2.23 Provisions:

Provisions (legal and constructive) are
recognised when the Company has a present
obligation (legal or constructive) as a result of
a past event, it is probable that the Company
will be required to settle the obligation, and a
reliable estimate can be made of the amount of
the obligation.

The amount recognised as a provision is the
best estimate of the consideration required to
settle the present obligation at the end of the

reporting period, taking into account the risks
and uncertainties surrounding the obligation.
When a provision is measured using the cash
flows estimated to settle the present obligation,
its carrying amount is the present value of those
cash flows (when the effect of the time value of
money is material).

When some or all of the economic benefits
required to settle a provision are expected to
be recovered from a third party, a receivable is
recognised as an asset if it is virtually certain that
reimbursement will be received and the amount
of the receivable can be measured reliably.

Onerous contracts

If the Company has a contract that is onerous,
the present obligation under the contract is
recognised and measured as a provision.
However, before a separate provision for an
onerous contract is established, the Company
recognises any impairment loss that has occurred
on assets dedicated to that contract

An onerous contract is a contract under which
the unavoidable costs (i.e., the costs that the
Company cannot avoid because it has the
contract) of meeting the obligations under the
contract exceed the economic benefits expected
to be received under it. The unavoidable costs
under a contract reflect the least net cost of
exiting from the contract, which is the lower of
the cost of fulfilling it and any compensation or
penalties arising from failure to fulfil it.

2.24 Contingent liabilities

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond the
control of the Company or a present obligation
that is not recognized because it is not probable
that an outflow of resources will be required to
settle the obligation. A contingent liability also
arises in extremely rare cases where there is a
liability that cannot be recognized because it
cannot be measured reliably. The Company does
not recognize a contingent liability but discloses
its existence in the financial statements.

2.25 Commitments:

Commitments are future liabilities for

contractual expenditure. The commitments are
classified and disclosed as follows:

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

(b) Other non-cancellable commitments,

if any, to the extent they are considered
material and relevant in the opinion of
the Management.

2.26 Cash dividend and non-cash distribution to

equity holders:

The Company recognises a liability to make
cash or non-cash distributions to equity holders
when the distribution is authorised, and the
distribution is no longer at the discretion of
the Company. As per the corporate laws, a
distribution is authorised when it is approved
by the shareholders. A corresponding amount is
recognised directly in equity.

Non-cash distributions are measured at the fair
value of the assets to be distributed with fair
value re-measurement recognised directly in
equity.

Upon distribution of non-cash assets, any
difference between the carrying amount of the
liability and the carrying amount of the assets
distributed is recognised in the statement of
profit and loss.

(B) Significant Accounting Judgements, Estimates
and Assumptions:

The preparation of the Company’s financial
statements requires management to makejudgements,
estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities,
and the Company disclosures, and the disclosure of
contingent liabilities. Management believes that the
estimates used in the preparation of the financial
statements are prudent and reasonable. Uncertainty
about these assumptions and estimates could result
in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in
future periods. Difference between actual results and
estimates are recognised in the periods in which the
results are known / materialised.

Estimates, Assumptions and Judgements:

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

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

(i) Useful life of Property, Plant and
Equipment:

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

(ii) Inventories:

The Company writes down inventories to
net realisable value based on an estimate of
the realisability of inventories. Write downs
on inventories are recorded where events
or changes in circumstances indicate that
the carrying value may not be realised. The
identification of write-downs requires the use
of estimates of net selling prices of the down¬
graded inventories. Where the expectation

is different from the original estimate, such
difference will impact the carrying value of
inventories and write-downs of inventories in
the periods in which such estimate has been
changed.

(iii) Defined Benefit Obligation:

The Company’s obligation on account
of gratuity and compensated absences is
determined based on actuarial valuations. An
actuarial valuation involves making various
assumptions that may differ from actual
developments in the future. These include
the determination of the discount rate, future
salary increases and mortality rates. Due to the
complexities involved in the valuation and its
long-term nature, these liabilities are highly
sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting
date.

The parameter most subject to change is the
discount rate. In determining the appropriate
discount rate, the management considers
the interest rates of government bonds in
currencies consistent with the currencies of the
post-employment benefit obligation.

