Notes to Accounts of SunRakshakk Industries India Ltd.

Mar 31, 2025

N. Provisions and contingent liabilities: -

A Provision is recognized when an enterprise has a present obligation as a result of past event, it is probable
that an outflow of resources will be required to settled the obligation and a reliable estimate can be made
of the amount of the obligation. Provisions are not disclosed to its present value and are determined based on
best management estimate taking into account the risks and uncertainties surrounding the obligation required
to settle the obligation at the balance sheet date.

A contingent liability is a possible obligation that arises from past events and 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 enterprise or a present obligation that is not recognized because it is not probable that an
outflow of resources will be required to settle the obligation.

A contingent asset is a possible asset that arises 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 enterprise.

Contingent liabilities and assets are not recognized but are disclosed in the notes. These are reviewed at each
balance sheet date and adjusted to reflect the current best estimates.

O. Revenue Recognition: -

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company,
the Company retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold, and the revenue can be reliably measured, regardless of
when the payment is being made.

Revenue is measured at the fair value of the consideration received or receivable, taking into account
contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

Sale of goods:-

Generally, control is transferred upon shipment of goods to the customer or when the goods is made available
to the customer, provided transfer of title to the customer occurs and the Company has not retained any
significant risks of ownership or future obligations with respect to the goods shipped.

Consideration is generally due upon satisfaction of performance obligations and a receivable is recognized
when it becomes unconditional.

In case of discounts, rebates, credits, price incentives or similar terms, consideration are determined based on
its most likely amount, which is assessed at each reporting period.

Rendering of services:-

Revenue from rendering of services is recognized over time by measuring the progress towards complete
satisfaction of performance obligations at the reporting period.

Revenue is measured at the amount of consideration which the company expects to be entitled to in exchange
for transferring distinct goods or services to a customer as specified in the contract, excluding amounts
collected on behalf of third parties (for example taxes and duties collected on behalf of the government).
Consideration is generally due upon satisfaction of performance obligations and a receivable is recognized
when it becomes unconditional.

In case of discounts, rebates, credits, price incentives or similar terms, consideration are determined based
on its most likely amount, which is assessed at each reporting period.

Interest income:-

Interest income from a financial asset is recognized using effective interest rate method. Interest income is
included in other income in the statement of profit or loss.

Other operational revenue:-

Other operational revenue represents income earned from the activities incidental to the business and is
recognized when the right to receive the income is established as per the terms of the contract.

Other income:-

Other items of income are accounted as and when the right to receive such income arises and it is probable
that the economic benefits will flow to the company and the amount of income can be measured reliably.

P. Exceptional items

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an
understanding of the performance of the company is treated as an exceptional item and the same is disclosed in
the notes to accounts.

Q. Government Grants

Government grants are recognized where there is a reasonable assurance that the grant will be received and the
Company will comply with all attached conditions. When the government grant relates to an asset, the asset is
disclosed by deducting that grant in arriving at the carrying amount of that asset. Government grants that
compensate the Company for expenses incurred are recognized in the statement of profit and loss, as income or
deduction from the relevant expense, on a systematic basis in the periods in which the expense is recognized.

R. 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. Operating segments are
reported in a manner consistent with the internal reporting provided to the chief operating decision maker
(''CODM'').

The Company''s Board has identified the CODM who is responsible for financial decision making and assessing
performance. The Company has a single operating segment as the operating results of the Company are reviewed
on an overall basis by the CODM.

S. Leases
As lessee

The Company, as a lessee, recognizes a right-of-use asset and a lease liability for its leasing arrangements, if the
contract conveys the right to control the use of an identified asset. The determination of whether an agreement
is, or contains, a lease is based on the substance of the agreement at the date of inception.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset
and the Company has substantially all of the economic benefits from use of the asset and has right to direct the
use of the identified asset.

Initial measurement Lease Liability:

At the commencement date, a Company measure the lease liability at the present value of the lease payments
that are not paid at that date. The lease payments shall be discounted using incremental borrowing rate. Right-
of-use assets: initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any
lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease
incentives.

Subsequent measurement

Lease Liability: Company measure the lease liability by (a) increasing the carrying amount to reflect interest on
the lease liability; (b) reducing the carrying amount to reflect the lease payments made; and (c) remeasuring the

carrying amount to reflect any reassessment or lease modifications. Right-of-use assets: subsequently measured
at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated from the
commencement date on a straight-line basis over the shorter of the lease term and useful life of the under lying
asset.

