Notes to Accounts of Shanti Spintex Ltd.

Mar 31, 2025

The Authorised Share Capital of the Company has been .aised from Rs.10 acres consisting of 100.00,000 Equity shares ofRs. 10 .up to Rs. 20 cores cons.sl.ng ot wi.uu.uuu tquii) shares ofRs. 10 each with the approval ofShaidioldcrs in their meeting held on 20th June. 2023.

(a) Terms / Rights attached to Equity Shares

The Company has only one elan of Equity Shn.es having n par value or NO per share. Each holder or equity shares is enri.led lo one vole per share. Any shareholder ohose name rs entered in the Register of Members or the Company shall enjoy the same rights and be subject lo the same liabilities as all other shareholders or lltc same elass.

In die event or liquidation or die Company. Equity Shareholders will be entitled lo tcecive remaining assets or die Company, ntler distribution oT nil preferential amounts. Tire distribution will be in proportion lo the number of the equity sliaics held by the shareholders.

(B) (1) Primary Security with Bunk Tor Term Loan I, Term Loan 2 and GECL

(ii) Primary Security with Bank fur Term Loan 3 (Wind Mill)

H\poihcticaiion of Stock & Receivables

Hypothecation or Plant & Machinery located at Weaving Unit I. Survey No. 297. Dlioli Integrated Spinning Park Ltd.. Dholka.

Almtcdabad-382240. Gujarat

ilypotheticnlion or Wind Mill and related Pland & Machinery Purchased out of the Bank Finance located at 217/1, Taluka.Savar Kuiidla, Amrcli

(C) Collateral Security with Bank fur Term Loan 1, Term Loan 2 and GECL and Term Loan 3(\Vind Mill)

(i) Equitable Mortgage over immovable propcity at Plot No. 544 owned by Mis. Krishna Tratiers & 545 owned by M/s. Star 1 ruders admeasuring

644sq. Yards each located at Survey No. l38.Vraj Garden. Nr. 200 Feet Ring Road and Sltanli Asiatic School Road. Sanand. Ahmednbad -380058 .

(ii) Equitable Mortgage over Factory Land and Building (admeasuring 8060.36 sqft. Metetes) at Weaving Unit I. Survey No. 297,

Dlioli Integrated Spinning Paik. Dholka. Ahmednbad -382240

(iii) Equitable Mortgage over Immovable property (admcosui ing 598 sq. mtis.) at Flat No./ Plot No.: Unit no. 330. Survey No. / House No.

Block No. 161. Vraj Garden. Akslint C.L Society Ltd., behind Applcvvoods Sclrciuc. Near Salinra City. Ahmedabad -380058 Owned by Vcdpiakash Chiripal

LEASE EXPENSES

Operating Lease: Rental is expenses with reference to lease terras and other considerations

(a) The company has taken on sub-lease land at Village Likhala.TalukaSavar Kundla, District Amreli, owned by Government of India and leased by Gujrat Fluorochemicals .The total lease rent paid on the same amounting to Rs. 15000/-and taken on lease w.e.f. .29.12.2021

(b) The company has taken on lease land at Survey No. 402, Dholi Integrated Spinning Park Limited from Dholi Integrated Spinning Park Limited. The total lease rent paid on the same amounting to Rs. 4330/-and taken on lease w.e.f. 21-09-2015.

Note: 37 Provision for current year''s income tax aggregating Rs. 330.00 Lakhs/-(P.Y. Rs. 348.00 Lakhs/-) has been made on

estimated basis for the accounting year ended on 31.03.2025. The actual tax liabilities of the company will be determined on the basis of taxable income of the company for F.Y year 2024-25

Note: 38 During F.Y.2023-24 .Company was converted from closely held to Public Limited Company on 18.08.2023 and had

completed its Initial Public Offering ("lPO")of 26,88,000 new equity share of face value of Rs.10/- each at premium of Rs.60/- per equity share aggregating to Rs.1881.60 Lakhs and offer for sale number of equity shares 17,76,000 of face value of Rs.l 0/- each at premium of Rs.60/. expenses related to IPO Rs.136.28, Lakhs /- was debited against securities premium Account as per Section 52 of Companies Act,2013. Pursuant to the IPO, the equity shares of company have to got listed on the SME Platform of BSE on 27th December, 2023.

Note:39 Others

39.1 In the opinion of the Board, all the current assets, Loans and advances have a value on the realization in the ordinary course of the business at least equal to the amount at which they are stated.

