Notes to Accounts of Candour Techtex Ltd.

Mar 31, 2025

k) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when there is a present legal or statutory obligation or constructive obligation as
a result of past events and where it is probable that there will be outflow of resources to settle the obligation
and when a reliable estimate of the amount of the obligation can be made.

Contingent liabilities are recognized only when there is a possible obligation arising from past events due to
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company or where any present obligation cannot be measured in terms of future outflow of resources or
where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and
only those having a largely probable outflow of resources are provided for.

Contingent assets where it is probable that future economic benefits will flow to the Company are not
recognised but disclosed in the Financial Statements. However, when the realization of income is virtually
certain, then the related asset is no longer a contingent asset, but it is recognised as an asset

3.5 Title deed of Immovable property held in name of the company

The Company is the owner of Office Premises Unit no. 108/109 in T.V. Industrial Estate, Worli, Mumbai
- 30, Factory Shed on Survey No.22/1, Village Ringanwada, Kachigam Road, Nani Daman, Daman -
396210 & Flat No. 201 in Dharmesh Apartments in Daman. The title deeds ofthese immoveable properties
are held in the name of the Company.

The Company has taken certain premises on lease and lease agreements are duly executed in favour of the
Company.

3.6 Fair valuation of investment property

The Company did not own any investment property during the year.

3.7 Revaluation of Property, Plant & Equipment and Right of Use Assets

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

3.8 Revaluation of Intangible assets

The Company has not revalued its Intangible Assets during the year.

3.9 Intangible assets under development ageing Schedule Intangible assets under development
Completion Schedule

There is no intangible assets under development as on the date of Balance Sheet.

(vii) During the year, the Company has issued 10,19,475 equity shares of Rs. 10/- each at a premium of Rs.
73.70/- per share on preferential basis for various purposes including a) for meeting of expansion needs b)
for re-structuring of debt through payment of outstanding dues and c) for meeting the long-term working
capital requirements and general corporate purposes. The allotment of these shares was made on 23-1-2025.
The Company has utilised part of the funds raised through the preferential issue for the purpose of the issue
and has deployed part of the unutilised funds amounting to Rs.2.50 crores in the bank fixed deposits @ 6.90
% p.a and balance amount is lying in the account.

Level 2: The fair value of Financial Instruments that are not traded in an active market is determined
using valuation techniques which maximize the use of observable market data and rely as little as
possible on entity-specific estimates. If all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the
instrument is included in level 3.This is the case for unlisted equity securities included in level 3.

38 Financial Risk Management

The Company’s activities expose it to market risk (including currency risk, interest rate risk and other
price risk), liquidity risk and credit risk.This note explains the sources of risk which the entity is
exposed to and how the entity manages the risk :

The Company’s risk management is carried out by chief financial officer under policies approved by
the Board of Directors.Company''s chief financial officer identifies, evaluates and hedges financial
risks in close co-operation with the Company’s operating units.The board provides principles for
overall risk management, as well as policies covering specific areas, such as foreign exchange risk,
interest rate risk, credit risk, use of non-derivative financial instruments and investment of excess
liquidity. The risk management includes identification,evaluation and identifying the best possible
option to reduce such risk. The Board has taken all necessary actions to mitigate the risks identified
on the basis of the information and situation present.

A. Market risk

i. Foreign Currency risk

Foreign currency risk arises from future commercial transactions and recognized assets or liabilities
denominated in a currency that is not the Company’s functional currency (INR). This is closely
monitored by the Management to decide on the requirement of hedging. The position of unhedged
foreign currency exposure to the Company as at the end of the year expressed in INR are as follows

The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period
depends on the mixed of fixed rate and floating rate of the borrowings and the expected movement
of market interest rate. The Company has fixed rate as well as floating rate of interest borrowings
and therefore is exposed to interest rate risk.

Credit risk arises when a counter party defaults on contractual obligations resulting in financial loss
to the Company.Trade receivables consist of large number of customers, spread across diverse
industries and geographical areas. In order to mitigate the risk of financial loss from defaulters, the
Company has an ongoing credit evaluation process in respect of customers who are allowed credit
period. In respect of walk-in customers the Company does not allow any credit period and therefore,
is not exposed to any credit risk.In general, it is presumed that credit risk has significantly increased
since initial recognition if the payments are more than 90 days past due.

B. Liquidity risk

The Company has sufficient cash and cash equivalent and other liquid current financial assets which
can be easily realised in cash or cash equivalent in short time .Therefore there is no significant
liquidity risk.

39. Capital management

For the purpose of the Company’s capital management, equity includes issued equity capital, Securities
Premium and retained earnings attributable to the equity shareholders of the company. The primary
objective ofthe Company’s capital management is to maximise the shareholders value. The Company’s
Capital Management objectives are to maintain equity including all reserves to protect economic
viability and to finance any growth opportunities that may be available in future so as to maximize
shareholders’ value. The Company is monitoring capital using debt equity ratio as its base, which is
debt to equity. The Company finances its long-term funds through Term loans. The company’s policy
is to keep debt equity ratio at the minimum and infuse capital if and when it is required through issue
of new shares and/or better operational results and efficient working capital management.

In order to achieve the aforesaid objectives, the Company has financed capital expenditure for new
expansion projects through term loans from Banks/ Financial Institution, unsecured borrowings from
Corporates and promoters and internal accruals in last two to three years keeping the debt to equity
ratio at the optimum. However, modernization, upgradation and continued marginal expansions have
been to remain competitive and improve product quality through efficient machinery. There is constant
endeavour to keep balance between debt & equity as much as feasible and practical by improving
operational and working capital management so that the debt-equity ratio remains at the optimum.

The Company has set up a new project at Malegaon for manufacturing Technical Textiles goods. The
project is financed through funds raised through private placement of equity shares by way of
preferential issue, term loan from bank & Financial Institution, unsecured borrowings from corporates
and promoters and internal accruals.

44. Disclosures as per IND AS-19, “Employee Benefits” are given below :

(i) Short Term Employee Benefits

I. The Company has provided for bonus amounting to Rs.11,25,543/- (Previous year Rs.
18,77492/-) for all its employees under the Payment of Bonus Act, which has been recognized
in the Statement of Profit and Loss for the year.

II. During the year the company has recognized Leave Salary amounting to Rs. 5,88,256/- (Previous

year Rs.5,97,177/-) in the Statement of Profit and Loss on payment basis.

III. During the year the company has made contribution to Employees State Insurance Scheme
amounting to Rs.3,53,857/- (Previous year Rs.3,62,821/-) which has been recognized in the
Statement of Profit and Loss.

