Notes to Accounts of Lehar Footwears Ltd.

Mar 31, 2025

Note 15.2 - Terms/ Rights attached to Equity Shares

The company has only one class of Equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

* All the loans from HDFC Bank Limited are secured against hypothecation of Raw Material, Finished Goods, Stock in Process, Store & Spares, Packing Material and book debts, mortgage over fixed assets of the Company & mortgage of certain fixed assets of the related parties and personal guarantees of Directors and other related parties and residual charge over the immovable property of the company which are mortgaged for the term loans from HDFC Bank Limited carrying interest rate of @ 8.79% to 9.25%. Details of immovable asset which are mortgaged are as follows :-

(i) A-243(A), Road No.6, V.K.I. Area, Jaipur-302013

(ii) SP-41D, RIICO Industrial Area, Kaladera, Tehsil Chomu, District Jaipur-303801

(iii) E-20A, Kaushalya Path, Basant Marg, Bani Park, Jaipur-302016

(iv) G-1-685, Road No.9F2, V.K.I. Area, Jaipur-302013 (Owned in the name of Lawreshwar Footwears prop concern of Mr. Naveen Kumar Agarwal who is related party.)

(I) Term Loan-HDFC 84229932 is financed for '' 314.80 lakhs which is repayable in 67 equal monthly installment of '' 5,98,772 including interest started from Jan. 2020.

(II) Term Loan-HDFC 84229948 is financed for '' 222.86 lakhs which is repayable in 85 equal monthly installment of '' 5,34,497 including interest started from Jan. 2020.

(III) Term Loan-HDFC 84390346 is financed for '' 150.00 lakhs which is repayable in 72 equal monthly installment of '' 3,28,049 including interest starting from Apr. 2020.

(IV) GECL TERM LOAN HDFC-8888876* is financed for '' 745.56 Lakhs which is repayable in 37 equal monthly installment of '' 23,17,459 including interest starting from Nov. 2021.

(V) GECL TERM LOAN HDFC-452557707* is financed for '' 335.00 Lakhs which is repayable in 38 equal monthly installment of '' 10,41,290 including interest starting from March 2024.

(VI) Term Loan SIDBI Solar* is financed for '' 117.88 Lakhs and secured against hypothecation respective solar plant, which is repayable in 53 equal monthly installment of '' 2,20,000 and 1 installemnt of '' 1,28,000 excluding interest starting from October 2023.

(VII) Term Loan SIDBI Plant & Machinery* is financed for '' 485.03 Lakhs and secured against hyphothecation of respective plant & machinery, which is repayable in 53 equal monthly installment of '' 8,98,000 and 1 installemnt of '' 9,09,000 excluding interest starting from July 2023.

(VIII) Deferred Vehicle Loans are secured against hypothecation of respective vehicles carrying interest rate in the range of @ 8.50% to 13%.

NOTE 36 - EMPLOYEE BENEFIT (A) Defined Contribution Plan:-

The Company operates defined contribution retirement benefit plans for all qualifying employees. Contributions are made to registered provident fund and Employee state insurance administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.

(B) Defined Benefit Plan:-Gratuity

In accordance with the provisions of Payment of Gratuity Act, 1972, the company has defined benefit plan which provides for gratuity payment. The plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amounts are based on the respective employee''s last drawn salary and the year of employment with the company. The gratuity plan is a partially funded plan.

These plans typically expose the Company to actuarial risks such as: Investment, Interest rate, longevity and salary risk:

Investment risk: The present value of the defined benefit obligation is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan''s debt investments.

Longevity risk: The present value of the defined benefit obligation is calculated by reference to the best estimate of the mortality of plan participants during their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary escalation risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

No other post-retirement benefits are provided to the employees.

The actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at 31^st March, 2025 by a certified actuary of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

Compensated Absence

Compensated absence liability recognised at the year end is '' Nil (Previous Year '' Nil). The above is based on actuarial valuation report. The report considers assumptions with respect to discount rates, salary escalation, retirement age, mortality, rate of leaving service, leave availment pattern, disability and other relevant factors. the method used is Projected unit Credit Method.

NOTE 37 - CAPITAL MANAGEMENT

The capital structure of the Company consists of net debt and total equity of the Company. The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through an optimum mix of debt and equity within the overall capital structure. The Company''s risk management committee reviews the capital structure of the Company considering the cost of capital and the risks associated with each class of capital.

NOTE 39 - CONTINGENT LIABILITIES AND COMMITMENTS		('' In Lakhs)
Particulars	2024-25	2023-24
Contingent Liabilities
Claims against the company / disputed liabilities not acknowledged as debts	-	-
Bank Guarantee	927.35	311.63
Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for in relation to the plant and machinery and for the installation of solar power plant	Nil	Nil
The company has imported plant and machinery under EPCG Scheme without paying custom duty, as a consequences in the event that certain terms and conditions are not fulfiled, the company is committed to pay the conquential taxes, levies etc.The additinal export obligation is '' 264.68 Lakhs (USD $ 3,28,467.21) over and above the average annual export of last three years '' 995.96 Lakhs	39.75	39.75

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

2) Long-term variable-rate borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. Risk of other factors for the company is considered to be insignificant in valuation.

NOTE 41 - FINANCIAL INSTRUMENTS : RISK MANAGEMENT Financial risk management policy and objectives

The key objective of the Company''s financial risk management is to ensure that it maintains a stable capital structure with the focus on total equity to uphold investor, creditor, and customer confidence and to ensure future development of its business. The Company is focused on maintaining a strong equity base to ensure independence, security, as well as financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company.

Company''s principal financial liabilities, comprise Borrowings from Banks, trade and other payables. The main purpose of these financial liabilities is to finance Company''s operations and plant expansion. Company''s principal financial assets include investments, trade and other receivables, deposits with banks and cash and cash equivalents, that derive directly from its operations.

Company is exposed to market risk, credit risk and liquidity risk.

The Company''s Board oversees the management of these risks. The Company''s Board is supported by senior management team that advises on financial risks and the appropriate financial risk governance framework for the Company. The senior management provides assurance to the Company''s Board that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below."

i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk interest rate risk, currency risk and price risk. Financial instruments affected by market risk include investments in equity shares, security deposits, trade and other receivables, deposits with banks and financial liabilities.

The sensitivity analysis in the following sections relate to the position as at 31^st March, 2025 and 31^st March, 2024. The sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risks.

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. The company is exposed to foreign exchange risk arising from foreign currency transactions primarily to EURO & USD. Company do not enter into any derivative instrument in order to hedge its foreign currency risks.

c) Commodity Risk

Commodity risk is defined as the possibility of financial loss as a result of fluctuation in price of Raw Material/ Finished Goods and change in demand of the product and market in which the company operates. The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The company forecast annual business plan and execute on monthly business plan. Raw material procurement is aligned to its monthly/annual business plan and inventory position is monitored in accordance with future price trend.

ii) Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company is exposed to credit risk mainly from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks.

a) Trade Receivables

Credit risk on trade receivables is managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company has no concentration of risk as customer base in widely distributed both economically and geographically.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on exchange losses historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security. The Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors such as financial condition, ageing of outstanding and the Company''s historical experience for customers.

b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Company monitors rating, credit spreads and financial strength of its counter parties. Company monitors ratings, credit spread and financial strength of its counter parties. Based on ongoing assessment Company adjust it''s exposure to various counterparties. Company''s maximum exposure to credit risk for the components of balance sheet is the carrying amount as disclosed in Note 39.

Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow obligations without incurring unacceptable losses. Company''s objective is to, at all time maintain optimum levels of liquidity to meet its cash requirements. Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including overdraft, debt from banks at optimised cost and cash flow from operations.

NOTE 42 - CODE ON SOCIAL SECURITY

The Code on Social Security, 2020 Ccode'') relating to employee benefits, during employment and post-employment, received Presidential assent on September 28, 2020. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders. The Company will assess the impact on its financial statements in the period in which the related rules to determine the financial impact are notified and the Code becomes effective.

