Provisions: Provisions are recognised when there is a present obligation as result of a past event, 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 best estimate of the expenditure required to settle the present obligation at the Balance Sheet date
and are not discounted to its present value.

Contingent Liabilities : Contingent liabilities are not provided for in the books but are disclosed by
way of notes in the financial statements 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.

Contingent Assets: Contingent Assets are neither recognized nor disclosed in the financial
statements.

RELATED PARTY TRANSACTIONS

Related party transactions are transfer of resources or obligations between related parties, regardless of
whether a price is charged. Parties are considered to be related, if one party has the ability, directly or
indirectly, to control the other party of exercise significant influence over the other party in making
financial or operating decisions. Parties are considered to be related if they are subject to common control
or common significant influence.

REVENUE RECOGNITION

Revenue is recognised when control of the goods or services are transferred to the customer at an amount
that reflects the consideration to which the Company expects to be entitled in exchange for those goods or
services, regardless of when the payment is being made. Revenue is measured at the fair value of the
consideration received or receivable, taking into account contractually defined terms of payment. The
Company is the principal in all of its revenue arrangements since it is the primary obligor in all the
revenue arrangements as it has pricing latitude and is also exposed to inventory and credit risks. However,
Goods and Services tax (GST) are not received by the Company on its own account. Rather, it is tax
collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is
excluded from revenue.

The specific recognition criteria from various stream of revenue is described below:

Sale of Goods:

Revenue from sales is recognised when the substantial risks and rewards of ownership of
goods are transferred to the buyer and the collection of the resulting receivables is reasonably
expected. Revenue from the sale of goods is measured at the fair value of the consideration
received or receivable, net of returns and allowances, trade discounts and volume rebates.

Rendering of Services:

Revenue from services rendered is recognised when the work is performed and as per the
terms of agreement.

Interest income:

Interest income from a financial asset is recognised when it is probable that the economic
benefits will flow to the Company and the amount of income can be measured reliably.
Interest income is accrued on a time basis. Interest income is accrued on a time basis, by reference to
the principal outstanding and at the effective interest rate applicable.

TAXATION

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of
the net profit or loss for the period. Current tax is measured at the amount expected to be paid to the tax
authorities in accordance with the relevant prevailing tax laws.

Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in
respect of deferred tax assets. Deferred tax assets are recognised and carried forward only to the extent
that there is a reasonable certainty that sufficient future taxable income will be available against which
such deferred tax assets can be realized. Deferred tax assets and liabilities are measured using the tax rates
and tax laws that have been enacted or substantively enacted by the Balance Sheet date. At each Balance
Sheet date, the Company re-assesses unrecognized deferred tax assets, if any.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off
the recognised amounts and there is an intention to settle the asset and the liability on a net basis.
Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off
assets against liabilities representing current tax and where the deferred tax assets and the deferred tax
liabilities relate to taxes on income levied by the same governing taxation laws.

EARNINGS PER SHARE (EPS)

The earnings considered in ascertaining the Company’s earnings per share comprise the net profit after
tax (and include post tax effect of any extraordinary items.) The number of shares used in computing
basic earnings per share is the weighted average number of shares outstanding during the period. The
number of shares used in computing diluted earnings per share comprises of the weighted average number
of shares outstanding during the period. The number of shares used in computing diluted earnings per
share comprises of the weighted average shares considered for deriving basic earning per share, and also
the weighted average number of equity shares which could have been issued on conversion of all dilutive
potential equity shares.

EMPLOYEE BENEFITS

Staff benefits arising out of retirement/death comprising contributions to Provident Fund, Gratuity
Scheme and other post separation benefits are accounted for on the basis of the schemes or by an
independent actuarial valuation at the year-end as the case may be.

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

BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying assets (assets which
require substantial period of time to get ready for its intended use) are capitalized as part of the cost of
that asset. All other borrowing costs are charged to the Statement of Profit and Loss for the period for
which they are incurred.