(ii) Long Term Employee Benefits

The Company has classified the various Long Term Employee Benefits as under:-

I. Defined Contribution Plans

a) Contribution to Provident Fund

b) Contribution to Pension Scheme

During the year, the Company has recognized the following amounts as expenses in the Statement of
Profit and Loss -

II. Defined Benefit Plan

The Employees Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined
benefit plan. The present value of obligation is determined based on actuarial valuation using the
projected unit credit 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.

45. Operating Segment Reporting

The Company has disclosed and reported Business Segment as the primary segment. Segments have
been identified taking into account the nature of the products, the differing risks and returns, the
organizational structure and internal reporting system. Accordingly the company has identified
Textile Division, Plastics Division, Trading Division and Technical Textiles Division as the main
business segments as per the IND AS on “Operating Segments” (IND AS-108) issued by The
Institute of Chartered Accountants of India.

Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective
amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The
income & expenses, which are not directly relatable to the business segment, are shown as
unallocated corporate costs net of unallocable income. Similarly, Assets and Liabilities that cannot
be allocated between segments are shown as unallocated corporate assets and liabilities respectively.

48. Additional Regulatory Information (to the extent applicable) as per MCA’s Notification no. G.S.R.
207(E) dated 24-03-2021

i. Loans and advances to Specified Persons.

The Company has not granted any loans or Advances in nature of loans to Specified Persons, namely
Promoters, Directors, KMP''s & Related Parties during the year.

ii. Details of Benami Property held

The Company does hold any Benami Property.No proceedings have been initiated or pending against
the Company for holding any Benami Property under the Benami Transactions (Prohibitions) Act,
1988 and Rules made there under, during the year.

iii. Willful Defaulter

The Company is not decalared as willful defaulter by any Bank or Financial Institutions or other
lenders during the year.

iv. Transaction with Struck off Companies

The Company has not entered into any transactions with struck-off Companies

v. Registration of Charges or satisfaction with Registrar of Companies

There is no charge pending for registration or satisfaction with Registrar of Companies.

vi. Compliance with No of layers of Companies.

The Company does not have any subsidiary Companies and hence, there is no question of any
compliance with no of layers u/s. 2(87) of the Companies Act, 2013.

vii. Compliance with approved Scheme(s) of Arrangements

The Company has not made any scheme of arrangements in terms of sections 230 to 237 of the
Companies Act, 2013 during the year.

viii. Utilisation of Borrowed funds and share premium:

The Company has not advanced / loaned / invested any funds (either from borrowed funds or from
share premium or from any other sources / 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.

The Company has not received funds from any person(s) or entity(ies), including foreign entities
(Funding Parties), 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 on behalf of the Ultimate Beneficiaries.

ix. Undisclosed income

The Company has not surrendered or disclosed any income during the year in the tax assessments
under the Income Tax Act, 1961 which were not recorded in the books of accounts.

x. Corporate Social Responsibility (CSR)

The provisions of section 135 of the Companies Act, 2013 relating to CSR are not
applicable to the Company during the year.

xi. Details of Crypto Currency or Virtual Currency

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

year,

the custom duties on imported capital goods of Rs.13,48,327 /- during the year (Previous Year Rs.
2,13,62,419/-) and raw materials of Rs.9,40,180 /- during the year (Previous Year Rs. 56,27,506/-) are
deferred till their clearance from the bonded warehouse.

The custom duty deferred on imported raw materials under the Scheme shall become payable on
clearance of the finished goods manufactured by using imported raw materials. Accordingly, the
Company has provided for the liability towards payment of deferred custom duty of Rs. 41,83,523 /-
(Previous Year Rs. 46,18,835/-) on imported raw materials. The management of the Company does
not have any plan to export or remove the imported capital goods in future and hence, no liability is
provided towards payment of deferred custom duties of Rs.4,51,61,378 /- (Previous Year Rs.
4,38,13,051/-) on imported capital goods.

51. Contingent liability:

Contingent Liability on account of deferred custom duties of Rs. 4,51,61,378/- on imported capital goods
(Previous Year Rs. 4,38,13,051) under MOOWR Scheme (As referred in Note No. 49)

52. The previous year''s figures are grouped / regrouped or arranged / rearranged wherever necessary to make

them in compliance with disclosure requirement of Indian Accounting Standards.

As per our report of even date

For AMBAVAT JAIN & ASSOCIATES LLP On Behalf of the Board

Chartered accountants

Firm Registration No. 109681W

Ashish J. Jain J. R. Mehta Sharmila Amin

Partner Managing Director Director

Membership No.111829 DIN 00193029 DIN 06770401

PLACE: MUMBAI Shailesh Sankav

DATE: 29-05-2025 Chief Financial Officer

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Mar 31, 2024

3.5 Title deed of Immovable property held in name of the company

The Company is the owner of Office Premises Unit no. 108/109 in T.V. Industrial Estate, Worli, Mumbai -30, Factory Shed on Survey No.22/1, Village Ringanwada, Kachigam Road, Nani Daman, Daman -396210 & Flat No. 201 in Dharmesh Apartments in Daman. The title deeds of these immoveable properties are held in the name of the Company.

The Company has taken certain premises on lease and lease agreements are duly executed in favour of the Company.

3.6 Fair valuation of investment property

The Company did not own any investment property during the year.

3.7 Revaluation of Property, Plant & Equipment and Right of Use Assets

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

3.8 Revaluation of Intangible assets

The Company has not revalued its Intangible Assets during the year.

3.9 Intangible assets under development ageing Schedule Intangible assets under development Completion Schedule

There is no intangible assets under development as on the date of Balance Sheet.

Level 1: Level 1 hierarchy includes Financial Instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.This is the case for unlisted equity securities included in level 3.

39 Financial Risk Management

The Company’s activities expose it to market risk (including currency risk, interest rate risk and other price risk), liquidity risk and credit risk.This note explains the sources of risk which the entity is exposed to and how the entity manages the risk :

The Company’s risk management is carried out by chief financial officer under policies approved by the Board of Directors.Company''s chief financial officer identifies, evaluates and hedges financial risks in close co-operation with the Company’s operating units.The board provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of non-derivative financial instruments and investment of excess liquidity. The risk management includes identification,evaluation and identifying the best possible option to reduce such risk. The Board has taken all necessary actions to mitigate the risks identified on the basis of the information and situation present.

A. Market riski. Currency risk

Foreign currency risk arises from future commercial transactions and recognized assets or liabilities denominated in a currency that is not the Company’s functional currency (INR). This is closely monitored by the Management to decide on the requirement of hedging. The position of unhedged foreign currency exposure to the Company as at the end of the year expressed in INR are as follows :

Holding all other variables constant.

ii. Interest rate risk

The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period depends on the mixed of fixed rate and floating rate of the borrowings and the expected movement of market interest rate. The Company has fixed rate as well as floating rate of interest borrowings and therefore is exposed to interest rate risk.

iii Price risk

The Company’s exposure to equity securities price risk arises from investments held by the Company in listed securities and classified in the balance sheet as at fair value through profit or loss.