NOTE 43 - OTHER STATUTORY INFORMATION

43.1 Details of Benami property held (Para a(ii)(XIII)(Y)(vi))- No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

43.2 Relationship with struck of Companies (Para a(ii)(XIII)(Y)(ix))-There are no transactions (Including Investment in Securities / Shares held by Struck off company & Other Outstanding balances) with companies struck off u/s 248 of the Companies Act 2013, or section 560 of the Companies At, 1956.

43.3 Registration of charges and satisfaction with Registrar of Companies (Para a(ii)(XIII)(Y)(x))-There are no

charges or satisfaction of charges which are yet to be registered with Registrar of Companies beyond the statutory period.

43.4 Details of Crypto Currency or Virtual Currency (Para a(iii)(xi))- The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

43.5 Utilization of Borrowed funds and share premium (Para a(ii)(XIII)(Y)(xiv)) - No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

43.6 Undisclosed Income (Para a(iii)(ix))- Company has not surrendered or disclosed any transaction which was not recorded in the books of accounts as income during the year in the tax assessment under the Income Tax Act.

43.7 Compliance with number of layers of companies (Para a(ii)(XIII)(Y)(xi)) - The company has not made violation of requirements related to number of layers of companies as prescribed under clause 87 of Section 2 read with Commpanies (Restriction of number of Layeers) Rules 2017.

43.8 Willful Defaulter (Para a(ii)(XIII)(Y)(viii))- The company has not been declared as wilful defaulter by any bank or financial institutions or other lenders.

43.9 Title deeds of Immovable Property not held in name of the Company (Para a(ii)(XIII)(Y)(i))- There are no immovable properties owned by the company whose title deeds are not held in its name.

43.10 Loan & Advance made to promoters, directors, KMPs and other related parties (Para a(ii)(XIII)(Y)(iii))-

The Company has not provided any loans and advance to the parties covered under this clause

43.11 Compliance with approved Scheme(s) of Arrangements (Para a(ii)(XIII)(Y)(xiii)) - Not Applicable

NOTE 45 - RESTATED FINANCIAL STATEMENT AS AT 31^st MARCH, 2024 AND 01^st APRIL, 2023 Change in Accounting Policy - Government Grants (Capital Subsidy)

Nature of the change:

During the current financial year, the Company has changed its accounting policy for government grants related to the acquisition of property, plant and equipment. Previously, such grants were accounted for as deferred income and amortized over the useful life of the related asset. The Company has now elected to deduct such grants directly from the carrying amount of the asset.

Reason for the change:

The Company believes that this new policy results in financial statements providing more reliable and relevant information by reflecting a more accurate carrying amount of the asset and associated depreciation expense.

Impact of the change:

The change in accounting policy has been applied retrospectively in accordance with Ind AS 8. The comparative figures for the previous year have been restated. The impact of the change on prior year figures is summarized below:

The change has no impact on the net profit of respective year since under earlier policy an amount equal to depreciation charge was credited to P&L Account from the deferred income account and depreciation was debited to P&L Account by a similar amount Under new policy the figure of depreciation is already net resulting in Nil impact on net profit of the company due to such change in accounting policy.

In balance sheet, now the value of concerned fixed assets is appearing net of grant recognized instead of earlier practice of presentation on a gross value and deferred income on liabilities side of balance sheet.

During the year ended 31^st March, 2025 the retrospective reclassifications/restatement have been carried out in respect of certain items in the financial statement of previous period. Accordingly to comply with the requirement of Ind AS-1, the company has presented a 3^rd Balance Sheet at the begining of earliest period i.e. as on 01.04.2023. Major restatement/ reclassifcations are explained as under:-

NOTE 46

The previous year figures have been regrouped, rearranged and reclassified wherever necessary.

Mar 31, 2024

2.12 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a 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.

Contingent Liability is disclosed in case of a present obligation arising from past events, when it is not

probable that an outflow of resources will be required to settle the obligation or where no reliable estimate is possible. Contingent liabilities are not recognised in financial statements but are disclosed in notes.

Contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. Contingent assets are not recognised in financial statements and are disclosed in notes when it is virtually certain that economic benefits will inflow to the Company.

2.13 Foreign Currency Transactions

Transactions in foreign currency are recorded at exchange rates prevailing at the date of transactions. Exchange differences arising on foreign exchange transactions settled during the year are recognised in the statement of profit and loss of the year.

Monetary assets and liabilities denominated in foreign currencies which are outstanding, as at the reporting date are translated at the closing exchange rates and the resultant exchange differences are recognised in the statement of profit and loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are recognised using the exchange rate at date of initial transactions, are not retranslated.

In respect of forward contracts, the premium or discount on these contracts is recognized as income or expenditure over the period of the contract. Any profit or loss arising on the cancellation or the renewal of such contracts is recognized as income or expense for the year.

2.14 Impairment Non-financial assets

The carrying amount of non- financial assets other than inventories are assessed at each reporting date to ascertain whether there is any indication of impairment. If any such indication exists then the asset''s recoverable amount is estimated. An impairment loss is recognised as an expenses in the Statement of Profit and Loss, for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less cost to sell and value in use. Value in use is ascertained through discounting of estimated future cash flows using a discount rate that reflects the current market assessments of the time value of money and the risk specific to the assets.

For the purpose of assessing impairment, assets are grouped at the lowest levels into cash generating units for which there are separately identifiable cash flows.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment had been recognised.

Financial assets

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. In determining the allowances for doubtful trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and allowance rates used in the provision matrix.

2.15 Government Grant

Government grants are recognised when there is a reasonable assurance that the grant will be received and all attached conditions will be complied with. Government grants relating to an expense item is recognised in the statement of profit and loss over the period necessary to match them with costs that they are intended to compensate are expensed. Government grants relating to asset is recognised as income in equal amounts over the useful life of the asset.

2.16 Earning Per Share (EPS)

Basic earnings per share is computed by dividing the profit/(loss) after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit/ (loss) after tax as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. The Company did not have any potentially dilutive securities in any of the years presented.

2.17 Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

2.18 Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset, until such time as the assets are substantially ready for the intended use or sale. Interest income earned on temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. The borrowing costs other than attributable to qualifying assets are recognised in the profit or loss in the period in which they incurred.

2.19 Financial Instruments

The company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial asset or financial liabilities, as appropriate, on initial recognition. Transactions costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in Statement of Profit and loss.

Financial assets

All regular way purchases or sale of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sale of financial assets that require delivery of assets within the time frame established by regulation or convention in the market place. All recognised financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending on the classification of the financial assets.

Classification of Financial Assets

(i) Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual

terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(iii) Financial assets at fair value through profit or loss A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest rate method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

(v) Equity instrument

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

(vi) Derecognition

The company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the company''s balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

(vii) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

2.20 Insurance Claim

Insurance Claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.

2.21 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The company consider footwear and accessories as its single segment in which company operates.

2.22 Fair Value Measurement

The Company measures financial instruments at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

2.23 Recent Accounting Pronouncement

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31^st March, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

NOTE 36 - EMPLOYEE BENEFIT (A) Defined Contribution Plan:

(B) Defined Benefit Plan:

Gratuity

These plans typically expose the Company to actuarial risks such as: Investment, Interest rate, longevity and salary risk:

Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan''s debt investments.

No other post-retirement benefits are provided to the employees.

The actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at 31^st March, 2024 by a certified actuary of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

Compensated Absence

NOTE 37 - CAPITAL MANAGEMENT

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NOTE 41 - FINANCIAL INSTRUMENTS : RISK MANAGEMENT Financial risk management policy and objectives

Company is exposed to market risk, credit risk and liquidity risk.

i) Market risk

instruments affected by market risk include investments in equity shares, security deposits, trade and other receivables, deposits with banks and financial liabilities.

