Notes to Accounts of Le Merite Exports Ltd.

Mar 31, 2025

o) Provisions

A provision is recognized when the company has a present obligation as a result of past
event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of
the obligation. Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the reporting date. These
estimates are reviewed at each reporting date and adjusted to reflect the current best
estimates.

Where the company expects some or all of a provision to be reimbursed, for example
under an insurance contract, the reimbursement is recognized as a separate asset but
only when the reimbursement is virtually certain. The expense relating to any provision
is presented in the statement of profit and loss net of any reimbursement.

p) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence
will be confirmed by the occurrence or non-occurrence of one or more uncertain future
events beyond the control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a
liability that cannot be recognized because it cannot be measured reliably. The Company
does not recognize a contingent liability but discloses its existence in the standalone
financial statements.

q) Cash and Cash equivalents

Cash and cash equivalents for the purpose of Cash flow statement comprise of cash at
bank and in hand and short-term investments with an original maturity of three months
or less.

r) Research and Development

Revenue expenditure on research is expensed under respective heads of account in the
period in which it is incurred. Capital expenditure is shown as addition to fixed assets.

s) Cash Flow Statement

The Cash Flow Statement is prepared by the indirect method set out in Accounting Standard 3
on Cash Flow Statements and presents the cash flows by operating, investing and financing
activities of the Company. Cash and cash equivalents presented in the Cash Flow Statement
consist of cash on hand and demand deposits with banks.

Terms and Rights attached to Equity Shares:

The Company has only one class of Equity Shares having a par value of Rs.10/- per share. The holders of the Equity Shares are entitled to dividends as
declared from time to time and are entitled to voting rights proportionate to their share holding at the meetings of shareholders.

Note:

In addition, pursuant to the approval granted by the shareholders at the Extraordinary General Meeting held on August 19, 2024, the Board of
Directors, in its meeting held on November 27, 2024, allotted 14,91,200 convertible equity warrants on a preferential basis at a price of Rs.146.50/- per
warrant, following receipt of in-principle approval from the National Stock Exchange (NSE).

As per the terms of the issue, 25% of the warrant price (Rs.36.625/- per warrant) was received at the time of allotment, with the remaining 75% payable
upon conversion into equity shares. Each warrant entitles the holder to convert it into one equity share of the Company within 18 months from the
date of allotment, at the holder''s option.

During the reporting period, 8,17,600 warrants were converted into equity shares upon receipt of the balance amount. As of March 31, 2025, 6,73,600
warrants remain outstanding and are eligible for conversion within the stipulated period.

As of March 31, 2025, 8,17,600 equity shares arising from the conversion of warrants remain unlisted, as the Company''s application for listing these
shares with the National Stock Exchange (NSE) is currently under process.

The total number of equity shares of the Company stand at 2,42,98,600 shares of Rs.10/- each, out of which 2,34,81,000 shares are listed on NSE as of
March 31, 2025.

6.1 Working Capital facility from Shinhan Bank is primarily secured against pari passu charge on entire stock of inventory, receivables, bills and other
chargeable current assets of the company (both present and future) to the extent of sanctioned limits, on a pro rata basis with other lenders and
the collateral security as Equitable Mortgage by deposit of title deeds on premises of the Company situated in B1-104D, Boomerang Building,
Mumbai, Two Residential Flats in name of Directors situated in Powai, liquid collateral inform of Fixed Deposits of Rs. 2.25 Crs and the personal
guarantee of Mr. Abhishek Lath, Mrs. Sweta Lath, Mr. Umashankar Lath and Mrs. Asha Devi Lath.

The Rate of Interest chargable by the Bank (before claiming benefit of Interest Equilisation scheme) is as follows:

For INR: Repo Rate ¦ 2.50% p.a.