B. Credit risk

Credit risk arises when a counter party defaults on contractual obligations resulting in financial loss to the Company.Trade receivables consist of large number of customers, spread across diverse industries and geographical areas. In order to mitigate the risk of financial loss from defaulters, the Company has an ongoing credit evaluation process in respect of customers who are allowed credit period. In respect of walk-in customers the Company does not allow any credit period and therefore, is not exposed to any credit risk.In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 90 days past due.

C. Liquidity risk

The Company has sufficient cash and cash equivalent and other liquid current financial assets which can be easily realised in cash or cash equivalent in short time .Therefore there is no significant liquidity risk.

i) Maturities of Financial Liabilities

The tables below analyse the Company’s Financial Liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative Financial Liabilities.

For the purpose of the Company’s capital management, equity includes issued equity capital, Securities Premium and retained earnings attributable to the equity shareholders of the company. The primary objective of the Company’s capital management is to maximise the shareholders value. The Company’s Capital Management objectives are to maintain equity including all reserves to protect economic viability and to finance any growth opportunities that may be available in future so as to maximize shareholders’ value. The Company is monitoring capital using debt equity ratio as its base, which is debt to equity. The Company finances its long-term funds through Term loans. The company’s policy is to keep debt equity ratio at the minimum and infuse capital if and when it is required through issue of new shares and/or better operational results and efficient working capital management.

In order to achieve the aforesaid objectives, the Company has financed capital expenditure for new expansion projects through term loans from Banks/ Financial Institution, unsecured borrowings from Corporates and promoters and internal accruals in last two to three years keeping the debt to equity ratio at the optimum. However, modernization, upgradation and continued marginal expansions have been to remain competitive and improve product quality through efficient machinery. There is constant endeavour to keep balance between debt & equity as much as feasible and practical by improving operational and working capital management so that the debt-equity ratio remains at the optimum.

The Company has set up a new project at Malegaon for manufacturing Technical Textiles goods. The project is financed through funds raised through private placement of equity shares by way of preferential issue, term loan from bank & Financial Institution, unsecured borrowings from corporates and promoters and internal accruals.

45. Disclosures as per IND AS-19, “Employee Benefits” are given below :(i) Short Term Employee Benefits

I. The Company has provided for bonus amounting to Rs.18,77,492/- (Previous year Rs. 15,10,356/-) for all its employees under the Payment of Bonus Act, which has been recognized in the Statement of Profit and Loss for the year.

II. During the year the company has recognized Leave Salary amounting to Rs. 5,97,177/-(Previous year Rs.5,02,692/-) in the Statement of Profit and Loss on payment basis.

III. During the year the company has made contribution to Employees State Insurance Scheme amounting to Rs.3,62,821/- (Previous year Rs.2,26,890/-) which has been recognized in the Statement of Profit and Loss.

(ii) Long Term Employee Benefits

The Company has classified the various Long Term Employee Benefits as under:-I. Defined Contribution Plans

a) Contribution to Provident Fund

b) Contribution to Pension Scheme

The Employees Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit 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.

46. Segment Reporting

The Company has disclosed and reported Business Segment as the primary segment. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organizational structure and internal reporting system. Accordingly the company has identified Textile Division, Plastics Division, Trading Division and Technical Textiles Division as the main business segments as per the IND AS on “Operating Segments” (IND AS-108) issued by The Institute of Chartered Accountants of India.

Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The income & expenses, which are not directly relatable to the business segment, are shown as unallocated corporate costs net of unallocable income. Similarly, Assets and Liabilities that cannot be allocated between segments are shown as unallocated corporate assets and liabilities respectively.

The Company is operating only in India and does not have any revenue from customers located outside India and hence there is no separate reportable Geographical Segment.

48. Additional Regulatory Information (to the extent applicable) as per MCA’s Notification no. G.S.R. 207(E) dated 24-03-2021i. Loans and advances to Specified Persons.

The Company has not granted any loans or Advances in nature of loans to Specified Persons, namely Promoters, Directors, KMP''s & Related Parties during the year.

ii. Details of Benami Property held

The Company does hold any Benami Property.No proceedings have been initiated or pending against the Company for holding any Benami Property under the Benami Transactions (Prohibitions) Act, 1988 and Rules made there under, during the year.

iii. Willful Defaulter

The Company is not decalared as willful defaulter by any Bank or Financial Institutions or other lenders during the year.

iv. Transaction with Struck off Companies

The Company has not entered into any transactions with struck-off Companies

v. Registration of Charges or satisfaction with Registrar of Companies

There is no charge pending for registration or satisfaction with Registrar of Companies.

vi. Compliance with No of layers of Companies.

The Company does not have any subsidiary Companies and hence, there is no question of any compliance with no of layers u/s. 2(87) of the Companies Act, 2013.

vii. Compliance with approved Scheme(s) of Arrangements

The Company has not made any scheme of arrangements in terms of sections 230 to 237 of the Companies Act, 2013 during the year.

viii. Utilisation of Borrowed funds and share premium:

The Company has not advanced / loaned / invested any funds (either from borrowed funds or from share premium or from any other sources / 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.

The Company has not received funds from any person(s) or entity(ies), including foreign entities (Funding Parties), 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 on behalf of the Ultimate Beneficiaries.

ix. Undisclosed income

The Company has not surrendered or disclosed any income during the year in the tax assessments under the Income Tax Act, 1961 which were not recorded in the books of accounts.

x. Corporate Social Responsibility (CSR)

The provisions of section 135 of the Companies Act, 2013 relating to CSR are not applicable to the Company during the year.

xi. Details of Crypto Currency or Virtual Currency

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

xii. Borrowings secured against currents assets

The Company has availed working capital and overdraft facility from Bank against security of its current assets. The required disclosure in respect of the same is as under:

i. The company has availed the borrowings from banks on the basis of security of current assets during the year as per details given here under:

50. The Company has imported capital goods and raw materials for its Technical Textile Project at Malegaon, Maharashtra under the Manufacturing and Other Operations in a Custom Bonded Warehouse (MOOWR) Scheme (‘the Scheme’) of the Central Government of India. Under the Scheme, the custom duties on imported capital goods of Rs. 2,13,62,419/- during the year (Previous Year Rs.2,24,50,632/-) and raw materials of Rs. 56,27,506/- during the year (Previous Year Rs.7,81,591/-) are deferred till their clearance from the bonded warehouse.