39.2 Balances of sundry debtors, sundry creditors and loans and advances etc., are subject to confirmation and reconciliation, and consequential adjustment, if any.

39.3 Previous year figures have been regrouped/ rearranged so as to make them comparable with current year''s figures.

Note; 42 Segment Reporting

For Management Purpose, the Company is currently organised into two major operating activities -1) Textile Manufacturing and 2) Renewable energy : Windmill Operations and rooftoop solar energy .These divisions are the basis on which the Company reports its primary segment information

(i) Segment assets and liabilities:

Company is having two segments of business, Assets and Liabilities are bifurcated segment wise.

(ii) Segment revenue and expenses

Segment revenue and expenses are taken directly as attributable to the segment. It does not include interest income on interdeposits, Profit on sale of investments, Interest expense, Provision for Contingencies and Income-tax.

The company operates primarily in India and there is no other significant geographical segment

Note: 43 Other Statutory Disclosure

43.1 (a)There is no such property wherein there is an issue with the tiltle, hence the title deeds related disclosures are not given

(b) The company does not have any investment in property hence, comment related to revaluation Is not made

(c) During the year, the company has not revalued it''s intangible assets or any asset of Property, Plant & Equipment, hence, disclosure related to revaluation is not made

(d) The company has given loans and advances which are either repayable on demand or are without specifying any terms or period of repayment. The disclosures related to loans and advances given to related party are given

43.3 The company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

43.5 The company is not declared a wilful defaulter by any bank or financial Institution or other lender.

43.6 The company does not have any transactions with struck off Companies.

43.7 There is no registration of charge or satisafaction /modification of charge which is required to be registered with ROC is pending.

43.8 Company has complied with with the number of layers prescribed under clause (87) of section 2 of the Art read with the Companies (Restriction on number of Layers) Rules, 2017

43.9.1 DEBT-Equity Ratio: Due to Prepayment of Debt by 38.44 % (Rs. 854 Lakhs) and Increase in Equity and Reserve and Surplus by 11.79% (Rs. 1020.01 Lakhs)

Return on Equity Ratio: Due to Derease in Profit after Tax 21.61%

Trade Receivable turnover ratio : Increase in Sales by 40.35% and Decrease in Debtors by 23.20%

Trade payables turnover ratio : Increase in Purchase by 47.79% and Decrease in Creditors by 25.35%

Net Capital Turnover Ratio : Increase in Sales by 40.35 % and Increase in Working Capital gap by 76.06% Net Profit Ratio : Decrease in Net Profit by 21.61% and Increase in Sales by 40.35%

Return on capital employed : Due to Decrease in Profit 21.61%

43.10 During the year, company has not entered in any scheme of arrangements as specified in Section 230. to Section 237 of the Companies Act,2013

43.12 The company has not received any fund from any person(s) or entity(ies), including foreign entities [Funding Party) with the understanding [whether recorded in writing or otherwise) that the company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

43.13 The company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

43.14 During the year the Income Tax department has made order u/s 147 on 28.03.2025 for Assessment year 2021-22 raising the demand of Rs.7.57 Lakhs however management is refering rectification application u/s 154, Management is of the view that substential demand raised will be reduced, leaving no material liability for tax payble hence no provision has been made in the account during the year. During the Preceeding year u/s 147 & u/sl43(3) for Assessment Year 2022-23 on 31.03.2024, raised the demand of Rs. 6.78 Lakhs for Assessment year 2022-23 , the company has filed an appeal with Income Tax department before CIT-A for Assessment year 2022-23. In view of preffering appeal no provision have been made of tax & interest payable total amounting to Rs. 6.78 Lakhs has been made in the accounts. Till date the appeal is pending for hearing.

2) Further the company has received notice U/S 148 for assesment of the company for A.Y.2016-17. The scrutiny proceeding and proceddings U/S 148 have been initiated pursuant to a search & seizure operation carried by the Income Tax Authorities on Chiripal Groups and their key person on 20.07.2022 in which our company''s has been mentioned warrant. In the opinion of management prima facie the Company does not expect additional liability as a result of scrutiny assessment, hence no provision has been made by the Comapany.

43.15

The Company has complied with the provision of section 135 of the Companies Act,2013. l)Amount required to be spent by Company during the year Rs.24,00,000/-.

