Notes to Accounts of Zenith Exports Ltd.

Mar 31, 2024

(d) Rights Preferences and Restrictions attached to 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 held.

In the event of liquidation of the company the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their shareholding.

43.1 Capital management

Capital management is driven by Company''s policy to maintain a sound capital base to support the continued development of its business. The Management seeks to maintain a prudent balance between different components of the Company''s capital. The Management the monitors capital structure and the net financial debt. Net financial debt is defined as current and non-current financial liabilities less cash and cash equivalents and short term investments. The debt equity ratio highlights the ability of a business to repay its debts. Accordingly the management periodically reviews and sets prudent limit on overall borrowing limits of the Company.

43.2 Categories of financial instruments Fair Value hierarchy

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities, grouped into Level 1 to Level 3 as described below:

Level 1: It includes fair value of financial instruments traded in active markets and are based on quoted market prices at the balance sheet date like mutual fund. The mutual fund are valued using the closing market price as at the balance sheet date.

Level 2: It includes fair value of the financial instruments that are not traded in an active market like over-the-counter derivatives, which is valued by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on the specific estimates. If all significant inputs required to fair value if instrument are observable then instrument is included in level 2.

Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

43.3 Financial risk management

The financial risks emanating from the Company''s operating business include market risk, credit risk and liquidity risk. These risks are Company using managed by the appropriate financial instruments.

43.4 Market risk management

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of Currency risk, Interest rate risk and other price risk.

43.5 Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate.

The Company operates internationally and is exposed to the foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD, EURO and GBR Foreign exchange risk arises from future commercial transactions. The objective of the hedges is to minimise the volatility of the INR cash flows of highly probable forecast transactions.

The Company, as risk management policy, hedges foreign currency transactions to mitigate the risk exposure and reviews periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed.

43.6 Credit Riak

Credit risk refers to the risk of financial loss arising from default / failure by the counterparty to meet financial obligations as per the terms of contract. The Company is exposed to credit risk for receivables, cash and cash equivalents and derivative financial instruments. None of the financial instruments of the Company result in material concentration of credit risks.

Credit risk on receivables is minimum since sales through different mode are made after judging credit worthiness of the customers, advance payment or against letter of credit by banks. The history of defaults has been minimal and outstanding receivables are regularly monitored. For credit risk on the loans to parties, the Company is not expecting any material risk on account of non-performance by any of the parties.

For derivative and financial instruments, the Company manage & its credit risks by dealing with reputable banks and financial institutions.

Credit risk from balances with banks is manages by constant monitoring in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty.The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

The carrying value of the financial assets represent the maximum credit exposure. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

43.7 Interest rate risk management

The Company does not have interest rate risk exposure at the end of the year.

43.8 Price risk

The Company is not an active investor in equity markets; so it is not exposed to price risk.

43.9 Other Financial Assets

The Company maintains exposure in cash and cash equivalents, fixed deposits with banks. Investment of surplus funds are made only with approved counterparties. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

43.10 Agricultural Risk

Cultivation of Eucalyptus trees being an agricultural activity, there are certain specific financial risks. These financial risks arise mainly due to adverse weather conditions, logistic problems and fire hazards.

The Company manages the above financial risks by keeping Sufficient inventory levels of agro chemicals, fertilisers and other inputs so that timely corrective can be taken in case of adverse weather conditions.

43.11 Liquidity risk management

The objective of liquidity risk management is to maintain sufficient liquidity to meet financial obligations of the Company as they become due. The Treasury Risk Management Policy includes an appropriate liquidity risk management framework for the management of the short-term, medium-term and long term funding and cash management requirements. The Company manages the liquidity risk by maintaining adequate cash reserves, banking facilities and reserve borrowing facilities continuously monitoring forecast and actual by cash flows and by matching the maturity profiles of financial assets and liabilities.

44. No preceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made there under.

47. Borrowinqs from Banks:-

All the quarterly returns or statements of current assets filed by the company with banks are in agreement with the books of accounts.

48. Funds borrowed by the company from banks have been utilised for the specified purpose for which the same have been borrowed.