The custom duty deferred on imported raw materials under the Scheme shall become payable on clearance of the finished goods manufactured by using imported raw materials. Accordingly, the Company has provided for the liability towards payment of deferred custom duty of Rs. 46,18,835/-(Previous Year Rs.7,81,591/-) on imported raw materials. The management of the Company does not have any plan to export or remove the imported capital goods in future and hence, no liability is provided towards payment of deferred custom duties of Rs.4,38,13,051/- (Previous Year Rs.2,24,50,632/-) on imported capital goods.

51. Contingent liability:

Contingent Liability on account of deferred custom duties of Rs.4,38,13,051/- on imported capital goods (Previous Year Rs. 2,24,50,632) under MOOWR Scheme (As referred in Note No. 50)

52. The previous year''s figures are grouped / regrouped or arranged / rearranged wherever necessary to make

them in compliance with disclosure requirement of Indian Accounting Standards.

---

Mar 31, 2023

t) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when there is a present legal or statutory obligation or constructive obligation as a result of past events and where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

Contingent assets where it is probable that future economic benefits will flow to the Company are not recognised but disclosed in the Financial Statements. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognised as an asset.

The Company''s activities expose it to market risk (including currency risk, interest rate risk and other price risk), liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk :

The Company''s risk management is carried out by chief financial officer under policies approved by the Board of Directors. Company''s chief financial officer identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units.The board provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of non-derivative financial instruments and investment of excess liquidity. The risk management includes identification,evaluation and identifying the best possible option to reduce such risk. The Board has taken all necessary actions to mitigate the risks identified on the basis of the information and situation present.

A. Market Risk

(i) Foreign Currency Risk

Foreign currency risk arises from future commercial transactions and recognized assets or liabilities denominated in a currency that is not the Company''s functional currency (INR). This is closely monitored by the Management to decide on the requirement of hedging. The position of unhedged foreign currency exposure to the Company as at the end of the year expressed in INR are as follows :

B. Credit Risk

Credit risk arises when a counter party defaults on contractual obligations resulting in financial loss to the Company. Trade receivables consist of large number of customers, spread across diverse industries and geographical areas. In order to mitigate the risk of financial loss from defaulters, the Company has an ongoing credit evaluation process in respect of customers who are allowed credit period. In respect of walk-in customers the Company does not allow any credit period and therefore, is not exposed to any credit risk.In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 90 days past due.

C. Liquidity Risk

The Company has sufficient cash and cash equivalent and other liquid current financial assets which can be easily realised in cash or cash equivalent in short time .Therefore there is no

For the purpose of the Company''s capital management, equity includes issued equity capital, Securities Premium and retained earnings attributable to the equity shareholders of the company. The primary objective of the Company''s capital management is to maximise the shareholders value. The Company''s Capital Management objectives are to maintain equity including all reserves to protect economic viability and to finance any growth opportunities that may be available in future so as to maximize shareholders'' value. The Company is monitoring capital using debt equity ratio as its base, which is debt to equity. The company''s policy is to keep debt equity ratio at the minimum and infuse capital if and when it is required through issue of new shares and/or better operational results and efficient working capital management.

In order to achieve the aforesaid objectives, the Company has financed capex through internal accruals for new expansion projects in last two to three years. However, modernization, upgradation and continued marginal expansions have been to remain competitive and improve product quality through efficient machinery. There is constant endeavour to avoid debt as much as feasible and practical by improving operational and working capital management so that the debt-equity ratio remains less than 1.

The Company is setting up a new project at Malegaon for manufacturing Technical Textiles goods. The project is financed through funds raised through private placement of equity shares by way of preferential issue, term loan from bank, debt by way of inter corporate deposits and by promoters and internal accruals.

(i.) Short Term Employee Benefits

I. The Company has provided for bonus amounting to Rs.15,10,356 /- (Previous year Rs. 12,21,727/-) for all its employees under the Payment of Bonus Act, which has been recognized in the Statement of Profit and Loss for the year.

II. During the year the company has recognized Leave Salary amounting to Rs.5,02,692/-(Previous year Rs.4,63,647/-) in the Statement of Profit and Loss on payment basis.

III. During the year the company has made contribution to Employees State Insurance Scheme amounting to Rs.2,35,071/- (Previous year Rs.1,39,236/-) which has been recognized in the Statement of Profit and Loss.

(ii.) Long Term Employee Benefits

The Company has classified the various Long Term Employee Benefits as under:-I. Defined Contribution Plans

(a) Contribution to Provident Fund

(b) Contribution to Pension Scheme

During the year, the Company has recognized the following amounts as expenses in the Statement of Profit and Loss -

II. Defined Benefit Plan

The Employees Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit 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.

Valuation in respect of gratuity have been carried out by an independent actuary as at the Balance Sheet date, based on the following assumptions:-

48. Segment Reporting

The Company has disclosed and reported Business Segment as the primary segment. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organizational structure and internal reporting system. Accordingly the company has identified Textile Division, Plastics Division, Trading Division and Technical Textiles Division as the main business segments as per the IND AS on “Operating Segments” (IND AS-108) issued by The Institute of Chartered Accountants of India.

Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The income & expenses, which are not directly relatable to the business segment, are shown as unallocated corporate costs net of unallocable income. Similarly Assets and Liabilities that cannot be allocated between segments are shown as unallocated corporate assets and liabilities respectively.

49. Disclosure of Related Parties & Related Party Transactions

(a) Others (Enterprises over which, individual having indirect significant influence over the company, has significant influence) and with whom transactions have taken place during the year and/or where balances exist.

(i) Chandni Machines Limited.

(ii) Humans of Bombay Stories Private Limited.

(b) Key Management Personnel:

(i) Mr. Jayesh R.Mehta - Managing Director.

(ii) Mr. Shailesh P. Sankav - Chief Financial Officer.

(iii) Ms. Kirti Pathak - Company Secretary & Compliance Officer.

(c) Other related parties:

(i) Mrs. Amita J.Mehta - Non - Executive Director

(ii) Dr. Bharat Bhatia - Independent Director

(iii) Mr. R.C. Garg - Independent Director

(iv) Ms. Sharmila H. Amin - Independent Director

(v) Mrs. Manasi Dave - Independent Director

52. The Company has imported capital goods and raw materials for its Technical Textile Project at Malegaon, Maharashtra under the Manufacturing and Other Operations in a Custom Bonded Warehouse (MOOWR) Scheme (''the Scheme'') of the Central Government of India. Under the Scheme, the custom duties on imported capital goods of Rs.2,24,50,632/- and raw materials of Rs.7,81,591/- are deferred till their clearance from the bonded warehouse.