The sensitivity analysis in the following sections relate to the position as at 31^st March, 2024 and 31^st March, 2023. The sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risks.

a) Foreign currency risk

b) Interest rate risk

Interest rate risk is the risk that changes in market interest rates will lead to change in interest income and expense for the Company. In order to optimize the Company''s position with regards to interest income & expense and to manage the interest risk, the Company performs comprehensive interest risk management by balancing the proportion of fix & variable rate financial instruments.

c) Commodity Risk

ii) Credit risk

a) Trade Receivables

b) Financial instruments and cash deposits

iii) Liquidity risk

NOTE 42 - CODE ON SOCIAL SECURITY

The Code on Social Security, 2020 Ccode'') relating to employee benefits, during employment and post-employment, received Presidential assent on 28^th September, 2020. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on 13^st November, 2020, and has invited suggestions from stakeholders. The Company will assess the impact on its financial statements in the period in which the related rules to determine the financial impact are notified and the Code becomes effective.

NOTE 43 - OTHER STATUTORY INFORMATION

43.3 Registration of charges and satisfaction with Registrar of Companies (Para a(ii)(XIII)(Y)(x))-There are no charges or satisfaction of charges which are yet to be registered with Registrar of Companies beyond the statutory period.

43.4 Details of Crypto Currency or Virtual Currency (Para a(iii)(xi))- The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

43.8 Willful Defaulter (Para a(ii)(XIII)(Y)(viii))- The company has not been declared as wilful defaulter by any bank or financial institutions or other lenders.

43.9 Title deeds of Immovable Property not held in name of the Company (Para a(ii)(XIII)(Y)(i))- There are no immovable properties owned by the company whose title deeds are not held in its name.

43.10 Loan & Advance made to promoters, directors, KMPs and other related parties (Para a(ii)(XIII)(Y)(iii))- The Company has not provided any loans and advance to the parties covered under this clause

43.11 Compliance with approved Scheme(s) of Arrangements (Para a(ii)(XIII)(Y)(xiii)) - Not Applicable

43.12 The Company has been sanctioned working capital limit in excess of '' 5 Crore from Bank/ Financial Institution on the basis of security of current assets, the company has submitted the statement of stock and book debts which are in agreement with books of accounts, except minor immaterial discrepancies.

NOTE 44

The company consider footwear and accessories as its single segment in which company operates.

NOTE 45

The previous year figures have been regrouped, rearranged and reclassified wherever necessary.

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

For A.Bafna & Company LEHAR FOOTWEARS LIMITED

Chartered Accountants FRN: 003660C

(CA Vivek Gupta) Raj Kumar Agarwal Naresh Kumar Agarwal

Partner (Managing Director) (Executive Director)

M.No. 400543 DIN: 00127215 DIN: 00106649

Date: 30^th May, 2024 Sanjay Agarwal Rakesh Kumar Soni Ritika Poddar

Place: Jaipur (CEO) (CFO) (Company Secretary)

Mar 31, 2023

(a) The revised useful life, as assessed by Management, are in line with those specified in Part C of Schedule II of the Companies Act, 2013 for all classes of assets other than Dies and Moulds. The useful life of Dies and Moulds has been assessed as per the assessment of the management which has 6 years of useful life. Management believes that the assessed useful life of the assets reflect the periods over which these assets are expected to be used.

(b) The company has adopted Revaluation Model for entire class of Land assets and cost model for other class of assets and consequently the value of Land is higher by ? 1800 Lakh due to revaluatio done is the financial year 2016-17 and ? 1165.49 Lakh in financial year 2021-22

14.2 Terms/ Rights attached to Equity Shares

The company has only one class of Equity shares having a par value of ''10 per share. Each holder of equity shares is entitled to one vote per share.

Description and nature of other equity:-

Security premium account : The security premium account is created on issue of share at premium. Revaluation surplus: The revaluation surplus is crated out of the revaluation of land owned by the company.

General Reserve: The general reserve comprises of transfer of profits from retained earnings for appropriate purposes. The reserve can be distributed/ utilised by the company in accordance with the Companies Act, 2013.

Profit and Loss Account: It represents the surplus amount available in profit and loss as retained earnings. The reserve can be distributed/ utilised by the company in accordance with the Companies Act, 2013.

Deferred Income : It represent the capital receipt of government grant from FDDI against the investment of Plant and machinery. ¹

(II) Term Loan-HDFC 84229948 is financed for '' 222.86 lakhs which is repayable in 85 equal monthly installment of '' 5,34,497 including interest started from Jan. 2020.

(III) Term Loan-HDFC 84139705 is financed for '' 318.48 lakhs which is repayable in 33 equal monthly installment of '' 12,18,747 including interest started from Jan. 2020.

(IV) Term Loan-HDFC 84229943 is financed for '' 159.51 lakhs which is repayable in 41 equal monthly installment of '' 4,59,334 including interest started from Jan. 2020.

(V) Term Loan-HDFC 84390346 is financed for '' 150.00 lakhs which is repayable in 72 equal monthly installment of '' 3,28,049 including interest starting from Apr. 2020.

(VI) GECL TERM LOAN HDFC-8888876¹ is financed for '' 745.56 Lakhs which is repayable in 37 equal monthly installment of '' 23,17,459 including interest starting from Nov. 2021.

(VII) GECL TERM LOAN HDFC-452557707¹ is financed for '' 335.00 Lakhs which is repayable in 38 equal monthly installment of '' 10,41,290 including interest starting from March 2024.

(VIII) Term Loan SIDBI Solar¹ is financed for '' 117.88 Lakhs and secured against hypothecation respective solar plant, which is repayable in 53 equal monthly installment of '' 2,20,000 and 1 installemnt of '' 1,28,000 excluding interest starting from October 2023.

(IX) Term Loan SIDBI Plant & Machinery¹ is financed for '' 485.03 Lakhs and secured against hyphothecation of respective plant & machinery, which is repayable in 53 equal monthly installment of '' 8,98,000 and 1 installemnt of '' 9,09,000 excluding interest starting from July 2023.

(X) Deferred Vehicle Loans are secured against hypothecation of respective vehicles carrying interest rate in the range of @ 8.50% to 13%.

Lease liability represent the operating lease which has been classfied as per the Ind AS 116 related to property taken on lease situated at : G-1-685, Road No.9F2, V.K.I. Area, Jaipur-302013 and A-85, Road No. 9, V.K.I. Area, Jaipur-302013.

The company has taken partly gratuity policy against which premium has been paid to LIC, and partly made provision for gratuity on actuarial valuation basis.

* Cash Credit Limit from HDFC Bank Ltd. is secured against hypothecation of Raw Material, Finished Goods, Stock in Process, Store & Spares, Packing Material and book debts, mortgage over fixed assets of the Company & mortgage of certain fixed assets of the related parties and personal guarantees of Directors and other related parties and residual charge over the immovable property of the company which are mortgaged for the term loans from HDFC Bank Limited carrying interest rate of @ 9.09%.

NOTE 35 EMPLOYEE BENEFIT (A) Defined Contribution Plan:

(B) Defined Benefit Plan:-Gratuity

These plans typically expose the Company to actuarial risks such as: Investment, Interest rate, longevity and salary risk:

Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan''s debt investments.

No other post-retirement benefits are provided to the employees.

The actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at 31^st March, 2023 by a certified actuary of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

Compensated Absence

Compensated absence liability recognised at the year end is '' Nil (Previous Year '' 1.36 Lakhs). The above is based on actuarial valuation report. The report considers assumptions with respect to discount rates, salary escalation, retirement age, mortality, rate of leaving service, leave availment pattern, disability and other relevant factors. the method used is Projected unit Credit Method.