2A)Amount of expenditure incurred Rs.11,00,000/- payment made to Arya Foundation having project of Rural development Feed to needy people Women empoerment and Helath environment programs Old age welfare Poor people help. 2B) Amount of expenditure Incurred Rs.11,00,000/- payment made to Ekal Shree Hari Vanvasi Foundation havinfgproject of upliftment of pur tribal Brothers and Sisters in about 1,12,624 villages in various part of our country through Panchmukhi Shiksha.

2C) Amount of expenditure incurred Rs.2,00,000/- payment made to Shree Vishvas Seva Trust having project of devloping on spreading eduction of drug addiction in youth across India. 3) Short

fall at to end of the year Rs. Nil/-(P.Y. Nil)

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Mar 31, 2024

2.17 Provisions:-

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an out flow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to present value and are determine based on best estimate required to settle the obligations at the balance sheet date these are review at each balance sheet date and adjusted to reflect the best estimates.

2.18 Contingent Liabilities:-

Contingent Liabilities are determined on the basis of available information and explanations given to us and are disclosed by way of note to the accounts, if any.

(B) (i) Primary Security with Bank for Term Loan 1, Term Loan 2 and GECL

Hypotheticat Hypo thetication of Stock & Receivables

Hypothecate Hyp othecation of Plant do Machinery locate d at Wesving Unit 1, Survey N o. 297, Dholi Integrated Spinning Pork Ltd., Dholka, Ahmedabad-382240, Gujarat

(ii) Primary Security with Bank for Term Loan 3 (Wind Mill)

Hypothetication of Stock & Receivables

Hypothecation of Plant & Machinery located at Weaving Unit 1, Survey No. 297, Dholi Integrated Spinning Park Ltd., Dholka, Ahmedabad-382240, Gujarat

Hypothetication of Wind Mill and related Pland & Machinery Purchased out of the Bank Finance located at 217/1, Toluka,Savor Kundla, Amreli

(C) Collateral Security with Bank for Term Loan 1, Term Loan 2 and GECL and Term Loan 3(Wind Mill)

(i) Equitable Mortgage over immovable property at Plot No. 544 owned by M/s. Krishna Traders & 545 owned by M/s. Star Traders admeasuring 644sq. Yards each located at Survey No. 138,Vraj Garden, Nr. 200 Feet Ring Road and Shanti Asiatic School Road, Sanand, Ahmedabad -380058

(ii) Equitable Mortgage over Factory Land and Building (admeasuring 8660.36 sqft. Meteres) at Weaving Unit 1, Survey No. 297,

Dholi Integrated Spinning Park, Dholka, Ahmedabad -382240

(iii) Equitable Mortgage over Immovable property (admeasuring 598 sq. mtrs.) at Flat No./ Plot No.: Unit no. 330, Survey No. / House No.

Block No. 161, Vraj Garden, Akshat C.J. Society Ltd., behind Applewoods Scheme, Near Sahara City, Ahmedabad -380058 Owned by Vedprakash Chiripal

(iv) Pledge of Fixed Deposit Receipt of Rs.170.00(Previous year Pledge of units 741048 of SBI corporate bond fund amounting to Rs. Rs. 200,.00 ) (Refer Note No. 13 & Note No. 20.2)

Note: 31 LEASE EXPENSES

Operating Lease : Rental is expenses with reference to lease terms and other considerations

(a) The company has taken on sub- lease land at Village Likhala, Taluka Savar Kundla, District Amreli, owned by Government of India and leased by Gujrat Fluorochemicals . The total lease rent paid on the same amounting to Rs. 0.15 and taken on lease w.e.f. .29.12.2021

(b) The company has taken on lease land at Survey No. 402, Dholi Integrated Spinning Park Limited from Dholi Integrated Spinning Park Limited. The total lease rent paid on the same amounting to Rs. 0.04 and taken on lease w.e.f. 21-09-2015.

