Notes to Accounts of Tusaldah Ltd.

Mar 31, 2025

(b) According to the information and explanations given to us, there are no statutory dues referred to in sub-clause (a) which have not been deposited by the Company on account of any dispute.

viii. There were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

ix. In respect of repayment of dues:

(a) The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.

(b) According to the information and explanations given to us, we report that the Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority or any other lender.

(c) The Company do not have any term loans during the year and hence, reporting under clause 3(ix)(c) of the Order is not applicable to the Company.

(d) According to the information and explanations given to us, on an overall examination of the financial statements of the Company, we report that no funds raised on short-term basis have been used for long-term purposes by the Company.

(e) The Company do not have subsidiaries, associates or joint ventures and hence, reporting under clause 3(ix)(e) of the Order is not applicable to the Company.

(f) The Company do not have associates or joint ventures and

hence, reporting under cla ;he Order is not applicable to the

Total Authorised capital ( for equity shares) of the company increased from 40,00,000 to 50,00,000 and Issued, Subscribed and Paid Up Capital was increases from 647,000 Equity shares of Rs. 10/- each to 23,43,430 Equity Shares of Rs. 10/- each consequent to decision of issue of share capital of 16,96,430 at Rs. 15( Face Value 10 and premium of Rs. 5) approved by shareholders in EGM dt 18-2-2025.

Earlier total Authorised capital (for Equity Shares) of the company was Rs. 7,50,00,000/- having 7,500,000 shares having nominal value of Rs. 10/- each which was rearranged in 4,000,000 Equity Shares having nominal value of Rs. 10 each and 350,000 6% Redeemable Cumulative Non Convertible Preference Shares of Rs. 100/-each vide decision of shareholders in Annual General Meetinq held on 25th September 2010.

Issued, Subscribed and Paid Up Capital was reduced from 6,470,000 Equity shares of Rs. 10/- each to 647,000 Equity Shares of Rs. 10/- each consequent to decision of reduction of share capital approved by shareholders and High Court of Rajasthan had also approved the same vide itsorder dtd 22nd April 2010.

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 dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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.

The Company has only one class of Redeemable Preference Shares shares having a par value of Rs 100 per share entitled for 6 % preferential Dividend. In the event of liquidation of the Company, the holders of such shares will be entitled to receive remaining assets of the Company prior to equity share holders. The distribution will be in proportion to the number of shares held by the shareholders.The Preference shares were due for redemption on 8th October 2015 but due to the losses in the company the redemption period has been extended by 1-3 years, but not later than 8-10-2018, with due consent of preference shareholder.Due to losses, the company was not in a position to redeem the shares on the due date 8-10-18, So the date of redemption is extended upto 7-10-2028 with consent of shareholder.

2,78,000 6% Cumulative Non Convertible Preference Shares of Rs. 100/- each were issued fresh on 9th October 2010 as per decision of shareholders . In the year 2021, Company reedemed 100,000 Preference shares on November 08 ,2021 and 42,000 preference shares on December 20, 2021, currently as on March 31, 2023 there are 138,000 redeemable preference shares left to redeemed.

Arrears of fixed cumulative dividends on preference shares as at 31st March, 2022 is 1,88,40,642/- (As at 31st March, 2021 - Rs 1,74,77,442/-) waived by preference share holder on account of loss in company.

22 In the opinion of the management of the company, current assets, loans and advances have a realisable value in ordinary course of business at least equal to the amount at which they are stated and that all known liabilities relating thereto have been provided for in the books of accounts.____

23 Financial risk management 23.1 Financial risk factors

The Company''s principal financial liabilities comprise unsecured borrowings and trade payables. The main purpose of these financial liabilities is to manage finances for the Company''s operations. The Company has loan and other receivables, and cash that arise directly from its operations. The Company''s activities expose it to a variety of financial risks:

i) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise two types of risk: interest rate risk and other price risks, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and investments. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. This is based on the financial assets and financial liabilities held as at March 31, 2023 and March 31, 2024.