The custom duty deferred on imported raw materials under the Scheme shall become payable on clearance of the finished goods manufactured by using imported raw materials. Accordingly, the Company has provided for the liability towards payment of deferred custom duty of Rs.7,81,591/- on imported raw materials. The management of the Company does not have any plan to export or remove the imported capital goods in future and hence, no liability is provided towards payment of deferred custom duties of Rs.2,24,50,632/- on imported capital goods.

53. Contingent Liability

Contingent Liability on account of deferred custom duties of Rs.2,24,50,632/- on imported capital goods (Previous Year Rs. Nil) under MOOWR Scheme (As referred in Note No. 52)

54. The previous year''s figures are grouped / regrouped or arranged / rearranged wherever necessary to make them in compliance with disclosure requirement of Indian Accounting Standards.

As per our report of even date On behalf of the Board

For Ambavat Jain & Associates LLP

Chartered Accountants

Firm Registration No. 109681W

Sd/- Sd/-

J.R. Mehta R.C. Garg

Managing Director Director

Ashish J. Jain DIN 00193029 DIN 03346742

Partner

Membership No. 111829

Sd/- Sd/-

Shailesh Sankav Kirti Pathak

Place :MUMBAI Chief Financial Officer Company Secretary

Date : 30-05-2023 Membership No. A51173

Place :MUMBAI Date : 30-05-2023

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Mar 31, 2018

1. GENERAL INFORMATION

Chandni Textiles Engineering Industries Ltd. is a company limited by shares, incorporated and domiciled in India having its Registered Office at 110 T.V. Industrial Estate, 52, S.K. Ahire Marg, Worli, Mumbai 400 030. The Company is primarily engaged in manufacturing of textiles goods and Plastic moulded goods.

2. The reconciliation of the number of shares outstanding is set out below :

Equity Shares of Rs.10/- (2016- Re.1/-, 2015- Re.1/- ) each 16,137,263 161,372,630 161,372,630 at the beginning of the year

Equity Shares of Rs.10/- (2016- Re.1/- ) each at the end of 16,137,263 16,137,263 161,372,630 the year

3. The Company has only one class of equity share. These shares rank pari passu in all respects including voting rights, entitlement to dividend and distribution of assets of the Company in the event of liquidation.

4. First-time adoption of Ind AS

These financial statements, for the year ended 31 March 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules , 2014 (Indian GAAP). Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2018,together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at 1 April 2016, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements , including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

Exemption Applied

(i) Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption is also used for intangible assets covered by Ind AS 38 Intangible Assets.Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value, which has been considered as deemed cost.

(ii) The Company has designated quoted equity shares held at 1 April 2016 as fair value through profit or loss.

Exception applied

(i) De-recognition of financial assets and liabilities exception -

Financial assets and liabilities derecognized before 1 April 2016 are not re-recognized under Ind-AS. The Company has not chosen to apply the Ind AS 109 Financial Instruments derecognition criteria to an earlier date. No significant arrangements were identified that had to be assessed under this exception.

(ii) Classification of debt and equity instruments -

The Company has determined the classification of debt and equity instruments in terms of whether they meet the amortized cost criteria or the FVTOCI criteria based on the facts and circumstances that existed as of the transition date.

(iii) Impairment of financial asset -

The Company has applied the impairment requirements of Ind AS 109 retrospectively based on facts and circumstances existing on transition date.

Reconciliation between previous Indian GAAP and IND AS

Notes: 5 Fair valuation of equity investments

The company holds investment in equity shares of entities other than associate and joint venture. Under previous Indian GAAP such investments were measured at cost less provision for diminution in the value of investment other than temporary nature. Under Ind AS, these investments has been measured at fair value. The company has categorised these investments other than in subsidiaries as fair value through profit and loss (FVTPL) and any changes in fair value of these investments has been recognised in the statement of profit and loss.

6. Fair valuation of security deposits

Under the previous GAAP, interest free lease security deposits assets (that are refundable in cash on completion of the contract term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value at initial recognition and subsequently at amortised cost. Accordingly, the company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as prepaid rent.

Under the previous GAAP, interest free lease security deposits liability (that are refundable in cash on completion of the contract term) are recorded at their transaction value. Under Ind AS, these financial liabilities are required to be recognised at fair value at initial recognition and subsequently at amortised cost. Accordingly, the company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as advance rent.

7. Tax effects of adjustments

Additional deferred tax asset/(liability) has been recognised corresponding to the adjustments to retained earnings/profit and loss as a result of Ind AS Implementation.

Level 1: Level 1 hierarchy includes Financial Instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded on the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.This is the case for unlisted equity securities included in level 3.

(d) Reconciliation of the financial assets measured at fair value using significant unobservable inputs (level 3)

8. Financial Risk Management

The Company’s activities expose it to market risk (including currency risk, interest rate risk and other price risk), liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk :

The Company’s risk management is carried out by chief financial officer under policies approved by the Board of Directors. Company’s chief financial officer identifies, evaluates and hedges financial risks in close co-operation with the Company’s operating units. The board provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of non-derivative financial instruments and investment of excess liquidity The risk management includes identification, evaluation and identifying the best possible option to reduce such risk.

(A) Market risk

(i) Foreign currency risk

Foreign currency risk arises from future commercial transactions and recognized assets or liabilities denominated in a currency that is not the Company’s functional currency (INR). This is closely monitored by the Management to decide on the requirement of hedging. The position of unhedged foreign currency exposure to the Company as at the end of the year expressed in INR are as follows:

(ii) Interest rate risk

The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period depends on the mixed of fixed rate and floating rate of the borrowings and the expected movement of market interest rate. The Company has only fixed rate of borrowings and therefore it is not exposed to interest rate risk.

(iii) Price risk

The Company’s exposure to equity securities price risk arises from investments held by the Company in listed securities and classified in the balance sheet as at fair value through profit or loss.

(B) Credit risk

Credit risk arises when a counter party defaults on contractual obligations resulting in financial loss to the Company. Trade receivables consist of large number of customers, spread across diverse industries and geographical areas. In order to mitigate the risk of financial loss from defaulters, the Company has an ongoing credit evaluation process in respect of customers who are allowed credit period. In respect of walk-in customers the Company does not allow any credit period and therefore, is not exposed to any credit risk. In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 90 days past due.

(C) Liquidity risk

The Company has sufficient cash and cash equivalent and other liquid current financial assets which can be easily realised in cash or cash equivalent in short time .Therefore there is no significant liquidity risk.

(i) Maturities of Financial Liabilities

The tables below analyse the Company’s Financial Liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative Financial Liabilities.

