniiAin-- ly i:h>nil::nr.L ib( Lriklihviirl/imL-LX ki wlkiLh Uil omnpkmy LTnr I:. Ln:Jil kcnln in Ihn

Qonim! course of business The auLiijutf tioJ ii purn-J is between MJ-''A*dn>‘ Before *oeepLi|ig uny in’w uiwci-nwr, Itiu company uses nn internal credit
auuiiikj system(Bi''sssdflt the (tuKnii-sl custonnei''^cnedilLpialityimildefines cow limiH fui flsebcusfeiiierLimits iwscorify;attributed to customers
*lt neviuwud imce h_il.lt.

As a pimtiml expodioit ficoornjisnyuFit^tvfirasiironniflrtrixtodaaiisiie irnjranmieirttossofitsliadeiccriskblES.TTicnwvininnBialiis bbaMdBijSta
historically ohstraed iltlauli rates ova itic expecttd lift oftite trade ceceisaHe hoO isadn-itcii l«: forward looking esdeetii. ThstCLallowaHCe tot
ravers*!)? if hot-during llioyeef is (jbcogniecd intbesttienijenl nf profit Hid low.

Nute M F|JÂ¥*NCI 1.1. UISK \l \ NAf ll''MFVT

Tfc iXOTrfE!fl3>%- act iv file {tt.po*£ )¦ in i-u-.lii n-iL, lujuiihLs iihk, iittflci risk triiLpnix: n-iL

(AJ Crrflr Rbk

i red it. _v;k i:- the risk ili.n cwunlscpaty will me I iewci in iibljEuinn^ under a fm naval instrument or eusuimdr contract. lending ea n f_jiiivi.il loss. C Liedi risk
c-xpLumpuMT^ ihc- ¦.Iii-.l i ritk of defjuSi, risk iW Jricnaniinjfi ofurc-ditwm ihnu - w l-II ns i^ncciiuriniutt risks. f ht- ciriHfuiL)'' w c-.sfMsed in uviJic finale lYam iix
i.ip^(cin£JC!lvh*kf primarily irwte d£p.wh ituhfcuikl IWMfihe*

fredis Flask S\ jha^ideuI

Fw r''liibVIill KAHS «h* L''HifflphriV lyi nil mV^liVii^h ^iliL-y fe1^,-*!il njjnWE lilt- -JiMl''^iiiV In irIVcSI niilV With OnUilierywrlliH hlVirtg lUgh OfdiJM Wllrtji.x n Willi hijl.lVT
iti,-uL,''iiIi:iI‘'' TIh? i,--.ri ipmy lips icu.->. ft* ftsdilWttlhincV* i.il''-lisr^V crwnlrTpttrfKt- i.hi <:ny.iHny. I.tfrii^. AmHltCT btlUlfV hi I''t.- i i.: ij i I ink h'' IIkT rCpOt liny. «J»*C !¦¦ ft^nii linijf
ptraivabfcrt 9* the-Hf ;m.'' typically mgvOinftL Ttri^ credit risk h-ss- ata-ayi htn m a nam''d. Uirtmjsh credit *p|W4ji--jls. L''*jblirfiinj< troJit limits: and curriiniKnis nrpenitarinn
iIil" creJiLrrrirthiness of r_e-1o.iTKrs In whom credit is extended in the ncrnoal course of business. I he company estimates llie expected credit Iras based! on past diia.
£¦ jiI.iM.; LcJnmurvn on public domain and experience. £xp«fed credit tosses o: hium-al asses recc-ivjhie are artirnarted based un hisrcritjl daa at the exunjuny
f he ctonpun^ has priM!>.ku"in''ii_pufecy Us r:t|n_\icd credit tiSJrt. tfcre i'' nn-rieiliiinsk in berni depusiis >.>r >.li ate demunl ik-jV-wt,

I IS) Liquidity tiiik

Ihcciimpcmy manages L>.iuiJiLj. nak >b\ mamiaminp ndapiale surplus, hanking Eieililies usd reserve Kirruv, bigs. faci_liu.es by coniiiiiietady niniiii>:>r_ri£- Icrecasis
fefrl UCtt*il I.i-li ftnW . ''Hie iimpAny this i>.vateill irf tin frCWlflJ iVil IWf|ve iiU?illh.s (tth iriflffW lilil iHIlflnW Jllil iklj IlijllnJiEV ii^uireiYlWC^ gftf |:lmii>nl. f ihk‘ kTiJ
f)lh*r imyidilr^ UPC nVEtwl as |Mt iri fiUfi fc-mn *mJ p|i4o rilinijl;. ft II |ijiyini.?^i Hie inwlv jliwij iJlKT diikrt KnJ r«t||U@H for *Hily un; eiili-l:mi. il nfler duf

jfritivjl irdav-.iiiT-.j.ejily pjynnffl*drseuuiili.

SenwtiiMy \»*hsls uii knlc IIIu?toyi iii£>

FIh enmp^ krhiiner- m she i me rest, rwesi. with .ill ihIut ¹ year ended 31 si Mureh. 2Ui!:< uul ;51 si .March. JfJil, every t>. Jo" * increase in the mwrM

Wiiii|d ihereiiie the linmjkniy''s. jSnfii ripprivxunurely ( I J.79 I ukh led. ( I nkh res^-ciirely. A Ikj5%dei.^:ieirieihche naeiM rme w..eukl Il.hI if mi n^jil
hui i:ppi->j-.e ei lea

ll>l Prkt risk

The eompuiy iseirposed to price rnk in his_e ineredienis at ennipa/s raw mzieriza and is prceurinc l_r.nfed ronijeevnis arM Siu^.Iil cul ouiemh Ircoi >.end11r>.
direeily Hie < iumpiiiy nsottmw* ns {trice ride nnJ heroes ihe price nKKiae in prionf erf ilte jwiHJiict,.

