28) A Sum of Rs. 4.42 lacs (P.Y Rs. 3.77 lacs) is payable to Micro & Small Enterprises which are outstanding as on 31st March, 2025. This information as required to be disclosed under the Micro and Small Enterprises Development Act' 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.
29) Stores and Spares parts consumed has been shown net of sale of scrap of Rs 25.20 lacs (P.Y. Rs. 5.88 lacs).
30) Contingent Liability as on the balance sheet date is as follows:
a. Bank Guarantee and Letter of Credit given by the Company’s Bankers amounting to Rs.80.05 lacs-(Previous year Rs. 80.79 lacs).
31) (a) A revaluation of land and building was carried out by an approved valuer on 3 lsl January, 1994 that resulted in an increase in net value of land by Rs.335.59 lacs and Building by Rs.160.42 lacs. This amount has been credited to revaluation reserve account.
(b) A fresh revaluation of land and building was carried out by an approved valuer as on 31st March, 1997 which was resulted in an increase in net value of land of Rs.341,09 lacs and value of building by Rs.58.01 lacs over and above the earlier revaluation reserve account.
32) In the opinion of the Management all the assets other than Property, Plant and Equipment and NonCurrent Investment have a value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet. Provision for depreciation and all known liabilities is adequate and not in excess of what is required.
33) The balances of advances, Trade Receivable & Payables are subjected to confirmation. In view of the management pending reconciliation of party’s balances does not have any material effect on the profitability of the company.
34) As required under Accounting Standards -28, the carrying amount of asset does not exceed its recoverable amount as assessed. Hence no impairment has been considered.
35) On the 30th day of January, 2025, the Company acquired 80% of the equity share capital of Yashoda Linen Yam Limited, a company engaged in the manufacturing and trading of textile products for a consideration of Rs. 186.44 lacs, thereby making Yashoda Linen Yarn Limited a subsidiary of the Company, with effect from the date of acquisition.
36) In the previous financial periods, the Company had understated depreciation on the revalued portion of its building by ?48.01 lakhs, resulting in an overstatement of both the Revaluation Reserve and the carrying amount of the building by the same amount. Concurrently, depreciation of ?2.47 lakhs was overcharged on the original cost of the building, leading to an understatement of its carrying value of building by the same amount.
Therefore, in the current financial year, the short depreciation of ?48.01 lakhs on the revalued building asset has been adjusted by charging the said amount as additional depreciation. In line with the requirements of Accounting Standard (AS) 10 - Property, Plant and Equipment, ?48.01 lakhs has been transferred from the Revaluation Reserve to the General Reserve. The excess depreciation of ?2.47 lakhs previously charged on the original cost has been adjusted against a reversal of the same amount by charging lower depreciation. The net impact of ?45.54 lakhs has been recognised in the accumulated balance of profit and loss account.
37) The Company has issued 1.11,26,734 fully paid-up equity shares of face value ?!0 each as bonus shares, in the ratio of 12:5 to the eligible shareholders whose names appeared in the Register of Members/Beneficial Owners as on the record date, i.e., February 3, 2025. The bonus issue, aggregating ?1,112.67 lakhs, was recommended by the Board of Directors at its meeting held on December 12, 2024, approved by the shareholders at the Extraordinary General Meeting convened on December 14, 2024, and subsequently allotted by the board of directors on February 3, 2025. The said bonus issue has been made out of the Securities Premium Account amounting to ?852.15 lakhs and the remaining ?260.52 lakhs out of the accumulated balance in the Profit and Loss Account, as per the audited financial statements for the year ended March 31, 2024
* During the current year, the Company has issued bonus shares as stated in note 37. Accordingly, as required by AS-20 Earnings per share, the EPS of current and previous period have been restated.
39) DEFERRED TAXATION:
In accordance with Accounting Standard 22 - “Accounting for Taxes on Income”, issued by the Institute of Chartered Accountants of India (ICAi), a deferred tax 1 iabi!ity/(asset) of ?38.31 lakhs (Previous Year: ?34.58 lakhs) has been recognized in the Statement of Profit and Loss for the current year. A deferred tax asset relating to gratuity for the previous year, amounting to ?64.13 lakhs, has been adjusted against the accumulated balance in the Profit and Loss Account. Further adjustments has been made for deferred tax liabilities of earlier year of R.S.22L57 lakhs against the accumulated balance in the profit and loss account.
40) During the year, the Company revised its accounting policy for Defined Benefit Plans relating to gratuity, transitioning from the cash basis to the accrual basis of accounting, with retrospective effect. This change has been made to ensure compliance with Accounting Standard (AS) 15 - "Employee Benefits" as prescribed by the Institute of Chartered Accountants of India.
Pursuant to this change, a gratuity liability of ?254.81 lakhs as of April 1, 2024, was recognized and adjusted against the accumulated balance in the Profit and Loss Account. As per the actuarial valuation report for the current financial year, an overall gain of ^21.18 lakhs has been recognized under Employee Benefit Expenses. Further, gratuity benefits amounting to ?8.32 lakhs, paid to employees during the year, have been adjusted against the recognized liability. The resulting net obligation of ?225.30 lakhs, as per the actuarial valuation, has been appropriately classified and disclosed under Long-term Provisions of ?203.49 lakhs and Short-term Provisions of ?21.81 lakhs in the financial statements.
42) SEGMENT REPORTING:
The entire operation of the Company relates to only one segment i.e. Manufacturing of Textile Goods. As such there is no information on reportable segment as required has been given.
43) RELATED PARTY DISCLOSURE:
As identified by the management and relied upon by the auditors, the details of Related Party Relationships and transactions during the Financial Year as defined under AS-i 8 is as follows:
b) Entities having significant influence over the Company:
i) Gold View Financial Services Ltd.
ii) Ambica Capital Markets Ltd.
c) Entities over which the Company has significant Control:
i) Yashoda Linen Yarn Limited (Subsidiary w.e.f. 30.01.2025)
44) During the year, the Company has utilized the amount borrowed from Bank or financial institution towards the purpose for which it was taken. In case of borrowings taken against security of current assets, quarterly retum/statement filed with the lender are in agreement with books of accounts.
45) There are no charges or satisfaction of charge pending to be registered with Registrar of Companies beyond the statutory period, as applicable.
46) The Company does not own any immovable property whose title deeds are not registered in the name of the Company.
47) During the year ended, the Company has not revalued its PPE and accordingly the disclosures in respect of these matters are not applicable to it.
48) The Company has not declared willful defaulter by any bank or financial institution or other lender during the year.
49) The Company does not hold any Benami property and no proceeding have been initiated or pending against the company in such respect,
50) The Company has not entered into any transactions with struck off companies.
51) The Company has not traded or invested in Crypto currency or Virtual currency during the year.
52) Goods & Service tax balances, as appearing in financial statements are subject to reconciliation and annual return.
53) The Company has made detailed assessment of its liquidity position and of the recoverability and carrying value of its assets as on the balance sheet date and has concluded that no. material adjustments are required to be made in financial statements.
54) During the year Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:
1 .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
2. Provide any guarantee, security or the like to or on behalf of the company (Ultimate Beneficiaries).
55) During the year 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:
1. 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
2. Provide any guarantee, security or the like on behalf of the Funding Party (Ultimate Beneficiaries).
56) The Company has no such transaction which are not recorded in the books of accounts during the year and also there are no such unrecorded income and related assets related to earlier years which have been recorded in the books of account during the year.
57) Figures are reported as Rs in lacs, unless otherwise stated.
58) Previous year figures have been regrouped or rearranged as considered necessary.
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