Notes to Accounts of Spice Islands Industries Ltd.

Mar 31, 2025

2.11 Provisions and contingent liabilities

Provisions are recognized when there is a present obligation 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 there is a
reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance sheet date.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as a finance cost.

The Company records a provision for decommissioning costs. Decommissioning costs are provided at the
present value of expected costs to settle the obligation using estimated cash flows and are recognized as
part of the cost of the particular asset. The cash flows are discounted at a current pre-tax rate that reflects the
risks specific to the decommissioning liability. The unwinding of the discount is expensed as incurred and
recognized in the statement of profit and loss as a finance cost. The estimated future costs of
decommissioning are reviewed annually and adjusted as appropriate. Changes in the estimated future
costs or in the discount rate applied are added to or deducted from the cost of the asset.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain
future events not wholly within the control of the Company or a present obligation that arises from past
events where it is either not probable that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.

2.12 Cash and cash equivalents

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

For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, cash in
banks and short-term deposits net of bank overdraft.

2.13 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

(a) Financial assets

(i) Initial recognition and measurement

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. 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 assets or
financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to
the acquisition of financial assets or financial liabilities at fair value through profit or loss are
recognised immediately in profit or loss.

(ii) Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

a) at amortized cost; or

b) at fair value through other comprehensive income; or

c) at fair value through profit or loss.

The classification depends on the entity’s business model for managing the financial assets and
the contractual terms of the cash flows.”

Amortized cost: Assets that are held for collection of contractual cash flows where those cash
flows represent solely payments of principal and interest are measured at amortized cost. Interest

income from these financial assets is included in finance income using the effective interest rate
method (EIR).

Fair value through other comprehensive income (FVOCI): Assets that are held for collection of
contractual cash flows and for selling the financial assets, where the assets’ cash flows represent
solely payments of principal and interest, are measured at fair value through other
comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI,
except for the recognition of impairment gains or losses, interest revenue and foreign exchange
gains and losses which are recognized in Statement of Profit and Loss. When the financial asset
is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from
equity to Statement of Profit and Loss and recognized in other gains/ (losses). Interest income
from these financial assets is included in other income using the effective interest rate method.

Fair value through profit or loss (FVTPL): Assets that do not meet the criteria for amortized cost or
FVOCI are measured at fair value through profit or loss. Interest income from these financial
assets is included in other income.

(iii) Impairment of financial assets

In accordance with Ind AS 109, Financial Instruments, the Company applies expected credit loss
(ECL) model for measurement and recognition of impairment loss on financial assets that are
measured at amortized cost and FVOCI.

For recognition of impairment loss on financial assets and risk exposure, the Company
determines that whether there has been a significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for
impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in
subsequent years, credit quality of the instrument improves such that there is no longer a
significant increase in credit risk since initial recognition, then the entity reverts to recognizing
impairment loss allowance based on 12 months ECL.

Life time ECLs are the expected credit losses resulting from all possible default events over the
expected life of a financial instrument. The 12 months ECL is a portion of the lifetime ECL which
results from default events that are possible within 12 months after the year end.

ECL is the difference between all contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the entity expects to receive (i.e. all
shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to
consider all contractual terms of the financial instrument (including prepayment, extension etc.)
over the expected life of the financial instrument. However, in rare cases when the expected life of
the financial instrument cannot be estimated reliably, then the entity is required to use the
remaining contractual term of the financial instrument.

In general, it is presumed that credit risk has significantly increased since initial recognition if the
payment is more than 30 days past due.

ECL impairment loss allowance (or reversal) recognized during the year is recognized as
income/expense in the statement of profit and loss. In balance sheet ECL for financial assets
measured at amortized cost is presented as an allowance, i.e. as an integral part of the
measurement of those assets in the balance sheet. The allowance reduces the net carrying
amount. Until the asset meets write off criteria, the Company does not reduce impairment
allowance from the gross carrying amount.

(iv) Derecognition of financial assets

A financial asset is derecognized only when

a) the rights to receive cash flows from the financial asset is transferred or

b) retains the contractual rights to receive the cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to one or more recipients.

Where the financial asset is transferred then in that case financial asset is derecognized only
if substantially all risks and rewards of ownership of the financial asset is transferred. Where
the entity has not transferred substantially all risks and rewards of ownership of the financial
asset, the financial asset is not derecognized.

(b) Financial liabilities

(i) Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss and at amortized cost, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of borrowings and
payables, net of directly attributable transaction costs.

(ii) Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading
and financial liabilities designated upon initial recognition as at fair value through profit or loss.
Separated embedded derivatives are also classified as held for trading unless they are
designated as effective hedging instruments. Gains or losses on liabilities held for trading are
recognized in the Statement of Profit and Loss.

(iii) Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the derecognition of the original liability
and the recognition of a new liability. The difference in the respective carrying amounts is
recognized in the Statement of Profit and Loss as finance costs.

(c) Equity instruments:

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are
held for trading and contingent consideration recognised by an acquirer in a business combination to
which Ind AS103 applies are classified as at FVTPL. For all other equity instruments, the Company may
make an irrevocable election to present in other comprehensive income subsequent changes in the
fair value. The Company makes such election on an instrument- by-instrument basis. The classification
is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from
OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or
loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the profit and loss.

(d) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where
there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on
a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must
not be contingent on future events and must be enforceable in the normal course of business and in
the event of default, insolvency or bankruptcy of the Company or the counterparty.

2.14 Employee Benefits

(a) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled

wholly within 12 months after the end of the year in which the employees render the related service are
recognized in respect of employees’ services up to the end of the year and are measured at the
amounts expected to be paid when the liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.