Note 1 OTHER STATUTORY INFORMATION

i; line company dots nol have any Henami property. where any proceeding has been initiated or pending
again jl the Group frjf holltnigany Remind property,

ii) The company does not have any I ransact ions with compa n i cs struck off.

iii) TIk omipiiny does nor have any charges or satisfaction which is yvt lobe registered with ROC beyond
the statutory period,

iv) The company lias nol traded or invested in crypto currency or virtual eurreney during the financial
year.

v> The company lias not beeii declared wilful defaulter by any bank or financial iniHlitulion or
government or any govern meiitiutthoriLy.

vi) The ennipuny has not advanced or limned nr invested fUrvdS to any other jiltkiBkdudmgfdreign entities (Intermediaries) with the unde island mg that the Lnlemnediafy shall:

ltd directly or indirectly lend or invest in other persons or entities identified in any manner
u hatsDCvorby (iron behalf oi''the company {111 Limaie Beneficiaries)^

(b) provide any guarantee, t-ceurity or the 1 i ke to or on behn I f of the L¹1 titrate Beneficiaries

vii) The- company hns not received any fund from any peiH;in(s) or endilyfies), including foreign
entities (Funding Party) with (lie underslarnliiig (whether recorded in writing or otherwise! that the
company shall:

(a) directly or indirectly lend or invest in olheT persons or entities identified in any manner
whatsoever t^rjor on behalfdf (he funding party (Ultimate Beneficiaries) or
(hj provide any guarantee, security orthelikeoitbehalfoflhe Ultimate Beneficiaries,
viiiynis cwnpany does not have any such transacLion which is uoi recorded in Lite books of accouins tliai
has been surrendered or disclosed as income during the year in the tax assessments under the Income
Tnx.Aet, 1961 (such ns, search nr survey or any olher relevant provisions of the Income Tax Act, Ititil).

Note 4F The code oi lsocLal Security, 2(120 (''Cods’) relaling to employee benefits during employment and pnsl-
employment received Pres [dentin] assent in September 2020 and its effective date is yet to be notified.
'']"he company will assess and record the impaet of the Code, once it is effective.

Note 4ti Previous period figures have been regrouped and reclassitied wherever considered necessary to confirm
to this year''s classifications.

Material Accounting tioliews (Note No. 1)

The accom paiiy In p, notes form an integral pari of the financial statements

As pci¹ our import of even date attached

For ITS. Bail sill & Company

Chartered Accountants

Firm''s Registration NiiEnbar: ndd^J^t:

For and on behalf of the Board of directors

tCA, Vijai R annul)

Fartner Piyush Multia Pmncct Mmha PuSkil Muhcshwari

Membership No,0753-14

Delias

Dated: Mu v £ih. 21)2.4 Managing Director Director Company -Secretary &¦ CFO

(DIN00424206) (DlN-OOd2d2 50)

---

Mar 31, 2024

(xvii) Provisions, Contingent liabilities and Contingent assets

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 out flow 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. When the Company expects some or all of a provision to be reimbursed, the reimbursement 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.

• a present obligation arising from past events, when it is not probable that an out flow of resources will be required to settle the obligation;

• a present obligation arising from past events, when no reliable estimate is possible;

• a possible obligation arising from past events, unless the probability of outflow of resources is remote.

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

(xviii) Financial Instruments

A Financial Instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial Assets

Initial Recognition and Measurement

At initial recognition, all financial assets are measured at fair value. Such financial assets are subsequently classified under following three categories according to the purpose for which they are held. The classification is re vie wed at the end of each reporting period.

(a) Financial Assets at A mortised Cost

At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding on specified dates. These financial assets are intended to be held until maturity. Therefore, they are subsequently measured at amortised cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of the financial asset. The EIR amortisation is included as interest income in the profit or loss. The losses arising from impairment are recognised in the profit or loss.

(b) Financial Assets at Fair value through Other Comprehensive Income

At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding on specified dates, as well as held for selling. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognised in Other Comprehensive Income (OCI). Interest income calculated using the effective interest rate (EIR) method, impairment gain or loss and foreign exchange gain or loss, if any, are recognised in the Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognised in Other Comprehensive Income is reclassified from the OCI to Statement of Profit and Loss.

(c) Financial Assets at Fairvalue through Profit or Loss

At the date of initial recognition, financial assets are held for trading, or which are measured neither at Amortised Cost nor at Fair Value through OCI. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognised in the Statement ofProfit and Loss.

Investment in Equity Shares

Investments in Equity Securities are initially measured at cost Any subsequent fair value gain or loss is recognized through other Comprehensive Income.

Investments in Mutual Funds

Investments in Mutual Funds are accounted for at cost. Any subsequent fair value gain or loss is recognized through Profit and Loss Account.

Impairment of Financial Assets

In accordance with lnd AS 109, the Company uses ''Expected Credit Loss'' (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

(a) The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date);or

(b) Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).

For trade receivables company applies ''simplified approach'' which requires expected life time losses to be recognised from initial recognition of the receivables. The company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analysed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full life time ECL is used.

Financial Liabilities

Initial Recognition and Measurement

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, and derivative financial instruments.

Subsequent Measurement

Financial liabilities are classified as either financial liabilities at FVTPL or ''other financial liabilities'':

(a) Financial Liabilities at FVTPL:

Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial recognition as FVTPL:

Gains or Losses on liabilities held for trading are recognised in the Statement of Profit and Loss.

(b) Other Financial Liabilities:

Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the effective interest method.