FINANCIAL INSTRUMENTS

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

FINANCIAL ASSETS

Initial recognition and measurement

All financial assets are initially recognised when the Company becomes a party to the contractual
provisions of the instrument. All financial assets are initially measured at fair value plus, in the case
of financial assets not recorded at fair value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.

Subsequent measurement

? Classification

For the purpose of subsequent measurement, the Company classifies financial assets in following
categories:

• Financial assets at amortized cost

Financial assets at amortized cost are subsequently measured at amortized cost using the
effective interest method. The amortized cost is reduced by impairment losses, if any. Interest
income and impairment are recognized in the Statement of Profit and Loss.

• Financial assets at fair value through other comprehensive income (FVTOCI)

These assets are subsequently measured at fair value through other comprehensive income
(OCI). Changes in fair values are recognized in OCI and on de-recognition, cumulative gain or
loss previously recognized in OCI is reclassified to the Statement of Profit and Loss. Interest
income calculated using EIR and impairment loss, if any, are recognized in the Statement of
Profit and Loss.

• Financial assets at fair value through profit or loss (FVTPL)

These assets are subsequently measured at fair value. Net gains and losses, including any
interest income, are recognized in the Statement of Profit and Loss.

Financial assets are not reclassified subsequent to their recognition except if and in the period the
Company changes its business model for managing for financial assets.

The Company de-recognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in
which substantially all of the risks and rewards of ownership of the financial asset are transferred or
in which the Company neither transfers nor retains substantially all of the risks and rewards of
ownership and it does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet,
but retains either all or substantially all of the risks and rewards of the transferred assets, the
transferred assets are not de-recognised.

Any gain or loss on de-recognition is recognised in the Statement of Profit and Loss.

Impairment of financial assets

The Company applies the expected credit loss model for recognizing impairment loss on financial
assets measured at amortized cost, lease receivable, trade receivable other contractual rights to
receive cash or other financial assets. For trade receivable, the Company measures the loss
allowance at an amount equal to life time expected credit losses. Further, for the measuring life time
expected credit losses allowance for trade receivable the Company has used a practical expedient as
permitted under Indian AS 109. This expected credit loss allowance is computed based on
provisions, matrix which takes into account historical credit loss experience and adjusted for forward
looking information.

FINANCIAL LIABILITIES

Initial recognition and measurement

All financial liabilities are initially recognised when the Company becomes a party to the contractual
provisions of the instrument. All financial liabilities are initially measured at amortized cost unless at
initial recognition, they are classified as fair value through profit or loss. In case of trade payables
they are initially recognize at fair value and subsequently, these liabilities are held at amortized cost,
using the Effective interest method.

Classification and subsequent measurement

Financial liabilities are classified as measured at amortized cost or FVTPL.

A financial liability is classified as FVTPL if it is classified as held-for-trading, or it is a derivative
or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair
value and net gains and losses, including any interest expense, are recognised in the Statement of
Profit and Loss.

Financial liabilities other than classified as FVTPL, are subsequently measured at amortized cost
using the effective interest method. Interest expense is recognised in Statement of Profit and Loss.
Any gain or loss on de-recognition is also recognised in the Statement of Profit and Loss.

A financial liability is derecognized when the obligation under the liability is discharged or cancelled
or expires. When an existing financial liability is replaced by another from the same lender on
subsequently different terms, or the terms of an existing liability are subsequently modified, such an
exchange or modification is treated as the de-recognition of the original liability and the recognition
of the new liability. The difference in the respective carrying amount is recognize in the Statement of
Profit & Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet
when, and only when, the Company currently has a legally enforceable right to set off the amounts
and it intends either to settle them on a net basis or to realize the assets and settle the liabilities
simultaneously.

Non-Current Assets held for Sale and Discontinued Operations

The Company classifies assets and operations as held for sale / distribution to owners or as
discontinued operations if their carrying amounts will be recovered principally through a sale /
distribution rather than through continuing use. Classification as a discontinued operation occurs
upon disposal or when the operation meets the below criteria, whichever is earlier.

