s) Provisions & contingent liabilities / Assets:

The company recognizes a provision when there is a present obligation as a result of a past event that probably reouires an

SrrCSSS !s made³ ^ ^

Provisions are measured at the present value of best estimate of the expenditure required to settle the present oblioation at the end of the reporting period. The discount rate used to determine the present value is a

time^sTe'cog^seias mfo^ext^ ^ ^ ^ ‘° ^liab"^ity' ^{The inCre3Se in the} P^ro™ ^due * ‘^ba Passage of

Contingent assets are not recognised but are disclosed in the notes to Financial Statements when economic inflow is probable.

t) Employee benefits:

iⁿH^th? ^f°^{rm of}u^c,^{ontribution t0} P^{rovident f}und is a defined contribution scheme. The Company has no obligation srhPmP ^ ^{h contnbutlon} Payab'e to the provident fund. The Company recognizes contribution payabi_e^P toVne provident fund f ?*^pe/T' ^{WhSn 3n employee renders the related service}- ^lf the contribution payable to the scheme for service

^{3s 33 3}~—- -

^P31'^3t"^{e ,0 i,s employees ar}*^dete,mi"^{ed usi}"^{9 ,ne Aclor,al Valua,ion Rapor,} M is Remeasurements, comprising of actuarial gains and losses are recognised immediately in the balance sheet with a corresDondinn

ss £“^{3min9s ,3rpu9h oci in ,he pe3oa in} *^{hich ,hey}

Past service costs are recognised in profit or loss on the earlier of:

a) The date of the plan amendment or curtailment, and

b) The date that the Company recognises related restructuring costs

J5l!2f^reSh ^{IS calculdted by ap}P^|yin9 ^the discount rate to the net defined benefit liability or asset The Company recoqnises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss cognises the

setttemente^nd⁰' ^C°^{mpnSin9 CUfrent Service costs}' P^t-service costs, gains and losses on curtailments and non-routine

b) Net interest expense or income.

u) Earnings Per Share:

Earnings per share (EPS) is calculated by dividing the net profit or loss for the period attributable to eouitv shareholders hv the

prom for the"S7aTd a^^^ ***Ý “h®^{8 C}°^{nSidered in aSCertaini}"9 ‘^ba EPS is the net

For the purpose of calculating diluted EPS, the net profit for the period attributable to equity shareholders and the weiohted average number of equity shares outstanding during the pjMd^re adjusted for the effects of all Jiluli?poteSl equil, shaSf

/

( /Jo/ xA

v) Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

w) Financial Instruments:

Critical estimates and judgements

Preparation of the Financial Statements requires use of accounting estimates, judgements and assumptions, which, by definition, will seldom equal the actual results. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the Financial Statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the Financial Statements. This Note provides an overview of the areas that involves a higher degree of judgements or complexity and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the Financial Statements.

Note No : 33

In the opinion of the management the balances shown under all the assets other than property, plant & Equipments & intangible assets have approximately the same realisable value as shown in these financial statement. Assets & liabilities balances of parties are subject to confirmation.

Note No : 34

The Manangement is of the opinion that as on the Balance sheet date, there are no indications of material impairment loss on property, Plant and Equipments and intangible assets , hence, the need to provide for impairment loss does not arise.

Retirement benefit plans:

a ) Defined Contribution Plans

The Company made contnbution towards provident fund to a defined contribution retirement benefit plan for qualifying employees The provident fund plan is operated by the Regional Provident Fund Commissioner,

The company Recognized Rs, 139380/- (Previous year Rs. 576844/-) for provident fund contributions in the profit & loss account and included in note no. 28 in "Contribution to Provident and Other Funds".

b ) Defined Benefit Plans

The Company made provision for gratuity liability which is un funded. The scheme provides for payment to vested employees at retirement, death while in employment or on termination of employment of an amountequivalent to 15 days salary payable for each completed year of service or part thereof in execess of six months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit method as per actuarial valuation carried out at the balance sheet date.