De-recognition of Financial Instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under lnd AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

Derivative Financial Instruments

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and arc subsequently re-measured to their fair value at the end of each reporting period.

(six) Significant Accounting Judgments, Estimates and Assumptions

In the process of applying the Company''s accounting policies, management has made the following estimates, assumptions and judgements which have significant effect on the amounts recognized in the financial statement:

a. Income taxes

Judgment of the Management 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 and liabilities. The factors used in estimates may differ from actual outcome which could lead to significant adjustment to the amounts reported in the financial statements.

b. Contingencies

Judgment of the Management is required for estimating the possible out flow of resources, if any, in respect of contingcncies/claim/litigations against the company as it is not possible to predict the outcome of pending matters with accuracy.

c. Allowance for uncollected accounts receivable and advances

Trade receivables are stated at their normal value as reduced by appropriate allowances for estimated irrecoverable amounts. Individual trade receivables are written off when management seems them not collectible. Impairment is made on ECL, which are the present value of the cash shortfall over the expected life of the financial assets.

d. Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgment to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

e. Defined Benefit Plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in future. These includes the determination of the discount rate, future salary increases, mortality rates and attrition rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions arc reviewed at each reporting date.

(xx) Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Note 37 FINANCIAL RISK MANAGEMENT

The Company’s activities expose it to credit risk, liquidity risk, market risk and price risk.

(A) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses the direct risk of default, risk of deterioration of creditworthiness as well as concentration risks. The Company is exposed to credit risk from its operating activities (primarily trade receivables), deposits with banks and loans given.

Credit Risk Management

For financial assets the Company has an investment policy which allows the Company to invest only with counterparties having high credit ratings or with higher credentials. The Company reviews the creditworthiness of these counterparties on an ongoing basis. Another source of credit risk at the reporting date is from trade receivables as these arc typically unsecured. This credit risk has always been managed through credit approvals, establishing credit limits and continuous monitoring the creditworthiness of customers to whom credit is extended in the normal course of business. The Company estimates the expected credit loss based on past data, available information on public domain and experience. Expected credit losses of financial assets receivable arc estimated based on historical data of the Company. The Company has provisioning policy for expected credit losses. There is no credit risk in bank deposits which arc demand deposits.

(B) Liquidity Risk

The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowings facilities by continuously monitoring forecasts and actual cash flows. The Company has a system of forecasting next twelve months cash inflow and outflow and all liquidity requirements arc planned.Tradc and other payables arc plugged as per credit terms and paid accordingly. All payments arc made along due dates and requests for early payments arc entertained after due approval and availing early payment discounts

(C) Market risk

Interest Rate Risk Exposure

The Company is exposed to various types of borrowings as stated in Note Nos. 16 and 18 respectively.

The Company''s exposure to interest rate risks at the end of the reporting period is as follows:

Note 42 OTHER STATUTORY INFORMATION

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

ii) The Company does nothave any transactions with companies struck off.

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

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

v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

vii) The Company has not received any fund 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:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever hy or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

viii) 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 orsurvey or any otherrelevantprovisionsofthe Income TaxAct, 1961.

Note 43 The code of Social Security, 2020 (‘Code’) relating to employee benefits during employment and postemployment received Presidential assent in September 2020 and its effective date is yet to be notified. The Company will assess and record the impact of the Code, once it is effective.

Note 44 Previous period figures have been regrouped and reclassified wherever considered necessary to confirm to this year’s classifications.

Material Accounting Policies (Note No. 1)

The accompanying notes form an integral part of the financial statements

As per our report of even date attached

For R.S. Bansal & Company

Chartered Accountants

Firm’s Registration Numbar: 000939C

For and on behalf of the Board of Directors

(CA. Vijay Bansal)

Partner PiyushMutha PraneetMutha Pulkit Maheshwari

Membership No. 075344

Dewas

Dated: May 14th, 2024 Managing Director Director Company Secretary & CFO

(DIN00424206) (DIN-00424250) (M No. ACS-68690)

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Mar 31, 2018

Note No. 19.1:

i) Payments against small scale and ancillary undertakings are made in accordance with the agreed credit terms and to the extent ascertained from available information, there was no amount overdue for more than 30 days as on 31st March, 2018. A Small Scale Industrial undertaking has the same meaning as assigned to it under clause (j) of section 3 of the Industries (Development and Regulation) Act, 1951.

ii) The Company has not received the necessary information from the supplier/ service provider covered under Micro Small & Medium Enterprises Development Act 2006 with respect to their registration with the appropriate authority. Hence the information required to be disclosed u/s 22 of the said act is not given or nil.

Note 32 CONTINGENT LIABILITIES

a) Company has given counter guarantee for '' 4.40 lakhs (March 31, 2017 '' 4.33 lakhs April 1, 2016 '' 12.03 lakhs) to Punjab National Bank for Guarantee given by them to Custom/DGFT department. against which Company has given to bank FDR for '' 0.90 lakhs (March 31, 2017 '' 0.82 lakhs, April 1, 2016 '' 1.56 lakhs) as margin money.

b) Demand of Entry Tax by commercial tax department '' 6.31 lakhs for assessment year 2007

08. Case pending with M.P. Tax Tribunal Board Bhopal. Company has provided liabilities for '' 3.20 lakhs in the financial year 2007-08.