Non-Current Assets are classified as held for sale only when both the conditions are satisfied -

1. The sale is highly probable, and

2. The asset or disposal group is available for immediate sale in its present condition subject only to
terms that are usual and customary for sale of such assets.

Non-current assets which are subject to depreciation are not depreciated or amortized once those
classified as held for sale.

A discontinued operation is a component of the Company’s business, the operations of which can be
clearly distinguished from those of the rest of the Company and

i) is part of a single coordinated plan to dispose of a separate major line of business or geographical
area of operations; or

ii) is a subsidiary acquired exclusively with a view to resale.

Non-current assets held for sale / distribution to owners and discontinued operations are measured at
the lower of their carrying amount and the fair value less costs to sell / distribute. Assets and
liabilities classified as held for sale / distribution are presented separately in the balance sheet. The
results of discontinued operations are excluded from the overall results of the Company and are
presented separately in the statement of profit and loss. Also, the comparative statement of profit and
loss is represented as if the operations had been discontinued from the start of the comparative
period.

The Company has only one class of equity shares having par value of '10 each and the holder of the equity
share is entitled to one vote per share. The dividend proposed by Board of Directors is subject to approval of
the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of
liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of
the Company in proportion to the number of equity shares held.

The Company has preference shares having a par value of ' 100/- per share. Preference shares shall
carry voting rights as per the provisions of Section 47(2) of the Companies Act, 2013.

The Company declares and pays dividend in Indian rupees. The preference shares shall carry a
preferential right vis-a-vis equity shares of the Company with respect to payment of dividend and
repayment of capital. However, the holders of the preference shares shall be paid dividend on a
non-cumulative basis.

The preference shares shall be non-participating in the surplus funds and also in the surplus assets
and profits which may remain after the entire capital has been repaid, on winding up of the
Company.

The management assessed that fair value of cash and short-term deposits, trade receivables, trade payables,
and other current financial assets and liabilities approximate their carrying amounts largely due to the short¬
term maturities of these instruments.

The fair value of the financial assets and liabilities is 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) Long-term fixed-rate receivables/borrowings are evaluated by the Company based on

parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer
and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into
account for the expected losses of these receivables.

ii) Fair values of the Company’s interest-bearing borrowings and loans are determined by using DCF method
using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting period. The own
non- performance risk as at March 31, 2025 was assessed to be insignificant.

iii) The fair values of the unquoted equity shares, if any have been estimated using a discounted cash flow
model. The valuation requires management to make certain assumptions about the model inputs, including
forecast cash flows, discount rate, credit risk and volatility, the probabilities of the various estimates within
the range can be reasonably assessed and are used in management's estimate of fair value for these unquoted
equity investments.

“30” Financial Risk Management

The Company’s principal financial liabilities, comprise loans and borrowings, trade and other payables. The
main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees
to support its operations. The Company’s principal financial assets include loans, trade and other receivables,
and cash and short-term deposits that derive directly from its operations.

The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk, foreign currency
risk and interest rate risk. The Company's primary focus is to foresee the unpredictability of financial
markets and seek to minimize potential adverse effects on its financial performance. The primary market risk
to the Company is foreign exchange risk. The Company uses foreign currency borrowings to mitigate foreign
exchange related risk exposures.

The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised
below:

Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company’s receivables from
customers and investment securities. Credit risk arises from cash held with banks and financial institutions,
as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to
credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty
credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counter
parties, taking into account their financial position, past experience and other factors.

Trade and other receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each
customer. The demographics of the customer, including the default risk of the industry and country in which
the customer operates, also has an influence on credit risk assessment. In addition, receivable balances are

monitered on an ongoing basis with the result that the Company's exposure to Bad debt is
not significant. Also the Company does not enter into sales transaction with customers having credit loss
history. There are no significant Credit risk with related parties of the Company. The Company is exposed to
Credit risk in the event of non payment of customers. Credit risk concentration with respect to Trade
Receivables is mitigated by the Company's large customer base. Adequate expected credit losses are
recognised as per the assessment.