NOTE 36 CAPITAL MANAGEMENT

NOTE 38 CONTINGENT LIABILITIES AND COMMITMENTS		('' in Lakhs)
Particulars	2022-23	2021-22
Contingent Liabilities
Claims against the company / disputed liabilities not acknowledged as debts	17.03	-
Bank Guarantee	460.42	278.51
Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for in relation to the plant and machinery and for the installation of solar power plant	Nil	Nil
The company has imported plant and machinery under EPCG Scheme without paying custom duty, as a consequences in the event that certain terms and conditions are not fulfiled, the company is committed to pay the conquential taxes, levies etc.The additinal export obligation is '' 264.68 Lakhs (USD $ 3,28,467.21) over and above the average annual export of last three years '' 995.96 Lakhs	39.75

NOTE 40 FINANCIAL INSTRUMENTS : RISK MANAGEMENT Financial risk management policy and objectives

Company is exposed to market risk, credit risk and liquidity risk.

The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below. i) Market risk

The sensitivity analysis in the following sections relate to the position as at 31^st March, 2023 and 31^st March, 2022. The sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risks.

a) Foreign currency risk

b) Interest rate risk

ii) Credit risk

a) Trade Receivables

b) Financial instruments and cash deposits

The table summarises the maturity profile of Company''s financial liabilities based on contractual undiscounted payments.

NOTE 41 CODE ON SOCIAL SECURITY

The Code on Social Security, 2020 (''code'') relating to employee benefits, during employment and post-employment, received Presidential assent on September 28, 2020. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders. The Company will assess the impact on its financial statements in the period in which the related rules to determine the financial impact are notified and the Code becomes effective.

NOTE 42 OTHER STATUTORY INFORMATION

42.1 Details of Benami property held (Para a(ii)(XIII)(Y)(vi))- No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

42.2 Relationship with struck of Companies (Para a(ii)(XIII)(Y)(ix))-There are no transactions (Including Investment in Securities / Shares held by Struck off company & Other Outstanding balances) with companies struck off u/s 248 of the Companies Act 2013, or section 560 of the Companies At, 1956.

42.3 Registration of charges and satisfaction with Registrar of Companies (Para a(ii)(XIII)(Y)(x))-There

are no charges or satisfaction of charges which are yet to be registered with Registrar of Companies beyond the statutory period.

42.4 Details of Crypto Currency or Virtual Currency (Para a(iii)(xi))- The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

42.5 Utilization of Borrowed funds and share premium (Para a(ii)(XIII)(Y)(xiv)) - No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

42.6 Undisclosed Income (Para a(iii)(ix))- Company has not surrendered or disclosed any transaction which was not recorded in the books of accounts as income during the year in the tax assessment under the Income Tax Act.

42.7 Compliance with number of layers of companies (Para a(ii)(XIII)(Y)(xi)) - The company has not made violation of requirements related to number of layers of companies as prescribed under clause 87 of Section 2 read with Commpanies (Restriction of number of Layeers) Rules 2017.

42.8 Willful Defaulter (Para a(ii)(XIII)(Y)(viii))- The company has not been declared as wilful defaulter by any bank or financial institutions or other lenders.

42.9 Title deeds of Immovable Property not held in name of the Company (Para a(ii)(XIII)(Y)(i))- There are no immovable properties owned by the company whose title deeds are not held in its name.

42.10 Loan & Advance made to promoters, directors, KMPs and other related parties (Para a(ii)(XIII)(Y) (iii))- The Company has not provided any loans and advance to the parties covered under this clause

42.11 Compliance with approved Scheme(s) of Arrangements (Para a(ii)(XIII)(Y)(xiii)) - Not Applicable NOTE 43 The company consider footwear and accessories as its single segment in which company operates.

NOTE 44 The previous year figures have been regrouped, rearranged and reclassified wherever necessary.

All the loans from HDFC Bank Limited are secured against hypothecation of Raw Material, Finished Goods, Stock in Process, Store & Spares, Packing Material and book debts, mortgage over fixed assets of the Company & mortgage of certain fixed assets of the related parties and personal guarantees of Directors and other related parties and residual charge over the immovable property of the company which are mortgaged for the term loans from HDFC Bank Limited carrying interest rate of @ 8.79% to 9.25%. Details of immovable asset which are mortgaged are as follows :-

(i) A-243(A), Road No.6, V.K.I. Area, Jaipur-302013(ii) SP-41D, RIICO Industrial Area, Kaladera, Tehsil Chomu, District Jaipur-303801

(ii) SP-41D, RIICO Industrial Area, Kaladera, Tehsil Chomu, District Jaipur-303801

(iii) E-20A, Kaushalya Path, Basant Marg, Bani Park, Jaipur-302016

(iv) G-1-685, Road No.9F2, V.K.I. Area, Jaipur-302013 (Owned in the name of Lawreshwar Footwears prop concern of Mr. Naveen Kumar Agarwal who is related party.)

(I) Term Loan-HDFC 84229932 is financed for '' 314.80 lakhs which is repayable in 67 equal monthly installment of '' 5,98,772 including interest started from Jan. 2020.

Mar 31, 2018

1 Corporate Information

Lawreshwar Polymers Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange in India. The company is engaged in manufacturing and selling of a reputed brand âLEHARâ footwears in domestic market.

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

*There had occurred a fire on 24.02.2008 at the registered office & factory premises of the company. The Insurance Company has passed the claim of the company and there was a shortfall of Rs. 186.75 lacs against the said claim. The company has not accepted the assessment of loss from insurances companies and has invoked the arbitration clause of the insurance contract. Out of this shortfall the company has received Rs. 75.00 Lacs from the insurance company, and no provision is made for the balance shortfall of Rs. 111.75 lacs as the company is of opinion that they will receive the balance amount of Rs. 111.75 lacs from the insurance companies.

**On 15th May 2016 a major fire has occurred at Kaladera Plant of the company, the said Plant as well as other Assets and Stock lying at the Kaladera factory are duly insured with the Insurance Company, the loss of Rs. 535.91 lacs w.r.t. Stock and Rs. 903.61 lacs w.r.t. Fixed Assets has been debited to Insurance Claim Receivable Account by crediting Inventory and Fixed Assets account respectively. The company has received on account payment of Rs. 350.00 Lacs from the insurance company. The company has submitted claim to insurance company and the same is under process.

Note 2.1 Terms/ Rights attached to Equity Shares

The company has only one class of Equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

Note 2.2 Details of Shareholders holding more than 5% equity shares in the Company

Note-3 Other Equity*

Description and nature of other equity:-

Security premium account : The security premium account is created on issue of share at premium.

Other Comprehensive Income: it represent the acturial gain or loss arising from the measurement of defined benefit obligation and changes in revaluation surplus due to revaluation of land.

Term Loan I from Punjab National Bank is secured against mortgage of factory land & building situated at SP-41D, RIICO Industrial Area, Kaladera, Teh-Chomu, Distt.-Jaipur registered in the name of the company, and G-1-685, Road No. 9F2, VKI Area, Jaipur-302013 registered in the name of Lawreshwar Footwear (related party) and also personal guarantee of directors and other related parties.

Term Loan - I of Rs. 9,21,00,000 sanctioned from Punjab National Bank is repayable in 84 equal monthly installments of Rs. 10,96,429 started from April 2015.

Term Loan from SIDBI is sanctioned of Rs. 4,00,0000 and amount disbursed Rs. 2,00,00,000 is secured against residual charge on movable and current assets of the company and personal guarantee of directors and other related parties, and is repayable in 36 monthly installments of Rs. 5,50,000 and one installment of Rs. 2,00,000 started from october 2015.

Term Loan II from Punjab National Bank is secured against mortgage of factory land & building situated at SP-41D, RIICO Industrial Area -, Kaladera, Teh-Chomu, Distt.-Jaipur registered in the name of the company, and G-1-685, Road No. 9F2, VKI Area, Jaipur-302013 registered in the name of Lawreshwar Footwear (related party) and also personal guarantee of directors and other related parties.

Term Loan - II of Rs. 1,50,00,000 sanctioned from Punjab National Bank is repayable in 34 equal monthly installments of Rs. 4,29,000 and one installment of Rs. 4,14,000 started from April 2017.