Note No. 33 Note No 33.1 During the Financial Year 2016-17 the company has provided depreciation on Air Jet Looms and ancillary machineries relying on the Chartered Engineers S.K. PATEL certificate considering the useful life of 10 years instead of 15 years as provided in Schedule II of Companies Act,2013. During the F.Y2022-23 the company has decided to provide depreciation on Air Jet Looms and ancillary machineries considering the life of 25 years relying on chartered engineers Mukesh Shah report and board resolution dated 01-04-2022. Accordingly excess depreciation provided in earlier period from 2016-17 to 2021-22 amounting to ^ 1272.94 (Phase I ^ 716.73 and Phase II ^ 556.21) has been credited to balance of profit & loss account as on 01-04-2022 under the head Reserves & Surplus and debited to respective assets account. (Refer Note No. 4.1 & 12.1 )

Note No 33.2 Further due to change in life of assets during the F.Y. 2022-23 depreciation is charged less by ^258.27 to Statement of Profit & Loss and disclosed more profit by ^ 258.27 for F.Y. 2022-23 cosidering of life of assets have not been changed. (Refer Note No.4.2 & 12.2)

Note No 33.3 The deferred tax liability arose due to such change pertaining to prior period adjustment is being given effect in Reserve & Surplus.

Note 38: Provision for current year’s income tax aggregating Rs. 348.00 (P.Y. Rs. 255.73) has been made on estimated

basis for the accounting year ended on 31.03.2024. The actual tax liabilities of the company will be determined on the basis of taxable income of the company for F.Y year 2023-24

Note 39: During F.Y.2023-24 ,Company was converted from closely held to Public Limited Company on 18.08.2023 and

had completed its Initial Public Offering ("IPO")of 26,88,000/- new equity share of face value of Rs.10/- each at premium of Rs.60/- per equity share aggregating to Rs.1881.60 and offer for sale number of equity shares 17,76,000 of face value of Rs.10/- each at premium of Rs.60/ . expenses related to IPO Rs.136.28 was debited against securities premium Account as per Section 52 of Companies Act,2013. Pursuant to the IPO , the equity shares of company have to got listed on the SME Platform of BSE on 27th December, 2023.

Note 40: Others

40.1 In the opinion of the Board, all the current assets, Loans and advances have a value on the realization in the ordinary course of the business at least equal to the amount at which they are stated.

40.2 Balances of sundry debtors, sundry creditors and loans and advances etc., are subject to confirmation and reconciliation, and consequential adjustment, if any.

40.3 Previous year figures have been regrouped/ rearranged so as to make them comparable with current year’s figures.

Note : 41 There is no Expenditure incurred on employees in receipt of remuneration of not less than Rs.24.00(Rupees twenty four lakh only) per annum or Rs 2.00 (rupees two lac only) per month, if employed throughout the year or part of the year.

Note :42 Note No. 6.1 During the year the company has gathered information in respect of whether supplier of goods & services are coverd under the MSME Act 2006, the information has been provided as per imformations and explanation provided by the company ( Previous Year as per information and explanation the company has not gathered information as regards whether supplier of goods and or services are covered under the MSME Act, 2006. Hence, we are unable to provide the required information.)

For Management Purpose, the Company is currently organised into two major operating activities - 1) Textile Manufacturing and 2) Renewable energy : Windmill Operations and rooftoop solar energy .These divisions are the basis on which the Company reports its primary segment information

(i) Segment assets and liabilities:

Company is having two segments of business, Assets and Liabilities are bifurcated segment wise.

(ii) Segment revenue and expenses

Segment revenue and expenses are taken directly as attributable to the segment. It does not include interest income on inter- corporate deposits, Profit on sale of investments, Interest expense, Provision for Contingencies and Income-tax.

The company operates primarily in India and there is no other significant geographical segment

44.12 The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall :

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

44.13 The company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

44.14 During the year the Income Tax department has made order u/s 147 & u/s143(3) for Assessment Year 2022-23 on 31.03.2024, raised the demand of Rs. 6.78 for Assessment year 2022-23 , the company has filled appeal with Income Tax department before CIT-A for Assessment year 2022-23. In view of preffering appeal no provision have been made of tax & interest payable total amounting to Rs.6.78 has been made in the accounts.

2) Further , the Company has received notice for scrutiny assessment for the assessment year 2023-24 on 14.02.2024 .Further the company has received notice U/ S 148 for assesment of the company for A.Y.2016-17 to 2018-19 . The scrutiny proceeding and proceddings U/S 148 have been initiated pursuant to a search & seizure operation carried by the Income Tax Authorities on Chiripal Groups and their key person on 20.07.2022 in which our company''s name has been mentioned in warrant. In the opinion of management prima facie the Company does not expect additional liability as a result of scrutiny assessment, hence no provision has been made by the Comapany.

44 15 The Company has complied with the provision of section 135 of the Companies Act,2013.