The mortality rate is based on publicly available
mortality tables. Those mortality tables tend
to change only at interval in response to
demographic changes. Future salary increases
and gratuity increases are based on expected
future inflation rates.

Further details about gratuity obligations are
given in Note 33 (III).

(iv) Current Tax expense and Deferred Tax:

The Company’s tax jurisdiction is India.
Significant judgements are involved in
estimating budgeted profits for the purpose of
paying advance tax, determining the provision
for income taxes, including amount expected to
be paid/recovered for uncertain tax positions.
A tax assessement can involve complex issues,
which can only be resolved over extended
time periods. The recognisation of taxes that
are subject to certain legal or economic limits
or uncertainties is assessed individually by
the managment based on the specific facts and
circumstances.

(v) Recognition of Deferred Tax Assets/
Liabilities:

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

(vi) Provisions & Contingent Liabilities:

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 that can reasonably
be estimated. The timing of recognition
requires application of judgement to existing
facts and circumstances, which may be subject
to change. The amounts are determined by
discounting the expected future cash flows
at a pre-tax rate that reflects current market
assessments of the time value of money and
the risks specific to the liability.

In the normal course of business, contingent
liabilities may arise from litigation and
other claims against the Company. Potential
liabilities that are possible but not probable of
crystallising or are very difficult to quantify
reliably are treated as contingent liabilities.
Such liabilities are disclosed in the notes but
are not recognized.

(vii) Financial Instruments:

When the fair values of financial assets and
financial liabilities recorded in the balance
sheet cannot be measured based on quoted
prices in active markets, their fair value is
measured using valuation techniques including
the DCF model. The inputs to these models
are taken from observable markets where
possible, but where this is not feasible, a
degree of judgement is required in establishing
fair values. Judgements include considerations
of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these
factors could affect the reported fair value of
financial instruments. See Note 33 (VII) &

(VIII) for further disclosures.

(viii) Allowance for uncollected accounts
receivable and advances

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

The impairment provisions for financial assets
are based on assumption about risk of default
and expected loss rates. Judgement in making
these assumption and selecting the inputs to
the impairment calculation are based on past
history, existing market condition as well as
forward looking estimates at the end of each
reporting period.

(ix) Impairment reviews

An impairment exists when the carrying value
of an asset or cash generating unit (‘CGU’)
exceeds its recoverable amount. Recoverable
amount is the higher of its fair value less costs
to sell and its value in use. The value in use
calculation is based on a discounted cash
flow model. In calculating the value in use,
certain assumptions are required to be made in
respect of highly uncertain matters, including
management’s expectations of growth in
EBITDA, long term growth rates; and the
selection of discount rates to reflect the risks
involved.

(C) Application of new Revised Ind AS

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. For the year ended
March 31, 2024, MCA has not notified any new
standards or amendments to the existing standards
applicable to the Company.

NOTES:

3.1 Impairment losses recognised in the year

During the year ended March 31, 2024 and March 31, 2023, no impairment indicators existed for any of its Cash Generating
Unit (CGU) and accordingly no provision for impairment has been recognised, except certain specific assets for which Rs.
22.48 lakhs have been provided as impairment loss during the year.

3.2 Contractual Commitments

Refer Note no. 33(IX) for disclosure of contractual commitments for the acquisition of PPE.

3.3 Asset Held for Sale

a. Refer Note no. 33(XIX) for Assets held for Sale.

b. The Company has received an advance of Rs. 33.90 lakhs for transfer of its rights in the certain portion of the lease land
held by it. The portion of the lease land for which advance have been received are shown as Asset held for disposal. The
Deeds of Assignment for the same has been registered on May 6, 2024.

3.4 Change due to Revaluation

During the year ended March 31, 2024 and March 31, 2023, there is no adjustments due to Revaluation of PPE by the
Company.

3.5 Capitalised borrowing cost :

No borrowing costs are capitalised on property, plant and equipment.

3.6 Title deeds :

Title deeds of Leasehold land are in the name of the Company.