(ii) Liquidity risk

The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company relies on a mix of borrowings, capital infusion and excess operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

The table below provides amortised value of cash flows towards non-derivative financial liabilities into relevant maturity based on the remaining period at the balance sheet to the contractual maturity date.

(iii)Credit Risk

Credit risk arises from cash and cash equivalents, investments carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to wholesale customers including outstanding receivables"

23.2 Capital risk management

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The primary objective of the Company''s capital management is to maximize the shareholder value. The Company''s primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital ratios and safeguard the Company''s ability to continue as a going concern in order to support its business and provide maximum returns for shareholders. The Company also proposes to maintain an optimal capital structure to reduce the cost of capital. No changes were made in the objectives, policies or processes during the year ended March 31, 2024 and March 31, 2023.

For the purpose of the Company''s capital management, capital includes issued capital, and all other equity reserves. Net debt includes, interest bearing loans and borrowings less cash and short term deposits.

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 interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.

Financial instruments carried at amortised cost such as trade receivables, loans and advances, other financial assets, borrowings, trade payables and other financial liabilities are considered to be same as their fair values, due to short term nature.

For financial assets & liabilities that are measured at fair value, the carrying amounts are equal to the fair values

26 Impairment of Assets

The carrying values of assets are reviewed at each reporting date to determine if there is indication of any impairment. If any indication exists, the assets recoverable amount is estimated. For assets that are not yet available for use, the recoverable amount is estimated at each reporting date. An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognised in the Statement of Profit and Loss. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortisation, if no impairment loss had been recognised.

27	Contingent Liabilities
	Particulars	Year ended 31st March, 2025	Year ended 31st March. 2024
	i) Claims against company not acknowledged as debts* __1_

28 Foreign Currency Transactions:

i) Export Sales- At the rates as on the date of negotiation or collection ,where export bills are negotiated after the close of the year, then at the year end rate when not covered by forward contract.

ii) Expenditure- At the rates as on the date of transaction, receivables, creditors and outstanding liabilities are translated at the rate as at the close of the year, or at forward contract rate, wherever applicable.

iii) Foreign Currency Loans for acquiring Fixed Assets and outstanding at the close of the Financial Year -At the contracted /prevailing rate of exchange, at the close of the year. The gain or loss due to decrease/increase in rupee liability due to fluctuations in rates of exchange is adjusted to the cost of the assets acquired through these loans. The depreciation on such increase/decrease in value of assets is provided for prospectively on residual life of the assets.

30 Expenditure During Construction Period : Expenditure incurred on projects during implementation is capitalised and apportioned to various assets on commissioning of the project.

31 The balances of Loans and Advances, Debtors and Creditors, if any, are subject to confirmation/ reconciliation.

32 The Company is not covered under section 135 of Companies Act, 2013. Additional information regarding expenses incurred on corporate social responsibility actitivities is not applicable.

33 The accounting of deferred tax in terms of "Ind AS 12 on " Income Taxes" results in deferred Tax Assets. However in view of sickness of the company there is no certainity of realization of such assets in a reasonable period of time, hence the same has not been accounted for.

34 Figures for the previous years have been regrouped wherever necessary._

Segments have been identified taking into account nature of Products and differential risk and returns of the segments. These business segments are reviewed by the Chief Operating officer of the Company.

The Expenses, which are not directly identifiable to a specific business segment are clubbed under specific head and similarly, the common assests and liabilities, which are not identifiable to a specific segment are clubbed under the specific head on the basis of reasonable estimates.

Segment Reportino

The company''s operation primarily relates to manufacturing and trading of (a) Knitted socks, head band and wrist band (b) and trading in yam and (c) trading in commodities. Accordingly segments have been identified in line with Indian Accounting Standard on Operating Segment "IND AS-108". Manufacturing/ trading of socks and trading of yarn and trading in commoditie are the primary segment and there is no other segment.

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Mar 31, 2024

l. Provisions and contingencies

(i) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time
value of money is material, provisions are discounted using equivalent period government securities interest
rate. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best
estimate.