(b) Other long-term employee benefit obligations

(i) Defined contribution plan

Provident Fund: Contribution towards provident fund is made to the regulatory authorities, where
the Company has no further obligations. Such benefits are classified as Defined Contribution
Schemes as the Company does not carry any further obligations, apart from the contributions
made on a monthly basis which are charged to the Statement of Profit and Loss.

(ii) Defined benefit plans

Gratuity: The Company provides for gratuity, a defined benefit plan (the ‘Gratuity Plan”) covering
eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan
provides a lump sum payment to vested employees at retirement, death, incapacitation or
termination of employment, of an amount based on the respective employee’s salary. The
Company’s liability is actuarially determined (using the Projected Unit Credit method) at the end
of each year. Actuarial losses/gains are recognized in the other comprehensive income in the
year in which they arise.

2.15 Borrowing cost

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying
asset are capitalized as part of the cost of the respective asset till such time the asset is ready for its intended
use or sale. A qualifying asset is an asset which necessarily takes a substantial period of time to get ready for
its intended use or sale. Ancillary cost of borrowings in respect of loans not disbursed are carried forward
and accounted as borrowing cost in the year of disbursement of loan. All other borrowing costs are
expensed in the period in which they occur. Borrowing costs consist of interest expenses calculated as per
effective interest method, exchange difference arising from foreign currency borrowings to the extent they
are treated as an adjustment to the borrowing cost and other costs that an entity incurs in connection with
the borrowing of funds.

2.16 Statement of Cash Flows

Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or financing cash flows. The cash flows
from operating, investing and financing activities are segregated.

2.17 Earnings Per Share

“Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. Earnings
considered in ascertaining the Company’s earnings per share is the net profit or loss for the year after
deducting preference dividends and any attributable tax thereto for the year. The weighted average number
of equity shares outstanding during the year and for all the years presented is adjusted for events, such as
bonus shares, other than the conversion of potential equity shares, that have changed the number of equity
shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to
equity shareholders and the weighted average number of shares outstanding during the year is adjusted for
the effects of all dilutive potential equity shares.”

2.18 Recent pronouncements

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 March 31,
2024, MCA has not notified any new standards or amendments to the existing standards applicable to the
Company.

16.1 Nature and purpose of reserves

(a) Securities Premium Reserve Securities premium is used to record the premium received on issue of
shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

(b) Retained earnings Retained earnings represent the accumulated earnings net of losses if any made by the
company over the years as reduced by dividends or other distributions paid to the shareholders and
includes other comprehensive income

(c) Equity instrument through OCI - The Company has elected to recognise changes in the fair value of
certain investment in equity instrument in other comprehensive income. This amount to be reclassified to
retained earnings on derecognition of equity instrument.

16.2 Money Received Against Share Warrant

On the Basis of the approval of the Shareholders at its Annual General Meeting held on August,19, 2024 , the
company has alloted 19,33,324 share warrants at a price of Rs. 45 per warrant including premium of Rs. 35 per
warrant on preferential basis on October, 30, 2024. These share warrants will be converted into equity shares in
the ratio of 1:1 as per the terms of the offer. The Company has received amount of Rs. 217.50 lakhs as on october
30th, 2024 as 25% of the consideration for share warrants as per the terms of the offer. In the event of warrant
holder does not exercise the warrant within 18 months from the date of allotment, the warrants shall lapse and the
amount paid shall stand forfieted by the Company. The Warrants and the equity shares allotted pursuant to
exercise of such warrant shall be subject to lock-in period as specified under chapter V of Sebi ICDR regulations.

40 Other Notes

1) The company has not taken any borrowings from banks.

2) The Company has not been sanctioned working capital limits by banks or financial institutions on the basis of
security of current assets at any point of time during the year

(3) The company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.

(4) 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:(a) Directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding
Party (Ultimate Beneficiaries) or (b) Provide any guarantee, security, or the like on behalf of the Ultimate
Beneficaries.

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

(6) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the company

(7) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period;

(8) The Company has not traded or invested in Crypto currency or Virtual Currency during the year

(9) The Company does not have outstanding term derivative contracts as at the end of respective years.

(10) The company have not received funds (which are material either individually or in the aggregate )from any
person or entity including foreign entities ( Funding parties), with the understanding ,whether recorded or in
writing or otherwise, that the company shall:(a) 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(b)
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(11) There are following amounts which are required to be transferred to the Investor Education and Protection
Fund by the Company.

The Company’s chief operating decision maker - Board of Directors examines the Company’s performance
and has identified three reportable segments of its business as follows:

-Renting/Hire of Elecric Vehicle (2 wheelers): The company has acquired elecric vehicles during the year
and earning revenue from customers on right to use basis.

-Food and beverages : The Company is also engaged in the trading of various categories of drinks both
carabonated and pulp based including drinking waters.

-Hospitability business: Offers services for loading boardings in form of room rent and restaurent services
incluidng banquent services to various customers . To carry out said services, the company has acquired an
Hotel at Gujarat on rental basis.

The above operating segments have been identified considering:

(i) The internal financial reporting systems

(ii) The nature of the product/services

(iii) The risk return profile of individual divisions

Revenue and expenses has been accounted on the basis of their relationship to the operating activities of
the segment. Income and expenses, which relate to the Company as a whole and are not allocable to
segments on a reasonable basis, have been included under “Unallocable Income” and “Unallocable
Expenses” respectively. Assets and Liabilities, which relate to the enterprise as a whole and are not
allocable to segments on a reasonable basis, have been included under “Unallocable Assets/ Liabilities”.

No operating segments have been aggregated to form the above reportable operating segments.