9. Capital management

For the purpose of the Company’s capital management, equity includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value. The Company’s Capital Management objectives are to maintain equity including all reserves to protect economic viability and to finance any growth opportunities that may be available in future so as to maximize shareholders’ value. The Company is monitoring capital using debt equity ratio as its base, which is debt to equity. The company’s policy is to keep debt equity ratio below one and infuse capital if and when it is required through issue of new shares and/or better operational results and efficient working capital management.

In order to achieve the aforesaid objectives, the Company has not sanctioned any major capex on new expansion projects in last two to three years. However, modernization, upgradation and continued marginal expansions have been to remain competitive and improve product quality through efficient machinery. There is constant endeavour to reduce debt as much as feasible and practical by improving operational and working capital management.

10. LEASES

(a) Non-cancellable operating leases

As a Lessee

The Company has entered into operating lease arrangements primarily for office premises, factory premises and residential premises for its employees. These leases are generally not non-cancellable in nature and may generally be terminated by either party by serving a notice. During the year, the company has recognised lease rent expense of Rs.47,03,202/- (2017 Rs.47,95,173/- 2016: Rs33,16,664/- ) related to such non-cancelable operating lease. The future minimum lease payments payable by the company taken under non-cancellable operating lease, are as under:-

As a Lessor

The Company gives office premises not required for immediate use on operating lease arrangements. These leases are generally not non-cancellable in nature and may generally be terminated by either party by serving notice. The future minimum lease payments recoverable by the company are as under:-

(b) Finance lease As a Lessee

The Company acquired motor vehicles under finance lease. Generally, tenure of finance lease of vehicles < varies between 3 to 5 years. After completion of the lease term, vehicles are transferred in the name of company.

11. Scheme of Arrangement (‘’Scheme”) between Chandni Textiles Engineering Industries Limited (Demerged Company) and Chandni Machines Private Limited (Resulting Company) and their respective shareholders.

(a) Pursuant to the Scheme of Arrangement under sections 230 to 232 read with Sections 52 and 66 of the Companies Act, 1956 as sanctioned by the Hon’ble National Company law Tribunal bench at Mumbai on 21^st January, 2018, the Demerged Undertaking i.e the Engineering Division of Chandni Textiles Engineering Industries Ltd has been transferred and vested in the Resulting Company on a going concern basis with effect from July 1, 2016 i.e. the appointed date under the scheme.

(b) The Scheme of Arrangement became effective on 24^th January, 2018, being the last date on which all the conditions and approvals referred to in the Scheme have been fulfilled/obtained and therefore, the effect of the Scheme was not considered in the financial statements of the company for the year ended 31^st March, 2017. In terms of the Scheme, the business and transactions of demerged undertaking were carried on and held by the Demerged Company in trust for and on account of the Resulting Company from the appointed date till the Scheme became effective. Pursuant thereto, all assets and liabilities have been transferred to the Resulting Company at their respective book values on the appointed date and duly adjusted by subsequent transactions carried on in trust. Also, the profit or income accruing or expenditure or loss arising or incurred relating to the business of demerged undertaking from the appointed date are treated as the profit or income or expenditure or loss, as the case may be, of the Resulting Company. The Scheme has accordingly been given effect to in the accounts for the current year.

(c) In terms of the Scheme, the resulting company will issue equity shares in the ratio of 1:5 to the shareholders of the demerged company.

(d) As per the Scheme, the amount representing the excess of assets over liabilities transferred, is adjusted against the Securities premium account.

(e) The resulting company is a wholly owned subsidiary of the Demerged Company and upon coming into effect of this scheme, the investment in equity shares of resulting company has been cancelled.

(f) The profit or loss pertaining to the demerged undertaking from the appointed date till 31^st March, 2017 has been adjusted in the retained earnings during the current year.

12. Disclosures as per IND AS-19, “Employee Benefits” are given below :

(i) Short Term Employee Benefits

I. The Company has provided for bonus amounting to Rs. 8,14,115/- (Previous year Rs. 5,24,889/-) for all its employees under the Payment of Bonus Act, which has been recognized in the Statement of Profit and Loss for the year.

II. During the year the company has recognized Leave Salary amounting to Rs.5,52,638/- (Previous year Rs.960/-) in the Statement of Profit and Loss on payment basis.

III. During the year the company has made contribution to Employees State Insurance Scheme amounting to Rs.1,56,975/- (Previous year Rs.1,04,888/-) which has been recognized in the Statement of Profit and Loss.

(ii) Long Term Employee Benefits

The Company has classified the various Long Term Employee Benefits as under:-

I. Defined Contribution Plans

a) Contribution to Provident Fund

b) Contribution to Pension Scheme

II. Defined Benefit Plan

The Employees Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit 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.

Valuation in respect of gratuity have been carried out by an independent actuary as at the Balance Sheet date, based on the following assumptions:-

13. Segment Reporting

The Company has disclosed and reported Business Segment as the primary segment. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organisational structure and internal reporting system. Accordingly the company has identified Engineering Division and Textile Division as the main business segments as per the IND AS on “Operating Segments” (IND AS-108) issued by The Institute of Chartered Accountants of India.

The Company has disclosed and reported Geographical Segment as the secondary segment on the basis of location of its customers within India and outside India.

Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The income & expenses, which are not directly relatable to the business segment, are shown as unallocated corporate costs net of unallocable income. Similarly Assets and Liabilities that cannot be allocated between segments are shown as unallocated corporate assets and liabilities respectively.

14. Contingent liability and Commitments :

(i) Contingent Liabilities

(a) Claims against the Company not acknowledged as debts represent suits filed by parties and disputed by the Company Rs. Nil (Previous Year Rs.24,40,084/-)

15. The previous year’s figures are grouped / regrouped or arranged / rearranged wherever necessary to make them in compliance with disclosure requirement of Indian Accounting Standards. Previous year’s figures including assets, liabilities, revenue and expenditure relating to the engineering division of the company which has been demerged with effect from 1^st July ,2016 i.e. the appointed date, in pursuance of the scheme of arrangement approved by the Honorable NCLT, Mumbai and therefore the same are not comparable with the current year’s figures.

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Mar 31, 2015

1. Long-term borrowings and current maturities of Long-term borrowings include :

(a) Term Loans from banks to the extent of Rs.1,19,511/- (Previous year : Rs.10,64,225/-) secured by way of equitable mortgage of immoveable property of the company & directors and personal guarantees of the directors.

(b) Term Loans from banks to the extent of Rs. Nil (Previous year :Rs.9,80,830/-) are secured by way of hypothecation of vehicles

2.Fixed deposits with banks include deposits of Rs.5,45,216/- (Previous year Rs.11,62,616/- ) with maturity " of more than 12 months

3. Fixed deposits to the extent of Rs.Nil (Previous year Rs. 4,92,63,673/- ) are pledged to the banks against " overdraft facility.