(ii) Contingencies

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.

Contingent assets are not recognised in the books of the accounts but are disclosed in Board Report.
However, when the realisation of income is virtually certain, then the related asset is no longer a contingent
asset, but it is recognised as an asset and the corresponding income is booked in the Statement of Profit and
Loss.

m. Taxation

Income tax expense represents the sum of current and deferred tax (including MAT). Tax is recognized in the
Statement of Profit and Loss, except to the extent that it relates to items recognized directly in equity or
other comprehensive income, in such cases the tax is also recognized directly in equity or in other
comprehensive income. Any subsequent change in direct tax on items initially recognized in equity or other
comprehensive income is also recognized in equity or other comprehensive income, such change could be for
change in tax rate.

(i) Current Tax

Current tax provision is computed for Income calculated after considering allowances and exemptions under
the provisions of the applicable Income Tax Laws. Current tax assets and current tax liabilities are off set,
and presented as net.

(ii) Deferred Tax

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the Balance
sheet and the corresponding tax bases used in the computation of taxable profit and are accounted for using
the liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences, and
deferred tax assets are generally recognized for all deductible temporary differences, carry forward tax losses
and allowances to the extent that it is probable that future taxable profits will be available against which
those deductible temporary differences, carry forward tax losses and allowances can be utilized. Deferred tax
assets and liabilities are measured at the applicable tax rates. Deferred tax assets and deferred tax liabilities
are off set, and presented as net.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available against which the temporary
differences can be utilised.

n. Cash and cash equivalents

Cash and cash equivalents includes cash on hand and at bank, other short-term highly liquid investments
with original maturities of three months or less that are readily convertible to a known amount of cash and
are subject to an insignificant risk of changes in value and are held for the purpose of meeting short-term
cash commitments.

o. Financial instruments - initial recognition, subsequent measurement and impairment

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 recognized when, and
only when, the Company becomes a party to the contractual provisions of the instruments.

(i) Financial Assets

Financial Assets are measured at amortized cost or fair value through Other Comprehensive Income or
fair value through Profit or Loss, depending on its business model for managing those financial assets
and the assets contractual cash flow characteristics.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed of determinable payments that are
not quoted in an active market. Loans and receivable are measured at amortized cost using the
effective interest methods, less any impairment. Interest income is recognized by applying the effective
interest rate, except for short-term receivable when the recognition of interest would be immaterial.

Subsequent measurements of financial assets are dependent on initial categorization. For impairment
purposes significant financial assets are tested on an individual basis, other financial assets are
assessed collectively in groups that share similar credit risk characteristics.

(ii) Financial Liabilities

At initial recognition, all financial liabilities other than fair valued through profit and loss are recognized
initially at fair value less transaction costs that are attributable to the issue of financial liability.
Transaction costs of financial liability carried at fair value through profit or loss is expensed in profit or
loss.

• Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading. The
Company has not designated any financial liabilities upon initial measurement recognition at fair value
through profit or loss. Financial liabilities at fair value through profit or loss are at each reporting date at
fair value with all the changes recognized in the Statement of Profit and Loss.

• Financial liabilities measured at amortized cost

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized
cost using the effective interest rate method (''''EIR'''') except for those designated in an effective hedging
relationship. The carrying value of borrowings that are designated as hedged items in fair value hedges

that would otherwise be carried at amortized cost are adjusted to record changes in fair values
attributable to the risks that are hedged in effective hedging relationship.

1) Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are
recognized in profit or loss when the liabilities are de-recognized as well as through the EIR
amortization process. Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as
finance costs in the statement of profit and loss.

2) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of
financial year which are unpaid. Trade and other payables are presented as current liabilities unless
payment is not due within 12 months after reporting period. For trade and other payables maturing
within one year from the balance sheet date, the carrying amounts approximate fair value due to the
short maturity of these instruments.