For USD: Term SOFR 2.00% p.a. (upto 23-10-2024), Term SOFR 1.25% p,a. (after 23-10-2024)

6.2 Working Capital facility from ICICI Bank is primarily secured against pari passu charge by way of hypothecation on the entire stock of raw
material, semi finished and finished goods, consumable stores and spares and such other movables including book debts, bills whether
documentary or clean, outstanding monies, receivables both present and future in a form or manner satisfactory to bank to the extent of
sanctioned limits, on a pro rata basis with other lenders and the collateral security as Equitable Mortgage on four properties in name of Directors
and one property in name of company, consisting of Residential Property in Burhanpur, Vacant Land in Burhanpur, Commercial Property in
Mumbai, and the unconditional personal guarantee of Mr. Abhishek Lath, Mr, Umashankar Lath, Mrs. Asha Devi Lath and Mrs. Sweta Lath

The Rate of Interest chargable by the Bank is Repo Rate - 2.75% p.a (less Interest Equiiisation scheme benefit).

6.3 Working Capital facility from UCO Bank is primarily secured against pari passu charge by way of hypothecation on the entire stock of inventory,
receivables, semi finished and finished goods, consumable stores and spares and such other movables including book debts, bills and other current asset
of the company created through Bank finance both present and future to the extent of sanctioned limits, on a pro rata basis with other lenders and the
collateral security as 50% liquid collateral security in form of FDR of Rs 7.78 Cr. duly charged in favor of Bank and the unconditional personal guarantee
of Mr. Abhishek Lath, Mr. Umashankar Lath and Mrs. Asha Devi Lath.

The Rate of Interest chargable by the Bank is as follows:

For Export Packing Credit in INR:

Pre-Shipment Credit: Bank''s float rate Spread (0.10% to 0.30% p.a.)

Post Shipment Credit: Bank''s float rate Spread (0.10% to 0.30% p.a.)
depending on the tenure.

For Packing Credit in Foreign Currency (other than INR):

Interest as per RBI Circular No. CHO/IW/01/2022-23 dated 12-04-2022.

6.4 Working Capital facility from HDFC is primarily secured against pari passu charge by way of hypothecation on the entire stock of inventory, receivables,
semi finished and finished goods, consumable stores and spares and such other movables including book debts, bills and other current asset of the
company created through Bank finance both present and future to the extent of sanctioned limits, on a pro rata basis with other lenders and the
collateral security as FDR of Rs.4.50 Cr. duly charged in favor of bank and the unconditional personal guarantee of Mr. Abhishek Lath, Mr. Umashankar
Lath, Mrs. Sweta Lath and Mrs. Asha Devi Lath.

The Rate of Interest chargable by the Bank is 3 M T bill Spread 1.83% - Constant.

6.5 Working Capital facility from Bank of India is primarily secured against pari passu charge by way of hypothecation of stock and book debts to the extent
of sanctioned limits, on a pro rata basis with other lenders and the collateral security as EQM of commercial unit situated at A-307, 3rd floor
admeasuring 3590 sq ft and including 6 parking units at Boomerang Co-operative Premises Society Ltd, Chandivali farm road , Powai, Andheri (East),
Taluka Kurla , Mumbai 400072, in the name of company duly charged in favor of Bank and the unconditional personal guarantee of Mr. Abhishek Lath,
Mr. Umashankar Lath, Mrs. Asha Devi Lath and Mrs. Sweta Lath.

The Rate of Interest chargable by the Bank is
For INR:

Pre-shipment credit (up to 180 days): RBLR (9.35%) minus 175 bps, i.e., presently 7.60%

Post-shipment credit - Demand bills (transit period as per FEDAI): RBLR (9.35%) minus 100 bps, i.e., presently 8.35%

For USD:

Pre-shipment credit (up to 180 days): 50 basis points over Applicable Benchmark ARR (as per tenure)

Post-shipment credit - On demand bills for transit period (as per FEDAI): 50 basis points over Applicable Benchmark ARR (as per tenure)

20.1 In pursuance of the instructions received from the Directorate General of Foreign Trade (DGFT)

Headquarters regarding the cap imposed under Notification No. 43 dated 25.09.2013, the concerned
DGFT office is currently processing pending claims under the Incremental Exports Incentivisation
Scheme (IEIS).