4. Disclosures as perAccounting Standards-15, "Employee Benefits" are given below :

(i) Short Term Employee Benefits

The Company has provided for bonus amounting to Rs. 5,23,016/- (Previous year Rs. 4,48,325/-) for all its employees under the Payment of Bonus Act, which has been recognized in the Profit & Loss Account for the year.

(ii) Long Term Employee Benefits

The Company has classified the various Long Term Employee Benefits as under:- I. Defined Contribution Plans

a) Employers' Contribution to Provident Fund

b) Employers' Contribution to Pension Scheme

II. Defined Benefit Plan

The Employees Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit 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.

5. Segment Reporting

The Company has disclosed and reported Business Segment as the primary segment. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organisational structure and internal reporting system. Accordingly the company has identified Engineering Division and Textile Division as the main business segments as per the Accounting Standard on "Segment Reporting" (AS- 17) issued by The Institute of Chartered Accountants of India.

The Company has disclosed and reported Geographical Segment as the secondary segment on the basis of location of its customers within India and outside India.

Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The income & expenses, which are not directly relatable to the business segment, are shown as unallocated corporate costs net of unallocable income. Similarly Assets and Liabilities that cannot be allocated between segments are shown as unallocated corporate assets and liabilities respectively.

6. Information on Related Party transactions as required by the Accounting Standard 18 "Related Party Disclosure" are given below :

1) Name of related parties and description of relationships :-

a) Key Management Personnel

i) Jayesh R.Mehta - Managing Director

ii) Amita J.Mehta - Director

iii) Shailesh P. Sankav - Chief Financial Officer

iv) Gayatri Valan - Company Secretary & Compliance Officer

b) Companies in which Directors are Interested

i) Kareshma Dentals Private Limited.

ii) J.R. Texmachtrade Private Limited.

iii) Jumping Genius School Private Limited

7. Contingent liability and Commitments:

(I) Contingent Liabilities

(a) Claims against the Company not acknowledged as debts represent suits filed by parties and disputed by the Company Rs.25,45,484/- (Previous Year Rs.25,45,484/-)

8. The previous year's figures are grouped / regrouped or arranged / rearranged wherever necessary to make them comparable with the current year's figures.

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Mar 31, 2014

1. Segment Reporting

The Company has disclosed and reported Business Segment as the primary segment. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organisational structure and internal reporting system. Accordingly the company has identified Engineering Division and Textile Division as the main business segments as per the Accounting Standard on "Segment Reporting" (AS-17) issued by The Institute of Chartered Accountants of India.

The Company has disclosed and reported Geographical Segment as the secondary segment on the basis of location of its customers within India and outside India.

Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The income & expenses, which are not directly relatable to the business segment, are shown as unallocated corporate costs net of unallocable income. Similarly Assets and Liabilities that cannot be allocated between segments are shown as unallocated corporate assets and liabilities respectively.

2. Contingent liability and Commitments :

(i) Contingent Liabilities

(a) Counter guarantees given to the Company''s bankers for the guarantees issued by them on behalf of the Company -Rs. Nil (Previous Year Rs. 9,71,600/-) .

(b) Claims against the Company not acknowledged as debts represent suits filed by parties and disputed by the Company Rs. 25,45,133/- (Previous Year Rs. 25,45,133/-)

(ii) Estimated Capital Commitments outstanding at the end of the year Rs. nil (Previous year Rs. 25,00,000).

3. The previous year''s figures are grouped / regrouped or arranged / rearranged wherever necessary to make them comparable with the current year''s figures.

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Mar 31, 2013

1. Disclosures as per Accounting Standards-15, "Employee Benefits" are given below :

(i) Short Term Employee Benefits

The Company has provided for bonus amounting to Rs. 3,32,180/- (Previous year Rs. 2,66,450/-) for all its employees under the Payment of Bonus Act, which has been recognized in the Profit & Loss Account for the year.

(ii) Long Term Employee Benefits

The Company has classified the various Long Term Employee Benefits as under:-

I. Defined Contribution Plans

a) Employers'' Contribution to Provident Fund

b) Employers'' Contribution to Pension Scheme

II. Defined Benefit Plan

The Employees Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit 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.

2. Segment Reporting

The Company has disclosed and reported Business Segment as the primary segment. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organisational structure and internal reporting system. Accordingly the company has identified Engineering Division and Textile Division as the main business segments as per the Accounting Standard on "Segment Reporting" (AS-17) issued by The Institute of Chartered Accountants of India.

The Company has disclosed and reported Geographical Segment as the secondary segment on the basis of location of its customers within India and outside India.

Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The income & expenses, which are not directly relatable to the business segment, are shown as unallocated corporate costs net of unallocable income. Similarly Assets and Liabilities that cannot be allocated between segments are shown as unallocated corporate assets and liabilities respectively.

3. Information on Related Party transactions as required by the Accounting Standard 18 "Related Party Disclosure" are given below:

1) Name of related parties and description of relationships :-

a) Key Management Personnel

i) Jayesh R.Mehta - Managing Director

ii) Amita J.Mehta - Director

b) Associate Companies

i) Kareshma Dentals Private Limited,

ii) J.R. Texmachtrade Private Limited,

iii) Jumping Genius School Private Limited

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Mar 31, 2012

1. LONG-TERM BORROWINGS

1.1 Long-term borrowings and current maturities of Long-term borrowings include

(a) Term Loans from banks to the extent of Rs. 36,47,358/- (Previous year : Rs. 42,64,079/-) secured by way of Equitable Mortgage of immoveable property of the Company & directors and personal guarantees of the directors.

(b) Term Loans from banks to the extent of Rs. 34,48,268/- (Previous year NIL) are secured by way of hypothecation of vehicles.

2. CASH & CASH EQUIVALENTS

2.1 Fixed deposits with banks include deposits of Rs. 42,97,680/- (Previous year Rs. 20,64,513/- ) with maturity of more than 12 months.

2.2 Fixed deposits with banks include deposits of Rs. 19,14,400/- (Previous year Rs. 17,00,300/-) held as margin money against guarantees.

3. Disclosures as per Accounting Standards-15, "Employee Benefits" are given below :

(i) Short Term Employee Benefits

The Company has provided for bonus amounting to Rs. 2,66,450/- (Previous year Rs. 2,87,433/-) for all its employees under the Payment of Bonus Act, which has been recognized in the Profit & Loss Account for the year.

(ii) Long Term Employee Benefits

The Company has classified the various Long Term Employee Benefits as under:-

I. Defined Contribution Plans

a) Employers' Contribution to Provident Fund

b) Employers' Contribution to Pension Scheme

II. Defined Benefit Plan

The Employees Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit 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.