(iii) De-recognition of financial Assets and Financial liability

A Financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. The difference between the carrying amount of a financial liability that has been extinguished
or transferred to another party and the consideration paid, including any non-cash assets transferred or
liabilities assumed, is recognized in profit or loss as other income or finance costs.

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the
asset expires, or when it transfer the financial asset and substantially all the risks and rewards of
ownership of the assets to another entity.

Offsetting financial assets and liabilities

There are no financial assets or financial liabilities which are subject to offsetting as at March 31, 2024
and March 31, 2023 since, the entity neither has enforceable right or an intent to settle on net basis or
to realise the asset and settle the liability simultaneously. Further, the Company has no enforceable
master netting arrangements and other similar arrangements as at March 31, 2024 and March 31, 2023.

p. Asset held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use. Non-current assets classified as held for
sale are measured at the lower of carrying amount and fair value less cost to sell. Any resulting
impairment loss is recognized in the Statement of Profit and Loss. On classification as held for sale the
assets are no longer depreciated.

q. Segment reporting

The Company identifies primary segments based on nature of products and returns and the internal
organisation and management structure. The operating segments are the segments for which separate
financial information is available and for which operating profit/loss amounts are evaluated regularly by
the managing board in deciding how to allocate resources and in assessing performance.

r. Fair value Measurement

The Company measures financial instruments, such as investments at fair value at each balance sheet
date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based
on the presumption that the transaction to sell the asset or transfer the liability takes place either:

(a) In the principal market for the asset or liability, or

(b) In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their economic
best interest.

A fair value measurement of a nonfinancial asset takes into account a market participant''s ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.

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

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

(b) Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable, or

(c) Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.

s. Exceptional items

Exceptional items comprise items of income and expense, including tax items, that are material in amount
and unlikely to recur and which merit separate disclosure in order to provide an understanding of the
Group''s underlying financial performance

.5. Critical accounting estimates, assumptions and judgments

The estimates and judgements used in the preparation of the financial statements are continuously
evaluated by the Company and are based on historical experience and various other assumptions and
factors (including expectation of future events) that the Company believes to be reasonable under the
existing circumstances. Differences between actual results and estimates are recognised in the period in
which the results are known/materialised.

In the process of applying the accounting policies, management has made the following judgments, which
have the most significant effect on the amounts recognised in the financial statements:

(i) Income taxes

"Management judgment is required for the calculation of provision for income taxes and deferred tax
assets and liabilities.

The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors
used in estimates may differ from actual outcome which could lead to significant adjustment to the
amounts reported in the standalone financial statements."

(ii) Contingencies

Management judgement is required for estimating the possible outflow of resources, if any, in respect of
contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending
matters with accuracy.

(iii) Property, plant and equipment

Management assesses the remaining useful lives and residual value of property, plant and equipment.
Management believes that the assigned useful lives and residual value are reasonable.

22 Financial risk management

22.01 Financial risk factors

The Company''s principal financial liabilities comprise unsecured borrowings and trade payables. The main
purpose of these financial liabilities is to manage finances for the Company''s operations. The Company has
loan and other receivables, and cash that arise directly from its operations. The Company''s activities expose
it to a variety of financial risks:
i) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market prices comprise two types of risk: interest rate risk and other price risks,
such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and
borrowings, deposits and investments. Interest rate risk is the risk that the fair value or future cash flows of
a financial instrument will fluctuate because of changes in market interest rates. This is based on the
financial assets and financial liabilities held as at March 31, 2024 and March 31, 2023.

(ii) Liquidity risk

The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral
requirements. The Company relies on a mix of borrowings, capital infusion and excess operating cash flows
to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium
term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has
sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed
borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where
applicable) on any of its borrowing facilities.

The table below provides amortised value of cash flows towards non-derivative financial liabilities into
relevant maturity based on the remaining period at the balance sheet to the contractual maturity date.