Note:

(i) All financial assets and financial liabilities are measured at amorized cost except Investment which is valued
at Fair value through profit or loss

(ii) All Current assets are expected to be recovered within twelve months from the reporting date

(b) Fair Valuation Techniques

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 management assessed that fair value of Trade Receivables (Net), Cash and Cash Equivalents, Other
Bank Balances, Loans, Other Financial Asset - Current, Borrowings - Current, Trade Payables and Other
Financial Liabilities - current approximate their carrying amounts largely due to the short-term maturities of
these instruments. Further, the management has assessed that fair value will be approximate to their
carrying amounts as they are priced to market interest rates on or near the end of reporting year.

(c) Fair Value Hierarchy

Financial assets and financial liabilities are measured at fair value in the financial statement and are grouped
into three levels of a fair value hierarchy. The three Levels are defined based on the observability of
significant inputs to the measurement, as follows:

Level 1 : Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 : Other techniques for which all inputs which have a significant effect on the recorded fair value are
observable, either directly or indirectly.

Level 3 : Techniques which use inputs that have a significant effect on the recorded fair value that are not
based on observable market data.

There are no Financial assets and liabilities measured at fair value through profit or loss at each reporting
date. Hence, further classification of financial assets into Level 1, Level 2 and Level 3 is not given except
Current Investments which is valued at Fair Value through profit or loss. Current Investment is classified into
Level 1.

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the
Company’s risk management framework. The board of directors is responsible for developing and
monitoring the Company’s risk management policies. The Company’s risk management policies are
established to identify and analyze the risk faced by the Company, to set appropriate risk limits and controls
and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly
to reflect changes in market conditions and the Company’s activities. The Company’s Board of Directors
oversees how management monitors compliance with the Company’s risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by
the Company. The Board of Directors is assisted in its oversight role by internal audit team. Internal audit
team undertakes both regular and ad hoc reviews of risk management controls and procedures, the results
of which are reported to the Board of Directors.

The Company has exposure to the following risks arising from financial instruments:

• Credit risk;

• Liquidity risk;

• Market risk

• Interest rate risk

(a) Credit Risk :

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities
(primarily trade receivables) and from its financing activities, including deposits with banks and other
financial instruments.

Trade Receivable

Customer credit risk is managed by the business unit subject to the Company’s established policy,
procedures and control relating to customer credit risk management. To manage trade receivable, the
Company periodically assesses the financial reliability of customers, taking into account the financial
conditions, economic trends, analysis of historical bad debts and aging of such receivables. For
receivables, as a practical expedient, the Company computes expected credit loss allowance based on a
provision matrix. The provision matrix is prepared based on historically observed default rates over the
expected life of trade receivables and is adjusted for forward-looking estimates.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial
assets disclosed in Note 42(a). The Company does not hold collateral as security.

Financial Instruments and Cash Deposits

Credit risk from balances with banks and financial institutions is managed by the management in
accordance with the Company’s policy. Counter party credit limits are reviewed by the management on an
annual basis, and may be updated throughout the year . The limits are set to minimise the concentration of
risks and therefore mitigate financial loss through counter party’s potential failure to make payments.

(b) Liquidity Risk :

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach
to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities
when they are due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to Company’s reputation.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents
on the basis of expected cash flows to ensure it has sufficient cash to meet operational needs. Such
forecasting takes into consideration the Company’s debt financing plans, covenant compliance and
compliance with internal statement of financial position ratio targets.

(c) Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and
equity prices - will affect the Company’s income or the value of its holdings of financial instruments. Market
risk is attributable to all market risk sensitive financial instruments including foreign currency receivables
and payables and long term debt. The Company is exposed to market risk primarily related to foreign
exchange rate risk, interest rate risk and the market value of certain commodities. Thus, its exposure to
market risk is a function of investing and borrowing activities and revenue generating and operating
activities. The objective of market risk management is to avoid excessive exposure in revenues and costs.

(I) Interest Rate Risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate
risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the
interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing
investments will fluctuate because of fluctuations in the interest rates.

Fair Value Sensitivity Analysis for Fixed-Rate Instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through
profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Fair Value Sensitivity Analysis for Floating-Rate Instruments

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that
portion of loans and borrowings affected. With all other variables held constant, the Company’s profit before
tax is affected through the impact on floating rate borrowings, is as follows:

(ii) Foreign Currency Exposure

The Company does not have outstanding balances denominated in foreign currencies; consequently,
exposures to exchange rate fluctuations will not arise.

(iii) Commodity Risk

The Company is not materially exposed to commodity price risk. The Company also does not carry out any
commodity hedging activities.

44 Capital Risk Management

The Company manages its capital to ensure that it will be able to continue as a going concern so, that they
can continue to provide returns for shareholders and benefits for other stakeholders and maintain an
optimal capital structure to reduce cost of capital. The Company manages its capital structure and make
adjustments to, in light of changes in economic conditions, and the risk characteristics of underlying assets.
In order to achieve this overall objective, the Company’s capital management, amongst other things, aims
to ensure that it meets financial covenants attached to the borrowings that define the capital structure
requirements.

Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. The
ratio is calculated as net debt divided by equity. Net debt is calculated as total borrowing (including current
and non-current terms loans as shown in the balance sheet).

46 Previous years figures have been regrouped wherever necessary.

As per our report of even date attached

For Giriraj Bang & Company For and on behalf of the Board of Directors of

Chartered Accountants Spice Islands Industries Limited

Firm Registration No. 129434W (Formerly known as Spice Islands Apparels Limited)

Vivek Bang Sikha Sethia Bura Sandeep J. Merchant

Partner Chairman Whole Time Director

Membership No. : 143938 DIN -07799537 DIN -05210128

UDIN:25143938BNFYMR4452

Sd/- Sd/-

Faraz Chapra Aarti Lalwani

Director and Chief Financial Officer Company Secretary &
DIN -07854286 Compliance Officer

Place : Mumbai Place : Mumbai

Date : May 28, 2025 Date : May 28, 2025

---

Mar 31, 2024

3.14 Provisions and Contingencies

a. Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event, itis 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.
When the Company expects some or all of a provision to be reimbursed, for example, under an
insurance contract, the reimbursement is recognised as a separate asset, but only when the
reimbursement is virtually certain. The expense relating to a provision is presented in the statement of
profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects,when appropriate, the risks specific to the liability. When discounting is used, the increase
in the provision due to the passage of time is recognised as a finance cost.

b. Contingent Liabilities and Contingent Assets

A contingent liability is a possible obligation that arises from a past event, with the resolution of the
contingency dependent on uncertain future events, or a present obligation where no outflow is
probable. Major contingent liabilities are disclosed in the financial statements unless the possibility of
an outflow of economic resources is remote. Contingent assets are not recognized in the financial
statements but disclosed, where an inflow of economic benefit is probable.