Impairment: Right of use assets are evaluated for recoverability whenever events or changes in circumstances
indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the
recoverable amount (i.e. the higher of the fair value less cost to sell and the value in-use) is determined on an
individual asset basis unless the asset does not generate cash flows that are largely independent of those from
other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which
the asset belongs.

Short term Lease or Low Value Lease

Short term lease is that, at the commencement date, has a lease term of 12 months or less. A lease that contains
a purchase option is not a short-term lease. Low value lease is for which the underlying asset is of low value. If
the company elected to apply short term lease/Low Value Lease, the lessee shall recognize the lease payments
associated with those leases as an expense on either a straight-line basis over the lease term or another
systematic basis. The lessee shall apply another systematic basis if that basis is more representative of the pattern
of the lessee''s benefit.

T. Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity
Shareholders of the Company by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
Shareholders of the Company and the weighted average number of shares outstanding during the period, are
adjusted for the effects of all dilutive potential equity shares.

U. Recent accounting 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, 2025,
MCA has not notified any new standards or amendments to the existing standards applicable to the company.

*The figures have been disclosed on the basis of information received from suppliers who have registered themselves
under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) and/or based on the
information available with the Company. Further, no interest during the year has been paid or payable under the
provisions of the MSMED Act, 2006.

40. EMPLOYEE BENEFITS

(a) Company''s contribution accruing during the year in respect of Provident Fund and Employee State Insurance
Scheme has been charged to Profit & Loss Account.

(b) Short term and long-term employee''s benefit such as Leave Encashment are recognized as an expense at the
un-discounted amount in the profit and loss account of the year in which related service is rendered. Leave
Encashment liability is provided on accrual basis as on 31^st March of every year and paid in next following year.

(c) The company is accounting leave encashment on mercantile/ actual basis. The company is provisioning for
gratuity on actual undiscounted basis. Hence, provision for gratuity (including any earlier shortfalls) have been
provided for the year

Other Financial assets and liabilities includes the financial assets and liabilities whose carrying value shown as
amortized value.

Security deposits with Govt. Department as the term of agreement is not specified hence the carrying value is
considered as amortized value.

Loans from Banks: As the interest is being charged itself on current market rates and the EIR is approx. similar to its
interest rates charged. Hence Carrying value is considered as its amortized cost.

43. FINANCIAL RISK MANAGEMENT

Financial risk management policy and objectives

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

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

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

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

The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below:

(i) Market risk

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

(ii) Interest rate risk

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

Sensitivity analysis:

A change in 50 basis point in interest rate at the reporting date would have increase/(decrease) Profit or Loss by the amount shown
below.

This analysis assumes that all other variables, remain constant

(iii) Foreign Currency Risk Management

The Company''s functional currency is Indian Rupees (INR). The Company undertakes transactions
denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Volatility
in exchange rates affects the Company''s revenue from export markets and the costs of imports, primarily
in relation to raw materials. The Company is exposed to exchange rate risk under its trade and debt
portfolio. Adverse movements in the exchange rate between the Rupee and any relevant foreign
currency results in increase in the Company''s overall debt position in Rupee terms without the Company
having incurred additional debt and favorable movements in the exchange rates.

(iv) Commodity Risk

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

(v) Credit risk

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

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

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

(vi) Liquidity risk

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage
of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing.
The Company requires funds both for short term operational needs as well as for long term capital
expenditure growth projects. The Company generates sufficient cash flow for operations, which together
with the available cash and cash equivalents and short-term investments provide liquidity in the short-term
and long-term. The Company has established an appropriate liquidity risk management framework for the
management of the Company''s short, medium and long-term funding and liquidity management
requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and
reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the
maturity profiles of financial assets and liabilities.

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial
liabilities with agreed repayment periods and its non-derivative financial assets. The tables have been drawn
up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
Company can be required to pay. The tables include both interest and principal cash flows.

47. CONTINGENT LIABILITIES

1. The Textile Cess Committee has raised a demand of Rs.46.26 Lakhs against the company. The Company has filed
various appeal against it before Hon''ble TC Appellate Tribunal, Mumbai. The Company has not received any
communication from the tribunal and as per our information and belief the matter is still pending with TC Cess
Appellant Tribunal. Mumbai and consequently, liability, if any arises will be accounted for as and when the case will be
decided. The management being confident of winning the case, no provision of the above has been made.

