NOTE [15.2]

Terms / rights attached to equity shares

a) The Company has only one class of shares having a par Value of ' 10/- per Share. Each holder of equity shares is entitled to one vote per share.

b) In the event of liquidation of the company, the holders of equity shares will be entitled to receive the 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.

c) The company has not issued any shares for consideration other than cash in the last 5 years immediately preceding the reporting date.

d) The company has not issued any Bonus shares in the last 5 years immediately preceding the reporting date.

NOTE [15.3]

Buy Back of Equity Shares

The Board of Directors at its meeting held on 16th October 2021 approved a proposal to buy-back upto 14,12,515 equity shares of the Company for an aggregate amount not exceeding Rs 847.51 lakhs, being 8.18% of the total paid up equity share capital at Rs 60 per equity share. The shareholders approved the same on 28th November, 2021 by way of a special resolution through postal ballot. A Letter of Offer was made to all eligible shareholders. The Company bought back 14,12,515 equity shares out of the shares that were tendered by eligible shareholders and extinguished the equity shares on 7th February, 2022. Capital redemption reserve was created to the extent of share capital extinguished (Rs 141.25 lakhs). The excess cost of buy-back of 731.31 lakhs crore (including Rs.25.06 Lakhs towards transaction cost of buy-back) over par value of shares and corresponding tax on buy-back of Rs 164.53 lakhs were offset from retained earnings.

1) Retained Earnings :

This reserve represents the cumulative profits of the Company and the effects of remeasurement of defined benefit obligations. The reserve can be utilised in accordance with the provision of the Companies Act, 2013

2) Capital Redumption Rserve:

The capital redemption reserve may be utilised by the company, in paying up unissued shares of the company to be issued to the Share Holders of the company as fully paid bonus shares.

Note No: 38 Segment Reporting

Since the Company has only one Segment i.e. textile business, hence segment reporting has not been furnished.

Note No: 39 Capital management

The company manages its capital to ensure that it will be able to continue as going concern while maximising the return The capital structure of the company consists of net debt (borrowings as detailed in notes No. 17 & 23 offset by cash The company is not subject to any externally imposed capital requirements.

b) Valuation Methodology

All Financial Instruments are initially recognised and subsequantly re-measured at fair value as detailed below

a) The Fair Value of investment in Quoted euqity share,Government securities and mutual funds is measured at quoted price or NAV

b) The Fair Value of investment of unquoted equity shares in other than Associate is detrmined by valuing such investee companies at their respective fair values by considering in each of such investee companies, the value of immovable properties considered by revenue authorities for determing the stamp duty amount,the quoted equity shares at their quoted price, and for unquoted equity shares by adopting the method of determination as above i.e.finding the fair value of such unquoted entities and other assets and liabilities at their carrying costs.

The financial instruments are categorised into two levels based on the inputs used to arrive at fair value of measurements as described below :

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (inlcuding bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2 : The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivates) is determined using valuation techniques which maximise the use ofobservable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. The mutual funds are valued using the closing NAV.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

c) Financial risk management

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

Ý Credit risk;

Ý Liquidity risk; and

Ý Market risk

(i) Risk management framework

The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework.

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

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

(ii) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers and investments in debts

The carrying amount of following financial assets represents the maximum credit exposure:

Trade and other receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables.

At 31 March 2024, the Company is involved only in domestic sales and has no export sales. Hence, there is no credit risk exposure outside India.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments.

(iv) Market risk

Market risk is the risk that changes in market prices - such as interest rates and equity prices - will affect the Company's income or the value of its holdings of financial instruments.

(v) Currency risk -

The Company is not exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupees. The Company does not use derivative financial instruments for trading or speculative purposes.

A decrease of 50 basis points in interest rates at the reporting date would have had equal but opposite effect on the amounts shown above, on the basis that all other variable remain constant.

(vii) Price Risk

The company's investments in equity instruments held for trading and other investments carried at fair value through profit and loss are subject to price risk which may affect the profit and loss of the company.

To manage its price risk, the company diversifies its portfolio. Diversification of the portfolio is done based on internal review and limits decided by the management from time to time.

Note No: 42

A The company has taken premises on cancellable operating leases. These agreements contain a lease term for a period 1-3 years. In such lease agreements, there are no terms for purchase option or any restriction such as those concerning dividend and additional debts. Lease agreements of the Company do not contain any variable lease payment or any residual value guarantees. The Company has not entered into any sublease agreement in respect of these leases.

During the year the Company has adopted Ind AS 116. Accordingly, the Company has recognised a Right of Use asset in respect of each identified asset under leases agreements (other than short term lease of 12 months or less and lease of low value assets) and corresponding lease liability being the present value of lease payments during the lease term.

d Total cash outflows in respect of lease payments (including short term and low value leases) during the year were Rs. 1.80 Lakhs (Previous Year Rs. 1.80 Lakhs)

Note No: 43

1 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company.

2 The Company does not have any transactions with Companies struck off.

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

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

5 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 intermidiary Shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of Company (Ultimate beneficiaries) or

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

6 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 by or on behalf of the Funding Party (Ultimate Beneficiaries) or;

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

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

9 The Company does not have any immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the Company.

10 The Company has not made any Loans or Advances in the nature of loans that are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:

(a) repayable on demand or

(b) without specifying any terms or period of repayment

11 The company has not been declared as a wilful defaulter by any Banks, Financial Institutions or any other Lenders.

Note No: 46

Previous Year figures have been regroupped wherever necessary.