49. Previous year''s figures have been re-grouped/re-classified wherever necessary to correspond with the current year''s classification/disclosure.

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Mar 31, 2023

1.15 Provision, Contingent Liabilities and Contingent Assets, legal or constructive

Provisions are recognised when there is a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

A disclosure for contingent liabilities is made when there is a possible obligation arising from past events, 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 the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

When there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made.

Contingent Assets are not recognised but are disclosed when an inflow of economic benefits is probable.

1.16 Employee Benefits

1.16.1 Short-term Employee Benefits

These are recognised at the undiscounted amount as expense for the year in which the related service is rendered.

1.16.2 Post-employment Benefit Plans

(a) Defined Contribution Plans

i. Gratuity Plan

• The Company has Defined Benefit Plan for post-employment benefit in the form of gratuity for eligible employees which is administered through a group gratuity policy with Life Insurance Corporation of India (L.I.C). The liability for the above defined benefit plan is provided on the basis of an actuarial valuation as carried out by L.I.C. The actuarial method used for measuring the liability is the Project Unit Credit method.

• In case of Unfunded Gratuity, payable to all eligible employees of the Company on death, permanent disablement and resignation as the provisions of the Payment of Gratuity Act or as per the company’s scheme, whichever is more beneficial. Benefit would be paid at the time of separation based on the last drawn basic salary.

ii. Leave Encashment

Eligible employees can carry forward and encash leave upto death, permanent disablement and resignation subject to maximum accumulation allowed upto 15 days for employees. The leave over and above 15 days is paid to employees as per the balance as on 31^st March every year. Benefit would be paid at the time of separation based on the last drawn basic salary.

1.16.3 Bonus plans

The Company recognizes a liability and an expense for bonuses. The Company recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

1.17 Equity

Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.

1.18 Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the Company, on or before the end of the reporting period but not distributed at the end of the reporting period.

1.19 Earnings per Share

1.19.1 Basic earnings per share

Basic earnings per share is calculated by dividing:

The profit/ loss attributable to owners of the Company

By the weighted average number of equity shares outstanding during the financial year.

1.19.2 Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

The after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

The weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

1.20 Leases

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases(net of any incentives received from the lessor) are charged to statement profit and loss on a straight line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor’s expected inflationary cost increases.

1.21 Impairment of non-financial assets.

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows which are largely independent of the cash flows from other assets or group of assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

1.22 Derivatives

a) The Company enters into Forward Foreign exchange contracts/Option contracts (derivatives) to mitigate

the risk of change in Foreign Exchange Rate on forecasted transactions. The company enters into Derivative Financial Contracts where the counterparty is bank. Gain/Losses on ineffective transactions of derivative contracts are recognised in the Statement of Profit & Loss Account as they arise and reported in accordance with IND AS 21.

b) Accounting for Forward Foreign Exchange Contracts are Marked to Market (M to M) basis and the net loss after considering the offsetting effects on the underlying contracts, is charged to the statement of profit & Loss in accordance with IND AS 21. Net Gains on M to M are ignored. Reporting and disclosures of such amounts are done in accordance with guidelines issued by ICAI.

1.23 Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

1.24 Use of Estimates

The Preparation of financial statements in conformity with the generally accepted accounting principles in India requires the management to make estimates and assumptions that affects the reported amount of assets and liabilities as at the balance sheet date, the reported amount of revenue and expenses for the periods and disclosure of contingent liabilities at the balance sheet date. The estimates and assumptions used in the financial statements are based upon management’s evaluation of relevant facts and circumstances as of the date of financial statements. Actual results could differ from estimates.

1.25 Borrowing costs

Interest and other borrowing costs attributable to qualifying assets (PPE) are capitalised. Other interest and borrowing costs are charged to Statement of Profit and Loss.

43.3 Financial risk management

The financial risks emanating from the Company’s operating business include market risk, credit risk and liquidity risk. These risks are Company using managed by the appropriate financial instruments.

43.4 Market risk management

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.

Market risk comprises of Currency risk, Interest rate risk and other price risk.

43.5 Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate.