4. Segment Reporting

The Company has disclosed and reported Business Segment as the primary segment. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organisational structure and internal reporting system. Accordingly the company has identified Engineering Division and Textile Division as the main business segments as per the Accounting Standard on "Segment Reporting" (AS-17) issued by The Institute of Chartered Accountants of India.

The Company has disclosed and reported Geographical Segment as the secondary segment on the basis of location of its customers within India and outside India.

Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The income & expenses, which are not directly relatable to the business segment, are shown as unallocated corporate costs net of unallocable income. Similarly Assets and Liabilities that cannot be allocated between segments are shown as unallocated corporate assets and liabilities respectively.

5. Information on Related Party transactions as required by the Accounting Standard 18 "Related Party Disclosure" are given below :

1) Name of related parties and description of relationships :-

a) Key Management Personnel

i) Jayesh R.Mehta - Managing Director

ii) Amita J.Mehta - Director

b) Associate Companies

i) Kareshma Dentals Private Limited.

ii) J.R. Texmachtrade Private Limited.

6. Contingent liability and Commitments :

(I) Contingent Liabilities

(a) Counter guarantees given to the Company's bankers for the guarantees issued by them on behalf of the Company - Rs. 19,14,400/- (Previous Year Rs. 17,00,300/-) .

(b) Claims against the Company not acknowledged as debts represent suits filed by parties and disputed by the Company Rs. 25,45,133/- (Previous Year Rs. 25,45,133/-)

(ii) Estimated Capital Commitments outstanding at the end of the year Rs. 35,00,000/- (Previous year Rs. Nil).

7. The previous year's figures are grouped/regrouped or arranged/rearranged wherever necessary to be in conformity with the revised schedule VI of the Companies Act.

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Mar 31, 2011

(1) Contingent liability outstanding at the year end and not provided for in respect of:

(a) Counter guarantees given to the Company's bankers for the guarantees issued by them on behalf of the Company - Rs. 17,00,300/- (Previous Year Rs.21,91,200/-).

(b) Claims against the Company not acknowledged as debts represent suits filed by parties and disputed by the Company Rs.25,45,133/- (Previous Year Rs.25,45,133/-)

(2) In the opinion of the Board, sundry debtors, loans and advances and other current assets 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.

(3) Employee Benefits

(i) Short Term Employee Benefits

The Company has provided for an annual bonus amounting to Rs. 1,37,702/- (Previous year Rs. 42,250/-) for all its employees under the Payment of Bonus Act, which has been recognized in the Profit & Loss Account for the year.

(ii) Long Term Employee Benefits

The Company has classified the various Long Term Employee Benefits as under :- I) Defined Contribution Plans

a) Employers' Contribution to Provident Fund

b) Employers' Contribution to Pension Scheme

II) Defined Benefit Plan

The employees Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measureseach unit separately to build up the final obligation.

(4) Additional information pursuant to the provision of paragraphs 3,4,4C and 4D of II of Schedule VI of Companies Act, 1956 (As certified by the Management)

(5) Segment Reporting

The Company has disclosed and reported Business Segment as the primary segment. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organisational structure and internal reporting system. Accordingly the company has identified Engineering Division and Textile Division as the main business segments as per the Accounting Standard on "Segment Reporting" (AS-17) issued by The Institute of Chartered Accountants of India.

The Company has disclosed and reported Geographical Segment as the secondary segment on the basis of location of its customers within India and outside India.

Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The income & expenses, which are not directly relatable to the business segment, are shown as unallocated corporate costs net of unallowable income. Similarly Assets and Liabilities that cannot be allocated between segments are shown as unallocated corporate assets and liabilities respectively.

(6) Information on Related Party transactions as required by the Accounting Standard 18 "Related Party Disclosure" are given below:

1) Name of related parties and description of relationships :-

a) Key Management Personnel

i) Jayesh R.Mehta - Managing Director

ii)Amita.J.Mehta - Director

b) Associate Companies

i) Kareshma Dentals Private Limited.

ii) J.R.Texmachtrade Private Limited.

(7) Previous year's figures are grouped / regrouped or arranged / rearranged wherever necessary to make them comparable with the current years figures.

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Mar 31, 2010

(1) Contingent liability outstanding at the year end and not provided for in respect of:

(a) Counter guarantees given to the Companys bankers for the guarantees issued by them on behalf of the Company - Rs. 21,91,200/- (Previous Year Rs.Nil/-).

(b) Claims against the Company not acknowledged as debts represent suits filed by parties and disputed by the Company Rs.25,45,133/- (Previous Year Rs.25,45,133/-)

(2) In the opinion of the Board, sundry debtors, loans and advances and other current assets 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.

(3) Employee Benefits

(i) Short Term Employee Benefits

The Company provides for an annual Bonus for all employees under the Payment of Bonus Act, which, amounts to Rs. 42,250/- - (2008-09 Rs. 33,750/-) Such Bonus has been recognized in the Profit & Loss Account for the year.

(ii) Long Term Employees Benefits

The Company has classified the various Long Term Employee Benefits as under :-

I. Defined Contribution Plans

a) Provident Fund

b) State Defined Contribution Plans

Employers Contribution to.Employees Pension Scheme 1995. During the year, the Company has recognized the following amounts as an expenses in the Profit & Loss Account

II. Defined Benefit Plans

The Company makes annual provision of Employees Gratuity which provides for lump sum payment to vested employees on departure of an equal to 15 days salary (last drawn) for each completed year of service Vesting occurs on completion of five year service.

(4) Prior period adjustment includes loss of Rs. 33,94,541, on Fixed Assets disposed off in earlier years.

(5)Additional information pursuant to the provision of paragraphs 3,4,4C and 4D of II of Schedule VI of Companies Act, 1956 (As certified by the Management)

(6) Segment Reporting

The Company has disclosed and reported Business Segment as the primary segment. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organisational structure and internal reporting system. Accordingly the company has identified Engineering Division and Textile Division as the main business segments as per the Accounting Standard on "Segment Reporting" (AS-17) issued by The Institute of Chartered Accountants of India.

The Company has disclosed and reported Geographical Segment as the secondary segment on the basis of location of its customers within India and outside India.

Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The income & expenses, which are not directly relatable to the business segment, are shown as unallocated corporate costs net of unallocable income. Similarly Assets and Liabilities that cannot be allocated between segments are shown as unallocated corporate assets and liabilities respectively.

(7) Information on Related Party transactions as required by the Accounting Standard 18 "Related Party Disclosure" are given below:

1) Name of related parties and description of relationships :-

a) Key Management Personnel

i) Jayesh R.Mehta ii)Amita.J.Mehta

b) Associate Companies

i) Kareshma Dentals Private Limited.

ii) J.R.Texmachtrade Private Limited.