In line with the Ind AS - 108, Operating Segments and on the basis of the review of operations being done by the senior management the operations of the group fall under Textile Products which is considered to be only reportable segment by the Company,

Note No: 39

The expense of consumables stores and spares in note no. 30 has increased in comparison to earlier year because of use of sublimation paper on starting of number of digital printing machines during the year for the first time, which has affected the increase in processing jobs charges reflected in revenue from operations in note no. 23.

Note No : 41

Fair value Measurement:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability assuminq that market participants act in their economic best interest. '

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to ang^stwa^et participant that would use the asset in its highest and best use

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value maximising the use of relevant observable inputs and minimising the use of unobservable inputs. available to measure fair value.

c) Level 3 - If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3

valuers, ™ete!mineswh^ va^i^ ^u^for M^case. ” ^mai"^,ained' "" ^Compan* ^{after d,SCUSSi0}"^{S with itS extemal}

nIr^e,h^<l^hr^rn^P0,1inS.^date' ^the,^ComPfⁿy ^ana|y^a®^a the movements in the values of assets and liabilities which are required to be remeasured or re-assessed as with relevant external sources to determine whether the change is reasonable. ^

⁰¹ - “*• - *» -» «»»Ý —«-»« «*« This note summarises accounting policy for fair value measurement. Other fair value related disclosures are given in the relevant notes

Financial risk management:

The Company s principal financial liabilities comprise of loans and borrowings, trade payables and other financial liabilities The loans and borrowinns am

SS3&1SSSSS^{,te c}“^{w Tw} rjssss

^m^°n^mP^{any iS eXP}°^{Sed 10 mark6t fiSk}' ^{Credit risk and liquidity risk}' ^The Company's senior management oversees the management of these risks The ™_Pd^y _mr^,0rH^ma^^9ement a^{nSUreS tha}‘ ^finanCia' ^{dSk aCtivitieS are 90verned b}* appropriate policies and proceduresUS that financial risks _are

*. “ ^comp*^n,'^{s poiici}“ “ ^Tte««*»Ý>«">»Ý*«»»i~*~

“ "“««*>'« underetanding »„ ⁰¹ w”™*⁰⁰ «• Ý« ™* —~

sar “^nsk * *** •» ™^s *"“»•« «•«— Ý»»•»

2t25!ssraas!s3 sar^,o Ý*—««»-— <—> •» —> * «-»»*»*»— * *.

Risk reporting and monitoring: Focuses on providing to the Board periodic information on risk profile evolution and mitigation plans.

(i) Market Risk:

^th® ^{nsk tbat} *^{he fair value of future cash} ^ws of a financial instrument will fluctuate because of changes in market prices Market risk - r^eV^{hree yP}f? ° ^{nsk interest rate nsk}- ^currency ^nsk and other price risk, such as equity price risk or Net assset value f'NAV") risk in case of deposes '^{n m} ' ^anC'^{al ins,ruments affected b}V market risk include investments, trade receivables, trade payables, loans and borrowings and

The sensitivity analysis in the following sections relate to the position as at March 31. 2024 and March 31, 2023.

To^d24⁰a^Sn^SdMarcV5r20^e23.^{0f Cha}"^9eS *" ^reSPeC,iVe "^SkS- ^{ThiS iS baS6d} °^{n ,he} financial assets and

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 nsk of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating interest rates

(ii) Credit risk

^*fc'^{S the n}f.^kt ^that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss The ^IS f P°^{sed t0} credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and foreign exchange transactions.

Trade receivables

^r'^Sk if ^manf9ed by the Company's internal policies, procedures and control relating to customer credit risk management. Credit quality of a er is assessed based on an credit rating credit assessment and credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments of goods to major customers are generally covered by letters of credit. As at March 31 2024 there were 2 customers with balances greater than Rs 100 lakhs accounting for more than 16.22% of the total amounts receivables. As at March 31. 2023’ there were 3 customers with balances greater than Rs, 100 lakhs accounting for more than 25.96% of the total amounts receivables.