The Company operates internationally and is exposed to the foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD, EURO and GBP. Foreign exchange risk arises from future commercial transactions. The objective of the hedges is to minimise the volatility of the INR cash flows of highly probable forecast transactions.

The Company, as risk management policy, hedges foreign currency transactions to mitigate the risk exposure and reviews periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed.

43.6 Credit Riak

Credit risk refers to the risk of financial loss arising from default / failure by the counterparty to meet financial obligations as per the terms of contract. The Company is exposed to credit risk for receivables, cash and cash equivalents and derivative financial instruments.

None of the financial instruments of the Company result in material concentration of credit risks.

Credit risk on receivables is minimum since sales through different mode are made after judging credit worthiness of the customers, advance payment or against letter of credit by banks. The history of defaults has been minimal and outstanding receivables are regularly monitored. For credit risk on the loans to parties, the Company is not expecting any material risk on account of nonperformance by any of the parties.

For derivative and financial instruments, the Company manage its credit risks by dealing with reputable banks and financial institutions.

Credit risk from balances with banks is manages by constant monitoring in accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty.The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.

The carrying value of the financial assets represent the maximum credit exposure. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

43.7 Interest rate risk management

The Company does not have interest rate risk exposure at the end of the year.

43.8 Price risk

The Company is not an active investor in equity markets; so it is not exposed to price risk.

43.9 Other Financial Assets

The Company maintains exposure in cash and cash equivalents, fixed deposits with banks. Investment of surplus funds are made only with approved counterparties. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

43.10 Agricultural Risk

Cultivation of Eucalyptus trees being an agricultural activity, there are certain specific financial risks. These financial risks arise mainly due to adverse weather conditions, logistic problems and fire hazards.

The Company manages the above financial risks by keeping Sufficient inventory levels of agro chemicals, fertilisers and other inputs so that timely corrective action can be taken in case of adverse weather conditions.

43.11 Liquidity risk management

The objective of liquidity risk management is to maintain sufficient liquidity to meet financial obligations of the Company as they become due. The Treasury Risk Management Policy includes an appropriate liquidity risk management framework for the management of the short-term, medium-term and long term funding and cash management requirements. The Company manages the liquidity risk by maintaining adequate cash reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.

44. No preceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made there under.

47. Borrowings from Banks:-

All the quarterly returns or statements of current assets filed by the company with banks are in agreement with the books of accounts.

48. Funds borrowed by the company from banks have been utilised for the specified purpose for which the same have been borrowed.

49. Previous year’s figures have been re-grouped/re-classified wherever necessary to correspond with the current year’s classification disclosure.

As per our report of even date annexed FOR AND ON BEHALF OF THE BOARD

For V.Goyal & Associates ZENITH EXPORTS LIMITED

Chartered Accountants Managing Director : V.Loyalka (DIN: 07315452)

Firm Regn. No.- 312136E Director : U.Loyalka (DIN: 00009266)

(Vinod Kumar Goyal) Director : R.K.Sarawgee (DIN: 00559970)

Partner Director : K.K.Jain (DIN: 00551662)

M.NO. 050670 Director : S.Bafna (DIN: 00127681)

Company Secretary: Director : S.K.Shaw (DIN: 08507089)

[J.K. Ram (ACS: 42263)]

Place :Kolkata Chief Financial Officer:

Date : 27th May, 2023 [S.K.Kasera(PAN: AFNPK5320D)]

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Mar 31, 2018

1. NOTES TO FINANCIAL STATEMENTS BACKGROUND

Zenith Exports Limited is a Company limited by shares, incorporated and domiciled in India. The Company is engaged in the business of Exports of Leather Goods & Textile Fabrics. The Company has a weaving unit namely ''Zenith Textiles'' located at Nanjangud, Mysore. Another unit namely ''Zenith Spinners'' located at village-Dholka, Ahmedabad (being under discontinuation of operation since December 2015)

(c) Rights Preferences and Restrictions attached to 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 held. In the event of liquidation of the company the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their shareholding.