The IEIS claim receivable represents the amount eligible and filed by the company. The claim has
been filed with the relevant authorities and is pending for disbursement as of the balance sheet date
and the inflow is virtually certain.

Note 31.1: The variance in Debt-equity ratio is primarily due to an increase in unsecured loans from directors during the year.

Note 31.2: The variance in Debt service coverage ratio and Interest service coverage ratio is primarily due to higher operating profits
driven by improved operational efficiency thereby enhancing the company''s ability to service debt and interest.

Note 31.3: The variance in Return on Equity Ratio, Net Profit Ratio, Return on Capital Employed and Return on Investment is
primarily due to improvement in operational profitability and efficiency during the current year. As a result, returns relative to
equity, capital employed, and investments strengthened compared to the previous year.

Note 32.1: As per section 135 of the Companies Act, 2013, the company did not have a CSR obligation for the financial year 2024-25
as neither of the three criteria was met for the immediately preceeding financial year. Further, the company has spent Rs.
23,43,220/- and Rs. 4,83,680/- towards shortfall of FY 2023-24 and FY 2022-23 respectively. The balance of FY 2023-24''s obligation is
to be fulfilled on ongoing projects in next two years as the remaining amount has been transferred to Unspent CSR Account with ICICI
Bank on 29-04-2024 in Compliance with Section 135(7) of the Companies Act, 2013.

Note 32.2: C5R obligation for the financial year 2023-24 was Rs. 30,43,402/- out of which Rs. 3,48,000/- was fulfilled during the year,
the balance of Rs. 26,95,402/- is to be fulfilled on ongoing projects in next three years as the remaining amount was transferred to
Unspent CSR Account with ICICI Bank on 29-04-2024 in Compliance with Section 135(7) of the Companies Act, 2013.

Note 36: Un-hedged Foreign Currency Exposure

Particulars of Un-hedged Foreign Currency Exposure as at Balance sheet date is Rs. 13,88 Crs as on 31st March, 2025 and Rs. 8.50 Crs
as on 31st March, 2024 as per management.

Note 37: Micro and Small Enterprises

Under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) certain disclosures are required to be made
relating to Micro, Small and Medium Enterprises. The Company has not received any information from the "suppliers" regarding
their status under the Micro Small and Medium Enterprises Development Act, 2006.

Note 41: Segment Reporting

The Company is primarily in the business of manufacturing, purchase and sale of textiles. The Management of the Company
evaluates the Company’s performance, allocate resources based on the analysis of the various performance indicator of the Company
as a single unit.

Note 42: Other Regulatory Disclosures

a. The Company has not traded in crypto currency or virtual currency during the year.

b. The Company is not declared a willful defaulter by any bank or financial institution or other lenders.

c. The Company has no transactions with the struck off Companies under Section 248 or 560 of the Act,

d. No proceedings were initiated or pending against the Company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988.

e. There are no ultimate beneficiaries to whom the Company has lent/invested nor received any fund during the year within the
meaning of Foreign Exchange Management Act 1999 and Prevention of money Laundering Act 2002.

f. The Company has complied related to number of layers prescribed under clause (87) of section 2 of the Companies Act read with
the Companies (Restriction on number of Layers) Rules, 2017.

g. There we no transaction in the Company which is not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961.

h. The Company does not have any charges or satisfaction, which is yet to be registered with Registrar of Companies beyond the
statutory period.

i. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall 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 (Ultimate
Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

j. The Company has utilised borrowings from banks and financial institutions during the year for the specific purposes for which they
were obtained. There are no instances of borrowings being used for purposes other than those for which they were sanctioned.

k. The details pursuant to provisions of schedule III to the Companies Act, 2013 have been given to the extent applicable to the