Buyers credit for capital goods from Punjab National Bank is secured against hypothecation of respective machineries imported under buyers credit and all other securities available for FB limit and term loan, and is converted into term loan from 20 April 2018 and bifurcated in long term and current maturity as per the quarterly principal EMI amounting to Rs. 11.55 lakh

Term loand from Capital First Limited is unsecured loan and amount sanctioned Rs.50 lakhs repayable in 18 EMI of Rs..311924

Deferred Vehicle loans are secured against hypothication of respective vehicles.

Note-4 Employee Benefit

(A) Defined Contribution Plan:-

(B) Defined Benefit Plan:-Gratuity

In accordance with the provisions of Payment of Gratuity Act, 1972, the company has defined benefit plan which provides for gratuity payment. The plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amounts are based on the respective employeeâs last drawn salary and the year of employment with the company. The gratuity plan is a unfunded plan.

These plans typically expose the Company to actuarial risks such as: Investment, Interest rate, longevity and salary risk:

Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the planâs debt investments.

Salary escalation risk : The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the planâs liability.

No other post-retirement benefits are provided to the employees.

The actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March 31, 2018 by a certified actuary of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

Assumptions:

The principal assumptions used for the purposes of the actuarial valuations are given below:

Leave Encashment

Compensated absence liability recognised as expense for the year is Rs. 6.67Lakhs (Previous Year Rs. 4.53 Lakhs). The above is based on actuarial valuation report. The report considers assumptions with respect to discount rates, salary escalation, retirement age, mortality, rate of leaving service, leave availment pattern, disability and other relevant factors. the method used is Projected unit Credit Method.

Note-5 Capital Management

The capital structure of the Company consists of net debt and total equity of the Company. The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through an optimum mix of debt and equity within the overall capital structure. The Companyâs risk management committee reviews the capital structure of the Company considering the cost oâ: capital and the risks associated with each class of capital.

Note-6 Related Party Disclosures

The Company has made the following transactions with related parties as defined under the provisions of Indian Accounting Standard-24 issued by the Institute of Chartered Accountants of India.

List of related parties with whom transaction have takenplace during the year along with the nature and volume of transaction is given below from 01.04.2017 to 31.03.2018.

Note 7: Financial Risk Management

Financial risk management policy and objectives

The key objective of the Companyâs financial risk management is to ensure that it maintains a stable capital structure with the focus on total equity to uphold investor, creditor, and customer confidence and to ensure future development of its business. The Company is focused on maintaining a strong equity base to ensure independence, security, as well as financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company.

Companyâs principal financial liabilities, comprise Borrowings from Banks, trade and other payables. The main purpose of these financial liabilities is to finance Companyâs operations and plant expansion. Companyâs principal financial assets include investments, trade and other receivables, deposits with banks and cash and cash equivalents, that derive directly from its operations.

Company is exposed to market risk, credit risk and liquidity risk.

The Companyâs Board oversees the management of these risks. The Companyâs Board is supported by senior management team that advises on financial risks and the appropriate financial risk governance framework for the Company. The senior management provides assurance to the Companyâs Board that the Companyâs financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Companyâs policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

i) Market risk

The sensitivity analysis in the following sections relate to the position as at 31 March 2018 and 31 March 2017. The sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risks.

a) Foreign currency risk

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. The company is exposed to foreign exchange risk arising from foreign currency transactions primarily to USD. Company do not enter into any derivative instrument in order to hedge its foreign currency risks.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change by 5% in USD exchange rates, with all other variables held constant.

b) Interest rate risk

Interest rate risk is the risk that changes in market interest rates will lead to change in interest income and expense for the Company. In order to optimize the Companyâs position with regards to interest income & expense and to manage the interest risk, the Company performs comprehensive interest risk management by balancing the proportion of fix & variable rate financial instruments.

Sensitivity analysis:

A change in 50 basis point in interest rate at the reporting date would have increase/(decrease) Profit or Loss by the amount shown below. This analysis assumes that all other variables, remain constant.

c) Commodity Risk

Commodity risk is defined as the possibility of financial loss as a result of fluctuation in price of Raw Material/Finished Goods and change in demand of the product and market in which the company operates. The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The company forecast annual business plan and execute on monthly business plan. Raw material procurement is aligned to its monthly/annual business plan and inventory position is monitored in accordance with future price trend.

ii) Credit risk

b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Companyâs treasury department in accordance with Companyâs policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Company monitors rating, credit spreads and financial strength of its counter parties. Company monitors ratings, credit spread and financial strength of its counter parties. Based on ongoing assessment Company adjust itâs exposure to various counterparties. Companyâs maximum exposure to credit risk for the components of balance sheet is the carrying amount as disclosed in Note 35.

Credit risk exposure

The following table shows the maximum exposure to the credit risk at the reporting date :

iii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow obligations without incurring unacceptable losses. Companyâs objective is to, at all time maintain optimum levels of liquidity to meet its cash requirements. Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including overdraft, debt from banks at optimised cost and cash flow from operations.

The table summarises the maturity profile of Companyâs financial liabilities based on contractual undiscounted payments .

Note-8 Pending Litigation

There are no pending litigation against the company which impact the financial position of the company.

Note -9 First Time Adoption of Ind AS

These are companyâs first standalone financial statements prepared in accordance with Ind AS. For the purposes of transition to Ind AS, the Company has followed the guidance prescribed in Ind AS 101 âFirst Time adoption of Indian Accounting Standardâ, with April 01, 2016 as the transition date and IGAAP as the previous GAAP.

The transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes thereto and accounting policies. The accounting policies set out in Note 2 have been applied in preparing the financial statements for the year ended March 31, 2018 anc the comparative information. An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs Balance Sheet and Statement of Profit and Loss, is set out in Note 37.2 and 37.3 Exemptions on first time adoption of Ind AS availed in accordance with Ind AS 101 have been set out in Note 37.1.

Note-10.1 Exemptions availed on first time adoption of Ind-AS 101

The Company has opted to consider the carrying value of all items of Property, plant & equipment recognised in the financial statement prepared under previous GAPP and use the same as deemed cost in the opening Ind AS balance sheet.

An entityâs estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for Impairment of financial assets based on expected credit loss model in accordance with Ind AS at the date of transition as these were not required under previous GAAP.

Explanations for reconciliation of Balance Sheet as previously reported under IGAAP to INDAS:-

1) The company has opted to revalue itâs investments at fair market value as per Ind AS-109. The company has also opted to consider all investments at fair value through other comprehensive income.

2) Certain assets and liabilities are regrouped / reclassified/ remeaured as financial/non financial assets or liabilities as per Ind AS requirements.

3) The impact of all Ind AS adjustements have been reflected in other equity.

4) Deferred tax impact on revaluation of land has been created as per Ind AS-12.

Note1 The company has revalued the land during the year and routed the revaluation surplus through other comprehensive income. The company has also created deferred tax liability on the said revaluation surplus. The company has reversed the revaluation done in earlier year on the building. 38

STANDARDS ISSUED BUT NOT YET EFFECTIVE

On March 28, 2018, Ministry of Corporate Affairs (âMCAâ) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 for following standards to be effective from 1 April 2018:

Ind AS 115 - Revenue from Contracts with Customers

Ind AS 115 will supersede the current revenue recognition guidance including Ind AS 18 Revenue, Ind AS 11 Construction Contracts and the related interpretations. Ind AS 115 provides a single model of accounting for revenue arising from contracts with customers based on the identification and satisfaction of performance obligations.

Ind AS 21, Foreign currency transactions and advance consideration:

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.

Application of above standards are not expected to have any significant impact on the Companyâs Financial Statements.

11. The previous yearâs figures have been regrouped, rearranged and reclassified to conform to current year Ind-AS presentation requirements.