Notes on Financial Statements for the year ended 31st March, 2018

2. Discontinuing Operations:-

Due to unfavorable market conditions and steep competition from the modern units, one of the Company''s unit Zenith Spinners at Dholka, Ahmedabad manufacture of yarns is no more viable to operate. Hence the management had decided to suspend operation since December''2015. The said undertaking is disclosed as " Discontinued Operations" as a separate business segment as per IN D AS-108 "Segment Reporting".

ADDITIONALNOTESTOFINANCIALSTATEMENTS

3. First-time adoption of Ind AS Transition to Ind AS

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 31st March 2018, the comparative information presented in these financial statements for the year ended 31st March 2017 and in the preparation of an opening Ind AS balance sheet at 1st April 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, 2006 (as amended) 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.

4. 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.

4.1 Ind AS optional exemptions

4.1.1 Prospective application of Ind AS 21 to business combinations

The Company has elected to apply this exemption.

4.1.2Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised 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 after making necessary adjustments for de- commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Asset.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value. The Company does not have any de-commissioning liabilities as on the date of transition and accordingly no adjustment have been made for the same.

4.1.3Designation of previously recognised financial instruments

Ind AS 101 allows an entity to designate investments in Equity Instruments/Mutual Funds at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS.

The Company has elected to apply this exemption for its investment in mutual funds.

4.2 Ind AS Mandatory Exceptions Estimates

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

i Investment in Mutual Fund carried at FVOCI;

ii Biological asset measured at expenses incurred for plantation.

4.2.1 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS. The Company has no such debt instruments.

5. Other Notes to First time Adoption of Ind-AS

5.1 Depreciation on Biological Assets

Under the previous GAAP, there were no Biological Assets. Under Ind AS, since biological assets come within the ambit of Ind AS 16 "Property, Plant and Equipment" depreciation and loss on disposal is being provided on Biological plants. There was no biological asset as on 1^st April, 2016 or 31^st March, 2017 but as on 31^st March 2018, there is a biological asset of Rs. 16.84 lakhs. Since the same is under cultivation, no depreciation has been.

5.2 Fair valuation of Investments

Under the previous GAAP, investments in Mutual Fund were classified as long-term investments based on the intended holding period and realisability. 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.

Fair value changes with respect to investments in Mutual Fund designated as at FVOCI have been recognized in FVOCI - Mutual Fund (net of tax) as at the date of transition and subsequently in the other comprehensive income for the year ended 31^st March 2018.

5.3 Inventories

Inventories are valued as under:

a) Raw Materials: at cost which is arrived at on average cost basis.

b) Packing Materials : at average cost basis

c) Stores, Consumables & Spares : at average cost basis

d) Semi-finished Goods : at raw material cost and value added thereto upto the state of completion

e) Finished Goods : at cost or N RV, whichever is lower

f) Waste : at estimated realizable value

5.4 Borrowings

Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the profit or loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method. Under the previous GAAP, these transaction cost were charged to Profit/Loss as and when incurred. There is no effect of it.

5.5 Deferred Tax

Under previous GAAP, the deferred tax asset/ liability was recognized on revalued amount of Property, Plant and Equipment since this was considered as permanent difference. Under Ind AS, deferred tax liability has been recognized on such revalued amount, with tax base being ? NIL.36.6 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 recognised 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 result of this change, there is no change in Profit & Loss for the year.

5.7 Retained Earnings

Retained earnings as at 1st April, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

5.8 Other Comprehensive Income

Under Ind AS, all items of income and expense recognised 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 recognised in profit or loss but are shown in the statement of profit and loss as ''other comprehensive income'' includes remeasurements of defined benefit plans and fair value gains or (losses) on FVOCI Mutual Funds. The concept of other comprehensive income did not exist under previous GAAP.

Note;-

(a) The employee''s Gratuity Funded Scheme of Main Division Kolkata managed by Life Insurance Corporation of India is a defined Benefit Plan.

(b) The above Funded disclosures are based on Computer Generated Certificate issued by Life Insurance Corporation of India.

Segment Revenue and Result

The expenses which are not directly attributable to the business segment are shown as unallocated expenditure net off unallocable income.