1) Amount required to be spent by Company during the year Rs.9.10.

2) Amount of expenditure spent Rs.9.10 payment made to Saamarthya Foundation having project of Organisations are developing on spreading education of drug addiction in youth across India (P.Y. Not applicable )

3) Short fall at to end of the year Rs. Nil/-(P.Y. Not Applicable)

Signatures to Notes on Account Note no :1 to 44 UDIN: 24016613BJZYYK5736 For M/s ANIL SHAH & CO.

Chartered Accountants FRN : 100474W

Bharatbhushan Agarwal Rikin Agarwal

Whole Time Director & CFO Managing Director

DIN:302785 DIN: 2435645

Anil Shah

Partner Mohini Singhal

Membership No : 016613 Company Secretary

Membership No. A47724

Place: Ahmedabad

Date: 13.05.2024 Place : Ahmedabad

UDIN: 24016613BJZYYK5736 Date: 13.05.2024

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Mar 31, 2023

(a) 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. Any shareholder whose name is entered in the Register of Members of the Company shall enjoy the same rights and be subject to the same liabilities as all other shareholders of the same class.

In the event of liquidation of the Company, Equity Shareholders 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 the equity shares held by the shareholders.

As per records of the Company, including its registers of Shareholders / Members and other declarations received from Shareholders regarding beneficial Interest, the above shareholding represents both legal and beneficial ownerships of shares.

Note No. 4.1 During the Financial Year 2016-17 the company has provided depreciation on Air Jet Looms and ancillary machineries relying on the Chartered Engineers S.K. PATEL certificate considering the useful life of 10 years instead of 15 years as provided in Schedule II of Companies Act,2013. Now during the year the company has decided to provide depreciation on Air Jet Looms and ancillary machineries considering the life of 25 years relying on chartered engineers Mukesh Shah report and board resolution dated 01-04-2022. Accordingly excess depreciation provided in earlier period from 2016-17 to 2021-22 amounting to ? 1272.94 has been credited to balance of profit & loss account as on 01-04-2022 under the head Reserves & Surplus and debited to respective assets (Refer Note No. 12.1 and Note No: 33 )

Note No. 4.2 The company has made security deposit amounting to ? 38.79 during Financial Year 2016-17 & of ? 51.27 during Financial Year 2017-18 totalling to ? 90.07 which had been capitalised under the head Electrical Cabling & Other Electrification in respective years and depreciation at applicable rate were provided till 31-03-22. During the year the same has been rectified by reversing depreciation amounting to ? 46.46 to the balance of statement of Profit & Loss A/c. and debiting to UGVCL Deposits as on 01-04-2022. The UGCVL Deposit now stands as on 01-04-22 ? 90.07 (Refer Note No. 12.2 )

Note No. 4.3 Gratuity provision of earlier years as per Actuarial Valuer Ashok Kumar Garg report dated 08 (Refer Note No. 7)

Note No. 4.4 After considering the effect of Note No 4.1, Note 4.2, and Note No. 4.3, the deferred tax liability (Refer Note No. 1-arose due to such change pertaining to prior period adjustment is being given effect in Reserve & Surplus.

(B) (i) Primary Security with Bank for Term Loan 1, Term Loan 2 and GECL

Hypothetication of Stock & Receivables

Hypothecation of Plant & Machinery located at Weaving Unit 1, Survey No. 297, Dholi Integrated Spinning Park Ahmedabad-382240, Gujarat

(ii) Primary Security with Bank for Term Loan 3 (Wind Mill)

Hypothetication of Stock & Receivables

Hypothecation of Plant & Machinery located at Weaving Unit 1, Survey No. 297, Dholi Integrated Spinning Park Ahmedabad-382240, Gujarat

Hypothetication of Wind Mill and related Pland & Machinery Purchased out of the Bank Finance located at 217/

(C) Collateral Security with Bank for Term Loan 1, Term Loan 2 and GECL and Term Loan 3(Wind Mill)

(i) Equitable Mortgage over immovable property at Plot No. 544 owned by M/s. Krishna Traders & 545 owned by 644sq. Yards each located at Survey No. 138,Vraj Garden, Nr. 200 Feet Ring Road and Shanti Asiatic School Ro

(ii) Equitable Mortgage over Factory Land and Building (admeasuring 8660.36 sqft. Meteres) at Weaving Unit 1, Sur Dholi Integrated Spinning Park, Dholka, Ahmedabad -382240

