Notes to Accounts of Thomas Scott (India) Ltd.

Mar 31, 2023

27. Contingent Liabilities:
	Particulars	As at 31.03.2023	As at 31.03.2022
	Nil	Nil	Nil

28. Post Retirement Benefit Plan: Defined Contribution PlanDefined Benefits Plan Gratuity Plan

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees’ last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

The Company has recognized Rs. 9.64 lacs (P.Y. Rs 6.69 lacs) in the profit & Loss Account during the year ended 31 March 2023 under defined contribution plan.

The discount rate indicated above reflects the estimated timing and currency of benefit payments. It is based on the yields / rates available on applicable bonds as on the current valuation date.

The salary growth rate indicated above is the Company’s best estimate of an increase in salary of the employees in future years, determined considering the general trend in inflation, sonority, promotions, past experience and other relevant factors such as demand and supply in employment market, etc.

(f) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below has been determined based on reasonably possible changes of assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The results of sensitivity analysis are given below:

Please note that the sensitivity analysis presented above may not be representative of actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

There is no change in the method of valuation for the prior period. For change in assumptions please refer to section 5 above, where assumptions for prior period, if applicable, are given.

29. Segment Reporting:

Based on the “management approach” as defined in Ind AS 108 Operating Segments, the Director of the Company has been identified as Chief Operating Decision Maker (CODM). The Chief Operating Decision Maker evaluates the Company’s performance and allocate resources on the analysis of various performance indicator by business segment.

The company has only one geographical segment as it caters the need of domestic market only.

30. Financial Risk Management:Financial risk management objectives and policies

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s financial risk management policy is set by the Managing Board.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments.

Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.

Market Risk- Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company’s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forward-looking information such as:

i) Actual or expected significant adverse changes in business

ii) Actual or expected significant changes in the operating results of the counterparty

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to meet its obligations

iv) Significant increase in credit risk on other financial instruments of the same counterparty

Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price. The Company’s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risk are overseen by senior management. Management monitors the Company’s net liquidity position through rolling forecasts on the basis of expected cash flows.

The table below analyses the financial liability of the company into relevant maturity groupings based on the remaining period from reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flow.

31. Capital Risk Management Risk Management

The Company’s objectives when managing capital are to

¦ safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders

¦ maintain an optimal capital structure to reduce the cost of capital

33. Fair Value Measurement

The fair values 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:

• Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans repayable on demand approximate their carrying amounts largely due to short term maturities of these instruments.

Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The Financial Instruments are categorised in two level based on the inputs used to arrive at fair value measurement as described below

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

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

34. Additional information pursuant to the provisions of Part II of the Schedule III pf the Companies Act, 2013.

i) Value of imported and indigenous Raw Material consumed during the year in NIL.

ii) CIF value of imports, expenditure and earning in foreign exchange is NIL.

35. Previous year figure has been regrouped, rearranged and restated whenever necessary.

37. Additional regulatory Information

1) The company does not have any proceedings initiated or are pending against it, for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

2) The company has not been declared wilful defaulter by any bank or financial institutions or government or any government authority.

3) The company does not have relation with any Stuck off Companies.

4) The company has registered and satisfied charges with Registrar of Companies (ROC).

5) The Company has complied with the number of layers prescribed under the Companies Act, 2013

* Earnings for Debt Service = Earnings before finance costs, depreciation and amortisation, exceptional items and tax (EBIDTA)/ (Finance cost for the year Principal repayment of long-term debt liabilities within one year)

** Cost of Good sold = Cost of materials consumed Purchases of stock-in-trade Changes in inventories of finished goods, stock-intrade, work-in-progress Manufacturing and operating expenses

$ Working Capital = Current Assets - Current Liabilities

# Earnings before Interest and Tax = Profit after exceptional item and before tax Finance costs (recognised)

@ Capital Employed = Average of equity and total borrowings

The variations more than 25% is on account of improvement in Company''s performance in FY2022-23 compare to FY2021-22.

7) There are no transactions to report against the disclosure requirement as notified by MCA pursuant to amended Schedule III with regards to utilisation of borrowed fund and discrepancies in utilisation of borrowed fund.

8) During the year, the 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: (i) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

9) During the year, 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: (i) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

10) The quarterly returns or statements filed by the company with bank are observed to be in agreement or the same are duly reconciled with the books of account and records maintained by the company except the differences below:

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Mar 31, 2015

1. In the opinion of the Board, sundry debtors, loans and advances and other current assets and unsecured loans are approximately of the value stated if realized in the ordinary course of business. The provisions for all known liabilities is adequate and not in excess of the amount reasonably necessary. Some balances are subject to confirmation and reconciliation.

2. Taxes on Income

In view of the losses for the current year, no income tax provision is recorded in accounts. However, deferred tax asset on account of current year loss has not been made as the management is of the opinion that there is no virtual certainty for the reversal of the same.

3. Employee benefit plan:

The Company has recognized Rs, 2,31,568/- (PYRs,1,42,045/-) in the profit & Loss Account during the year ended 31 March 2015 under defined contribution plan.