Segment assets and liabilities

Segment assets include all operating assets used by the business segment and consist principally of fixed assets, debtors and inventories.

Segment liabilities

primarily include current liabilities & loan fund Assets and liabilities that can not be allocated between the segments are shown as a part of unallocated corporate assets and liabilities respectively.

6. Previous year''s figures have been re-grouped/re-classified wherever necessary to correspond with the current year''s classification/disclosure.

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Mar 31, 2015

(Rs. in Lacs) As at As at 31st March, 2015 31st March, 2014

1. ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS 23.1 Commitments and Contingent Liabilities (i) Commitments/Contingent Liabilities

a. Foreign Bills discounted through banks 2262.40 2739.20

b. Bank Guarantee 175.00 175.00

(ii) Claims against the company not acknowledged as debts in respcet of

a. Employees dispute for reinstatement is pending disposal by - 22.00 Labour Court

b. Income-Tax demand under CIT(Appeal) ./I.T. Appellate 33.86 33.86 Tribunal.

c. Service Tax demand under Commissioner of Central Excise

(Appeals-I) Kolkata 0.49 -

(iii) Estimated amount of contract remaining to be executed on - 9.24 capital account (net of advances)

Note:

(a) The employee's Gratuity Funded Scheme of Main Division Kolkata managed by Life Insurance Corporation of India is a defined Benefit Plan.

(b) The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognised each period of service as giving rise to additional Unit of employee benefit entitlement and measures each unit separately to buildup the final obligation.

1.1 Balance confirmation from some of Sundry Debtors, Sundry Creditors, Loan Parties and material lying with third parties are still awaited.

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

2. Segment Reporting

The Company's primary Segment reporting is by its business segments which are Silk Fabrics/Made-ups segment, Industrial Leather Hand Gloves/Made-ups segment, yarns segments and Weaving Silk Fabrics segment.

Segment Revenue and Result

The expenses which are not directly attributable to the business segment are shown as unallocated expenditure net off unallocable income.

Segment assets and liabilities

Segment assets include all operating assets used by the business segment and consist principally of fixed assets, debtors and inventories. Segment liabilities primarily include current liabilities & loan fund Assets and liabilities that can not be allocated between the segments are shown as a part of unallocated corporate assets and liabilities respectively.

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Mar 31, 2014

1. Rights Preferences and Restrictions attached to 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 held. In the event of liquidation of the company the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their shareholding.

2. Notes:

1 (a) Working Capital Loans from Canara Bank are secured by hypothecation of Stock & book debts of Trading Division, Kolkata & Textile Division, Mysore and Personal Guarantee of Promoter Directors and further by second charge on the entire Fixed Assets of the Company.

(b) Working Capital Loans from State Bank of India are secured by hypothecation of Stocks & Book debts of Spinning Division, Ahmedabad and Personal Guarantee of Promoter Directors and further by second charge on the entire Fixed Assets of the Company.

2. Secured against hypothecation of vehicles under hire purchase.

3. Instalment of Term Loans and Vehicles Loan falling due within 12 months shown under "Other Current Liabilities" (Refer Note 8)

3. Notes :

a. The Deferred Tax Assets arising from timing differences are ecognised to the extent there is reasonable certainty that these assets can be realised in future.

b. The deferred tax for timing difference between the book and tax profit for the year is accounted for, using the tax rates and tax laws that have been enacted or subsequently enacted as at the Balance Sheet date.

c. Deferred tax assets in respect of Unabsorbed Depreciation and Brought forward losses has been considered on the basis of latest Income tax return.