Note 43: Previous year''s figures have been regrouped/ reclassified, wherever necessary to conform to this years'' classification
As per our report of even date

For Nagori Nuwal & Co For and on behalf of Board of Directors

Chartered Accountant of Le Merite Exports Limited

(FRN 08185C)

CA Shankar Lai Laddha Abhishek Lath Jmashakar Lath

Partner MD&CFO Chairmans MD

(Membership No 76554) (DIN-00331675) (DIN-05135035)

UDIN: 25076554BNIAPA8974
Place: Mumbai
Date: May 28,2025

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Mar 31, 2024

o) Provisions

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the

reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Where the company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement.

p) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the standalone financial statements.

q) Cash and Cash equivalents

Cash and cash equivalents for the purpose of Cash flow statement comprise of cash at bank and in hand and short-term investments with an original maturity of three months or less.

r) Research and Development

Revenue expenditure on research is expensed under respective heads of account in the period in which it is incurred. Capital expenditure is shown as addition to fixed assets.

s) Cash Flow Statement

The Cash Flow Statement is prepared by the indirect method set out in Accounting Standard 3 on Cash Flow Statements and presents the cash flows by operating, investing and financing activities of the Company. Cash and cash equivalents presented in the Cash Flow Statement consist of cash on hand and demand deposits with banks.

2.4 Pursuant to the approval of the shareholders in FY 22-23, the company has made an Initial Public Offer (IPO) of 64,00,000 Equity Shares each of Rs. 75/- having face value of Rs. 10/- per share and share premium of Rs. 65/- per share aggregating to Rs. 4,800 Lakhs. The allotment for the said IPO was made on 04th May, 2022 ranking pari-pasu with the existing shares. The shares of the company were listed on NSE Emerge (SME Platform of National Stock Exchange of India Limited (NSE)) on 09th May, 2022.

2.5 The Board of Directors at its meeting held on 25th May, 2024 had recommended the dividend @ 2% amounting to Rs. 0.20/- per equity share of Rs. 10/- each for the FY 2023-24.

4.1 Unsecured Loans consists of Loan from Related Party as disclosed in Related Party Disclosure.

4.2 Jaguar Car Loan is Loan taken from HDFC Bank secured against Car and Repayable in 60 monthly instalments of Rs. 1.43 Lakhs each (including interest) commencing from Aug 2021 and last instalment due in Jul 2026. The Rate of Interest is 7.20 % p.a.

4.3 Jeep Car Loan is Loan taken from Kotak Mahindra Prime Ltd secured against Car and Repayable in 60 monthly instalments of Rs. 0.56 Lakhs each (including interest) commencing from Oct 2021 and last Instalment due in Sept 2026. The Rate of Interest is 7.43 % p.a.

4.4 Tata Harrier Car Loan A is Loan taken from Kotak Mahindra Prime Ltd secured against Car and Repayable in 60 monthly instalments of Rs. 0.46 Lakhs each (including interest) commencing from Nov 2021 and last Instalment due in Oct 2026. The Rate of Interest is 7.93 % p.a.

4.5 Tata Harrier Car Loan B is Loan taken from HDFC Bank secured against Car and Repayable in 84 monthly instalments of Rs. 0.35 Lakhs each (including interest) commencing from Sept 2020 and last Instalment due in Aug 2027. The Rate of Interest is 8.00 % p.a.

6.1 Working Capital facility from Shinhan Bank is primarily secured against paripasu charge by way of Hypothecation on the entire inventory, receivables, bills and other chargeable current assets of the company (both present and future) to the extent of 23.16% of share and the collateral security as Equitable Mortgage by deposit of title deeds on premises of the Company situated in B1104D, Boomerang Building, Mumbai, Two Residential Flats in name of Directors situated in Powai, liquid collateral in form of Fixed Deposits of Rs. 2.25 Crs and the personal guarantee of Mr. Abhishek Lath, Mrs Sweta Lath, Mr. Umashankar Lath and Mrs Asha Devi Lath. The Rate of Interest chargeable by the Bank is 9 % p.a. (less Interest Equalization scheme benefit)"