Note 33 CAPITAL COMMITEMENTS

Estimated amount of contracts remaining to be executed on capital account, not provided for (Net of advance) '' 31.02 lakhs (Last year Nil)

Note 34 In Union Budget 2004-05 textile goods have been exempted from excise duty provided no credit under CENVAT Rule 2002 is taken. The company decided to opt for exemption i.e zero excise duty w.e.f. 9th July, 2004 under notification No. 30 dated 09.07.2004. This exemption was applicable till 30th June, 2017

Note 36 INSURANCE CLAIM RECEIVABLE

In the months of September and October, 2017, there were fire incidents in the Company. Due to the same, certain fixed assets, finished goods, work in progress, stores & spare parts and packing materials etc. were impacted/ destroyed. Subsequently, the Company filed for insurance claim for the loss of same. The Insurance Policy has reinstatement clause, and Company has claimed accordingly.

Note 37 CAPITAL MANAGEMENT

The Company’s objectives when managing capital are to safeguard the group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

(ii) Defined Benefit Plan Gratuity:

The disclosure required as per Ind AS 19 “Employees Benefits” issued by the Institute of Chartered Accountants of India (ICAI) and as specified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, and based on the report generated by Life Insurance Corporation of India (LIC) is as under.

The following tables set out the funded status of the gratuity and the amounts recognized in the Company’s financial statements as at 31 March 2018 and 31 March 2017.

(A) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses the direct risk of default, risk of deterioration of creditworthiness as well as concentration risks. The Company is exposed to credit risk from its operating activities (primarily trade receivables), deposits with banks and loans given.

Credit Risk Management

For financial assets the Company has an investment policy which allows the Company to invest only with counterparties having high credit ratings or with higher credentials. The Company reviews the creditworthiness of these counterparties on an ongoing basis. Another source of credit risk at the reporting date is from trade receivables as these are typically unsecured. This credit risk has always been managed through credit approvals, establishing credit limits and continuous monitoring the creditworthiness of customers to whom credit is extended in the normal course of business. The Company estimates the expected credit loss based on past data, available information on public domain and experience. Expected credit losses of financial assets receivable are estimated based on historical data of the Company. The Company has provisioning policy for expected credit losses. There is no credit risk in bank deposits which are demand deposits.

The maximum exposure to credit risk as at 31 March 2018, 31 March 2017 and 1 April 2016 is the carrying value of such trade receivables as shown in note 9 of the financials.

The Credit Loss allowances are provided in the case of trade receivables as under:

Loss allowance as on 1 April 2016 -

Change in loss allowance -

Loss allowance as on 31 March 2017 -

Change in loss allowance -

Loss allowance as on 31 March 2018 -

*Since the company is having effective credit monitoring policy, its receivables are always outstanding for less than 6 months at any given point of time. Therefore, provision of expected credit loss is not required.

(B) Liquidity Risk

The Company’s principal sources of liquidity are “cash and cash equivalents” and cash flows that are generated from operations. The Company has no outstanding term borrowings. The Company believes that its working capital is sufficient to meet its current requirements. Additionally, the Company has sizeable surplus funds invested in fixed income securities or instruments of similar profile ensuring safety of capital and availability of liquidity if and when required. Hence, the Company does not perceive any liquidity risk.

The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2018

(C) Market risk

Interest Rate Risk Exposure

The Company is exposed to various types of borrowings as stated in Note Nos. 15 and 18 respectively. The Company’s exposure to interest rate risks at the end of the reporting period is as follows:

The Company is exposed to various types of borrowings as stated in Note Nos. 15 and 18, respectively. The sensitivity analysis demonstrates a reasonably possible change in the interest rates, with all other variables held constant.

For the year ended March 31, 2018 and March 31, 2017, every 0.25% increase in the interest rate would decrease the Company’s profit approximately by Rs, 2.67 lakhs and Rs, 0.86 lakhs respectively and every 0.25% decrease in the interest rate would lead to an equal but opposite effect.

(D) Price risk

The Company is exposed to price risk in basic ingredients of Company’s raw material and is procuring finished components and bought out materials from vendors directly. The Company monitors its price risk and factors the price increase in pricing of the products.

Competition and Price risk

The Company faces competition from local competitors. Nevertheless, it believes that it has competitive advantage in terms of high quality products and by continuously upgrading its expertise and range of products to meet the needs of its customers.

Note 40 Related party disclosures as required under Ind AS 24, “Related Party Disclosures”, are given below:

a) Name of the related party and description of relationship:

S. Related Parties Nature of Relationship No.

(i) Vippy Industries Ltd. Entity in which Key Managerial person''s relative having significant influence

(ii) Shri Piyush Mutha Managing Director (Key Management Personnel)

(iii) Shri Mangalore Whole time Director (Key Managerial Personnel)

Maruthi Rao

(iv) Shri Praneet Mutha Director

b) Details of Transactions during the year with related parties:

Note 41 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

The management assessed that Cash and Cash equivalents, loans, other balances with Banks, trade receivables, trade payables and other current liabilities/assets approximate their carrying amounts largely due to the short-term maturities of these instruments.

Note 43 FIRST TIME ADOPTION OF IND AS (IND AS 101)

These are the Company’s first financial statements prepared in accordance with Ind AS. The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS Balance Sheet at April 1, 2016 (the company’s date of transition). In preparing its opening Ind AS Balance Sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2014 and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the company’s financial position, financial performance and cash flows is set out in the following tables and notes.

(A) Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

(i) Ind AS optional exemptions

a) Deemed cost for Property, Plant and Equipment, Intangible Assets and Investment Property

Ind AS 101 permits a first-time adopter to opt to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

Accordingly, the Company has opted to measure all of its property, plant and equipment at their previous GAAP carrying value and use the same as deemed cost in the opening Ind AS balance sheet.

b) Designation of previously recognized financial instrument

Ind AS 101 allows an entity to recognize investments in equity instruments at fair value through other comprehensive income (FVOCI) through an irrevocable election on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has opted to apply this exemption for its investment in quoted equity investments.