4. Notes :

1. Out of above, Rs. Nil (Previous Year- Rs. Nil) pertains to micro small and medium enterprises as defined under Micro Small and Medium Enterprises Development Act, 2006 based on the information available with the company. There is no interest payable to such parties during the year (Previous Year- Rs. Nil)

(Rs. in Lacs)

As at As at 31.03.2014 31.03.2013 5. ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS

5.1 Commitments and Contingent Liabilities

i. Commitments/Contingent Liabilities

a. Foreign Bills discounted through banks 2739.20 2577.76

b. Letter of Credit issued by Bankers (net of Margin) 0.00 28.71

c. Bank Guarantee 175.00 130.00

ii. Claims against the company not acknowledged as debts in respcet of

a. Employees dispute for reinstatement is pending disposal by Labour Court 22.00 22.00

b. Income-Tax demand under CIT(Appeal)./I.T. Appellate Tribunal. 33.86 20.93

iii. Estimated amount of contract remaining to be executed on capital account (net of advances) 9.24 69.78

6. Note:

a. The employee''s Gratuity Funded Scheme of Main Division Kolkata managed by Life Insurance Corporation of India is a defined Benefit Plan.

b. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognised each period of service as giving rise to additional Unit of employee benefit entitlement and measures each unit separately to buildup the final obligation.

7. Balance confirmation from some of Sundry Debtors, Sundry Creditors, Loan Parties and material lying with third parties are still awaited.

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

9. Segment Revenue and Result

The expenses which are not directly attributable to the business segment are shown as unallocated expenditure net off unallocable income.

Segment assets and liabilities

Segment assets include all operating assets used by the business segment and consist principally of fixed assets, debtors and inventories. Segment liabilities primarily include current liabilities & loan fund Assets and liabilities that can not be allocated between the segments are shown as a part of unallocated corporate assets and liabilities respectively.

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Mar 31, 2012

1. Rights Preferences and Restrictions attached to Shares

The Company has only one class of Equity Shares having par value of Rs. 10/- per share. Each shareholder of equity shares is entitled to one vote per share held. In the event of liquidation of the company the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding.

Notes :

1. Term Loan from Canara Bank are secured by hypothecation and equitable mortgage of entire Fixed Assets of the Company.

2. a. Working Capital Loans from Canara Bank are secured by hypothecation of Stocks & Book Debts of

Trading Division, Kolkata & Textile Division, Mysore and Personal Guarantee of Promotor Directors and further by second charge on the entire Fixed Assets of the Company.

b. Working Capital Loans from State Bank of India are secured by hypothecation of Stocks & Book Debts of Spinning Division, Ahmedabad and Personal Guarantee of Promoter Directors and further by second charge on the entire Fixed Assets of the Company.

3. Secured against hypothecation of vehicles under hire purchase.

4. Terms of repayment are given below :

a. TUFs Loan taken from Canara Bank are repayable in quarterly instalments.

i. 35 Lakhs in 14 Instalments and 10 Lakhs in 1 (one) Instalment commencing from 17th March, 2008.

ii. 30 Lakhs in 13 Instalments and 10 Lakhs in 1 (one) Instalment commencing from 9th January 2010.

5. Instalment of Term Loans and Vehicles Loans falling due within 12 months shown under "Other Current Liabilities" (Refer Note 8)

Notes :

a. The Deferred Tax Assets arising from timing differences are recognised to the extent there is reasonable certainty that these assets can be realised in future.

b. The Deferred Tax for timing difference between the book and tax profit for the year is accounted for using the tax rates and tax laws that have been enacted or subsequently enacted as at the Balance Sheet date.

c. Deferred Tax Assets in respect of Unabsorbed Depreciation and Brought forward losses has been considered on the basis of latest Income Tax Return.

Notes :

Out of above, Rs. Nil (Previous year Rs. Nil) pertains to micro small and medium enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 based on the information available with the company. There is no interest payable to such parties during the year (Previous year Rs. Nil)

Notes :

1. Book overdraft includes Rs. 9.41 lacs (Previous year Rs. 18.20 lacs) overdraft with Banks against pledge of Fixed Deposit.

Notes : 1. a. Fixed Deposit pledged with banks representing margin money for overdraft facilities.

b. Deposits can be withdrawn at any point of time without prior notice or exit costs on the principal amount.

2. Section 205 of the Companies Act 1956 mandates that the Company should transfer dividend that lies unclaimed for a period of seven years from unpaid dividend account to Investor Education and Protection Fund (IEPF). Accordingly if dividend remain unclaimed for a period of seven years, it will be transferred to IEPF.





