Notes to Accounts of Yarn Syndicate Ltd.

Mar 31, 2023

As per records of the Company as at 31 March 2023 no calls remain unpaid by the directors and officers of the Company.

Rights preference and restrictions attached to the class of shares.

Equity Shares

Each equity shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding.

Note: The shareholding of the company has been transferred to another promoter group due to sale of majority shares of the company following the SEBI guidelines. Mr. K Chhabria is no more in continuation of Board of Directors and Mr. Nandish Shaileshbhai Jani has been included in the Board of Directors.

(i) The average credit period on purchases of goods and services are within 90 days. The trade and other payables are non interest bearing.

(ii) There are no micro, small and medium enterprises identified to whom payment is due.

19. Contingent Liabilities & Contingent Assets and Committments

The Company does not have any Contingent Liabilities NIL NIL

& Contingent Assets and Committments at the Balance Sheet date

B) The disclosure as per the Indian Accounting Standard 19 (Ind AS 19) "Employee Benefits" are given below:

I. Gratuity Plan

The Company has defined benefit plan comprising of gratuity. The present value of obligation is determined on the basis of Actuarial valuation using the Projected Unit Credit (PUC) actuarial method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit seperately to build up the final obligation.

Company is exposed to a number of risk in the defined benefit plans. Most significant risk pertaining to defined benfit plans and management''s estimation of the impact of these risk''s are as follows:

i) Interest Risk

A decrease in the interest risk on Plan Assets will increase the plan Liability.

ii) Longetivity Risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the Mortality of plan participants both during and at the end of the

iii) Salary Growth Risk:

The Present value of the defined benefit plan liability is calculated by reference to the future salaries of Plan participants. An increase in the salary of the plan participants will increase the plan liability.

iv) Investment Risk:

The Present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on Government Bonds.

21: Segment Reporting

An Operating Segment is component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company''s other components, and for which discrete financial information is available. The Company is engaged in the business of exporting yarn and fabric and any other activities incidental thereto. Board of Directors are Chief Operating Decision Maker (CODM) of the Company. Further, there are no export sales and hence there is no reportable secondary segment. Accordingly, these financial statements are not reflective of the information required under Ind AS 108.

Note:

The carrying values of financial assets and liabilities represent their approximate fair value.

23: Financial Instruments

i) Capital management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through optimisation of debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in note 10 and 12 offset by cash and bank balances) and total equity of the Company.

The Company uses net debt equity ratio as a capital management index and calculates the ratio as total liabilities divided by total equity. Total liabilities and total equity are based on the amounts stated in the separate financial statements.

24: Financial risk management objectives and policies Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has established the Risk Management Committee (RMC) which is responsible for developing and monitoring the Company’s risk management policies.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and control and monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Company’s activities expose it to market risk, liquidity risk and credit risk which are measured, monitored and managed to abide by the principles of risk management.

i) Credit Rsik

Credit risk arises when a customer defaults on its contractual obligations to pay resulting in financial loss to the Company. The Company has adopted a policy of categorising the customers based on the performance and accordingly credit limit ceiling of each category is defined. The Company''s exposure and categorisation of its customers are continuously monitored . Credit exposure is controlled by customer credit limits which are reviewed and approved. The Company applies the simplified approach to providing for expected credit losses prescribed by Ind AS 109, which permits the use of the lifetime expected loss provision for all trade receivables.

There is no change in estimation techniques or significant assumptions during the reporting period.

ii) Liquidity Risk Liquidity risk management

The board of directors has established an appropriate liquidity risk management framework for the management of the Company’s short, medium and longterm funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

iii) Interest Rate Risk

Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could have an impact on the Company’s cash flows as well as costs. The Company has no interest bearing liabilities as on the balance sheet date.

Derivative Financial Instruments

The Company holds no derivative financial instrument as on the reporting Date. Hence the company is not exposed to the said risk.

25: Leases

The Company assesses whether a contract contains a lease at the inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether : (i) the contract involves the use of an identified asset; (ii) the Group has substantially all of the economic benefits from use of the asset through the period of the lease, and (iii) the Group has the right to direct the use of the asset.

As on April 1, 2023 the Company does not have any existing lease which are required to be recognized as right-of-use (ROU) Asset and a corresponding Lease liability.

26: The figures for the previous year have been regrouped/reclassified to correspond with the current year''s classification/disclosures that include changes consequent to the issuance of "Guidance Note on Division II - Ind AS Schedule III to the companies Act 2013".

---

Mar 31, 2014

1 There is no movement in the number of shares outstanding at the beginning and at the end of the reporting period.

2 Out of the above issued shares, the company has only one class of equity shares having a par value of Rs. 10/- each. Each holder of equity shares is entitled to one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amount in proportion to their shareholding.