III. Employee Benefits :

A. Defined Contribution Plans:

The Company offers its employees defined contribution plans in the form of Provident Fund (PF) and Superannuation
with the government and certain state plans such as Employees’ State Insurance (ESI). PF cover substantially all regular
employees and the Superannuation plan covers mainly executive directors. Contributions are made to the Government’s
administered funds. While both the employees and the Company pay predetermined contributions into the Provident Fund
and the ESI Scheme, and contributions into the Superannuation plan is made only by the Company. The contributions are
normally based on a certain proportion of the employee’s salary.

(a) Contributions to Provident Fund for employees at the rate of 12% p.a. of basic salary (as per regulations), are made
to registered Provident Fund administered by the government.

(b) Contributions are made to Superannuation plan at the rate of 15% p.a. of basic salary, up to a maximum limit of Rs.
1 lakh p.a. per employee. The obligation of the Company is Limited to the amount contributed and it has no further
contractual or constructive obligation.

B.6 Risks associated with defined benefit plan:

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

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

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of
members. As such, an increase in the salary of the members more than assumed level will increase the plan's liability.
Asset Liability Matching (ALM) Risk: The plan faces the ALM risk as to the matching cash flow entity has to
manage pay out based on pay as you go basis from own fund.

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

C. Compensated Absences :

The Company’s employees are entitled for compensated absences which are allowed to be accumulated and encashed as
per the Company’s rule. The liability of compensated absences, which is non-funded, has been provided based on report
of independent actuary using “Projected Unit Credit Method”.

The obligation for compensated absences (other than sick leaves) (non-funded) is recognized using the projected unit
credit method and accordingly the long-term paid absence has been valued. The Liability towards leave encashment for
the year ended March 31, 2024 as per actuarial valuation is Rs. 108.43 lakhs (P.Y. Rs. 104.77 lakhs).

The Company has made provision for sick leave based on the expected utilisation of leaves as at the year ended March
31, 2024 of Rs. 4.59 Lakhs (P.Y. Rs. 5.11 Lakhs). The total leave provision as at the year ended March 31, 2024 stands at
Rs. 113.02 lakhs (P.Y. Rs. 109.88 lakhs).

Notes:

a. The above figures are exclusive of GST wherever applicable.

b. The amount outstanding are unsecured and will be settled in cash or receipt of goods or services. No guarantee
have been given. No expense has been recognized in the current period or prior years for bad or doubtful debts in
respect of the amounts owed by related parties.

c. The remuneration of the directors and key management personnel is determined by the remuneration committee
having regard to the performance of individual and market trends.

d. Key Management Personnel (KMP) who are under the employment of the Company are entitled to post employment
benefits and other long term employee benefits recognised as per Ind AS 19 - ‘Employee Benefits’ in the financial
statements. As these employee benefits are provided on the basis of actuarial valuation, for the Company as a
whole, hence the details in respect of long term benefits to KMP and their relatives are not disclosed. Further there
is no Share-based payments to Key Management Personnel of Company.

VI. CAPITAL MANAGEMENT

The Company's objective for capital management is to maximise shareholder value, safeguard business continuity and
support growth of the Company. Capital includes, Equity Capital, Securities Premium, and other reserves and surplus,
attributable to the equity shareholders of the Company. The Company determines the capital requirement based on
annual plans and long term and strategic investment and capital expenditure plans. The funding requirements are met
through mix of equity, operating cash flows generated and debt. The operating management, supervised by the Board of
Directors of the Company regularly monitors its key gearing ratio and other financial parameters and takes corrective
actions wherever necessary. The Company is not subject to any externally imposed capital requirements.

Gearing Ratio : As the Company does not have any debt, the gearing Ratio has not been given.

VII. Financial Risk Management

Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. Management has identified the following risk.

• Credit Risk

• Market Risk

• Liquidity Risk

• Currency Risk

Company’s 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.

A Credit Risk

Credit risk is the risk of financial loss arising from counter party failure to repay according to the contractual
terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of
creditworthiness as well as concentration of risks. Before accepting any new customer, the Company evaluates the
credit worthiness of the potentional customers based on external inquiries as deemed appropriate. The Company
only deals with parties which has good credit ratings / worthiness based on Company’s internal assessment. Credit
risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the
credit has been granted after necessary approvals for credit. The Company has not acquired any credit impaired
asset. There was no modification in any financial assets.