The history of Trade receivables shows an allowance for bad and doubtful debts of Rs Nil ( Nil as at March
31,2024). The Company has made allowance of Rs Nil ( Nil as at March 31,2025) against Trade receivable
of Rs. 215.11 lacs ( Rs. 297.69 Lacs as at March 31,2024).

Bank Deposits

The company maintains its cash and cash equivalents and bank deposits with reputed and highly rated bank.
Hence, there is no significant credit risk on such deposits.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with
counterparties that have a good credit rating. The company does not expect any losses from non¬
performance by these counter-parties, and does not have any significant concentration of exposures to
specific industry sectors.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become
due. The Company manages its liquidity risk through credit limits with banks.

The Company’s corporate treasury department is responsible for liquidity, funding as well as settlement
management. In addition, processes and policies related to such risks are overseen by senior management.

Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates. Foreign Exchange risks arise from recognised assets and liabilities,
when they are denominated in a currency other than functional currency of the company. To a limited extent,
the company imports certain spare parts used in manufacturing and therefore is exposed to foreign exchange
risks arising from various currency exposures., primarily with respect to Euro. Company’s exposure to
foreign currency risk is very limited and Company always ensures that the such exposure is within the
approved limit for which company does not require to hedge through derivatives and therefore foreign
currency risk is negligible.

Foreign currency sensitivity analysis

As the Foreign Currency risk is negligible and therefore foreign currency sensitivity analysis would not
affect the operations of the Company.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company’s exposure to the risk of changes in market
interest rates relates primarily to the Company’s debt obligations with floating interest rates and investments.

Interest rate sensitivity analysis

If interest rates had been 1% higher and all other variables were held constant, the company's profit for the
year ended would have impacted in the following manner:

“31” Capital management

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business. The Company monitors the return on capital.

“32” Segment Information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker (CODM). The CODM is considered to be the Board of Directors who makes
strategic decisions and is responsible for allocating resources and assessing performance of the operating
segments.

As per IND AS 108-Operating Segment, segment information for the year ended 31st March, 2025 is as
under:

There has been following reporting segment based on the information reviewed by the Chief Operating
Decision Maker (CODM):

a) Trading of textiles

b) Trading of Raw Material consumed in manufacturing of Rubber Tubes

The CODM monitors the operating results of its Business Segment separately for the purpose of making
decision about resource allocation and performance assessment.

Segment Assets and Liabilities

Segment assets and liabilities includes all operating assets used by the operating segment and mainly consist
of property, plant and equipment, trade receivables, inventory and other operating assets. Segment liabilities
primarily include trade payables and other liabilities. Common assets and liabilities which can not be
allocated to any business segment, if any are shown as unallocable assets/liabilities.

“34” Discontinued Operations

During the quarter ended March 31, 2024, the Company had discontinued its manufacturing operations of
cotton yarn from 01.01.2024 on permanent basis and company has undertaken trading activity of cotton and
cotton yarn. The company has undertaken sale of its movable fixed assets as approved in the Extra-ordinary
General Meeting and Subsequently approved in its Board Meeting held on 5th November,2023 and 13th
February, 2024. Accordingly, the results of discontinued operations are disclosed seperately in the financial
statements. As the operations were discontinued, during Q4-FY2024, the Company has assessed the
recoverability of its movable Fixed Assets and other assets and recognized a provision aggregating to
Rs.95.20 lacs as loss on measurement to net realizable value Out of the total assets classified as held for sale
during F.Y.2023-24, the company has sold assets of Rs.1,49,19,950/- during F.Y.2024-25

“35” Balances of Sundry Debtors, Creditors, Loans and Advances and transactions are subject to their
confirmation.

“36” Except otherwise mentioned herein, in the opinion of the Board, the Current Assets, Loans and
Advances are approximately of the value stated if realized in the ordinary course of business and the
provision of all known liabilities are adequate and not in excess of the amount reasonably necessary.

“37” Event occurring after balance sheet date

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to
the approval of financial statements to determine the necessity for recognition and/or reporting of any of
these events and transactions in the financial statements.