22.02 Capital risk management

The Company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the
Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new
shares. The primary objective of the Company''s capital management is to maximize the shareholder value.
The Company''s primary objective when managing capital is to ensure that it maintains an efficient capital
structure and healthy capital ratios and safeguard the Company''s ability to continue as a going concern in
order to support its business and provide maximum returns for shareholders. The Company also proposes to
maintain an optimal capital structure to reduce the cost of capital. No changes were made in the objectives,
policies or processes during the year ended March 31, 2024 and March 31, 2023.

For the purpose of the Company''s capital management, capital includes issued capital, and all other equity
reserves. Net debt includes, interest bearing loans and borrowings less cash and short term deposits.

The Company monitors capital using gearing ratio, which is net debt divided by total capital plus total debt.

Note 36 OTHERS DISCLOSURES AS PER SCHEDULE III

36.01 Corporate Social Responsibility Expenditure

Section 135 of Companies Act, 2013 regarding CSR is not Applicable on the Company.

36.02 Relationship with Struck-off Companies:

_Company had "NO" relationship and transactions with Struck-off Companies._

For R Sogani & Associates For and on behalf of the Board of Directors

Firm Reg. No: 018755C

Chartered Accountants Sd/-

Bhagwan Singh ^Sd/-

Aishwarya Sethia

Chairman & W.T.

Director and CFO

DIN:^ct0^o2^r305246 “N 029796 18

Sd/-

(Bharat Sonkhiya)

Partner

M.No. 403023 Sd/-

Sunil Kumar Bairwa

Place : Jaipur Additional Independent Director

Date: May 08, 2024 DIN: 06791053

UDIN: 24403023BKBMPT5571

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Mar 31, 2015

1.1 Contingent Liabilities

(Amount in Rs.)

Particulars 2014-15 2013-14

Claims against company not acknowledged as debts* 142048.00 142048.00

(*Demand of Rs.1,42,048 raised by Land & Building Tax Deptt. which is challanged by the company in appropriate court.)

Deposited with ESI under protest against demand for the period from October 2007 to December 2008 during which period the factory was closed . This demand has been challenged by the company in appropriate court. 92035.00 92035.00

Demand of of registration fees on Land Rs 594250.

The same was deposited under protest and revision petition was filed before Revnue board, Ajmer. The appeal of the company has since been decide in favour of the company and the demand has been waived. 0.00 594250.00

1.2 Due to non availability of reliable information regarding SSI status of suppliers/ sundry creditors, information regarding outstanding toward them can not be ascertained. However the amount is not likely to be significant.

1.3 The accounting of deferred tax in terms of "Accounting Standard ( AS22) on " Accounting for Taxes on Income" results in deferred Tax Assets. However in view of sickness of the company there is no certainity of realization of such assets in a reasonable period of time, hence the same has not been accounted for.

1.4 Segments are identified in line with the Accounting Standard 17 ( AS17) taking into account the organisation structure. Expenses which were identified were attributed directly i.e manufacturing and depreciation related to Socks segment only and other expenses were attributed on pro-rata basis of sale value.

Segment Reporting

(a) Primary Segment Information

The company''s operation primarily relates to manufacturing and trading of Knitted socks, head band and wrist band and trading in yarn. Accordingly segments have been identified in line with Accounting Standard on Segment Reporting "AS-17". Manufacturing/ trading of socks and trading of yarn are the primary segment and there is no other segment.

Secondary segment information

The company caters mainly to the need of Indian market and there is no Export sale, therefore no reportable geographical segments.

1.5 In view of paucity of funds no salary were paid to any of the Director for the financial year, however in view of directors confirmations not to avail any remuneration, no provision for liability is required.

Note 2. Share Capital

Authorised Capital was rearranged in 4,000,000 Equity Shares having nominal value of Rs. 10 each and 350,000 6% Redeemable Cumulative Non Convertible Preference Shares of Rs. 100/-each vide decision of shareholders in Annual General Meeting held on 25th September 2010.

Issued, Subscribed and Paid Up Capital was reduced from 6,470,000 Equity shares of Rs. 10/- each to 647,000 Equity Shares of Rs. 10/- each consequent to decision of reduction of share capital approved by shareholders and High Court of Rajasthan had also approved the same vide itsorder dtd 22nd April 2010.