2. In opinion of the management, there may be some lawsuits, claims, demand or proceedings against company, which
arise in normal course of business. However, there is no such matter pending that the company expects to be material
in relation to its business and which requires specific disclosures. The management is confident of getting the verdict
in its favor and therefore, no, liability on this account is anticipated and hence no specific disclosure is being made for
the contingent liability

48. SEGMENT REPORTING

Based on the management approach as defined in IND AS 108 - Operating Segments, the Chief Operating Decision
Maker ("CODM") evaluates the Company''s performance and allocates resources based on an analysis of various
indicators of business segment/s in which the Company operates. The Company is primarily engaged in the business of
textile manufacturing which the management and CODM recognize as the sole business segment. Hence disclosure of
segment-wise information is not required and accordingly not provided.

49. CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Company is required to spend money on Corporate Social Responsibility as stipulated in the Section 135 of the
Companies Act, 2013. Company has framed Committee on Corporate Social Responsibility and has defined the
objectives and areas of activities to be undertaken under its fold. The Company is required to spend, in current financial
year, at least two percent of the average net profits of the Company made during the three immediately preceding
financial years in accordance with its CSR Policy. The details of CSR expenses for the year are as under:

50. ADDITIONAL REGULATORY REQUIREMENTS AS REQUIRED UNDER SCHEDULE III OF THE COMPANIES ACT, 2013

i) Title deeds of all immovable properties are held on the name of the Company.

ii) The Company has not revalued any Property, Plant and Equipment and Intangible Assets during the year.

iii) The Company has not given loan or advances in nature of loans to promoters, directors, KMPs and the
related parties which is repayable on demands or without specifying any terms or period of repayment.

iv) There is no proceedings initiated or pending against the Company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made there under.

v) The Company is not declared a willful defaulter by any bank or financial Institution or other lender.

vi) As informed by the Management, there are no transactions with companies struck off under section 248
of the Companies Act, 2013 or section 560 of Companies Act, 1956 by the Company during the year and
there are no outstanding balance as on 31st March, 2025 with any struck off companies

vii) There are no charges or satisfactions of charges which are yet to be registered with Registrar of Companies
beyond the statutory period.

viii) There is no investment made by the Company in other companies. Hence, there is no compliance required
on the number of layers prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017.

ix) There is no Scheme of Arrangements approved by the competent authority in terms of section 230 to 237
of the Companies Act, 2013 during the year.

x) The Company has not advanced or loaned or invested funds to any other person or entities, 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.

xi) The Company has not received any fund from any person or entities, including foreign entities (Funding

Party) with the understanding 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.

xii) The Company has not surrendered or disclosed as income or the previously unrecorded income and
related assets during the year in the tax assessments which are not recorded in the books of accounts of
the Company

51. CAPITAL MANAGEMENT

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business. Management monitors the return on capital as well as the level
of dividends to ordinary shareholders.

52. APPROVAL OF FINANCIAL STATEMENTS

The Financial Statements were approved for issue by the Board of Directors on 30th May, 2025.

53. PREVIOUS YEAR FIGURES

The figures for previous year have been re-grouped, re-arranged and re-classified wherever necessary to make them
comparable with the current year''s figure.

AS PER AUDIT REPORT OF EVEN DATE

For: O.P. Dad & Co. P.C. CHHABRA T.C.CHHABRA

Chartered Accountants. [MANAGING DIRECTOR] [DIRECTOR]

Firm Reg. No. 002330C

A.K. BAGRECHA DINESH PORWAL

[COMPANY SECRETARY] [CFO]

(ABHISHEK DAD)

Partner
M. No. 409237

UDIN: 25409237BMOVOF9676

Place: Bhilwara
Dated: 30th May, 2025

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Mar 31, 2015

NOTE 1 - CONTINGENT LIABILITIES

1. The Textile Cess Committee has raised a demand of Rs.45.28 Lacs against the company. The Company has filed various appeal against it before Hon'ble TC Appellate Tribunal, Mumbai. The Company has not received any communication from the tribunal and as per our information and belief the matter is still pending with TC Cess Appellant Tribunal. Mumbai and consequently, liability, if any arises will be accounted for as and when the case will be decided. The management being confident of winning the case, no provision of the above has been made.

2. The Company has deposited Rs. 82246/- under protest towards demand confirmed by the order of Commissioner of Excise in Case No IV(55)4/45/BHL/R-IV/04/6537 Dated 13.03.2004. Company has filled the appeal in CESTAT.

3. Hon'ble CESTAT Vide it, a Final Order No 493-495/08 CEx. Dated 13.07 2006 reduced the penalty and accordingly we have filed this refund of excess penalty deposited by us. The department has sanctioned a sum of Rs 114093 on 27.02.2009 towards excess penalty deposited by us. The department pointed an appeal with the Rajasthan High Court and matter is pending with High Court.