Mar 31, 2016

1. Terms/Rights attached to Equity Shares

The company has only one class of Equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

Term Loan I from Punjab National Bank is secured against mortgage of factory land & building situated at SP-41D, RIICO Industrial Area Kaladera, Teh-Chomu, Distt.-Jaipur registered in the name of the company, and G-1-685, Road No. 9F2, VKI Area, Jaipur-302013 registered in the name of Larweshwar Footwear (related party) and also personal guarantee of directors and other related parties.

Term Loan -1 of Rs. 9,21,00,000 sanctioned from Punjab National Bank is repayable in 84 equal monthly installments of Rs. 10,96,429 started from April 2015.

Term Loan II from SIDBI is sanctioned of Rs. 4,00,0000 and amount disbursed up to 31.03.2016 Rs.2,00,00,000 is secured against residual charge on movable and current assets of the company and personal guarantee of directors and other related parties, and is repayable in 71 equal monthly installments of Rs. 5,50,000 and one installment of Rs. 9,50,000 started from October 2015.

* There had occurred a fire on 24.02.2008 at the registered office & factory premises of the company. The Insurance Company has passed the claim of the company and there is a shortfall of Rs. 1,86,74,521 against the said claim. No provision is made for the same, as the company has not accepted the assessment of loss from insurances companies and has invoked the arbitration clause of the insurance contract and company is of opinion that they will receive the balance amount of Rs. 1,86,74,521 from the insurance companies.

Book debts, advances, creditors, unsecured loans from customers etc. have been taken at their book value and are subject to confirmations and reconciliation.

Loans and advances and debtors have been considered good and in respect of which the company holds no security other than the personal guarantee of the person concerned.

2. Earnings Per Share (EPS)

The Company report Basic and Diluted earnings per share (EPS) in accordance with Accounting Standard - 20 issued by the Institute of Chartered Accountants of India. The Basic EPS has been computed by dividing the income available to equity shareholders by the weighted average number of equity shares outstanding during the accounting year. The Diluted EPS have been computed using the weighted average number of equity shares and Diluted potential equity shares outstanding at the end of the year.

3. Disclosure under AS-15 (Revised) - Employee Benefits

Provision has been made for employee benefits gratuity, leave encashment and other benefits in accordance with AS-15 (Revised) on the basis of actuarial valuation.

4. Segment Information

The Board of Directors of the Company considers and maintains Footwear as the only Business Segment of the Company.

5. Related Party Disclosures

The Company has made the following transactions with related parties as defined under the provisions of Accounting Standard-18 issued by the Institute of Chartered Accountants of India.

List of related parties with whom transaction have taken place during the year along with the nature and volume of transaction is given below from 01.04.2015 to 31.03.2016.

6. There are no pending litigations against the company which impact the financial position of the company.

7. Previous yearâs figures have been restated/regrouped wherever considered necessary.

8. Figures are rounded off to the nearest rupee.

9. Loss By Fire

On 15th May 2016 a major fire has occurred at Kaladera Plant of the company, the said Plant as well as other Assets and Stock lying at the Kaladera factory are duly insured with the Insurance Company.

Mar 31, 2015

1 Corporate Information

Lawreshwar Polymers Limited (the company) is a public company domiciled in India and incorporated under' the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange in India. The company is engaged in manufacturing and selling of a reputed brand "LEHAR" footwears in domestic market.

2 Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting policies in India (Indian GaAp). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevent provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis under the historical cost convention, expect for land and building acquired before 31 March 2005 which are carried at revalued amounts.

The accounting policies adopted in the preparation of financial statements are in consistency with those of previous years.

3. Terms/ Rights attached to Equity Shares

The company has only one class of Equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Term Loan I from Punjab National Bank was secured against mortgage of factory land & building situated at SP-41D, RIICO Industrial Area, Kaladera, Teh-Chomu, Distt.-Jaipur.

Term Loan II from Punjab National Bank is secured against mortgage of factory land & building situated at SP-41D, RIICO Industrial Area Kaladera, Teh-Chomu, Distt.-Jaipur registered in the name of the company, and G-l-685, Road No.9F2, VKI Area, Jaipur-302013 registered in the name of Lawreshwar Footwear (related party).

Term Loan - II of Rs. 9,21,00,000 sanctioned from Punjab National Bank and amount disbursed upto 31.03.2015 Rs. 6,21,00,000, and is repayable in 84 equal monthly installmets of Rs. 10,96,429 start from April 2015.

Term Loan III of Rs. 4,00,0000 sanctioned from SIDBI and amount disbursed up to 31.03.2015 Rs.2,00,00,000 is secured against residual charge on movable and current assets of the company, and is reapyable in 71 equal monthly instalments of Rs. 5,50,000 and one installment of Rs. 9,50,000 start from October 2015.

Buyers credit for capital goods from Punjab National Bank is secured against hypothecation of respective machineries imported under buyers credit and all other securities available for FB limit and term loan, and is repayable after maximum of 3 years.

4. Cash Credit Limit from Punjab National Bank is secured against hypothecation of Raw Material, Finished Goods, Stock in Process, Store & Spares, Packing Material and book debts, mortgage over fixed assets of the Company & mortgage of certain fixed assets of the related parties and personal guarantees of Directors and other related parties.

5. The Company has not received any intimation from suppliers regarding their status under the Micro, Small & Medium Enterprises Act 2006, hence disclosu res, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said act could not be furnished, however the management does not anticipate any significant interest liability.

6. There had occurred a fire on 24.02.2008 at the registered office & factory premises of the company. The Insurance Company has passed the claim of the company and there is a shortfall of Rs. 1,86,74,521 against the said claim. No provision is made for the same, as the company has not accepted the assessment of loss from insurances companies and has invoked the arbitration clause of the insurance contract and company is of opinion that they will receive the balance amount of Rs. 1,86,74,521 from the insurance companies.

Book debts, advances, creditors, unsecured loans from customers etc. have been taken at their book value and are subject to confirmations and reconcilation.

Loans and advances and debtors have been considered good and in respect of which the company holds no security other than the personal guarantee of the person concerned.

7. Earning Per Share (EPS)

The Company report Basic and Diluted earning per share (EPS) in accordance with Accounting Standard - 20 issued by the Institute of Chartered Accountants of India. The Basic EPS has been computed by dividing the income available to equity shareholders by the weighted average number of equity shares outstanding during the accounting year. The Diluted EPS have been computed using the weighted average number of equity shares and Diluted potential equity shares outstanding at the end of the year.

8. Disclosure under AS-15 (Revised) - Employee Benefits

Provision has been made for employee benefits gratuity, leave encashment and other benefits in accordance with AS-15 (Revised) on the basis of actuarial valuation.

9. Segment Information

The Board of Directors of the Company considers and maintains Footwear as the only Business Segment of the Company.

10. Related Party Disclosures

The Company has made the following transactions with related parties as defined under the provisions of Accounting Standard-18 issued by the Institute of Chartered Accountants of India.

List of related parties with whom transcation have taken place during the year along with the nature and volume of transaction is given below from 01.04.2014 to 31.03.2015.

11. Contingent Liabilities and Commitments

31/3/2015 31/3/2014

Contingent liabilities

Income Tax Demand against which the 82340 104433 company has filed anappeal (AY 2012-13) (AY 2005-06) before higher authority

Claims against the company / disputed liabilities not acknowledged as debts Nil Nil

Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for 15000000 Nil

12. There are no pending litigations against the company which impact the financial position of the company.

13. Previous years figures have been regrouped and rearranged wherever considered necessary.

14. Figures are rounded off to the nearest rupee.

Mar 31, 2014

1. Corporate Information

Lawreshwar Polymers Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act. 1956. Its shares are listed on Bombay Stock Exchange in India. The company is engaged in manufacturing and selling of a reputed brand "LEHAR" footwears in domestic market

2. Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting policies in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevent provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis under the historical cost convention, expect for land and building acquired before 31 March 2005 which are carried at revalued amounts.

The acounting policies adopted in the preparation of financial statements are in consistency with those of previous years.