3 38 instalments due @ Rs.96,950 per month ( 50 instalments due @ Rs.96,950) as on 31.03.2014

4 05 intalments due @ Rs.83,835 per month (17 instalments due @ Rs.83835) as on 31.03.2014

5 To the extent information available, there are no parties covered under Micro, Small and medium Enterprise Development Act, 2006.

6 Trade Receivables of Rs. 1,73,01,387 (Net of ECGC Claim Rs.4,792,846) (Previous year Rs. 1,73,01,387) due from certain overseas buyers. Such balances have not been realigned at the year end rate. In the opinion of the management, these will be recovered in due course and as such no provision is considered necessary in this respect. These balances are subject to confirmation.

7 Advance includes Rs.9,43,831 (P.Y. Rs. 4,35,181) recoverable from one of the directors. As agreed,the amount is adjustible against loan taken from directors from 1st April''2014.

8 Certain Fixed assets amounting to Rs.328,675 (Previous year Rs.328,675) have been discarded on retiring from their active use and shown under the head inventories. In the absence of determination of their realisable value, these have been recorded at book value. In the opinion of the management the realisable value will not be lower than the book value. Necessary adjustments, if any will be carried on disposal of the same.

9 Represents profit on sale of office premises situated at Mumbai, which has been sold during the year for Rs. 1,69,00,000.

10 Contingent Liablities (to the extent not provided for) : Rs. NIL(Previous Year Rs. NIL)

Defined Benefit Scheme

The Company has defined benefit plan comprising of gratuity. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit (PUC) actuarial Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

11 Related Party Disclosure

i) Related Party Disclosure as required by Accounting Standerd 18 "Related Party Disclosure " as specified in the Companies (Accounting Standard) Rules, 2006 prescribed by Central Govt. are as follows :

a) Key Management Personnel : Smt. Sheela Patodia - Chairperson & Managing Director Sri Rishi Raj Patodia - Joint Managing Director

b) Relative of Key Management Personnel : NIL

c) Enterprises where Key Management Personnel & their relatives exercise

significant influence : Y S Exports Limited

12 a) Loans/ intercorporate deposits includes Rs.6,775732 (previous year Rs.7,025732) given to a company, which was overdue but started coming from last year. b) Certain balances included in security deposits, advances, etc. amounting to Rs.38,93,228(Previous year Rs.45,45,629) are lying unmoved for a considerable period.

13 Balances of Trade Receivable(note 14 & 12), Trade payable(note 7), Security Deposits and Other Deposits & Advances(note 11 & 16), Other Liabilities, are subject to Confirmations/ reconciliations and consequential adjustments, if any, arising therefrom. Accordingly, the year end shortfall or otherwise, if any, as may pertain to these balances, are presently not ascertainable.

14 The Board is of the opinion that the assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

15 Previous year figures are rergoruped/ reclassified whereever necessary to confirm to this year''s classification

---

Mar 31, 2013

Note 1

COMMITMENT :

Contingent Liability not Provided for:

Outstanding Bills Purchased/Discounted for Rs. NIL (Previous Year Rs. 10,168).

Note 2

The company operates only in one business segment viz. exporting yam and fabric and other actvities are incidental thereto. The geographical Segments of the Company mainly comprise of the export to various countries.

Note 3

a) Loans/ intercorporate deposits includes Rs.7,026 (previous year share Rs.7,126) given to a company, which was overdue but started coming during the year. t

b) Certain balances included in security deposits, advances, etc. amounting to Rs. 4,546 (Previous year Rs. 7,438) are lying unmoved for a considerable period.

Note 4

Related party disclosure as identified by the Management in accordance with the Accounting Standard

(AS-18) is as follows:-

A) List of related parties:

I. Parties where control exists - NIL.

II. Other parties with whom the Company has entered into transactions during the year.

a) Key Management Personnel and their relatives: SmLSheela Patodia Chairperson & Managing Director Sri Rishi Raj Patodia - Joint Managing Director

b) Group/Associates Companies:

I) Enterprise having common Director/Management personnel - NIL

c) Firm In which Directors have substantial Interest: NIL

1. There are no outstanding balances in respect of the above parties.

2. In respect of above parties, there is no provision for doubtful debts as on 31st March 2013 and no amount has been written off or written back during the year in respect of debts due from / to them.

3. The above related party information is as identified by the management and relied upon by the auditor.

Notes

Rgures are given in rupees and accordingly rounded off to nearest ten.

Note 5

Previous years'' figures have been regrouped and/or rearranged wherever considered necessary.