4. Hon'ble Rajasthan High Court in Central Excise Appeal No. 34/2007 * Union of India Vs. A.K. Spintex Ltd. & Are Has decided the case in our favor The Department has filed SLP with Hon'ble Supreme Court of Indie vide SLP (Civil) No. 25055 of 2009

5 During the year, the company has settled the entry tax liability with the government under Amnesty scheme ol Rajasthan government for period up to 31.03,2012, mainly to take advantage of waiver in interest, penalties , undue litigation and to buy peace. Despite. accepting the scheme, true management continues to take view that entry tax is not livable on the company for the period also and has filed stay petition with Hon. Rajasthan High court for FY 2012-13. As the management¦|transferred-the liability of entry tax law itself, hence, no provision of the entry tax has been made in books of/accounts for Fy. 20.12-2015, as it is of contingent nature in management opinion. The entry tax liability is accounted oh actual basis at the time of payment.

NOTE 2- DUE TO MICRO, SMALL & MEDIUM ENTERPRISES

The government of India has formulated an act namely. "The Micro, Small & Medium Enterprises Development Act, 2006 which comes into force with effect from October, 2 2006 As per the act, the company is required to identify the Micro and Small Enterprises & pay them interest on overdue beyond the specified period respective of the terms agreed with the companies. The company has initiated the process of Identification of such suppliers. In view of number of supplier & non receipt of critical inputs & response from several such potential parties for the liability of interest cannot be reliable estimate nor can require disclosure be made accounting in this regard will be carried out after process is completed and reliable estimate can be made. Since the company is regular in making payments to all suppliers the management does not anticipate any significant interest liability.

NOTE 3 - PREVIOUS YEARS FIGURES

In figures for previous years have been re-grouped and re-classified wherever necessary to make them comparable with the current years figure.

NOTE 4 - SEGMENT REPORTING

As the companies significant business activity falls within a single primary business segment viz. Processing of fabrics the disclosure requirement of accounting standereds-17 segment reporting issued by Institute of chartered accountants of India is not applicable.

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Mar 31, 2013

NOTE 1 - CONTINGENT LIABILITIES

1. The Textile Cess Committee has raised a demand of Rs 46.25 Lacs against the company The Company has filed various appeal against it before Hon'ble TC Appellate Tribunal. Mumbai. The Company has not received any communication from the tribunal and as per our information and belief the matter is still pending with TC Cess Appellant Tribunal. Mumbai and consequently, liability, if any arises will be accounted for as and when in case will be decided. The management being confident of winning the case, no provision of the above has been made.

2. The Company has deposited Rs. 82246/- under protest towards demand confirmed by the order of Commissioner of Excise in Case No [V(55)4745/BHUR-IV/04/6587 Dated 18.082004. Company has filed the appeal in CESTAT.

3. Hon.ble CESTAT Vide faces Final Order No, 493-495/08 CEX Dated 16.07.20.08 reduced the penalty and accordingly we have fried the reflected of excess penalty deposited by u$. The department has sanctioned a sum of Rs. 114093 /- on 27.02.2009 towards excess penalty deposited by us. The department preferred an appeal with the Rajasthan High Court and matter is pending with High Court.

4 Hon,ble Rajasthan High Court in Central Excise Appeal No 34/2007 " Union of India Vs. A.K. Spintex Ltd. & An." Has decided the ease in our favour. The Department has filed SLP with Hon'ble Supreme Court of India vide SLP (Civil) No 25055 of 2009.

5. A writ petition regarding livery of Rajasthan entry tax on the processing units was pending before the Hon. Rajasthan High Court, Jodhpur in which a modified interim order was passed on 21,Of .2011. In compliance with the order, the company had to deposit 50 % of the entry tax for The years of which assessment is done i.e. FY 2007-08 and for the balance 50% amount, a surety bond was given. As the final order on the aforesaid writ petition has not been yet passed, the company on conservative basis has accounted for the entry tax up to FY 2007-03 in the books of accounts. In view of the management, there being a fair chance of winning the case, no further provision is necessary for period after FY 2007-Ofl. Thus the total amount of disputed liability for the period 01.04.2008 to 31.03.2013 is Rs. 62,14 lacs for which no provision is made being contingent in nature.