4. Previous year figure has been regrouped, rearranged and restated whenever necessary

5. Information on Related Party Disclosure

A. Key Managerial Persons (KMP) Brijgopal Bang (Managing Director)

Raghavendra Bang (Director)

B. Relatives of Key Managerial Persons Balaram Bang

Harshvardhan Bang

C. Enterprises owned or significantly influenced by key management Bang Overseas Limited perosnnel or their relatives Vedanta Creations Limited

Venugopal Bang (HUF)

6. Additional information pursuant to the provisions of Part II of the Schedule III of the Companies Act, 2013.

i) Value of imported and indigenous Raw Material consumed during the year is NIL

ii) C.I.F Value of imports, Expenditure and Earning in Foreign exchange

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Mar 31, 2014

1. Contingent Liabilities

(In Rs.)

Particulars 31.03.20141 31.03.20l3

Sales Tax Declaration Forms 14,79,539 14,96,705

Total 14,79,539 14,96,705

2. Taxes on Income

In view of the losses for the current year, no income tax provision is recorded in accounts. However, deferred tax asset on account of current year loss has not been made as the management is of the opinion that there is no virtual certainty for the reversal of the same.

3. In the opinion of the Board, sundry debtors, loans and advances and other current assets and unsecured loans are approximately of the value stated if realized in the ordinary course of business. The provisions for all known liabilities is adequate and not in excess of the amount reasonably necessary. Some balances are subject to confirmation and reconciliation.

4. Employee benefit plan:

The Company has recognized Rs. 1,42,045/- (PY 28,013/-) in the profit & Loss Account during the year ended 31 March 2014 under defined contribution plan.

5. Segment Reporting:

The Company operates in only one reportable segment that is trading of readymade Garments and fabrics. Therefore no separate disclosure of segment wise information is required.

6. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence discloses, if any relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

7. Derivative Instruments

There are no outstanding forward contracts entered into the Company as on 31 March 2014.

8. Previous year figure has been regrouped, rearranged and restated whenever necessary.

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Mar 31, 2013

1. Contingent Liabilities

(In Rs.)

Particulars 31.03.2013 31.03.2012

Sales Tax Declaration Forms 14,96,705 13,89,880

Total 14,96,705 13,89,880



2. Taxes on Income

In view of the losses for the current year, no income tax provision is recorded in accounts. However, deferred tax asset on account of current year loss has not been made as the management is of the opinion that there is no virtual certainty for the reversal of the same.

3. In the opinion of the Board, sundry debtors, loans and advances and other current assets and unsecured loans are approximately of the value stated if realized in the ordinary course of business. The provisions for all known liabilities is adequate and not in excess of the amount reasonably necessary. Some balances are subject to confirmation and reconciliation.

4. Operating Lease Arrangements:

As lessee:

Rental expenses of Rs. 14,79,732 (P.Y. Rs.1,54,42,346) in respect of obligation under operating leases have been recognized in the profit and loss account.

The above figures include:

i. Lease rentals do not include common maintenance charges, tax payable, if any.

ii. The Company has not entered under any operating lease agreement which is not-cancelable more than five years.

5. Employee benefit plan:

The Company has recognized Rs.28,013 (PY 1,93,811/-) in the profit & Loss Account during the year ended 31 March 2013 under defined contribution plan.

6. Segment Reporting:

The Company operates in only one reportable segment that is manufactures of readymade Garments and sale of trading fabric. Therefore no separate disclosure of segment wise information is required.

7. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence discloses, if any relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

8. Derivative Instruments

There are no outstanding forward contracts entered into the Company as on 31 March 2013.

9. Previous year figure has been regrouped, rearranged and restated whenever necessary

10. Information on Related Party Disclosure

A. Key Managerial Persons (KMP) Venugopal Bang (Director)

Brijgopal Bang (Director)

B. Relatives of Key Managerial Persons Balaram Bang

C. Enterprises owned or significantly

influenced by key mangement perosnnel or their relatives

Bang Overseas Limited Vedanta Creations Limited Venugopal Bang (HUF)

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Mar 31, 2012

1. Previous year figure has been regrouped, rearranged and restated whenever necessary.

2. Segment Reporting:

The Company operates in only one reportable segment that is manufactures of readymade garments. Therefore no separate disclosure of segment wise information is required.

3. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence discloses, if any relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

4. Scheme of Arrangement:

1) The Company was incorporated on 22nd October 2010 with an authorised share capital of Rs. 5, 00,000 (50,000 equity shares of Rs. 10/- each)

2) In terms of the Scheme of Arrangement between Bang Overseas Limited and Thomas Scott (India) Limited and their respective shareholders sanctioned by the Honourable High Court of Bombay, which become effective on 05th August, 2011 with retrospective effect from 01st April 2011, the following effects were given:

(a) Authorised Share Capital increased to 40, 00,000 Equity Shares of Rs. 10/- each and 10,00,000 Redeemable Preference Shares of Rs. 10/- each.

(b) The Pre demerger paid up share capital of Rs. 5, 00,000 stands cancelled.

(c) 33,90,000 shares of the company were issued to the shareholders of Bang Overseas Limited pursuant to scheme of demerger in the ratio of 1:4 (One share for every four shares held in Bang Overseas Limited)