6.2 Working Capital facility from ICICI Bank is primarily secured against paripasu charge by way of Hypothecation on the entire stock of Raw Material, Semi finished and finished goods, consumable stores and spares and such other movables including book debts, bills whether documentary or clean, outstanding monies, receivables both present and future in a form or manner satisfactory to bank to the extent of 25.04% of share and the collateral security as Equitable Mortgage on four properties in name of Directors and one property in name of company, consisting of Residential Property in Burhanpur, Vacant Land in Burhanpur, Commercial Property in Mumbai, and the unconditional personal guarantee of Mr. Abhishek Lath, Mr. Umashankar Lath and Mrs Asha Devi Lath. The Rate of Interest chargeable by the Bank is Repo Rate 2.75% p.a. (less Interest Equalization scheme benefits)."

6.3 Working Capital facility from UCO Bank is primarily secured against paripasu charge by way of Hypothecation on the entire stock of inventory, receivables, semi-finished and finished goods, consumable stores and spares and such other movables including book debts, bills and other current

asset of the company created through Bank finance both present and future to the extent of 25.90% of share and the collateral security as 50% liquid collateral security in form of FDR of Rs 7.50 Cr. duly charged in favour of Bank and the unconditional personal guarantee of Mr. Abhishek Lath, Mr. Umashankar Lath and Mrs Asha Devi Lath. The Rate of Interest chargeable by the Bank is Pre Shipment: MCLR 6 Months (1.00% to 1.25%) Post Shipment: Overnight MCLR (1.05% to 1.45%) depending on the tenure.

6.4 Working Capital facility from HDFC is primarily secured against paripasu charge by way of Hypothecation on the entire stock of inventory, receivables, semi-finished and finished goods, consumable stores and spares and such other movables including book debts, bills and other current asset of the company created through Bank finance both present and future to the extent of 25.90% of share and the collateral security as FDR of Rs. 4.50 Crs duly charged in favour of Bank and the unconditional personal guarantee of Mr. Abhishek Lath, Mr. Umashankar Lath, Mrs. Sweta Lath and Mrs. Asha Devi Lath. The Rate of Interest chargeable by the Bank is 3 M T bill Spread 1.83% - Constant."

Note 32.1: CSR obligation for the Financial Year 2023-24 was Rs. 30,43,402/- out of which Rs. 3,48,000/- was fulfilled during the year the balance of Rs. 26,95,402/- is to be fulfilled on ongoing projects in next three years as the remaining amount was transferred to Unspent CSR Account with ICICI Bank on 29-04-2024 in Compliance with Section 135(7) of the Companies Act, 2013.

Note 32.2: CSR obligation for the Financial Year 2022-23 was Rs. 27,76,910/- out of which Rs. 10,49,000/-was fulfilled during the year plus Rs.9,430/- Surplus of FY 2021-22 and the balance of Rs. 17,18,480/- is to be fulfilled on ongoing projects in next three years as the remaining amount was transferred to Unspent CSR Account with UCO Bank on 28-04-2023 in Compliance with Section 135(7) of the Companies Act, 2013. and out of this 17,18,480/- Rs. 12,34,800/- has been fulfilled during the year and the balance of Rs. 4,83,680/-shall be fulfilled in coming years (within 3 years).

The Company has been sanctioned working capital limits from Shinhan Bank, ICICI Bank, HDFC Bank and UCO Bank on the basis of security of current assets and Monthly statements to be filled, There are no variances in Security of current assets as per Books of Accounts and the Monthly Statements filled to the Bank.

Note 35: Employee Benefits

As required under Accounting Standard 15 (Revised 2005), Actuarial Gains and Losses is recognized immediately in the Statement of Profit and Loss.