(ii) Ind AS mandatory exceptions

a) Estimates

An entity’s estimates in accordance with Ind AS’s at the date of transition shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

> Investment in equity instruments carried at FVOCI;

> Investment in mutual fund carried at FVTPL;

> Impairment of financial assets based on expected credit loss model.

Upon an assessment of the estimates made under Previous GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS, except where estimates were required by Ind AS and not required by previous GAAP.

b) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

(B) Reconciliation between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliation from previous GAAP to Ind AS.

Explanation for the above reconciliation as previously reported under IGAAP to Ind AS:

1: Property, Plant & Equipment

As per the requirements of Ind AS 17 “Leases” the lease premium paid for the acquisition of land has been amortized over the lease tenure. Accordingly there is an decrease in value of Leasehold land and increase in Depreciation and Amortization expenses.

2: Fair valuation of investments

Under the previous GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and reliability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments recognized at FVOCI) have been recognized in retained earnings as at the date of transition and subsequently in the profit or loss.

Fair value changes with respect to investments in equity instruments have been recognized in FVOCI under Other Comprehensive Income as at the date of transition and for the year ended 31 March 2017. Consequently, other reserves have been increased by '' 16.35 lakhs as at March 31, 2017 (increased by '' 21.70 lakhs as at April 01, 2016).

3: Trade receivables

As per Ind AS 109, the Company is required to apply expected credit loss model for recognizing the allowance for doubtful debts. However, due to effective credit monitoring policy of the Company, the trade receivables are outstanding for less than 6 months at any given point of time. As a result, the Company is not required make expected credit loss provision.

4: Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2017 increased by Rs .80 lakh (increased by '' 7.32 lakhs as at April 01, 2016). There is no impact on the total equity as at March 31, 2017.

5: Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes remeasurements of defined benefit plans, fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.

6: Deferred tax

Deferred taxes impact of the above adjustments, wherever applicable have been recognized on transition to Ind AS.

7: Retained earnings

Retained earnings as at April 01, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

Note 44 Previous year figures have been regrouped and reclassified wherever considered necessary to conform to this year’s classifications.

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Mar 31, 2015

Note 1. - CONTINGENT LIABILITIES (to the extent not provided for)

a) Counter Guarantee:

For Rs. 11,06,500/- (Rs. 32,24,500) given to Punjab National Bank for Guarantee given by them to Custom/DGFT department against which Company has given to bank FDR for Rs. 1,46,830/- as margin money.

b) Demand of Entry Tax by commercial tax department Rs. 6,31,496/- for assessment year 2007- 08. Case pending with M.P. Tax Tribunal Board Bhopal. Company has provided liabilities for Rs. 3,20,856/- in the financial year 2007-08.

Note 2. - Pursunt to the transitional provision prescribed in Schedule II to the Companies Act, 2013, the company has adjusted the value of assets, net of residual value, where the remaining useful life of the assets determined to nil as on April 1, 2014 and has adjusted in the retained earnings an amount of Rs. 3.28 Lakh.

The depreciation expenses in the statement of Profit and Loss account for the year is higher by Rs. 59.41 Lakh consequent to the change in the useful life of the assets.

Note 3. - In the opinion of the management and to the best of their knowledge and belief, the value on realisation of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the balance sheet. The provision for known liabilities is adequate and not in excess of the amount considered reasonable and necessary

Note 4. - In Union Budget 2004-05 textile goods have been exempted from excise duty provided no credit under CENVAT Rule 2002 is taken. The company has decided to opt for exemption i.e. zero excise duty w.e.f. 9th July, 2004 under notification No. 30 dated 09.07.2004.

Note 5. - The company in accordance with its risk management policies and procedure enters in to foreign currency forward contracts to manage its exposure in foreign exchange rates. These contracts are for period between one day and one year.

Note 6. - The Company has applied for assistance under M.P. Udyog Nivesh Samvardhan Sahayata Yojana 2004 and exemption for entry tax for its expansion programme. The exemption of entry tax approved by the govt.

Note 7. - Balances of creditors, debtors, and advances are almost confirmed.

Note 8. - Figures of the previous year have been regrouped wherever required

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Mar 31, 2014

Note 1 - CORPORATE INFORMATION

Vippy Spinpro Ltd. was established in 1993 as a public limited company. The company is incorporated under the provisions of Companies Act, 1956. Its shares are listed on Mumbai Stock Exchange. The company is engaged in manufacturing of Cotton Yarn. The factory is situated at Dewas, with close proximity to Indore, a main commercial city of Madhya Pradesh. Company specialises in slub yarns, fancy yarns, multi count yarns and multi twist yarns, waxed yarn plied yarn etc. The company has an ISO certification, certified by Bureau Veritas ISO 9o0l:2008 since 2004

Note 2 - SHARE CAPITAL

(b) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each shareholder of equity shares is entitled to one vote per share.

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

Note 3 - LONG TERM BORROWINGS

(a) Term Loan

i) Term loan-II, III, IV and V under Technology upgradation fund scheme (TUFS), secured against, (i) Charge by way of equitable mortgage of Land and Building. (ii) first charge land and Building, plant and machinery both present and future. The above said term loans are also collaterally secured by way of personal guarantees of 2 (two) directors/promoters of the Company.

iii) The Company has not made any default as at the reporting date in repayment of term loan installment and interest.

iv) The Term loan carries interest @ 7.00% (net of interest subvention under TUF Scheme @ 5% except 4% on T/L No. V)

(b) Vehicle Loan HDFC Bank

i) Vehicle loan secured by hypothecation of vehicle.

ii) Vehicle loan is repayable 36 monthly installment

iii) The Company has not made any default as at the reporting date in repayment of vehicle loan installment and interest.

iv) The vehicle loan carries interest @ 9.25%

Note 4 - DEFERRED TAX LIABILITY (NET)

i) In accordance with the provisions of the Accounting Standard-22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has recognised deferred tax liabilities of Rs.1,68,15,827/- (Rs.1,85,96,220) as at Mar 31, 2014.

ii) The net deferred tax Assets amounting to Rs.17,80,393/- (Rs.1,00,659/- deffered tax liability ) for the year has been recognised in the Statement of Profit and Loss.