3.15 Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances
(with an original maturity of three months or less from the date of acquisition), highly liquid investments that
are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in
value.

3.16 Statement of cash flows

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of
transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments.
The cash flows from operating, investing and financing activities of the Company are segregated.

3.17 Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the
extent that there is no uncertainty in receiving the claims.

3.18 GST input credit

GST input credit is accounted in the books in the period in which the underlying service as well as invoice is
received and when there is no uncertainty in availing / utilizing the credits.

b) Rights, preferences and restrictions attached to equity shares:

(i) The Company has only one class of shares referred to as equity shares having par value of Rs 10 each.

(ii) Each holder of the equity share, as reflected in the records of the Company as of the date of the shareholders’
meeting, is entitled to one vote in respect of each share held for all matters submitted to vote in the
shareholders’ meeting.

(iii) The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing General Meeting.

(iv) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the
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.

(v) Each Share holder has a right to inspect the statutory registers of the company as per the provisions of the
companies act, 2013.

(vi) Each and every share holder has a right to participate in the share holders’s meetings as and when called by
the company subject to provisions of the Companies Act, 2013.

40 Disclosure with respect to Micro, Small and Medium Enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008
which recommends that the Micro and Small Enterprises should mention in their correspondence with its
customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance
with the ‘Micro, Small and Medium Enterprises Development Act, 2006’ (‘the MSMED Act’). However as on date,
the Company has not received any information with regard to vendors who have obtained registration under the
said act. Accordingly, the Company has disclosed the entire amount as payable to vendors other than Micro, small
and Medium enterprise.

51 Segment Reporting

An operating segment is a component of the company that engages in business activities from which it may earn
revenues and incur expenses, including revenues and expenses that relate to transactions with any of the
company’s other components, and for which discrete financial information is available. All operating segments’
operating results are reviewed regularly by the Company’s Chief Operating Decision Makers (Board of Directors)
to make decisions about resources to be allocated to the segments and assess their performance. The
Company’s sole business segment was manufacturing of textiles consisting of yarn, fabrics and garments upto
the year 31st March 2023, however the company has diversified into various other activities with effect from 1st
April 2024. Consequently, the management believes that there are no reportable segments as required under Ind
AS 108 - ‘Segment Reporting’.as on the Balance Sheet date.

The sensitivity analysis have been determined based on reasonably possible changes of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same
method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

B Fair value hierarchy

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

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable
inputs).

The following table presents the fair value measurement hierarchy of assets measured at fair value on
recurring basis as at March 31,2024 and March 31,2023

Transfers between Level 1, Level 2 and Level 3

There were no transfers between Level 1, Level 2 or Level 3 during the year ended 31 March 2024 and 31 March
2023 respectively.

Valuation technique used to determine fair value

The management assessed that cash and cash equivalents, trade receivables, trade payables, short term
borrowings and other current liabilities and assets approximate their carrying amounts due to the short-term
maturities of these instruments.

56 Note on Going Concern

The Company has earned Net Profits after tax of Rs 32.58 lakhs during the year and the total equity stands at
a negative Rs 29.91 lakh as at 31 March 2024 as against Rs.-62.49 lakhs as at 31 March 2023. The company
has undertaken several cost cutting measures, to further cut down expenses and reduce losses and
company has also ventured into new line of activities. Company believes that it will be able to recover
fromlosses in the next succeeding years once the market stabilises. Accordingly, the accompanying
Company’s financial statements have been prepared assuming thatthe Company will continue as a going
concern which contemplates the realization of assets and the settlement of liabilities in the normal course of
business..Accordingly, the financial statement has been prepared on a going concern basis

57 NIL

58 NIL

59 Disclosure with respect to Micro, Small and Medium Enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August
2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with
its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in
accordance with the ‘Micro, Small and Medium Enterprises Development Act, 2006’ (‘the MSMED Act’).
However as on date, the Company has not received any information with regard to vendors who have
obtained registeration under the said act.Accordingly, the Company has disclosed the entire amount as
payable to vendors other than Micro, small and Medium enterprise.

60 Financial risk management

The Company has exposure to following risks arising from financial instruments¬
- credit risk

- market risk

- liquidity risk

The Company’s board of directors has overall responsibility for the establishment and oversight of the
Company’s risk management framework. The Company’s risk management policies are established to
idenitfy and analyse the risks faced by the Company, to set appropriate risk limits and controls and to
monitor risks and adherence to limits. Risk management policies and systems are reviewed regulalrly to
reflect changes in market conditions and the Company’s activities.

The Company’s audit committee oversees how management monitors compliance with the Company’s risk
management policies and procedures and reviews the adequacy of the risk management framework in
relations to the risks faced by the Company.

A Market Risk

Market risk is the risk that changes in market prices, such as interest rates and foreign exchange rates, will
affect the Company’s income and its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters.