Note 36: Un-hedged Foreign Currency Exposure

Particulars of Un-hedged Foreign Currency Exposure as at Balance sheet date is Rs. 8.50 Crs as on 31st March, 2024 and Rs. 5.00 Crs as on 31st March, 2023 as per management.

Note 37: Micro and Small Enterprises

Under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Company has not received any information from the "suppliers" regarding their status under the Micro Small and Medium Enterprises Development Act, 2006.

The Company is primarily in the business of manufacturing, purchase and sale of textiles. The Management of the Company evaluates the Company''s performance, allocate resources based on the analysis of the various performance indicator of the Company as a single unit.

Therefore, there is only one reportable segment for the Company ie. Textile Business

Note 42: Other Regulatory Disclosures

a) The Company has not traded in crypto currency or virtual currency during the year.

b) The Company is not declared a willful defaulter by any bank or financial institution or other lenders.

c) The Company has no transactions with the struck off Companies under Section 248 or 560 of the Act.

d) No proceedings were initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988.

e) There are no ultimate beneficiaries to whom the Company has lent/invested nor received any fund during the year within the meaning of Foreign Exchange Management Act 1999 and Prevention of money Laundering Act 2002.

f) The Company has complied related to number of layers prescribed under clause (87) of section 2 of the Companies Act read with the Companies (Restriction on number of Layers) Rules, 2017.

g) There we no transaction in the Company which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

h) The Company does not have any charges or satisfaction, which is yet to be registered with Registrar of Companies beyond the statutory period.

i) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall 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 (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

j) The details pursuant to provisions of schedule III to the Companies Act, 2013 have been given to the extent applicable to the company

Note 43: Previous year''s figures have been regrouped/ reclassified, wherever necessary to conform to this years'' classification

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

of Le Merite Exports Limited

For Nagori Nuwal & Co

Chartered Accountant

(FRN 08185C)

Abhishek Lath Umashankar Lath

MD & CFO Chairman & MD

(DIN - 00331675) (DIN - 05135035)

CA Shankar Lal Laddha

Partner

(Membership No 76554) Sandeep Poddar

UDIN: 24076554BKLBBV4771 Company Secretary

Place: Mumbai (M. No.: A69365)

Date: 25^th May, 2024

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Mar 31, 2023

Terms and Rights attached to Equity Shares:

The Company has only one class of Equity Shares having a par value of Rs. 10/- per share. The holders of the Equity Shares are entitled to dividends as declared from time to time and are entitled to voting rights proportionate to their share holding at the meetings of shareholders.

2.4. Pursuant to the approval of the shareholders, the company has made an Initial Public Offer (IPO) of 64,00,000 Equity Shares each of Rs. 75/- having face value of Rs. 10/- per share and share premium of Rs. 65/- per share aggregating to Rs. 4,800 Lakhs. The allotment for the said IPO was made on 04th May, 2022 ranking pari pasu with the existing shares. The shares of the company were listed on NSE Emerge (SME Platform of National Stock Exchange of India Limited (NSE)) on 09th May, 2022.

2.5. The Board of Directors at its meeting held on 29th May, 2023 had recommended the dividend of Rs. 0.50/- per equity share of Rs. 10/- each for the FY 22-23.

4.1. Unsecured Loans consists of Loan from Related Party as disclosed in Related Party Disclosure.

4.2. Jaguar Car Loan is Loan taken from HDFC Bank secured against Car and Repayable in 60 monthly installments of Rs. 1.43 Lakhs each (including interest) commencing from Aug 2021 and last Installment due in Jul 2026.

The Rate of Interest is 7.20 % p.a;

4.3. Jeep Car Loan is Loan taken from Kotak Mahindra Prime Ltd secured against Car and Repayable in 60 monthly installments of Rs. 0.56 Lakhs each (including interest) commencing from Oct 2021 and last Installment due in Sept 2026.