Note 5 - SHORT TERM BORROWINGS

a) Working capital facilities from Punjab National Bank

i) Working capital facilities, fund based of Rs.18,00,00,000/- and non fund based of Rs.1,00,00,000/- (Previous year Rs.18,00,00,000/- and Rs. 1,00,00,000/-) is secured by hypothecation of stock of raw material, semi finished goods, work in progress/process, stores and spares, packing materials and books debts. (ii) first pari passu charge on all the Company''s current assets. The above said working capital facilities is also collaterally secured by way of (i) personal guarantee of 2 (two) directors of the Company.

ii) The Company has not made any default with respect to working capital facilities as at the reporting date.

iii) Working capital facilities carries interest @ 11.50% while on Packing Credit interest rate is 11.00%

(a) Term Loan

i) Term loan-II, III, IV and V under Technology upgradation fund scheme (TUFS), secured against, (i) Charge by way of equitable mortgage of Land and Building. (ii) first charge land and Building, plant and machinery both present and future. The above said term loans are also collaterally secured by way of personal guarantees of 2 (two) directors/promoters of the Company.

iii) The Company has not made any default as at the reporting date in repayment of term loan installment and interest.

iv) The Term loan carries interest @ 7.00% (net of interest subvention under TUF Scheme @ 5% except 4% on T/L No. V)

vi) There are no outstanding dues to be paid to investor education and protection fund.

Note 6 - CONTINGENT LIABILITIES (to the extent not provided for)

a) Counter Guarantee:

For Rs.32,24,500/- (Rs.40,24,300) given to Punjab National Bank for Guarantee given by them to Custom/ DGFT department. against which Company has given to bank FDR for Rs.3,48,130/- as margin money.

b) Demand of Entry Tax by commercial tax department Rs.6,31,496/- for assessment year 2007- 08. Case pending with M.P. Tax Tribunal Board Bhopal. Company has provided liabilities for Rs.3,20,856/- in the financial year 2007-08.

Note 7 - In the opinion of the management and to the best of their knowledge and belief, the value on realisation of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the balance sheet. The provision for known liabilities is adequate and not in excess of the amount considered reasonable and necessary

Note 8 - In Union Budget 2004-05 textile goods have been exempted from excise duty provided no credit under CENVAT Rule 2002 is taken. The company has decided to opt for exemption i.e. zero excise duty w.e.f. 9th July, 2004 under notification No. 30 dated 09.07.2004.

Note 9 - The Company has applied for assistance under M.P. Udyog Nivesh Samvardhan Sahayata Yojana 2004 and exemption for entry tax for its expansion programme. The exemption of entry tax approved by the govt. Note 31 - Balances of creditors, debtors, and advances are almost confirmed.

Note 10 - FORWARD BOOKING CONTRACTS

The company in accordance with its risk management policies and procedure enters in to foreign currency forward contracts to manage its exposure in foreign exchange rates. Thease contracts are for period between one day and one year.

The Company has outstanding forward booking contracts at the year end

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Mar 31, 2013

Note 1 - CORPORATE INFORMATION

Vippy Spinpro Ltd. was established in 1993 as a public limited company. The company is incorporated under the provisions of Companies Act, 1956. Its shares are listed on Mumbai Stock Exchange. The company is engaged in manufacturing of Cotton Yarn. The factory is situated at Dewas, with close proximity to Indore, a main commercial city of Madhya Pradesh. Company specializes in slub yarns, fancy yarns, multi count yarns and multi twist yarns, waxed yarn plied yarn etc. The company has an ISO certification, certified by Bureau Veritas ISO 9001:2008 since 2004.

March 31, 2013 March 31, 2012 (Rs.) (Rs.)

Note 2 - SHARE CAPITAL Authorized

70,00,000 (70,00,000) equity shares of Rs.10 (Rs.10) each 7,00,00,000 7,00,00,000

Issued, subscribed, and paid up

58,70,000 (58,70,000) equity shares of Rs. 10 (Rs. 10) each fully paid up 5,87,00,000 5,87,00,000

Less: Allotment money unpaid (Other than directors) - -

5,87,00,000 5,87,00,000

b) Terms/rights attached to equity shares :

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each shareholder of equity shares is entitled to one vote per share.

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

a) Term loans

i) Term loan-II, III, IV and V under Technology up gradation fund scheme (TUFS), secured against, (i) Charge by way of equitable mortgage of Land and Building. (ii) first charge land and Building, plant and machinery both present and future. The above said term loans are also collaterally secured by way of personal guarantees of 2 (two) directors/promoters of the Company.

iii) The Company has not made any default as at the reporting date in repayment of term loan installment and interest.

iv) The Term loan carries interest @ 8.50% (net of interest subvention under TUF Scheme @ 5% except 4% on T/L No. V)

b) Vehicle Loan HDFC Bank

i) Vehicle loan secured by hypothecation of vehicle.

ii) Vehicle loan is repayable 36 monthly installment

iii) The Company has not made any default as at the reporting date in repayment of vehicle loan installment and interest.

iv) The vehicle loan carries interest @ 9.25%

i) In accordance with the provisions of the Accounting Standard-22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has recognized deferred tax liabilities of Rs.1,85,96,220/- (Rs.1,84,95,561) as at March 31, 2013.