Customer credit is managed by each business division subject to the Company’s established policy procedures
and control related to customer credit risk management.

Export customers are mainly against Letter of Credit. Each outstanding customer receivables are regularly
monitored and if outstanding is above due date the further shipments are controlled and can only be released
if there is a proper justification.

Credit risk on trade receivables and contract assets are managed by each business unit subject to the Company’s
established policy, procedures and control relating to customer credit risk management. Credit quality of a
customer is assessed and individual credit limits are defined in accordance with this assessment. Moreover,
given the diverse nature of the Company’s businesses, trade receivables and contract assets are spread over a
number of customers with no significant concentration of credit risk. No single customer accounted for 10%
or more of the trade receivables and contracted assets in any of the years presented.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers
are located in several jurisdictions and industries and operate in largely independent markets and their credit
worthiness are monitored at periodical intervals. The maximum exposure to credit risk at the reporting date
is the carrying value of each class of financial assets.

The Company has written off trade receivables amounting to Rs. 25.98 Lakhs during the year (March 31,
2023 Rs. 7.75 lakhs) as there was no reasonable expectations of recovery and were outstanding for more than
720 days from becoming due.

(ii) Other Financial Assets

Credit risk from balances with banks is in accordance with the Company policy. Investment of surplus funds
are made only in approved Mutual Funds or bank deposits. The other financial assets are from various forum
of Government authorities and are released by Government authorities on completion of relevant terms and
conditions for the release of outstanding.

B Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes
in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the
price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is
attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short
term and long-term debt. The Company is exposed to market risk, primarily related to foreign exchange rate risk, interest
rate risk and commodity price risk. Thus, the Company’s exposure to market risk is a function of investment activities
and revenue generating and operating activities in foreign currencies.

The Company has designed risk management frame work to control various risks effectively to achieve the business
objectives. This includes identification of risk, its assessment, control and monitoring at timely intervals.

The sensitivity analyses in the following sections relates to the outstanding balance as at March 31, 2024 and March 31,
2023.

The sensitivity analyses have been prepared on the basis that the proportion of financial instruments in foreign currencies
are all constant in place at March 31, 2024. The sensitivity of the relevant profit or loss item is the effect of the assumed
changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2024
and March 31, 2023.

(i) Interest Rate Risk:

The Company’s investments are primarily in fixed rate interest bearing investments. Hence, the Company is not
significantly exposed to interest rate risk.

(ii) Foreign Currency risk:

The Company is also exposed to foreign currency risk on certain transactions that are denominated in a currency
other than the Company’s functional currency; hence exposures to exchange rate fluctuations arise. The risk is that
the functional currency value of cash flows will vary as a result of movements in exchange rates. The Company’s
foreign exchange risk arises from foreign currency revenues and expenses, (primarily in US Dollars and Euros). As
a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company’s revenues
and expenses measured in Indian rupees may decrease or increase and vice-versa. The exchange rate between
the Indian rupee and these foreign currencies have changed substantially in recent periods and may continue to
fluctuate substantially in the future.

Foreign Currency Sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD and EUR exchange
rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in
the fair value of monetary assets and liabilities. The Company evaluates exchange rate exposure arising from
foreign currency transactions. The Company follows established risk management policies and standard operating
procedures. The Company’s exposure to foreign currency changes for all other currencies is not material.

Exposure to market risk with respect to commodity prices primarily arises from the Company’s purchases and
sales mainly of Fabric, Yarns, steel and other textile related products including the raw material components for
such Frabics, Yarns, etc, i.e Cotton. These are commodity products, whose prices fluctuate significantly over
short periods of time. The prices of the Company’s raw materials generally fluctuate in line with commodity
cycles, although the prices of raw materials used in the Company’s business are generally more volatile. Cost of
raw materials forms the largest portion of the Company’s cost. Commodity price risk exposure is evaluated and
managed through operating procedures and sourcing policies wherever possible based on market condition.

(iv) Mutual Fund Price Risk

The Company is exposed to mutual fund price risks arising from mutual fund investments. Mutual fund investments
are held for strategic rather than trading purposes. The Company does not actively trade these investments.