The Board of Directors has recommended Preference dividend of Rs. 0.01 per share for the Financial Year
2024-25, which is subject to approval by the shareholders.

A) Title Deeds of Immovable Property not held in the name of Premier Synthetics Limited

The title deeds of all the immovable properties (other than properties where the company is the lessee and the leaseagreements are duly
executed in favour of the lessee), are held in the name of the company

B) F air V aluation of Investment Property

The Company does not hold any Investment Property as on 31.03.2025

C) Revaluation of Property, Plant and Equipment and Right-of-Use Assets

The Company has not revalued its Property, Plant and Equipment and Right-of-Use Assets during the year.

D) Revaluation of Intangible Assets

The Company does not hold any intangible assets as on 31.03.2025

E) Loans or Advances to specified persons

The Company has not granted any Loans or Advances to promoters, directors, KMPs and other related parties (as defined under Companies
Act, 2013).

F) Details of Benami Property held

No proceedings have been initiated or pending against the Company for holding any Benami Property under the Benami Transactions
(Prohibition) Act, 1988 and the rules made thereunder.

G) Borrowings secured against current assets

Note: Working capital loan from Axis Bank of Rs.4,11,52,345/- as on March 31, 2025 having rate of interest of 9.35% is secured against
exclusive charge by way of hypothecation on the entire current assets of company (both present and future), Exclusive charge on immovable
property located at 10, Smrutikunj Society, Swastik Cross Road, Navrangpura, Ahmedabad-380009 and personal guarantee of security
provider. There are no material differences between quarterly statement of current assets filed by the company with banks and as per books
of accounts

H) Wilful Defaulter

Based on information available with the Company, the Company has not been declared as a Wilful defaulter by any bank or financial
institution.

I) Relationship with Struck off Companies

The Company has not entered into any transaction with companies struck off under section 248 of Companies Act, 2013 or section 560 of
Companies Act, 1956.

J) Registration of charges or satisfaction with Registrar of Companies (ROC)

Registration of charges or satisfaction has been done with ROC within the statutory date in all cases, wherever applicable.

K) Compliance with number of layers of companies

The Company does not have any subsidiary as envisaged under section 2 (87) of the Companies Act, 2013 read with Companies (Restriction
on number of Layers) Rules, 2017. Hence not applicable.

L) Undisclosed Transactions

As stated & confirmed by the Board of Directors, 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

M) Loan or Investment to Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors, The Company has not advanced or loaned or invested funds to any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

N) Loan or Investment from Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors ,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

O) Utilization of Term Loans

The company has not availed any term loan during the year

P) Crypto Currency

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

Q) Audit Trail

The company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log)
facility and the same has operated throughout the year for all relevant transactions recorded in the software.

R) Commitments and contingencies

a) Capital commitments: NIL

b) Contigencies: NIL

Explanation for changes in the ratios by more than 25%

Debt Service Coverage Ratio has been increased to 3.81 times in FY2025 as compared to -3.58 times in FY2024 on account of lower finance
cost and higher profitability during the year

(ii) Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade Payables Turnover Ratio and Net Capital Turnover Ratio has decreased
as compared with FY2024 on account of reduction in turnover and lower realisation from Trade Receivables during FY2025
Return on Equity (%), Net Profit Ratio (%) and Return on Capital Employed (%) has improved in current year as compared to previous year
^ ^; on account of higher profitabiltiy during the year

“39” Previous Year figures have been regrouped and recasted wherever necessary.

“40” These financial statements have been approved by the Board of Directors of the Company on May 29,
2025, for issue to the shareholders for their adoption.

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

attached

For Purushottam Khandelwal & Co.

Chartered Accountants

FRN: 123825W Gautamchand Surana Govind Ram Garg

Managing Director Independent Director

CA Prahlad Jhanwar DIN: 07013655

Partner

Narayan D.

Membership No.: 120920 Choudhary Sunny Sunil Singhi

Chief Financial Officer Non-Executive

Place: Ahmedabad Director

Date: 29.05.2025_DIN: 07210706