“ ^,r“ ^,ec”^a“'* •• «• “““«—I **•**»•«

Ittrn_a|^er=f'^Vable(^{S are non}(f^nterest bearing and are generally on 15 days to 90 days credit term Credit limits are established for all customers based on internal rating criteria. The Company hasn^^^t&^iof credit nsk as the customer base is widely distributed both economically and geographically

Capital risk management

The primary objective of capital management is to maintain a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value, safeguard business continuity and support the growth of the Company. It determines the capital requirement based on annual operating plans and long-term and other strategic investment plans The funding requirements are met through equity and operating cash flows generated It is not subject to any externally imposed capital requirements.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

(e) The satisfaction of charge over the asstes of the company in favor of The Madhupura Merchantile Co. Op. Bank (bank) is not registered with registrar of companies of Rs. 7200000/- although the amount of loan had been repaid .The said Bank is under liquidation and therefore necessary process of law shall be followed after consultation with experts.

(f) The Company has borrowings from a bank on the basis of security of current assets and quarterly returns or statement of current assets are filed by the company with bank but against the total sanctioned cash credit limit of Rs 11.60 crores, the company has used nearly or less than half of the limit sanctioned in its businesss and therefore company has not provided full value of current assets in its quarterly statement to bank and therefore the quarterly statements/retums submitted to bank are not comparable with books of accounts.

(g) The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority

(h) The Company has no transactions with the companies struck off under the Act or Companies Act, 1956.

(i) (I) The company has not advanced or loaned or invested funds to any other persons or entities,including foreign entities (Intermediaries) with the understanding

that the intermediary shall: Directly or indirectly lend or invest in other persons or entities identified in any manner whatsover by or on behalf of the company (Ultimate Beneficiaries) or provide any guarantee, security or like to or on behalf of the beneficiaries.

(II) The company has not received any fund from any persons or entities, including foreign entities (funding party) with the understanding (whether recorded in writing or wrotherwise) that the company shall: Directly or indirectly lend or invest in other persons or entities identified in any manner whatsover by or on behalf of the company (Ultimate Beneficiaries) or provide any guarqatee, security or like to or on behalf of the beneficiaries

___

4 Return on Equity (%)

Profit after tax (PAT)/Average Equity)

i

[Equity: Equity share capital Other equity)

5 Inventory turnover ratio

(Sales (including sales & services)/Average Inventory )

[Turnover: Sales (including Sales & Services]

6 Debtors turnover ratio (in days)

(Sales (including sales S services)/Average Debtors )

[Turnover: Sales (including Sales & Services]

7 Trade payables turnover ratio (in days)

(Average Trade Payables/Expenses in days)

[Expenses: Total Expenses - Finance Cost - Depreciation and Amortisation Expense -Balances Written off -Other expenses with respect to Royalty, Rates & Taxes, Provision for Doubtful Debts & Advances. Provision for Impairment and Foreign Exchange Gain/Loss, Loss on sale of fixed assets]

8 Net capital turnover ratio (in days)

working capital/Turnover

[Working capital- Current assets - Current liabilities]

[Turnover: Sales (including Sales & Services]

9 Net profit ratio (%)

(Net profit after tax/Turnover)

(Turnover: Sales (including Sales & Services]

10 Return on Capital Employed (%)

(EBIT/Average capital employed)

[Capital Employed: Equity share capital Other equity Non current borrowings Current borrowings]

[EBIT: Profit before taxes /(-) Exceptional items Net finance charges

Note No : 48

Previous year's figures have been regrouped or rearranged wherever considered necessary.

Material accounting policies - Note No. 1.

The accompanying note no. 1 to 48 are an integral part of the financial statement.

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

For KISHAN M MEHTA & CO ,

Chartered Accountants \ ----

Firm's Registration No.105229W (Hiralal Parekh) (Latadevi Hiralal Parekh)

/~ Managing Director Director

^DIN: 00257758 DIN : 02973048^X^

(KM MEHTA)

M.No 13707 (Mularam Prajapati) (Mansi Pratik Patel)

Partner Chief Financial Officer Company Secretary

AHMEDABAD. 30th May, 2024 AHMEDABAD. 30th May, 2024.