Currency risk

The Company operates internationally and a major portion of the business is transacted in several
currencies and consequently the Company is exposed to foreign exchange risk to the extent that there is
mismatch between the currencies in which its sales and services and purchases from overseas suppliers in
various foreign currencies. Market Risk is the risk that changes in market prices such as foreign exchange
rates will effect company’s income or value of its holding financial assets/ instruments. The exchange rate
between the Rupee and foreign currencies has changed substantially in recent years and may fluctuate
substantially in the future. Consequently, the results of the Company’s operations are adversely affected as
the Rupee appreciates/ depreciates against US dollar (USD), Euro (EUR), and British Pound (GBP).

B Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company’s receivables from
customers and investments in debt securities. The carrying amount of financial assets represents the
maximum credit exposure. Trade receivables are typically unsecured and are derived from revenue earned
from customers. Credit risk has always been managed by each business segment through credit approvals,
establishing credit limits and continuously monitoring the credit worthiness of customers to which the
Company grants credit terms in the normal course of business. More than 90% of the Company’s customers
have been transacting with the Company for continuous periods, and no significant impairment loss has
been recognized against these customers due to the realisation within the credit period . In monitoring
customer credit risk, customers are reviewed according to their credit characteristics, including whether
they are an individual or a legal entity, their geographic location, industry and existence of previous financial
difficulties

C Liquidity Risk

Liquidity is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to
managing the liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities
when they are due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Company’s reputation.

To ensure continuity of funding, the Company primarily uses short-term bank facilities in the nature of bank
overdraft facility, cash credit facility and short-term borrowings to fund its ongoing working capital
requirements and growth needs. The Company believes that the working capital met by short term
borrowings is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived. The
Company closely monitors its liquidity position and maintains adequate source of funding.

Exposure to liquidity risk

The table below details the Company’s remaining contractual maturity for its non-derivative financial
liabilities. The contractual cash flows reflect the undiscounted cash flows of financial liabilities based on the
earliest date on which the Company can be required to pay.

61 Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, share
premium and all other equity reserves attributable to the equity holders of the Company. The primary
objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic
conditions, annual operating plans and long term and other strategic investment plans. In order to maintain
or adjust its capital structure, the Company may adjust the amount of dividends paid, return the capital to
shareholders, issue new shares or adjust its short term borrowings. The current capital structure of the
Company is equity based backed with short term borrowings.

63 Significant Change in above Rations :

The company has undertaken several cost cutting measures, to further cut down expenses and reduce
losses. Company believes that it will be able to recover from losses in the next succeeding years once the
market stabilises. Accordingly, the accompanying Company’s financial statements have been prepared
assuming that the Company will continue as a going concern which contemplates the realization of assets
and the settlement of liabilities in the normal course of business.. Accordingly, the financial statement has
been prepared on a going concern basis.

for and on behalf of the board of directors of
Spice Islands Industries Limited

(Previously Known as Spice Islands Apparels Limited)

Sd/- Sd/-

Shikha Bhura Sandeep Merchant

Chairman & MD Director

DIN :07799537 DIN :05210128

Sd/- Sd/-

Faraaz I Chapra Arti Lalwani

CFO & Director Company Secretary

Place : Mumbai Place : Mumbai Place : Mumbai

Date : 28th May, 2024 Date : 28th May, 2024 Date : 28th May, 2024

---

Mar 31, 2015

1. Corporate Information

Spice Islands Apparels Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on three stock exchanges in India. The company is engaged in the manufacturing and selling of knitted and woven garments. The company caters to both domestic and international markets. The Company also deploys its surplus funds in financial activities.

2. Basis of preparation

The financial statements of the company have been prepared and presented in accordance with Indian Generally Accepted Accounting Principles ('GAAP') under the historical cost convention on the accrual basis. GAAP comprises accounting standards notified by the Central Government of India under the Companies (Accounting Standards) Rules, 2006, (as amended), other pronouncements of Institute of Chartered Accountants of India and the relevant provisions of Companies Act, 2013.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The Management evaluates and adopts all recently issued or revised accounting standards on an ongoing basis.

3. Terms/Rights attached to Equity shares

The company has only one class of equity shares having par value of ?. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2015, the amount of per share dividend recognised as distributions to equity shareholders was Rs. 1.50 (31 March 2014: Rs. 1.00)

In the event of Liquidation of the 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.

As per records of the company, including its register of shareholders/members and other declaration received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

4. Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date: Nil (31 March 2014: Nil)

5. Share reserved for issue under options and contracts/commitments are: Nil (31 March 2014: Nil)

6. Contingent liabilities not provided for:

As per the order of Hon'ble Bombay High Court, the claim of Apparel Export Council has been guaranteed by furnishing bank guarantee of equivalent amount: Rs. 7,26,310 (31 March 2014: Rs. 7,26,310)

Disputed claims/levies (excluding interest, if any), in respect of Income tax Rs. 1,10,04,774 (31 March 2014: Rs.97,14,906)

The Company is also involved in other lawsuits, claims, investigations and proceedings, which arise in the ordinary course of business, however, there are no such matters pending that the company expects to be material in relation to its business.

7. Balances of Sundry debtors, sundry creditors, loans and advances, receivables and payables are subject to confirmation/reconciliation, if any.

8. In the opinion of the Board of Directors adequate provision has been made in the accounts for all known liabilities and the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the value stated in the balance sheet.

9. The Company's significant leasing arrangements are in respect of operating leases for Guest houses and office premises. These are cancelable operating leases and these lease agreements are normally renewed on expiry. The aggregate lease rentals payable are charged as rent under note 24.

The company conduct its factory operations from facility that is leased under a 72 month non-cancellable lease expiring in December, 2016 for which lump sum interest free deposit of ? 50 lacs has been given, refundable after the expiry of the lease period.