3. Terms/ Rights attached to Equity Shares

The company has only one class of Equity shares having a par value of Rs. 10 per share Each holder of equity shares is entitled to one vote per share

In the event of liquidation of company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares hold by the shareholders.

4. * Cash Credit Limit from Punjab National Bank is secured against hypothecation of Raw Material, Finished Goods, Stock in Process, Store & Spares, Packing Material and book debts, mortgage over fixed assets of the Company 8. mortgage of certain fixed assets of the Directors & other related parties and personal guarantees of Directors and other related parties.

** Raw Material Assistance Scheme from NSlC is secured against bank guarantee which is secured by counter indeminity of the Company

The Company has not received any intimation from suppliers regarding their status under the Micro, Small & Medium Enterprises Act 2006, hence disclosures if any, rotating to amounts unpaid ns at the year end together with interest paid / payable as required under the said act could not be furnished, however the management does not antcipate any significant interest liability.

5. There had occurred a fire on 24.02.2008 at the registered office & factory premises of the company. The Insurance Company has passed the claim of the company and there is a Shortfall of Rs. 1,86,74,521 against the said claim. No provision is made for the same, as the company has not accepted the assessment of loss from insurances companies and has invoked the arbitration clause of the insurance contract and company is of opinion that they will receive the balance amount of Rs 1,86,74,521 from the insurance companies.

Book debts, advances, creditors, unsecured loans from customers etc, have been taken at their book value and are subject to confirmation and reconsilation.

Loans and advances and debtors have been considered good and in respect of which the company holds no security other than the personal guarantee of the parson concerned

6. Earning Per Share (EPS)

The Company report Basic and Diluted carning per share (EPS) in accordance with Accounting Standard 20 caused by the Institute of Chartered Accountants of India. The Basic EPS has boon computed by dividing the income available to equity shareholders by the weighted average number of equity shares outstanding during the accounting year. The Diluted EPS have been computed using the weighted average number of equity shares and Diluted potential equity shares outstanding at the end of the year

7. Disclosure under AS-15 (Revised) - Employee Benefits

Provision has been made for employee benefits gratuity, leave encashment and other benefits in accordance with AS-15 (Revised) on the basis of actuarial valuation

8. Segment Information

The Board of Directors of the Company considers and maintains Footwear as the only Business Segment of the Company.

9. Contingent Liabilities and Commitments 31/3/2014 31/3/2013

Contingent Liabilities

Income Tax Demand for the AY 2005- 06 against which the company has filed an appeal before higher authority 104433 104433

Claims against the company / disputed liabilities not acknowledged as debts Nil Nil

Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Nil Nil

10. Utilsation of money raised through Public Issue

The Company has fully deployed IPO Proceeds as per the offer document and revised capital expenditure plan as passed is AGM held in 2010.

11. Previous years figures have been regrouped and rearranged wherever considered necessary.

12. Figures are rounded off to the nearest rupee

Mar 31, 2013

1 Corporate information

Lawreshwsr Polymers Limited (trie company) is a public company domiciled in India end Incorporated under the provisions Of Ehc CunvartioS Act, 1956. US share* are istod on Bombay Stock Exchange in India. ThE Company is snogged in manuraclunng and sellng of a repuled brand "LEHAK" fool wears In domestic market.

2 Basis of Preparation

The financial statements of (he company have been prepared in accordance with generaly accepted accounting policies in 3rK)ia (Ind^n GAAP} The Company has prepared (hew fnyncial sUHomenls Lo comply n all mytchal respects with the accounting standards notified under tne Companies {Accounting Standards) Rules, 2006. fas amended) and the relevant provisions of the Companies Act, 1956. The Financial statements have been prepared on an accrual basis under tne historical cost contention, expect toe land and building acquired before :il March 20D5 which are earned at revalued amounts

The aoountmg policies adopted In tne preparation of financial statements are In consistency wllh those of previous years.

3 Dlsctosure under AS-15 (KwtssdJÂEmployee Benefits

PTOvfelon has been made fo* employe*? beneftts araluHy. leave encashment and other benefits In accordance wlm AS-lA (Reprised) an ina basis or actuarial wsJuaLlo
Gratuity and Leave Encashment

The inlryfflnQ mbln fwls jj*H Itin ulaHjp nfttifl rinrfmnTri gratuity plnn nncl cfcjfjn*d leawj cnrflshnnail plan>

4 SogiTHnt InfotmaUon

T h*: Board of Olfeciors
Ralattrd Party DltclosufB*

Tho Campany has made? tho rodotNlng transactions with related parties as defined under the- provisions of Acoounig

5 Previous yeafs figures nava Dean regrouped and rearranged wtie^ever considered necessary. Figures are rounded nFF to ihe nearest rupee.

Mar 31, 2010

1. Contingent Liabilities not provided for:

a) income Tax Demand of Rs. 1,04,433/-for the assessment year 2005-06 against which the company has filed an appeal with higher authority. 0) Estimated amount of Contracts remaining to be executed on capital account not provided for Rs. Nil (Previous Year: Nil).

2. Book debts, advances, creditors, unsecured loans, deposits from customers etc. have been taken at their book value and are subject to confirmations and reconciliation.

3. Loans and advances and debtors have been considered good and in respect of which the company holds no security other than the personal guarantee of the person concerned.

4. Provision of Income tax has been computed on the basis of Minimum Alternate Tax (MAT) in accordance with Section 115JB of the Income Tax Act. 1961. Considering the future profitability and taxable positions in the subsequent years, the company has recognized MAT Credit Entitlement of Rs. 13.85,988/- as an assets by crediting to the Profit and Loss Account and included under Loans and Advances in accordance with the guidance note on Accounting for credit available In respect of Minimum Alternate Tax under Income Tax Act. 1961 issued by the Institute of Chartered Accountants of India.

5. Disclosure under AS-15 (Revised) -Employee Benefits

Provision has been made for employee benefits gratuity, leave encashment and other benefits In accordance with AS-15 (Revised) on the basis of actuarial valuation.

a) Provident Fund

Retirement benefit in the form of Provident Fund is defined contribution scheme and the contributions are charged to Profit & Loss Nc of the year when the contributions to the respective fund are due. There is no other obligation other than the contribution payable to the respective trusts.

6. Seament Reporting - AS 17 The Board of Directors of the Company considers and maintains Footwear as the only Business Segment of the Company.

7. Related Party Transactions - AS 18

The Company has made the fallowing transactions with related parties as defined under the provisions of Accounting Standard-18 issued by the Institute of Chartered Accountants of India.

8. During the year 2006-07 government of India has promulgated an Act namely "The Micro, Small 8 Medium Enterprises Development Act 2006 which comes into force with effect from October 2, 2006. As per the act, the company is required to Identity the Micro & Small Enterprises & pay them interest on over due beyond the specified period irrespective of the terms agreed with the enterprises. The company has initiated the process of identification of such suppliers. in view of No. of suppliers & no receipt of critical Inputs & response from several such potential parties, the liability of Interest cannot be reliable estimated nor can required disclosure be made. Accounting in the regard will be carried out after process is complete and reliable estimate can be made in this regard Since the company is regular in making payments to all suppliers, the management does not anticipate any significant interest liability.