Notes:

1) The above Cash Bow Statement has been compiled/prepared based on the audited accounts. of the Company under the "Indirect Method" as set out in Accounting Standard -3 on Cash Row Statements.

2) Previous Years figures have been regrouped/ rearranged wherever necessary.

3) Cash and Bank equivalent includes RsJUL (Previous year Rs.4,593) in fixed deposit accounts.

4) Cash and Bank equivalent includes Rs.NIL (Previous year Rs.8,892) in cut back deposit accounts arising out of export proceeds & pledged.

---

Mar 31, 2012

Note 1 : FIXED ASSETS

PARTICULARS

GROSS BLOCK (AT COST)

As on Addition Sales/ad- Total 01.04.11 during justment as on the year during 31.03.12 the year

FREEHOLD LAND 620,000.00 – – 620,000.00 BUILDING* 16,350,987.00 – – 16,350,987.00

OFFICE APPLIANCE & OTHER EQUIPMENTS 5,354,355.40 135,142.00 228,390.00 5,261,107.40

COMPUTER 2,287,265.42 45,170.00 – 2,332,435.42

FURNITURE & FITTINGS 2,406,126.78 97,137.00 – 2,503,263.78

VEHICLES 11,697,640.67 8,866,111.00 6,656,116.97 13,907,634.70 TOTAL :

38,716,375.27 9,143,560.00 6,884,506.97 40,975,428.30

PREVIOUS YEAR :

36,716,912.27 2,939,724.00 940,261.00 38,716,375.27

DEPRECIATION BLOCK PARTICULAR

Upto For the Deduction Total 31.03.11 year for sales ason amount adjustment 31.03.12



FREEHOLD LAND – – – – BUILDING* – 11,805,652.00 454,534.00 12,260,186.00

OFFICE APPLIANCE & OTHER EQUIPMENTS 4,048,967.65 218,131.00 217,229.00 4,049,869.65

COMPUTER – 2,211,838.15 74,109.00 2,285,947.15

FURNITURE & FITTINGS –

2,055,950.78 80,964.00 2,136,914.78

VEHICLES

5,586,840.70 3,136,472.00 3,793,811.97 4,929,500.73

TOTAL :

25,709,249.28 3,964,210.00 4,011,040.97 25,662,418.31

PREVIOUS YEAR :

23,375,116.28 3,064,194.00 730,061.00 25,709,249.28

PARTICULAR NET BLOCK As As 31.03.12 31.03.11 FREEHOLD LAND 620,000.00 620,000.00

BUILDING* 4,090,801.00 4,545,335.00

OFFICE APPLIANCE & OTHER EQUIPMENTS 1,211,237.75 1,305,387.75

COMPUTER 46,488.27 75,427.27

FURNITURE & FITTINGS 366,349.00 350,176.00

VEHICLES 8,978,133.97 6,110,799.97

TOTAL :

15,313,009.99 13,007,125.99

PREVIOUS YEAR :

13,007,125.99 13,341,795.99

* Includes 20 shares (Previous year 20 shares) of Rs. 50/- each (Total face value Rs.1,000/-) fully paid up issued by Maker Bhavan No.II Premises Co- operative Society Limited at Mumbai.

1. Impairment in the carrying value of the fixed assets as at the balance sheet date has not been ascertained, pending detailed review and technical evaluation in this respect. The company intends to get the said review carried by independent valuer / consultant and adjustment, if any will then be made in the accounts.

Employees Benefits :

The disclosures required under Accounting Standard 15 "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006 (AS-15), are given below:

(i) "Defined Contribution Scheme" - Contribution to Defined Contribution Plan, recognized for the year are as under:

Employer's Contribution to Provident Fund 3,80,760 (Previous year 3,10,552/-) Employer's Contribution to Pension Fund Rs. 85,693 (Previous year Rs. 1,09,016/-)

(ii) "Defined Benefit Scheme" - The employee's gratuity fund scheme managed by Towers Watson is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit (PUC) actuarial Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

Note 2

COMMITMENT :

Contingent Liability not Provided for :

Outstanding Bills Purchased/Discounted for Rs.10,168 (Previous Year Rs.27,031).

Note 3

The company operates only in one business segment viz. exporting yarn and fabric and other activities are incidental thereto. The geographical Segments of the Company mainly comprise of the export to various countries.

Note 4

a) Loans/ intercorporate deposits includes Rs.7126 (previous year share Rs.7,126) given to a company, which is overdue

b) Certain balances included in security deposits, advances, etc. amounting to Rs.7,438 (Previous year Rs. 8,983) are lying unmoved for a considerable period.