ii) The net deferred tax Liabilities amounting to Rs. 1,00,659/- (Rs. 22,77,109/- differed tax assets) for the year has been recognized in the Statement of Profit and Loss.

a) Working capital facilities from Punjab National Bank

i) Working capital facilities, fund based of Rs.18,00,00,000/- and non fund based of Rs.1,00,00,000/-(Previous qtr Rs. 18,00,00,000/- and Rs. 1,00,00,000/-) is secured by (i) hypothecation of stock of raw material, semi finished goods, work in progress/process, stores and spares, packing materials and books debts. (ii) first pari passu charge on all the Company''s current assets. The above said working capital facilities is also collaterally secured by way of personal guarantee of2 (two) directors of the Company.

ii) The Company has not made any default with respect to working capital facilities as at the reporting date.

iii) Working capital facilities carries interest @ 13.00% while on Packing Credit interest rate is 11.00%.

Payments against small scale and ancillary undertakings are made in accordance with the agreed credit terms and to the extent ascertained from available information, there was no amount overdue for more than 30 days as on 31st March, 2013. A Small Scale Industrial undertaking has the same meaning as assigned to it under clause (j) of section 3 ofthe Industries (Development and Regulation) Act, 1951.

The Company has not received the necessary information from the supplier/ service provider covered under Micro Small & Medium Enterprises Development Act 2006 with respect to their registration with the appropriate authority. Hence the information required to be disclosed U/s 22 of the said act is not given.

a) Term loans

i) Term loan-II, III, IV and V under Technology up gradation fund scheme (TUFS), secured against, (i) Charge by way of equitable mortgage of Land and Building. (ii) first charge land and Building, plant and machinery both present and future. The above said term loans are also collaterally secured by way of personal guarantees of 2 (two) directors/promoters of the Company.

Note 3 - CONTINGENT LIABILITIES (to the extent not provided for)

a) Counter Guarantee:

For Rs. 40,24,300/- (Rs. 68,78,800/-) given to Punjab National Bank for Guarantee given by them to Custom/DGFT department. against which Company has given to bank FDR for Rs. 6,36,330/- as margin money.

b) Demand of Entry Tax by commercial tax department Rs. 6,31,496/- for assessment year 2007-08. Case pending with M.P. Tax Tribunal Board Bhopal. Company has provided liabilities for Rs.3,20,856/in the financial year 2007-08.

c) Demand outstanding of Income Tax Rs. 1,65,272/- for assessment year 1996-97.

Note 4 - In the opinion of the management and to the best of their knowledge and belief, the value on realization of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the balance sheet. The provision for known liabilities is adequate and not in excess of the amount considered reasonable and necessary

Note 5 - In Union Budget 2004-05 textile goods have been exempted from excise duty, provided no credit under CENVAT Rule 2002 is taken. The company has decided to opt for exemption i.e. zero excise duty w.e.f. 9th July, 2004 under notification No. 30 dated 09.07.2004.

Note 6 - The Company has applied for assistance under M.P. Udyog Nivesh Samvardhan Sahayata Yojana 2004 and exemption for entry tax for its expansion programme. The exemption of entry tax approved by the govt.

Note 7 - Balances of creditors, debtors, and advances are almost confirmed.

Note 8 - FORWARD BOOKING CONTRACTS

The company in accordance with its risk management policies and procedure enters in to foreign currency forward contracts to manage its exposure in foreign exchange rates. These contracts are for a period from one day to one year.

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Mar 31, 2012

Note 1 -CORPORATE INFORMATION

Vippy Spinpro Ltd. was established in 1993 as a public limited company. The company is incorporated under the provisions of Companies Act, 1956. Its shares are listed on Mumbai Stock Exchange. The company is engaged in manufacturing of Cotton Yarn. The factory is situated at Dewas, close with proximity to Indore, a main commercial city of Madhya Pradesh. Company specialises in slub yarns, fancy yarns, multi count yarns and multi twist yarns, waxed yarn plied yarn etc. The company has an ISO certification, certified by Bureau Veritas ISO 9001:2008 since 2004

i) The Company has not made any default as at the reporting date in repayment of term loan installment and interest.

ii) The Term loan carries interest @ 9.75% (net of interest subvention under TUF Scheme @5% except 4% on T/L No. V)

a) Vehicle Loan HDFC Bank

i) Vehicle loan is secured by hypothecation of vehicle.

ii) Vehicle loan is repayable 36 monthly installment

iii) The Company has not made any default as at the reporting date in repayment of vehicle loan installment and interest.

iv) The vehicle loan carries interest @ 9.25%

(a) Working capital facilities from Punjab National Bank

i) Working capital facilities, fund based of Rs. 18,00,00,000/- and non fund based of Rs. 1,00,00,000/- (Previous year Rs. 13,00,00,000/- and Rs. 1,00,00,000/-) is secured by hypothecation of stock of raw material, semi finished goods, work in progress/process, stores and spares, packing materials and books debts. (ii) first pari passu charge on all the Company's current assets. The above said working capital facilities is also collaterally secured by way of (i) personal guarantee of 2 (two) directors of the Company.

ii) The Company has not made any default with respect to working capital facilities as at the reporting date.

iii) Working capital facilities carries interest @ 14.25% while on Packing Credit interest rate is 11.50% Payments against small scale and ancillary undertakings are made in accordance with the agreed credit terms and to the extent ascertained from available information, there was no amount overdue for more than 30 days as on 31st March 2012. A Small Scale Industrial undertaking has the same meaning as assigned to it under clause (j) of section 3 of the Industries (Development and Regulation) Act, 1951.