9. Some of the Vehicles are in the name of the directors, which are yet to be transferred.

10. Capital Work in Progress includes Advence for Showroom Rs. 1,12,20,895(Previous Year Rs. 89,27,803).

11. a) There had occurred a fire on 24.02,2008 at the registered office 8 factory premises of the company, during the year under review the Insurance Company has passed the claim of the company and there is a shortfall of Rs. 1,86,74.521 against the said claim. No provision is made for the same, as the company has not accepted the assessment of loss from insurances companies and has invoked the arbitration clause of the insurance contract and company is of opinion that they will receive the balance amount of Rs. 1,86,74,521 from the insurance companies.

b) The Company also holds "Loss of Profit policy and the company has lodged its claim of Rs. 140.89 Lacs against this policy during the month of May 2009 but assessment of loss is under process with surveyor, therefore, the company has decided to take no effect of Loss of Profit policy in current year results, and accounting for the same will be dona after assessment of loss by the surveyor. c) There had occurred a fire on 26-10-2009 at the leased unit of the company at F-263, Road No. 13, VKl Area, Jaipur. The leased unit of the company was fully Insured by the Oriental Insurance Company Ltd, the loss of Rs 148.49 lacs w.r.t. Stock and Rs. 24,18 lacs w.r.t. Fixed Assets has been debited to appropriate accounts. The surveyor has assessed Rs. 123.27 Lacs agaist claim for stock and the same has been debited to the Oriental Insurance Company Ltd .shown under the head Loans and Advances In the Balance Sheet, and balance of Rs. 25.22 Lacs has booked as Loss by Fire. The assessment of loss for fixed assets is under process

12. Sundry Creditors include Re. 71.40.063 (Previous Year 46.75,297) due to small scale industrial undertaking to the extent such parties have been Identified from available Information and Rs. 25182307- (Previous Year 10566081 )due to the creditors other than small scale industrial undertaking. The company has agreement of payment within 120 days with Small Scale Industries suppliers, and there is no outstanding amount above 120 days. Therefore, there is no need to make provision for interest due to SSI Suppliers.

13. The Company has partially deployed the IPO Proceeds as per the offer document and revised capital expenditure plan as passed is last AGM. Balance Proceeds will be utilized in the next financial year in accordance with the details as per offer document and revised capital expenditure program. Pending such utilization. Unutilized money has been deposited with bank as FDR or given as Inter Corporate Deposit to corporates for short term on interest.

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

Mar 31, 2009

1. Contingent Liabilities not provided for:

a) Income Tax Demand of Rs. 1,04,433/-f or the assessment year 2005-06 against which the company has filed an appeal with higher authority.

b) Estimated amount of Contracts remaining to be^ejcecuted on capital account not provided for Rs. Nil (Previous Year. 145.47 lacs).

2. Book debts, advances, creditors, unsecured loans, deposits from customers etc. have been taken at their book value and are subject to confirmations and reconciliation.

3. Loans and advances and debtors have been considered good and in respect of which the company holds no security otner than the personal guarantee of the person concerned.

4. Provision of income tax has been computed on the basis of Minimum Alternate Tax (MAT) in accordance with Section 115JBof the Income Tax ACT 1961. Considering the future profitability and taxable positions in the subsequent years, the company has recognized MAT Credit Entitlement of Rs. 76,688/- as an assets by crediting to the Profit and Loss Account an equivalent amount and included under Loans and Advances in accordance with the guidance note on Accounting for credit available in respect of Minimum Alternate Tax under Income Tax Act, 1961 issued by the Institute of Chartered Accountants of India.

5. Disclosure under AS-15 (Revised) Employee Benefits Provision has been made for employee benefits gratuity, leave encashment and other benefits in accordance with AS-15 (Revised) on the basis of actuarial valuation.

a) Provident Fund

Retirement benefit in the form of Provident Fund is defined contribution scheme and the contributions are charged to Profit & Loss A/c of the year when the contributions to the respective fund are due. There is no other obligation other than the contribution payable to the respective trusts.

b) Gratuity and Leave Encashment

The following table sets out the status of the defined gratuity plan and defined leave encashment plan:-

6 Segment Reporting AS17

The Board of Directors of the Company considers and maintains Footwear as the only Business Segme?. *jf the Company.

7. Related Parly Transactions AS 18

The Company has made the following transactions with related parties as defined under the provisions of Accounting Standard-18 issued by the Institute of Chartered Accountants of India.

List of related parties along with the nature and volume of transaction is given below from 01.04.2008 to 31.03.2009.

8. During the year 2006-07 government of India has promulgated an Act namely "The Micro, Small & Medium Enterpnses Development Act" 2006 which comes into force with effect from October 2,2006. As per the act, the company is required to identify the Micro & Small Enterprises & pay them interest on over due beyond the specified period irrespective of the terms agreed with the enterprises. The company has initiated the process of identification ol such suppliers. In view of No. of suppliers & no receipt of critical inputs & response from several such potential parties, the liability of interest cannot be reliable estimated nor can required disclosure be made. Accounting in theregard will be carried out after process is complete and reliable estimate can pe made in this regard. Since the company is regular in making payments to all suppliers, the management does not anticipate any significant interest liability.

9. Some of the Vehicles are in the name of the directors, which are yet to be transferred.

10. Capital Work in Progress includes Advance for Office Rs. 60,96,140 (Previous Year Rs. 55,97,756) & Advance for Showroom Rs. 69,27,603 (Previous YearRs. 83,99.054).

11. a) There had occurred a fire on 24.02.2006 at the Registered office and factory premises of the company. Stock worth Rs. 409.26 Lacs was destroyed in fire. The Company has lodged claim towards this loss (Based on Reinstatement Cost). The said claim is under process with the Insurance Company and Rs. 49.88 Lacs have been received from the Insurance company and the balance is to be received after finalization of this insurance claim. The company has debited this amount of Rs. 409.26 lacs to insurance Claim Receivable Account and balance of Rs. 359.37 lacs and has shown the same under the head Current Assets in the Balance Sheet.

a) The Company also hoids "Loss of Profit policy and the company has lodged its claim of Rs. 140.89 Lacs against this policy during the month of May 2009, however, because of uncertainty attached with the amount of claim the company has decided to take no effect of Loss of Profit policy in current year results. Accounting for the same wilt be done after passage of the same by the Insurance Company.

b) Certain items of Plant & Machinery, Building and othe* assetswere also destroyed in the fire. The company is fully insured against such loss and the insurance policy is based on "Reinstatement Cost". The company has lodged claim towards this ioss(Based on Reinstatement Cost). The said less is under process with insurance company and pending finalization of this insurance claim. The above claim has debited in Insurance Claim receivable and shown the same under the head Current Assets in the balance sheet.

12. Additional information pursuant to the paragraphs 3 and 4 of part II of the schedule VI of companies Act, 1956 is NIL or none except to the extent gven below:

13. Sundry Creditors include Rs. 4675297/- (Previous Year S164329) due to small scale industrial undertaking to the extent such parties have been identified from available information and Rs. 25182307/- (Previous Year 10566081) due to the creditors other than small scale Industrial undertaking. The company has agreement of payment within 120 days with Small Scale Industries suppliers, and there Is no outstanding amount above 120 days. Therefore, there is no need to make provision for interest due to SSI Suppliers.

14. During the year the company has sold 2% shares of its subsidiary company Lawreshwar Footcare P. Ltd., reducing its shareholding to 49% in the said company. Hence, w.e.f. 1* April, 2008 Lawreshwar Footcare P. Ltd does not remain a subsidiary of Lawreshwar Polymers Limited and w.e.f. 1* April, 2008 there exists a lease agreement with Lawreshwar Footcare P. Ltd. & all terms and conditions of lease agreement are duly signed by authorized persons and payment of lease rent and interest has been made as per agreement.

15. The Company has partially deployed the IPO Proceeds as per the offer document and revised capital expenditure plan as passed is last AGM. Balance Proceeds will be utilized in the next financial year in accordance with the details as per offer document and revised capital expenditure program. Pending such utilization, Unutilized money has been deposited with bank as FDR or given as Inter Corporate Deposit to corporates for short term on interest.

16. The Company has taken factory Land & Building of Lawreshwar Footcare Pvt. Ltd. (Including Plant & Machinery, Furniture & fitting, therein as applicable) under operating lease agreement. This Is non cancelable for a period of 10 (Ten) years and is renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposit in accordance with the agreed terms. The lease payments amounting to Rs. 9,60,000/- (Previous year Rs. Nil) are recognized in the profit & loss A/c under manufacturing expenses under schedule 14.

17. Previous years figures have been regrouped and rearranged wherever considered necessary.

18. Figures are rounded off to the nearest rupee.

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