Note 5

Related party disclosure as identified by the Management in accordance with the Accounting Standard (AS-18) is as follows:- A) List of related parties:

I. Parties where control exists – NIL.

II. Other parties with whom the Company has entered into transactions during the year. a) Key Management Personnel and their relatives:

Smt.Sheela Patodia - Chairperson & Managing Director w.e.f. 01.04.2011

Sri Rishi Raj Patodia - Executive Director till 31.03.2011 & Joint Managing Director w.e.f. 01.04.2011

b) Group/Associates Companies: i) Enterprise having common Director/Management personnel -- NIL

c) Firm in which Directors have substantial interest: M/s. B.M.Bagaria & Co.(Mr.K.P.Bagaria resigned w.e.f.03.09.2011)

Note 6

Figures are given in thousand and accordingly rounded to nearest thousand.

Note 7

Previous years' figures have been regrouped and/or rearranged wherever considered necessary.

Notes :

1) The above Cash Flow Statement has been compiled/prepared based on the audited accounts of the Company under the "Indirect Method" as set out in Accounting Standard -3 on Cash Flow Statements.

2) Previous Years figures have been regrouped/ rearranged wherever necessary.

3) Cash and Bank equivalent includes Rs.4,593 (Previous year Rs.4,289) in fixed deposit accounts.

4) Cash and Bank equivalent includes Rs.8,892 (Previous year Rs.7,741) in cut back deposit accounts arising out of export proceeds & pledged.

---

Mar 31, 2010

1. Contingent Liability not Provided for :

Outstanding Bills Purchased/Discounted for Rs.52,620 (Previous Year Rs. 16,570).

2. Impairment in the carrying value of the fixed assets as at the balance sheet date has not been ascertained, pending detailed review and technical evaluation in this respect. The company intends to get the said review carried by independent valuer / consultant and adjustment, if any will then be made in the accounts.

3. Sundry Debtors over six months include Rs.10,021(Net of ECGC Claim Rs.4,792) (Previous year Rs. 10,021) outstanding from certain overseas buyers for a considerable period. Such balances have not been realigned at the year end rate. In the opinion of the management, these will be recovered in due course and as such no provision is considered necessary in this respect.

4. Balance of Debtors, Creditors, certain Bank balances, Loans and Advances etc. are subject to confirmation and reconciliation with respective parties.

5. (a) Loans/Inter corporate deposits include Rs.7,126 (including interest Rs.764) (Previous year Rs.6,362) given to companies, which is overdue.

(b) Certain balances included in advance to others, sundry deposits, tax deducted at source, etc.amounting to Rs.6503 are lying unmoved for a considerable period.

Pending outcome of the steps being taken by the management, the above balances are considered to be fully realisable.

6. In accordance with Accounting Standard 22 "Accounting for Taxes on Income" the company has accounted for deferred Tax. The company has carry forward losses and unabsorbed depreciation which has not been recognized in the absence of virtual certainty of reversal of such assets.

7. The Company is in the process of compiling information with regard to suppliers covered under Micro, Small and Medium Enterprise Development Act, 2006. To the extent identified, the Company has no information from the suppliers under the Act and accordingly the disclosure as required in Section 22 of the said Act could not be given in these accounts.

8. Defined contribution scheme 2009-10 2008-09

Employers contribution to provident fund 392.00 337.00

Defined benefit Scheme

The employees gratuity fund scheme/pension fund scheme is a defined benefit plan managed by a Trust. The present value of obligation is determined based on actuarial valuation using the projected unit Credit, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

9. Difference in Foreign Exchange includes Rs. 1,020 net-Profit (Previous Year Rs. 5,043 net loss) on account of cancellation of forward exchange contract.

10. The company operates only in one business segment viz. exporting yam and other activities are incidental thereto. The geographical Segments of the company mainly comprise of the export to various countries.

11. Certain Fixed assets amounting to Rs.329 (Previous year Rs.329) have been discarded on retiring from their active use and shown under the head inventories. In the absence of determination of their realisable value, these have been recorded at book value. In the opinion of the management the realisable value will not be lower than the book value. Necessary adjustments, if any will be carried on disposal of the same.

12. Related party disclosure as identified by the Management in accordance with the Accounting Standard (AS-18) is as follows :

A) List of related parties :

I. Parties where control exists - NIL.

II. Other parties with whom the Company has entered into transactions during the year.

a) Key Management Personnel and their relatives.

Sri R. K.Patodia - Chairman and Managing Director Sri Rishi Raj Patodia - Executive Director

b) Group/Associates Companies.

i) Enterprise having common Director / Management personnel Madanla Brijjal (P) Ltd.

c) Firm in which Directors have substantial interest M/s. B. M. Bagaria & Co.

13. Figures are given in thousand and accordingly rounded to nearest thousand

14. Previous years figures have been regrouped and/or rearranged wherever considered necessary.