278,000 6% Cumulative Non Convertible Preference Shares of Rs. 100/- each were issued fresh on 9th october 2010 as per decision of shareholders. Arrears of fixed cumulative dividends on preference shares as at 31st March, 2015 is 7469442/- (As at 31 March, 2014 Rs 5801442/-).

2.1 Terms / Rights attached to 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 dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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.The Company also has only one class of Redeemable Preference Shares shares having a par value of Rs 100 per share entitled for 6 % preferential Dividend. In the event of liquidation of the Company, the holders of such shares will be entitled to receive remaining assets of the Company prior to equity share holders. The distribution will be in proportion to the number of shares held by the shareholders.The Preference shares are not redeemable before three Years ( i.e 8th October 2013) and not later than five years i.e 8th october 2015 from the date of allotment.

3.1 Pursuant to Schedule 2 of Companies Act, 2013 and rules made thereunder, residual life of all depreciable assets has been worked out in line with recommended useful life . All assets except building are past their useful life and hence their carrying value has been considered Nil. For building salvage value is estimated at Rs. 399779 (@ 3% of original cost of the building). The total useful life of building is estimated as 30 years and hence, the remaining life as on 31st March, 2014 is 11.41 years and depreciation has been adjusted accordingly. Similarly the depreciation on revalued portion of building has also been recomputed and is reduced from revaluation reserve. The opening written down value of all assets, whose residual life is nil (amounting to Rs. 1294849.14) has been reduced from opening balance of Reserve & Surplus.

3.2 The Leasehold land was allotted on 99 year lease w.e.f. 4/10/1991 by RIICO.

3.3 In terms of decision of Board of Directors, revaluation of Land and Building of the company was got done during 2008-09 by approved valuer so as to represent the true realizable value of assets. The cost of acquisition in case of land and written down value in case of building was substituted with value arrived as per revaluation report and the difference was credited to Revaluation reserve. Accordingly depreciation is calculated on revalued portion of building, As per schedule 2 of Companies act 2013, as adjusted to write off the entire value in residual life and the same has been shown reduced from revaluation reserve.

Notes:

3.4 Inventories are taken and valued at lower of cost or net realisable value as certified by the management.Cost is valued on Average rate method for raw material and FIFO method for others.

3.5 Finished goods and work in progress are valued at lower of cost or net realisable value. Cost of finished goods includes cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

4.1 In the opinion of Board of Directors the Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

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Mar 31, 2014

1.1 Contingent Liabilities (Amount in Rs.)

Particulars 2013-14 2012-13

Claims against company not acknowledged as debts* (*Demand of Rs.1,42,048 raised by Land & Building Tax Deptt. which is challanged by the company in appropriate court. The matter has been resolved and it is supposed that deposit amount shall be received in the next F.Y. 2014-15.) 142048.00 142048.00

Deposited with ESI under protest against demand for the period from October 2007 to December 2008 during which period the factory was closed.

This demand has been challenged by the company in appropriate court. 92035.00 92035.00

Deposit of 25% of registration fees of Land for filling revision petition before Ajmer Revnue board to revise rate of registry charges to 5% instead of demand of full duty i.e. Rs. 594250/- vide decision dated 19-1-2012 and demand note dated 4-10-2012. 0.00 594250.00

1.2 Due to non availability of reliable information regarding SSI status of suppliers/ sundry creditors, information regarding outstanding toward them can not be ascertained. However the amount is not likely to be significant.

1.3 The accounting of deferred tax in terms of "Accounting Standard ( AS22) on " Accounting for Taxes on Income" results in deferred Tax Assets. However in view of sickness of the company there is no certainity of realization of such assets in a reasonable period of time, hence the same has not been accounted for.

1.4 Segments are identified in line with the Accounting Standard 17 ( AS17) taking into account the organisation structure. Expenses which were identified were attributed directly i.e manufacturing and depreciation related to Socks segment only and other expenses were attributed on pro-rata basis of sale value.