(Rs. in lacs)

As at As at 31.3.2012 31.3.2011

23 ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS

23.1 Commitments and Contingent Liabilities

i. Commitments / Contingent Liabilities

a. Foreign Bills discounted through banks 3243.72 2879.51

b. Letter of Credit issued by Bankers (net of margin) 258.78 116.68

ii. Claims against the Company not ackowledged as debts in respect of

a. Employees dispute for reinstatement is pending disposal by Labour Court 27.18 27.18

b. Income Tax demand under CIT (Appeal)/ I.T. Appellate Tribunal 58.85 58.85

iii. Estimated amount of contract remaining to be executed on captal account (net of advances) 241.24 71.84

23.12 No interest provided during the year in regard to Loan given to a body corporate in view of non repayment of previous dues. The company has taken necessary steps for recovery of the same.

23.13 Balance confirmation from some of Sundry Debtors, Sundry Creditors, Loan Parties and material lying with third parties are still awaited.

23.14 The Revised Schedule VI has become effective from 1st April, 2011 for 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. 24 Segment Reporting

The Company's primary Segment reporting is by its business segments which are Silk Fabrics / Made-ups segment, Industrial Leather Hand Gloves/Made-ups segment, yarns segments and Weaving Silk Fabrics segment

(i) Business Segment

Segment Revenue and Result

The expenses which are not directly attributable to the business segment are shown as unallocated expenditure net off unallocable income.

Segment assets and liabilities

Segment assets include all operating assets used by the business segment and consist principally of fixed assets, debtors and inventories. Segment liabilities primarily include current liabilities & loan fund. Assets and liabilities that cannot be allocated between the segments are shown as a part of unallocated corporate assets and liabilities respectively.

---

Mar 31, 2010

(Rs. in lacs)

As at As at

31.3.2010 31.3.2009

1. Contingent Liabilities (Not Provided For)

a. Foreign Bills discounted through Banks 2163.03 190.80

b. Letter of Credit issued by Bankers (net of Margin) - 209.86

c. Claims against the company not acknowledged as debts

i) Litigation with vendor is pending

disposal by Mumbai High Court 15.03 15.03

ii) Employees dispute for reinstatement

is pending disposal by Labour Court 27.18 1.39

d. Guarantee given by bank on behalf of the Company 2.45 -

e. Income Tax demand under CIT (Appeal) /

I.T. Applelate Tribunal 20.40 35.12

2. Estimated amount of contract remaining to be executed on capital account net of advances not provided for Rs. 73.63 lacs (Previous year Rs. NIL).

3. The Company has not received information from vendors regarding the status of the suppliers as defined under the “Micro, Small and Medium Enterprises Development Act, 2006” (The Act) and accordingly disclosure relating to unpaid amounts at the close of the year together with interest paid/ payable has not been given

4. Balance confirmation from some of the Sundry Debtors, Sundry Creditors, Loan Parties and Advances given to the parties are still awaited.

5. Sample receipts amounting to Rs. 2.19 lacs (Previous Year Rs. 8.17 lacs) for sample sent to overseas buyer has been shown net after adjusting the sample making charges of Rs. 0.15 lacs (Previous Year Rs. 0.20 lacs).

6. Expenses relating to earlier years amounting to Rs. 1.93 lacs (Previous Year Rs. 7.10 lacs) has been shown as net after adjusting Rs. 0.46 lacs (Previous Year Rs. 0.57 lacs) for Income relating to earlier years.

7. Employee Benefits

The disclosure required under AS-15 on "Employee Benefits" notified in the companies (Accounting Standards) Rules 2006, are given below :

Notes :

(a) The employees Gratutity Funded Scheme on Main Division Kolkata managed by Life Insurance Corporation of India is a defined Benefit Plan.

(b) The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognised each period of service as giving rise to additional Unit of employee benefit entitlement and measures each unit separately to built up the final obligation.

8. Segment Reporting :

The companys primary segment reporting is by its business Segments which are : Silk Fabrics / Made-ups segment, Industrial Leather Hand Gloves / Made-ups segment, yarns segment and Weaving Silk Fabrics segment.

9. Comparative figures of the previous year have been regrouped, rearranged and recast wherever found necessary.