(iii) Equitable Mortgage over Immovable property (admeasuring 598 sq. mtrs.) at Flat No./ Plot No.: Unit no. 330, Sur Block No. 161, Vraj Garden, Akshat C.J. Society Ltd., behind Applewoods Scheme, Near Sahara City, Ahmedab Owned by Vedprakash Chiripal

(iv) Pledge of units 741048 of SBI corporate bond fund amounting to Rs. 200,00,000/-(Refer Note No. 13)

Note No. 6.1 As per information and explanation the company has not gathered information as regards whether supplier of goods and or services are covered under the MSME Act, 2006. Hence, we are unable to provide the Note No.:6.2 Outstanding Balances are subject to confirmation and reconciliation, if any.

Note No 12.1 During the Financial Year 2016-17 the company has provided depreciation on Air Jet Looms and ancillary machineries relying on the Chartered Engineers S.K. PATEL certificate considering the useful life of 10 years instead of 15 years as provided in Schedule II of Companies Act,2013. Now during the year the company has decided to provide depreciation on Air Jet Looms and ancillary machineries considering the life of 25 years relying on chartered engineers Mukesh Shah report and board resolution dated 01-04-2022. Accordingly excess depreciation provided in earlier period from 2016-17 to 2021-22 amounting to ? 1272.94 (Phase I ? 716.73 and Phase II ? 556.21) has been credited to balance of profit & loss account as on 01-04-2022 under the head Reserves & Surplus and debited to respective assets account. (Refer Note No. 4.1 )

Note No 12.2 Further due to change in life of assets during the year depreciation is charged less by ? 258.27 to Statement of Profit & Loss and disclosed more profit by ? 258.27 cosidering of life of assets have not been changed. (Refer Note No.4.2)

Note No. 16.1 The company has made security deposit amounting to ? 38.79 during Financial Year 2016-17 & of ? 51.27 during Financial Year 2017-18 totalling to ? 90.07 which had been capitalised under the head Electrical Cabling & Other Electrification in respective years and depreciation at applicable rate were provided till 31-03-22. During the year the same has been rectified by reversing depreciation amounting to ? 46.46 to the balance of statement of Profit & Loss A/c. and debiting to UGVCL Deposits as on 01-04-2022. The UGCVL Deposit now stands as on 01-04-22 ? 90.07. (refer note no. 4.2)

Note No. 16.2 Deposit with bank are under lien against various bank guarantee isssued and are inclusive of accrued interest.

Note: 31 LEASE EXPENSES

Operating Lease : Rental is expenses with reference to lease terms and other considerations

(a) The company has taken on sub- lease land at Village Likhala, Taluka Savar Kundla, District Amreli, owned by Government of India and leased by Gujrat Fluorochemicals . The total lease rent paid on the same amounting to Rs. 0.19 and taken on lease w.e.f. .29.12.2021

(b) The company has taken on lease land at Survey No. 402, Dholi Integrated Spinning Park Limited from Dholi Integrated Spinning Park Limited. The total lease rent paid on the same amounting to Rs. 0.04 and taken on lease w.e.f.

Note No.33 Note No 33.1 During the Financial Year 2016-17 the company has provided depreciation on Air Jet Looms and ancillary

machineries relying on the Chartered Engineers S.K. PATEL certificate considering the useful life of 10 years instead of 15 years as provided in Schedule II of Companies Act,2013. Now during the year the company has decided to provide depreciation on Air Jet Looms and ancillary machineries considering the life of 25 years relying on chartered engineers Mukesh Shah report and board resolution dated 01-04-2022. Accordingly excess depreciation provided in earlier period from 2016-17 to 2021-22 amounting to ? 1292.40 (Phase I ? 716.73 and Phase II ? 556.21) has been credited to balance of profit & loss account as on 0104-2022 under the head Reserves & Surplus and debited to respective assets account. (Refer Note No. 4.1 & 12.1 )

Note No 12.2 Further due to change in life of assets during the year depreciation is charged less by ? 258.26 to Statement of Profit & Loss and disclosed more profit by ? 258.26 cosidering of life of assets have not been changed. (Refer Note No.4.2 & 12.2)

Note No 33.2 The deferred tax liability arose due to such change pertaining to prior period adjustment is being given effect in Reserve & Surplus.