10. During the financial year 2010-2011, the company sold all the shares of M/s. Bhupco Alloys Limited., its erstwhile subsidiary Company, to M/s. Emer Hotels & Suites Pvt Ltd., pursuant to approval for the same by the Board of Directors of the Company vide its resolution dated 04/02/2011 for an amount Rs. 1,16,20,843, against which an amount of Rs. 70,00,000 was received from M/s. Emer Hotels & Suites Pvt Ltd., during the year 2011-2012.

The management is of the opinion that an amount of Rs. 20,00,000 though not received till date shall be received during the year 2015-16. The remaining balance of Rs. 26,20,843 is to be received from them only on receipt of rental deposit from landlord in Bhupco Alloys Ltd. Since, the consideration of Rs. 26,20,843 is contingent on happening of an event in future, the outcome of which cannot be ascertained accurately as at balance sheet date, the same has not been recognized in the books of account as at 31 March 2015.

11. Effective from 1 April 2014, the Company has changed the depreciation charge based on revised remaining useful lives of the assets as per requirement of schedule II of the Companies Act, 2013. Due to this, the depreciation charge for the year ended 31 March 2015 is higher by Rs. 15,43,127. Further, based on transitional provisions as provided in Schedule II, an amount of Rs. 19,17,525 (net of deferred tax) has been charged to accumulated retained earnings (Surplus) in respect of asset whose remaining useful life is nil as on 1 April 2014.

12. Related party disclosures:

A. Name of the related parties and related party relationship

Related parties with whom transactions have taken place during the year: (As identified by the Management and relied upon by auditors)

* Key managerial Personnel represented on the board:

* Mr. Umesh M. Katre - Managing Director

* Mr. AshokDaryanani - Director

* Mr. Carl Dantas - Director

* Mr. Charuchandra Patankar - Director

* Mr. Rahul L Mehta - Director

* Mrs. Seema Katre - Whole-Time Director

* Relatives of key managerial personnel:

* Mr. Rohan U Katre - Managing Director's son

13. Based on the information available with the company, principal amount due to micro and small enterprises as defined under MSMED Act, 2006 is Rs. Nil (31 March 2014: Nil). Further interest paid during the year and interest due at the end of the yearto micro and small enterprises is Rs. Nil (31 March 2014: Rs. Nil).

14. The Company's operations predominantly comprises of export of manufactured garments. Company also deploys its surplus funds in financial activities. Accordingly, garments & finance have been identified as primary basis for segment information. The Company does not have any secondary segment.

15.The company has re-classified/re-grouped/re-arranged the previous year figures wherever necessary.

---

Mar 31, 2014

1. Corporate Information

Spice Islands Apparels Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on three stock exchanges in India. The company is engaged in the manufacturing and selling of knitted and woven garments. The company caters to both domestic and international markets. The Company also deploys its surplus funds in financial activities.

2. Basis of preparation

The financial statements of the company have been prepared and presented in accordance with Indian Generally Accepted Accounting Principles (''GAAP'') under the historical cost convention on the accrual basis. GAAP comprises accounting standards notified by the Central Government of India under the Companies (Accounting Standards) Rules, 2006, (as amended), other pronouncements of Institute of Chartered Accountants of India and the relevant provisions of Companies Act, 1956.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The Management evaluates and adopts all recently issued or revised accounting standards on an ongoing basis.

3. Terms/Rights attached to Equity shares

The company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual general meeting.

During the year ended 31 March 2014, the amount of per share dividend recognised as distributions to equity shareholders was Rs. 1.00 (31 March 2013: Rs.0.50)

In the event of Liquidation of the 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.

4. Contingent liabilities not provided for:

As per the order of Hon''ble Bombay High Court, the claim of Apparel Export Council has been guaranteed by furnishing bank guarantee of equivalent amount: Rs. 7,26,310 (31 March 2013: Rs. 7,26,310) Disputed claims/levies (excluding interest, if any), in respect of Income tax Rs.97,14,906 (31 March 2013: Rs.84,17,572)

The Company is also involved in other lawsuits, claims, investigations and proceedings, which arise in the ordinary course of business, however, there are no such matters pending that the company expects to be material in relation to its business.

5. Value of imports calculated on CIF basis: Rs. 13,89,222 ( 31 March 2013: Rs. 2,19,736)

6. Balances of Sundry debtors, sundry creditors, loans and advances, receivables and payables are subject to confirmation/reconciliation, if any.

7. In the opinion of the Board of directors adequate provision has been made in the accounts for all known liabilities and the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the value stated in the balance sheet.

8. The Company''s significant leasing arrangements are in respect of operating leases for Guest houses and office premises. These are cancelable operating leases and these lease agreements are normally renewed on expiry. The aggregate lease rentals payable are charged as rent under note 24.

The company conduct its factory operations from facility that is leased under a 72 month non-cancellable lease expiry in December, 2016 for which lump sum interest free deposit of Rs. 50 lacs has been given, refundable after the expiry of the lease period.

9. During the financial year 2010-2011, the company sold all the shares of M/s. Bhupco Alloys Limited., its erstwhile subsidiary Company, to M/s. Emer Hotels & Suites Pvt Ltd., pursuant to approval for the same by the board of directors of the Company vide its resolution dated 04/02/2011 for an amount Rs. 1,16,20,843, against which an amount of Rs. 70,00,000 was received from M/s. Emer Hotels & Suites Pvt Ltd., during the year 2011-2012.

The management is of the opinion that an amount of Rs. 20,00,000 though not received till date shall be received during the year 2014-15. The remaining balance of Rs. 26,20,843 is to be received from them only on receipt of rental deposit from landlord in Bhupco Alloys Ltd. Since, the consideration of Rs. 26,20,843 is contingent on happening of an event in future, the outcome of which cannot be ascertained accurately as at balance sheet date, the same has not been recognized in the books of accounts as at 31 March 2014.