Segment Reporting

(a) Primary Segment Information

The company''s operation primarily relates to manufacturing of Knitted socks, head band and wrist band and trading in yarn. Accordingly segments have been identified in line with Accounting Standard on Segment Reporting "AS-17". Sale of socks and yarn are the primary segment and there is no other segment.

1.5 In view of paucity of funds no salary were paid to any of the Director for the financial year, however in view of directors confirmations not to avail any remuneration, no provision for liability is required.

1.6 In Terms of Provisions of Accounting Standard 28 ( AS28) issued by The Institute of Chartered Accountants of India the company had provided for loss due to impairment of assets during 2004-05. The Value in use being uncertain due to sickness of unit, recoverable amount was reduced from carrying amount and resultant loss ( impairment loss) was debited to balance of Profit and Loss a/c .In view of high obsolence rate of machinery the board had decided to provide depreciation on original value of block of machinery.

2.1 Terms / Rights attached to 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 dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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.The Company also has only one class of Redeemable Preference Shares shares having a par value of Rs 100 per share entitled for 6 % preferential Dividend. In the event of liquidation of the Company, the holders of such shares will be entitled to receive remaining assets of the Company prior to equity share holders. The distribution will be in proportion to the number of shares held by the shareholders.The Preference shares are not redeemable before three Years ( i.e 8th October 2013) and not later than five years i.e 8th october 2015 from the date of allotment.

3.1 Depreciation on revalued part of Building is transferred to revaluation Reserve and balance amount of depreciation is charged to Profit & Loss A/c. Total life of Building was considered 30 years and residual life as on 1-4-09 (i.e. date of revaluation) was 15 years and depreciation is computed @ 6.67% on revalued assets so as to write off the entire value in residual life of Assets.

3.2 Depreciation on Plant & Machinery is restricted up to the amount of gross block leaving a residual value of Rs 1/- 6.3 The Leasehold land was allotted on 99 year lease w.e.f. 4/10/1991 by RIICO.

3.3 In terms of decision of Board of Directors, revaluation of Land and Building of the company was got done during 2008- 09 by approved valuer so as to represent the true realizable value of assets. The cost of acquisition in case of land and written down value in case of building was substituted with value arrived as per revaluation report and the difference was credited to Revaluation reserve. Accordingly depreciation is calculated on revalued portion of building as adjusted to write off the entire value in residual life and the same has been shown reduced from revaluation reserve.

3.4 Inventories are taken and valued at lower of cost or net realisable value as certified by the management.Cost is valued on Average rate method for raw material and FIFO method for others.

3.5 Finished goods and work in progress are valued at lower of cost or net realisable value. Cost of finished goods includes cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

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Mar 31, 2013

1.1 Contingent Liabilities (Amount in Rs.) Particulars 2012-13 2011-12 Claims against company not acknowledged as debts* (*Demand of Rs.1,42,048 raised by Land & Building Tax Deptt. which is challanged by the company in appropriate court.) 142048.00 142048.00 Deposited with ESI under protest against demand for the period from October 2007 to December 2008 during which period the factory was closed.

This demand has been challenged by the company in appropriate court. 92035.00 92035.00 Deposit of 25% of registration fees of Land for filling revision petition before Ajmer Revnue board to revise rate of registry charges to 5% instead of demand of full duty i.e Rs. 594250/- vide descision dated 19-1-2012 and demand note dated 4-10-2012. 594250.00 0.00

1.2 Due to non availability of reliable information regarding SSI status of suppliers/ sundry creditors, information regarding outstanding toward them can not be ascertained. However the amount is not likely to be significant.

1.3 The accounting of deferred tax in terms of "Accounting Standard ( AS22) on " Accounting for Taxes on Income" results in deferred Tax Assets. However in view of sickness of the company there is no certainity of realization of such assets in a reasonable period of time, hence the same has not been accounted for.