The Company has not received the necessary information from the supplier/ service provider covered under Micro Small & Medium Enterprises Development Act 2006 with respect to their registration with the appropriate authority. Hence the information required to be disclosed U/s 22 of the said act is not.

(a) Term loan

i) Term loan-II, III, IV and V are under Technology upgradation fund scheme (TUFS), secured against, (i) Charge by way of equitable mortgage of Land and Building. (ii) first charge land and Building, plant and machinery both present and future. The above said term loans are also collaterally secured by way of personal guarantees of 2 (two) directors/promoters of the Company.

Note 2- CONTINGENT LIABILITIES

(to the extent not provided for)

a) Counter Guarantee:

For Rs. 68,78,800/- (Rs. 82,61,400/-) given to Punjab National Bank for Guarantee given by them to Custom/DGFT department against which company has given to bank FDR for Rs. 8,93,880/- as margin money.

b) Demand of Entry Tax by commercial tax department Rs. 2,43,910/- for assessment year 2004-05. Case pending with M.P. Tax Tribunal Board Bhopal.

c) Demand of Entry Tax by commercial tax department Rs. 1,07,982/- for assessment year 2005-06. Case pending with M.P. Tax Tribunal Board Bhopal .

d) Demand of Entry Tax by commercial tax department Rs. 7,90,496/- for assessment year 2007-08. Case pending with Addl. Commissioner of Commercial Taxes (Appeal) Indore. Company has provided liabilities for Rs. 3,20,856/- in the financial year 2007-08.

e) Demand outstanding of Income Tax Rs. 1,65,272/- for assessment year 1996-97.

Note3- In the opinion of the management and to the best of their knowledge and belief, the value on realisation o f current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the balance sheet. The provision for known liabilities is adequate a n d not in excess of the amount considered reasonable and necessary

Note4- In Union Budget 2004-05 textile goods have been exempted from excise duty, provided no credit under CENVAT Rule 2002 is taken. The company has decided to opt for exemption i.e. zero excise duty w.e.f. 9th July, 2004 under notification No. 30 dated 09.07.2004.

Note5- The Company has applied for assistance under M.P. Udyog Nivesh Samvardhan Sahayata Yojana 2004 and exemption for entry tax for its expansion programme. the exemption of entry tax approved by the govt.

Note 6 - Keyman insurance policy for key persons not renewed by the company during the year premium of Rs. nil paid

Note 7- Balances of creditors, debtors, and advances are almost confirmed.

Note 8- CAPITAL OMMITMENTS

Estimated amount of contracts remaining to be executed on capital account Rs. 1,44,83,933/- (Previous year Rs. NIL ) and not provided for

Note 9- The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act 1956. Consequent to the notification under the Companies Act, 1956, the financial statements for the year ended 31st March, 2012 are prepared under revised Schedule VI. Accordingly, the previous year figures have also been reclassified to confirm to this year's classification.

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Mar 31, 2010

1. Contingent Liabilities not provided for:

a) Counter Guarantee:

For Rs. 69,06,900/- (64*29,400/-) given to Punjab National Bank for Guarantee given by them to Custom/DGFT department against which Company has given to bank FDR for Rs. 10,38,730/- as margin money.

b) Demand of Entry Tax by commercial tax department Rs. 3,38,910/- for assessment year 2004-05. Case pending with M.R Tax Tribunal Board Bhopal.

c) Demand outstanding of Income Tax Rs. 1,65,272/- for assessment year 1996-97.

d) Demand of Entry Tax by commercial tax department Rs. 1,50,082/- for assessment year 2005-06. Case pending with M.R Tax Tribunal Board Bhopal.

2. Income-tax assessment in respect of assessment year 1994-95 ITAT allowed the appeal of the company. Income tax department has filed the reference application to the High Court and High Court rejected the application of Income tax department. No demand is outstanding.

3. In the opinion of the management and to the best of their knowledge and belief, the value on realisation of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the balance sheet. The provision for known liabilities is adequate and not in excess of the amount considered reasonable and necessary.

4. Balances of creditors, debtors, and advances are almost confirmed.

5 Payments against small scale and ancillary undertakings are made in accordance with the agreed credit terms and to the extent ascertained from available information, there was no amount overdue for more than 30 days as on 31st March, 2010. A Small Scale Industrial undertaking has the same meaning as assigned to it under clause (j) of section 3 of the Industries (Development and Regulation) Act, 1951.

6. Keyman insurance policy for key persons renewed by the company during the year and premium of Rs. 10,00,000/-paid.

7. In Union Budget 2004-05 textile goods have been exempted from excise duty, provided no credit under CENVAT Rule 2002 is taken. The company has decided to opt for exemption i.e. zero excise duty w.e.f. 9th July, 2004 undernotificationNo. 30 dated 09.07.2004.

8. The Company has applied for assistance under M.P. Udyog Nivesh Samvardhan Sahayata Yojana 2004 and exemption for entry tax for its expansion programme. The application is under process.

9. Figures of the previous year have been regrouped/rearranged/reclassified wherever necessary

10. Earning Per Shares Current Previous

Year Year

a) Net Profit after Tax (Rs.) 99,57,401 1,07,78,595

a) Number of Weighted Average

Equity Shares 58,70,000 58,70,000

b) Nominal value of Share (Rs.) 10 10

c) Earning per share (Rs.) 1.696 1.836



11. The Company has not received the necessary information from the supplier/ service provider covered under Micro Small & Medium Enterprises Development Act 2006 with respect to their registration with the appropriate authority. Hence the information required to be disclosed U/s 22 of the said act is not given or nil.

12. Additional information required under part II 3,4 C & D of Schedule VI of the Companies Act 1956.

13. Figures have been rounded off to the nearest rupees.