The Rate of Interest is 7.43 % p.a;

4.4. Tata Harrier Car Loan A is Loan taken from Kotak Mahindra Prime Ltd secured against Car and Repayable in 60 monthly installments of Rs. 0.46 Lakhs each (including interest) commencing from Nov 2021 and last Installment due in Oct 2026. The Rate of Interest is 7.93 % p.a;

4.5. Tata Harrier Car Loan B is Loan taken from HDFC Bank secured against Car and Repayable in 84 monthly installments of Rs. 0.35 Lakhs each (including interest) commencing from Sept 2020 and last Installment due in Aug 2027. The Rate of Interest is 8.00 % p.a;

4.6. There is no default in repayment or interest of any loans on due dates.

6.1. Working Capital facility from Shinhan Bank is primarily secured against paripasu charge by way of Hypothecation on the entire inventory, receivables, bills and other chargeable current assets of the company (both present and future) to the extent of 38.41% of share and the collateral security as Equitable Mortgage by deposit of title deeds on premises of the Company situated in Boomerang Building Mumbai, Two Residential Flats in name of Directors situated in Powai, liquid collatral in form of Fixed Deposits of Rs. 4.50 Crs and the personal guarantee of Mr. Abhishek Lath, Mrs Sweta Lath, Mr. Umashankar Lath and Mrs Asha Devi Lath.The Rate of Interest chargable by the Bank is 7.40 % p.a (less Interest Equilisation scheme benifit)

6.2. Working Capital facility from ICICI Bank is primarily secured against paripasu charge by way of Hypothecation on the entire stock of Raw Material, Semi finished and finished goods, consumable stores and spares and such other movables including book debts, bills whether documentary or clean, outstanding monies, receivables both present and future in a form or manner satisfactory to bank to the extent of 15.75% of share and the collateral security as Equitable Mortgage on three properties in name of Directors consisting of Residential Property in Burhanpur, Vacant Land in Burhanpur, Commercial Property in Mumbai, and the unconditional personal guarantee of Mr. Abhishek Lath, Mr. Umashankar Lath and Mrs Asha Devi Lath.

The Rate of Interest chargable by the Bank is Repo Rate 3.65 p.a (less Interest Equilisation scheme benefit).

6.3. Working Capital facility from UCO Bank is primarily secured against paripasu charge by way of Hypothecation on the entire stock of inventory, receivables, semi-finished and finished goods, consumable stores and spares and such other movables including book debts, bills and other current asset of the company created through Bank finance both present and future to the extent of 17.19 % of share and the collateral security as 50% liquid collatral security in form of FDR duly charged in favor of Bank and the unconditional personal guarantee of Mr. Abhishek Lath, Mr. Umashankar Lath and Mrs Asha Devi Lath.

The Rate of Interest chargable by the Bank is Pre Shipment: MCLR 6 Months (1.00% to 1.25%)

Post Shipment: Overnigh MCLR (1.05% to 1.45%) depending on the tenure.

6.4. Working Capital facility from HDFC is primarily secured against paripasu charge by way of Hypothecation on the entire stock of inventory, receivables, semi-finished and finished goods, consumable stores and spares and such other movables including book debts, bills and other current asset of the company created through Bank finance both present and future to the extent of 28.65 % of share and the collateral security as FDR of Rs. 3.00 Crs duly charged in favor of Bank and the unconditional personal guarantee of Mr. Abhishek Lath, Mr. Umashankar Lath, Mrs. Sweta Lath and Mrs. Asha Devi Lath.

The Rate of Interest chargable by the Bank is MCLR 6 Months 0.20%

Note No.7: TRADE PAYABLES

Ageing of Trade Payable Outstanding as on 31st March 2023 is as follows:

7.1. There is no information available with the management, regarding the supplier''s covered by Micro, Small & Medium Enterprises Under Micro, Small and Medium Enterprises Development Act, 2006.

7.2. The Management has confirmed that adequate provisions have been made for all the known and determined liabilities and the same is not in excess of the amounts reasonably required.