10. Related party disclosures:

A. Name of the related parties and related party relationship Related parties with whom transactions have taken place during the year: (As identified by the Management and relied upon by auditors) -Key managerial Personnel represented on the board:

Mr. Umesh M. Katre - Managing Director

Mr. Ashok Daryanani - Director

Mr. Karl Dantas - Director

Mr. Charuchandra Patankar - Director

Mr. Rahul L Mehta - Director

Mrs. Seema Katre - Whole-time Director

* Relatives of key managerial personnel:

Mr. Rohan U Katre - Managing director''s son

11. Based on the information available with the company, principal amount due to micro and small enterprises as defined under MSMED Act, 2006 is Rs. Nil (31 March 2013: Rs. Nil). Further interest paid during the year and interest due at the end of the year to micro and small enterprises is Rs. Nil (31 March 2013: Rs. Nil).

12. The company has re classified/regrouped/rearranged the previous year figures wherever necessary.

---

Mar 31, 2013

1. Corporate Information

Spice Islands Apparels Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on three stock exchanges in India. The company is engaged in the manufacturing and selling of knitted and woven garments. The company caters to both domestic and international markets. The Company also deploys its surplus funds in financial activities.

2. Basis of preparation

The financial statements of the company have been prepared and presented in accordance with Indian Generally Accepted Accounting Principles (''GAAP'') under the historical cost convention on the accrual basis. GAAP comprises accounting standards notified by the Central Government of India under the Companies (Accounting Standards) Rules, 2006, (as amended), other pronouncements of Institute of Chartered Accountants of India and the relevant provisions of Companies Act, 1956.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The Management evaluates and adopts all recently issued or revised accounting standards on an ongoing basis.

3. Contingent liabilities not provided for:

As per the order of Hon''ble Bombay High Court, the claim of Apparel Export Council has been guaranteed by furnishing bank guarantee of equivalent amount: Rs.7,26,310 (31st March 2012:Rs.7,26,310)

Disputed claims/levies (excluding interest, if any), in respect of Income taxRs. 84,17,572 (31st March 2012:Rs. Nil)

The Company is also involved in other lawsuits, claims, investigations and proceedings, which arise in the ordinary course of business, however, there are no such matters pending that the company expects to be material in relation to its business.

4. Value of imports calculated on CI F basis: Rs.2,19,736 (31st March 2012: Rs.47,593)

5. Balances of Sundry debtors, sundry creditors, loans and advances, receivables and payables are subject to confirmation/reconciliation, if any.

6. In the opinion of the Board of directors adequate provision has been made in the accounts for all known liabilities and the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the value stated in the balance sheet.

7. The Company''s significant leasing arrangements are in respect of operating leases for Guest houses and office premises. These are cancelable operating leases and these lease agreements are normally renewed on expiry. The aggregate lease rentals payable are charged as rent under note 25.

The company conduct its factory operations from facility that is leased under a 72 month non-cancellable lease expiry in

December, 2016 for which lump sum interest free deposit of Rs.50 lacs has been given, repayable after the expiry of the lease period.

The company uses motor car and speed boat that is leased under non-cancellable operating leases. The company has commitment under non-cancellable operating leases as follows:

8. During the financial year 2010-2011, the company sold all the shares of M/s. Bhupco Alloys Limited., its erstwhile subsidiary Company, to M/s. Emer Hotels & Suites Pvt Ltd., pursuant to approval for the same by the board of directors of the Company vide its resolution dated 04/02/2011 for an amount Rs. 1,16,20,843, against which an amount of Rs.70,00,000 was received from M/s. Emer Hotels &Suites Pvt Ltd., duringtheyear 2011-2012.

The management is of the opinion that an amount ofRs. 20,00,000 shall be received during the year 2013-14. The remaining balance off. 26,20,843 is to be received from them only on receipt of rental deposit from landlord in Bhupco Alloys Ltd. Since, the consideration of Rs.26,20,843 is contingent on happening of an event in future, the outcome of which cannot be ascertained accurately as at balance sheet date, the same has not been recognized in the books of accounts as at 31 March 2013.

9. Related party disclosures:

A. Name of the related parties and related party relationship

Related parties with whom transactions have taken place during the year: (As identified by the Management and relied upon by auditors)

Key managerial Personnel represented on the board:

- Mr. Umesh M. Katre - Managing Director

- Mr.AshokDaryanani - Director

- Mr. Karl Dantas - Director

- Mr. Charuchandra Patankar - Director

- Mr. Rahul LMehta - Director

- Mrs. Seema Katre - Whole-time Director Relatives of key managerial personnel:

- Mr. Rohan U Katre - Managing director''s son

10. Based on the information available with the company, principal amount due to micro and small enterprises as defined under MSMED Act, 2006 is Rs. Nil (31st March 2012: Rs. Nil). Further interest paid during the year and interest due at the end of the year to micro and small enterprises isRs. Nil (31 March 2012: Rs. Nil).

11. The Company''s operations predominantly comprises of export of manufactured garments. Company also deploys its surplus funds in financial activities. Accordingly, garments & finance have been identified as primary basis for segment information. The Company does not have any secondary segment.

12. The company has re classified/regrouped/rearranged the previous year figures wherever necessary.

---

Mar 31, 2012

1 CORPORATE INFORMATION

Spice Islands Apparels Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on three stock exchanges in India. The company is engaged in the manufacturing and selling of knitted and woven garments. The company caters to both domestic and international markets. The Company also deploys its surplus funds in financial activities.

2 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared and presented in accordance with Indian Generally Accepted Accounting Principles ('GAAP') under the historical cost convention on the accrual basis. GAAP comprises accounting standards notified by the Central Government of India under the Companies (Accounting Standards) Rules, 2006, (as amended) under section 211 (3C) of the Companies Act, 1956, other pronouncements of Institute of Chartered Accountants of India, the provisions of Companies Act, 1956 and guidelines issued by Securities and Exchange Board of India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The Management evaluates and adopts all recently issued or revised accounting standards on an ongoing basis.