C Liquidity Risk

(i) Liquidity risk management

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral
obligations without incurring unacceptable losses. The Company’s objective is to, at all times maintain optimum
levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position
and deploys a robust cash management system. It maintains adequate sources of financing including bilateral
loans, debt, and overdraft from banks at an optimised cost. Working capital requirements are adequately addressed
by internally generated funds. Trade receivables are kept within manageable levels. Further, the Company has an
undrawn balance of Rs. 235.93 Lakhs against the overdraft facility sanctioned by the bank.

(ii) Maturities of financial liabilities

The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities
with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial
liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest
and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be
required to pay.

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

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following
methods and assumptions were used to estimate the fair values:

(i) Receivables are evaluated by the Company based on parameters such as interest rates and individual credit
worthiness of the customer. Based on this evaluation, allowances are taken into account for the expected
credit losses of these receivables.

(ii) The fair value of financial liabilities, security deposit, as well as other financial liabilities is estimated
by discounting future cash flows using rates currently available for debt on similar terms, credit risk and
remaining maturities.

Fair Value Hierarchy

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

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

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

Level 3: Inputs are based non observable market data. Fair value is determined in whole or in part using a
valuation model based on assumptions that are neither supported by prices from observable current market
transactions in the same instrument nor are they based on available market data.

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

XI During lock down due to Covid-19, the textile factory was closed during the period April 1 to May 8 2020. The Company
has paid on account advances (subject to adjustment against wages) to workers for this closure period, which is equivalent
to about 50% of their wages. A final decision will be taken in this matter depending upon the negotiations with the Union.
In view of the management no further liability is estimated. (Refer Note 19)

XII The Company has initiated disciplinary action against certain employees, out of which some of the employees have been
terminated after following certain formal inquiries and procedures under the Industrial Dispute Act and some matters
are still under inquiry. The Company will make necessary provision of any liabilities that may arise on account of the
action initiated by it upon the outcome and completion of such inquiries and procedures. (Refer Note 19)

XIII The Memorandum of Settlement between Hindoostan Mills Limited and the Karad Taluka Girani Kamagar Sangh,
Karad (Sangh) expired on December 31, 2019. Pending settlement, provision on an estimated basis has been made by
the Company. (Refer Note 19)

XIV The Company had entered into an Agreement with a Property Developer (Developer) in 1993 pursuant to which the
development rights for construction of Residential Flats on the plot of Land belonging to the Company were transferred
for consideration comprising of monetary compensation and allotment of specified constructed area to the Company
subject to payment of the Cost of construction for such allotted area. (Refer Note 19)

The settlement of accounts between the Company and the Developer under the said Agreement had been a subject of
Arbitration since the year 2002 as there were claims and counter claims. The Company had provided Rs. 63.98 lakhs in
the Financial Statements for the year ended 31st March, 2017 as the sum payable to Caprihans in terms of the Arbitration
Award dated October 31, 2016. Thereafter, the said Caprihans challenged the said Arbitration Award before the Hon.
High Court at Mumbai, claiming Rs. 1597.39 lakhs and interest.

Since then, the Single Judge of the Hon. High Court at Mumbai decided the challenge filed by the said Caprihans vide
its judgment dated June 3, 2019 interalia holding that:-

(a) the majority award rejecting Caprihans claim for cost of construction at ? 3,100 per sq. ft. is set aside;

(b) the liability of the Company to pay interest on the unpaid cost of construction is subject matter of fresh Arbitration;

(c ) the cost of litigation claimed by the said Caprihans being discretionary, the decision of the Arbitrators rejecting the
same is not required to be interfered..

Against the said judgment of the Learned Single Judge of the Hon. High Court at Mumbai, the Company has filed
an appeal before the Division Bench of the Hon. High Court. The said Caprihans have also filed an appeal before
the Division Bench of the Hon. High Court challenging the judgment of the Learned Single Judge. The Appeals will
come up in due course for hearing. The Company is of the view that, at this juncture, since the matter is sub judice, the
provision of Rs. 63.98 lakhs will be adjusted in the year in which finality is reached. In view of the Company, no further
provision is required considering the merits.