11.1. Office Premises is given as security for borrowings refer Note No. 6

11.1. The company holds 51 % Stake in form of 5,100 Equity Shares of Rs. 10 Each in Le Merite Filament Private Limited.

11.2. The company holds 51 % Stake in form of 25,500 Equity Shares of Rs. 10 Each in Le Merite Laxmi Spinning Private Limited.

21.2. Management has classified Revenue from Manufacturing Units in Long Term Lease / Arrangement as Revenue from Manufacturing Operations taking into consideration the Substance over form of the transaction.

21.3. The majority of Profit/ (Loss) is part of Revenue from operations / Export Sales as all export sales are Forward in nature and the Sales Consideration is determined considering the Spot Rate added with the Forward Premium earned for competitive pricing. Therefore, considering the substance over form and the nature of income, the Profit/ (Loss) on changes in foreign exchange is shown under the head Other operating revenue.

21.4. Management has previously been following Cash Basis / Receipt Basis for Recognising Income from RoDTEP (Export Incentive). However, in order to comply with Accounting Standard 9 - Revenue Recognition, the Income from RoDTEP is recognised on Accrual Basis in lines with other export benefits such as Duty Drawback.

Note 31.1: The Variance in Ratios is due to Significant reduction in Business Turnover and Operational Profitability during the year as compared to previous year.

Note 32.1: The CSR committee has identified some projects to spend a substantial amount of Rs.27.77 Lakhs but delay in implementation of such projects resulted in to an unspent amount of Rs. 17.18 Lakhs towards CSR activities which is transferred the unspent CSR Account as per the provisions of Section 135 of the Companies Act, 2013.

Note 32.2: The Unspent amount of Rs.7.19 pertaining to Financial Year 2021-22 has been spent out by the Company on the identified projects during 2022-23 and no unspent amount is pending in CSR liability of the Company for financial year 2021-22.

Note 34: Security of current assets against borrowings

The Company has been sanctioned working capital limits from Shinhan Bank on the basis of security of current assets and quarterly statements to be filled, There are no variances in Security of current assets as per Books of Accounts and the Quarterly Statements filled to the Bank.

Particulars of Un-hedged Foreign Currency Exposure as at Balance sheet date is Rs. 5.00 Crs as on 31st March, 2023 and Rs. 8.90 Crs as on 31st March, 2022 as per management.

Note 37: Micro and Small Enterprises

Under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Company has not received any information from the "suppliers" regarding their status under the Micro Small and Medium Enterprises Development Act, 2006.

Where company is the lessee:

The company has taken various godown and units under operating lease, that are renewable on a periodic basis at the option of both the lessor and the lessee.

*Lease Agreements are to be renewed annualy as per management.

Note 41: Segment Reporting

The Company is primarily in the business of manufacturing, purchase and sale of textiles. The Management of the Company evaluates the Company’s performance, allocate resources based on the analysis of the various performance indicator of the Company as a single unit.

Therefore, there is only one reportable segment for the Company ie. Textile Business Note 42: Other Regulatory Disclosures

a. The Company has not traded in crypto currency or virtual currency during the year.

b. The Company is not declared a willful defaulter by any bank or financial institution or other lenders.

c. The Company has no transactions with the struck off Companies under Section 248 or 560 of the Act.

d. No proceedings were initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988.

e. There are no ultimate beneficiaries to whom the Company has lent/invested nor received any fund during the year within the meaning of Foreign Exchange Management Act 1999 and Prevention of money Laundering Act 2002.

f. The Company has complied related to number of layers prescribed under clause (87) of section 2 of the Companies Act read with the Companies (Restriction on number of Layers) Rules, 2017.

g. There we no transaction in the Company which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

h. The Company does not have any charges or satisfaction, which is yet to be registered with Registrar of Companies beyond the statutory period.

i. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall 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 (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

j. The details pursuant to provisions of schedule III to the Companies Act, 2013 have been given to the extent applicable to the company

Note 42: Previous year''s figures have been regrouped/ reclassified, wherever necessary to conform to this years'' classification