Note: 37 Contingent liabilities and commitments (to the extent not provided for) ^ in lakhs
	Contingent liabilities	As at 31 March, 2023	As at 31 March, 2022
	(a)Claims against the Company not acknowledged as debt	NIL	NIL
	(b) Unexpired Guarantees
	(i) Export Obligation under"0" duty EPCG in favour of DGFT amounting to ^ 19.30 cr	0.000484	48.400000
	(ii) GEDCO against the transmission cahrges	0.0003120	0.0003120
	(c) Other money for which the Company is contingently liable	NIL	NIL
	(f) Other commitments : The estimated amount of contracts remaining to be executed on capital account and not provided for against which advance have been paid	0	1239.67

Note 38 Provision for current year''s income tax aggregating Rs.255.73 (P.Y. Rs. 31.30) has been made on estimated basis for the accounting year ended on 31.03.2023. The actual tax liabilities of the company will be determined on the basis of taxable income of the company for F.Y year 2022-23.

Note 39: Others

39.1 In the opinion of the Board, all the current assets, Loans and advances have a value on the realization in the ordinary course of the business at least equal to the amount at which they are stated.

39.2 Balances of sundry debtors, sundry creditors and loans and advances etc., are subject to confirmation and reconciliation, and consequential adjustment, if any.

39.3 Previous year figures have been regrouped/ rearranged so as to make them comparable with current year''s figures.

Note : 40 There is no Expenditure incurred on employees in receipt of remuneration of not less than Rs.24.00(Rupees twenty four lakh only) per annum or Rs 2.00(rupees two lac only) per month, if employed throughout the year or part of the year.

Note :41 As per information and explanation given, the company has not gathered information as regards whether supplier of goods and or services are covered under the MSME Act, 2006. Hence, we are unable to provide the required information for the year ended on 31.03.2023 and 31.03.2022.

For Management Purpose, the Company is currently organised into two major operating activities - 1) Textile Manufacturing and 2) Windmill Operations.These divisions are the basis on which the Company reports its primary segment information

(i) Segment assets and liabilities:

Company is having two segments of business, Assets and Liabilities are bifurcated segment wise.

(ii) Segment revenue and expenses

Segment revenue and expenses are taken directly as attributable to the segment. It does not include interest income on inter- corporate deposits, Profit on sale of investments, Interest expense, Provision for Contingencies and Income-tax.

The company operates primarily in India and there is no other significant geographical segment

Note: 43 Other Statutory Disclosure

43.1 (a)There is no such property wherein there is an issue with the tiltle,hence the title deeds related disclosures are not

(b) The company does not have any investment in property hence, comment related to revaluation is not made

(c) During the year, the company has not revalued it''s intangible assets or any asset of Property, Plant & Equipment, hence, disclosure related to revaluation is not made

(d) The company has give loans and advances which are either repayable on demand or are without specifying any terms or period of repayment. The disclosures related to loans and advances given to related party are given as

43.3 The company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

43.4 As on the reporting date, the company has no borrowings from banks or financial institutions on the basis of security of current assets and for which quarterly returns are submitted and these are in agreement with books of account of the company

43.5 The company is not declared a wilful defaulter by any bank or financial Institution or other lender.

43.6 The company does not have any transactions with struck off Companies.

43.7 The company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

43.10 During the year, company has not entered in any scheme of arrangements as specified in Section 230 to Section 237 of the Companies Act,2013

43.11 The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries,

43.12 The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall :

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

43.13 The company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

43.14 The Company has received notice dated March 30, 2023 under section 147 of the Income Tax Act, 1961 for the reassessment of income of A.Y. 2019-20, notice dated August 09, 2023 u/s 143(2) read with Section 147 of the Income Tax Act, 1961 regarding the scrutiny proceedings and notice dated August 26, 2023 issued u/s 142(1) of the Income Tax Act, 1961 seeking information and documents in respect of ongoing scrutiny proceedings. These scrutiny proceedings have been initiated pursuant to a search & seizure operation carried by the Income Tax Authorities on Chiripal Group and their key persons on 20.07.2022 in which our Company''s name has been mentioned in warrant. In the opinion of Management prima facie the Company does not expect material additional liability as a result of Notice U/S 147 r.w.s. 132, hence no provision for the additional income tax liability has been made by the Company.

43.15 The company is not covered under section 135 of the Companies Act. Hence, CSR related disclosures are not made