XV Provisions :

A. Disputed Matters :

Provision for disputed matters in respect of known contractual risks, litigation cases, duties and other levies / claims, the
actual outflow of which will depend on the outcome of the respective proceedings.

XVII Interest Subsidy:

(a) Recognition of interest subsidy: Company has been recognising interest subsidy in terms of its eligibility under the
New Textile Policy 2012 as Other Income from May 2014 to September 2019.

(b) Recovery of subsidy from Government: The aggregate subsidy of Rs. 127.73 lakhs recognized by the Company
for the period from October 2016 to September 30, 2019, has remained outstanding as on March 31, 2024. The
technical issues faced on government portal has been resolved and the same are pending for processing by the
Government authorities.

Accordingly, the subsidy of Rs. 127.73 lakhs shown under the head Current Assets - Other Financial Assets, has been

considered as good and recoverable in nature.

XVIII Income Tax:

(a) The Company has decided to opt for concessional income tax rate of 22 percent as per section 115 BAA of the
Income Tax Act, 1961 effective from Assessment Year 2021 - 22 (Financial Year 2020-21).

(b) Nature of Deferred Tax Assets / (Liabilities)

XX Additional Regulatory Information

i. Loan and advances to specified persons:

The Company has not granted any loans or advances in the nature of loans to any promoters, directors, KMPs, and
the related parties.

ii. Details of benami property held:

The Company does not have any Benami property, where any proceedings have been initiated on or are pending
against the Company for holding any Benami Property.

iii. Borrowings secured against current assets:

The Company is not required to submit any quarterly returns or statements of current assets. (Refer Note 12.3).

iv. Wilful defaulter:

The Company has not been declared as wilful defaulter by any bank or financial institutions or other lenders.

v. Relationship with struck off companies:

The Company has no transactions with the companies struck off under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956 during the year ended March 31, 2024 and March 31, 2023.

vi. Registration of charges or satisfaction of charges with the Registrar of Companies (ROC):

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period. (Refer Note 12.3).

vii. Compliance with number of layer of companies:

The Company does not have any subsidiaries and hence the disclosure clause is not applicable.

viii. Ratio:

For Ratio as required is given in Annexure A attached to the Financial Statement.

ix. Compliance with approved scheme of arrangements:

The Company has not entered into scheme of arrangements in terms of section 230 to section 237 of the Companie
Act, 2013 which has an accounting impact during the year ended March 31, 2024 and previous year ended March
31, 2023.

x. Utilisation of borrowed funds and share premium:

(A) The Company has not advanced or loaned invested funds (either borrowed funds or share premium or
any other sources or kind of funds) to any other persons or entities, including foreign entities with the
understanding that the Intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manners whatsoever by
or on behalf of the Company (ultimate beneficiaries) or

(b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(B) The Company has not received any fund from any persons or entities, including foreig 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.

xi. Utilisation of borrowings availed from banks and financial institutions:

The Company does not have any borrowings hence the disclosure clause is not applicable.

xii. Undisclosed Income:

There is no income surrendered or disclosed as income during the year ended March 31, 2024 and previous year
ended March 31, 2023 in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the
books of accounts.

xiii. Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the year ended March 31,
2024 and March 31, 2023.

XXI The Company’s financial statements are authorized for issue in accordance with a resolution of the Board of Directors
on May 23, 2024 in accordance with the provisions of the Companies Act, 2013 and are subject to the approval of the
shareholders at the ensuing Annual General Meeting.

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

XXIII Figures for the previous year have been rearranged/recompanyed as and when necessary in terms of current year’s
companying.

Signatures to Notes “1” to “33”

As per our report of even date attached

For and on behalf of the Board of Directors

For S H R & Co.

Chartered Accountants. Khushaal C. Thackersey Abhimanyu J. Thackersey

Firm's Registration No.120491W Joint Managing Director Joint Managing Director

DIN- 02416251 DIN- 00349682

Deep N Shroff Shraddha P. Shettigar Kaushik N. Kapasi

Partner Chief Financial Officer Company Secretary

Membership No. : 122592

Place : Mumbai Place : Mumbai

Date : May 23, 2024 Date : May 23, 2024