NOTE 2. - DUES TO MICRO. SMALL & MEDIUM ENTERPRISES

The Government of India has promulgated an act namely The Micro, Small & Medium Enterprises Development Act 2006" which comes into force with effect from Qctober,2 2006. As per The Act. the Company is required In identify the Micro & Smash Enterprises & Pay them interest on over due beyond the specified period irrespective of the terms agreed with the enterprises. The Company has initiated the process of identification of such suppliers. In view of number of supplier & no receipt of critical inputs & response from several such potential parties, the liability of interest cannot be reliable estimates nor can required disclosure be made. Accounting in this regard will be carried out after process is complete and reliable estimate can be made. Since the Company is regular in making payments to all suppliers, the management does not anticipate any significant interest liability.

NOTE 3. - PREVIOUS YEAR FIGURES

The figures for previous year have been re-grouped, re-arranged and re-classified wherever necessary to make them comparable with the current year's figure

NOTE 4. - SEGMENT REPORTING

As the company's significant business activity falls within a single primary business segment viz. "Processing of Fabrics', the disclosure requirement of accounting Standard-T7 "Segment reporting', issued by Institute of Chartered Accountants of India, is not applicable.

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Mar 31, 2011

If NOTES TO THE ACCOUNTS

1. The Textile cess committee has raised a demand of Rs,46.26 Lacs against the company The Command has field various appeal ageist it before honble Appellate Tribunal, Mumbai. The Company has not received any communication from the tribunal and as per our information and belief the matter is still Mumbai and consequently, liability, if any arises will be accounted for as and when the case will be decided the management being confident of winning the case no provision of the above has been made.

1. The Company has deposited Rs, 82246/- under protest towards demand confirmed by the order of commissioner of excise in case No. IV (55) 4/445BHL/R-IV/04/6587 Dated 18.08.2004 Company has filed the appeal in CESTAT.

1. Hon,ble CESTAT Vide its Final order No. 493-495/08 CEx Dated 18.07.2008 reduced the penalty and accordingly we have field the refund of excess penalty deposited by us department preferred an Which a modified interim order was passed on In compliance High Court.

1. Hon,ble Rajasthan High Court in Central Excise Appeal No.34/2007 Union of India Vs A.K.Spintex Ltd & Anr Has decided the case in our favor The Department has field SLP With Hon,ble Supreme Court of India vide SLP (Civil)No.25055 of 2009.

1. A writ petition regarding livability of Rajasthan entry tax on the processing units was pending before the Hon,ble Rajasthan High Court Jodhpur in which a modified interim order was passed on 21.01.2011 in compliance with the order the company had to deposit 50% amount a surety bond was given as the final order on the aforesaid writ petition has not been yet passed the company on conservation basis has accounted for the entry tax up to FY 2007-08 in the books of account in view of the management there being of fair chance of winning the case no further provision is necessary for period after FY 2007-08 Thus the total amount of disputed liability for the period 01.04.2008 to 31.03.2011 is Rs,53.83 lacs for which no provision is made being contingent in nature.

1. In the opinion of Board of directors the current Assets Loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated except as expressly stated otherwise and all known liabilities have been provided in the accounts.

1. As the company significant business activity falls within a single primary business segment viz processing of Fabrics the disclosure requirement of accounting standard 17^th Segment reporting issued by institute of charted Accountants of India is not applicable.

1. There is no expenditure incurred on employees who were in receipt of remuneration in the aggregate of not less than Rs, 24,00,000/- p.a. if employee throughout year and Rs, 2,00,000/- per month for a part of the year.

1. In the opinion of the management there is no impairment of assets in accordance with Accounting standard AS-28 as on Balance Sheet date.

1. The company is accounting leave encashment on mercantile actual basis However gratuity has been accounted by way of actuarial valuation and due provision has been made in the books in current year.

1. The Company does not possess information as to which of its suppliers is a SSI holding permanent registration certificate consequence the liability if any of interest which would be payable on delayed payment made under small scale Ancillary industrial undertaking Act, 1993 cannot be ascertained however the company has not received any claim in respect of interest so far.

1. Related party Disclosure

1. The Co. is dealing with following related parties as defined under AS-18 issued by the ICAI

Key Management personnel : Shri prakash chand chhabra (Managing Director)

Sister /Associate concerns : Chhabra Syncotex Pvt.Ltd

Fashion suiting Pvt. Ltd

1. Information pursuant to the provisions of paragraph 3& 4 of Part II of Schedule VI of the companies act, 1956 is annexed herewith.

1. Details as required under part iv of schedule VI of the companies act 1956 is also annexed herewith.

1. During the year, the company has not made any preferential allotment of shares to parties and companies covered in the register maintained u/s. 301 of the Act.

16 The Company has not raised any amount by issue of debentures.

17. The Company has not raised any ajar if by way of public issue during the year.