A. 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. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2012, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 0.75 (31 March 2011 Rs.l/-)

In the event of liquidation of the 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.

3 Balances of Sundry Debtors, Sundry Creditors, Loans and Advances, Receivables and Payable are subject to confirmation/reconciliation, if any.

4 In the opinion of the Board of Directors adequate provision has been made in the accounts for all known liabilities and the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the value stated in the Balance Sheet.

5 Gratuity Plan:-

The following table set out the status of the plan as required under AS 15(revised)

6 Following Contingent Liabilities are not provided for: 31-3-2012 31-3-2011

As per the order of Hon'ble Bombay High Court, the Claim of 726,310 726,310

Apparel Export Promotion Council has been guaranteed by furnishing bank guarantee of equivalent amount

The Company is also involved in other lawsuits, claims, investigations and proceedings, which arise in the ordinary course of business, however, there are no such matters pending that the company expects to be material in relation to its business.

7 Based on the information available with the Company, no supplier of the company is registered under the Micro, Small and Medium Enterprise Development Act, 2006. Hence, the balance due to Micro & Small enterprises as defined under MSMED Act, 2006 is Rs. Nil (Previous Year Rs. Nil). Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

8 Operating Lease

The Company's significant leasing arrangements are in respect of operating leases for Guesthouses and Office Premises. These are cancelable operating leases and these lease agreements are normally renewed on expiry. The aggregate lease rentals payable are charged as Lease Rentals under note no 25 of financial statements.

The company uses motor car and speed boat that is leased under non-cancellable operating leases. The company has commitment under non-cancellable operating leases as follows:

Lease payment recognized in the statement of profit & loss as lease rentals under note no. 25 of financial statements OnaccountofNon-cancellablelease 1,187,127 (Previous year Rs.1,728,180/-) OnaccountofCancellableLease 150,000 (Previous year Rs. 1,63,500/-)

The company conduct its factory operations from facility that is leased under a 72 month non cancelable lease expiring in December, 2016 for which lumpsum interest free deposit of Rs. 50 lacs has been given, repayable after the expiry of the lease period.

9 INCOMETAX

Provision of Rs. 13,56,000/-(P.Y. 75,25,000/-) is made towards liability for income tax and Rs. 33,000/-(P.Y. 50,000/-) towards liability for wealth tax.

10 During the financial year 2010-2011, the company sold all the shares of M/s. Bhupco Alloys Limited, its subsidiary Company, to M/s. Emer Hotels & Suites Pvt. Ltd. pursuant to approval of the same by the board of directors of the Company vide its resolution dated 04/02/2011 for an amount 1.116,20,843/-, against which an amount of Rs. 70 lacs was received from M/s. Emer Hotels & Suites Pvt. Ltd. during the said year. The management is of the opinion that an amount of Rs. 20,00,000/ - shall be received during the year 2012-13. The remaining balance of Rs. 26,20,843/- is to be received from them only on receipt of rental deposit from landlord in Bhupco Alloys Ltd. Since, the consideration of Rs. 26,20,843/- is contingent on happening of an event in future, the outcome of which cannot be ascertained accurately as at balance sheet date, the same has not been recognized in the books of accounts as at 31 March 2012.

11 Segment Reporting

The Company's operations predominantly comprises of export of manufactured garments. Company also deploys its surplus funds in financial activities. Accordingly, garments & finance have been identified as primary basis for segment information. The Company does not have any secondary segment.

12 Till the year ended 31 March 2011, the company was using pre-revised schedule VI to the companies Act 1956, for preparation and presentation of its financial statements. During the year ended 31 March 2012, the revised schedule VI notified under the companies Act,1956, has become applicable to the company. The company has reclassified previous year figures to conform to this year's classification.

---

Mar 31, 2010

1. Following Contingent Labilities are not provided for:

31.3.2010 31.3.2009

In respect of Income Tax Demand for A.Y. 1996-97 in - 288,895

dispute under appeal

As per the order of Honble Bombay High Court, the Claim of 726,310 726,310

Apparel Export Promotion Council has been guranteed by furnishing Bank gurantee of equivalent amount

The Company is also involved in other lawsuits, claims, investigations and proceedings, which arise in the ordinary course of business, however, there are no such matters pending that the company expects to be material in relation to its business.

2. Loss on sale of fixed assets amounting to Rs. NIL (P.Y. Rs. 13,632,730/-) was charged to profit and loss account during the year on account of closure of Bangalore Unit.

3. Impairment loss of Rs. NIL (P.Y. 6,623,989/-) has been reversed during the year on account of closure of Bangalore Unit and sale of fixed assets at Bangalore Unit.

4. The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprise Development Act, 2006 (MSMED Act, 2006). Based on the information available with the Company, the balance due to Micro & Small Enterprises as defined under the MSMED Act, 2006 is Rs. NIL. (Previous year Rs. NIL) Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

5. income tax

Provision of Rs. 68,00,000/- (P.Y. Rs. 12,75,000/-) is made towards liability for income tax and Rs. 50,000/- (RY. Rs. 85,000/-) towards iiability for wealth tax.

6. Related Party Disclosures

Related parties with whom transaction have taken place during the year :

(As identified by the Management and relied upon by Auditors)

I. Subsidiary Company

Bhupco Alloys Ltd.

ii. Key Management Personnel

Mr. Umesh M. Katre Managing Director

Mr. Ashok Daryanani Director

Mr. Karl Dantas Director

Mr. Charuchandra Patankar Director

Mr. Rahul L. Mehta Director

7. Previous Years figures have been regrouped / rearranged wherever necessary.