1.4 Segments are identified in line with the Accounting Standard 17 ( AS17) taking into account the organisation structure. Expenses which were identified were attributed directly i.e manufacturing and depreciation related to Socks segment only and other expenses were attributed on pro-rata basis of sale value.

Segment Reporting

(a) Primary Segment Information

The company''s operation primarily relates to manufacturing of Knitted socks, head band and wrist band and trading in yarn. Accordingly segments have been identified in line with Accounting Standard on Segment Reporting "AS-17". Sale of socks and yarn are the primary segment and there is no other segment.

Secondary segment information:

The company caters mainly to the need of Indian market and there is no Export sale, therefore no reportable geographical segments.

1.5 In view of paucity of funds no salary were paid to any of the Director for the financial year, however in view of directors confirmations not to avail any remuneration, no provision for liability is required.

1.6 In Terms of Provisions of Accounting Standard 28 ( AS28) issued by The Institute of Chartered Accountants of India the company had provided for loss due to impairment of assets during 2004-05. The Value in use being uncertain due to sickness of unit, recoverable amount was reduced from carrying amount and resultant loss ( impairment loss) was debited to balance of Profit and Loss a/c .In view of high obsolence rate of machinery the board had decided to provide depreciation on original value of block of machinery.

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Mar 31, 2012

Note 1. SHARE CAPITAL

Authorised Capital was rearranged in 4,000,000 Equity Shares having nominal value of Rs. 10 each and 350,000 6% Redeemable Cumulative Non Convertible Preference Shares of Rs. 100/- each vide decision of shareholders in Annual General Meeting held on 25th September 2010.

Issued, Subscribed and Paid Up Capital was reduced from 6,470,000 Equity shares of Rs. 10/- each to 647,000 Equity Shares of Rs. 10/- each consequent to decision of reduction of share capital approved by shareholders & High Court of Rajasthan has approved the same vide its order dtd 22nd April 2010.

278,000 6% Cumulative Non Convertible Preference Shares of Rs. 100/- each were issued fresh on 9th October 2010 as per decision of shareholders.

Arrears of fixed cumulative dividends on preference shares as at 31 March, 2012 '2465442/- (As at 31 March, 2011 '797442/-)

The Preference shares are not be redeemable before three Years ( i.e 8th October 2013) and not later than five years i.e 8th October 2015 from the date of allotment.

Note 2: FIXED ASSETS

2.1 Depreciation on revalued part of Building is transferred to revaluation Reserve and balance amount of depreciation is charged to Profit & Loss A/c. Total life of Building was considered 30 years and residual life as on 1-4-09 ( i.e date of revaluation) was 15 years and depreciation is computed @ 6.67% on revalued assets so as to write off the entire value in residual life of Assets.

2.2 Depreciation on Plant & Machinery is restricted up to the amount of net block i.e Rs. 1455869.06/- leaving a residual value of Rs 1/-

2.3 The Leasehold land was allotted on 99 year lease w.e.f. 4-10-1991 by RIICO.

2.4 In terms of decision of Board of Directors, revaluation of Land and Building of the company was got done during 2008-09 by approved valuer so as to represent the true realizable value of assets. The cost of acquisition in case of land and written down value in case of building was substituted with value arrived as per revaluation report and the difference was credited to Revaluation reserve. Accordingly depreciation is calculated on revalued portion of building as adjusted to write off the entire value in residual life and the same has been shown reduced from revaluation reserve.

Note 3. Inventories

3.1 Inventories are taken and valued at lower of cost or net realisable value as certified by the management. Cost is valued on Average rate method for raw material and FIFO method for others.

3.2 Finished goods and work in progress are valued at lower of cost or net realisable value. Cost of finished goods includes cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

1. The Revised Schedule VI has become effective from April 1, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figure have accordingly been regrouped/reclassified, to correspond with the current year's classification/disclosure.

2. Contingent Liabilities 2011-12 2010-11

Claims against company not acknowledged as debts* 142048.00 142048.00

* Demand of Rs. 1,42,048 raised by Land & Building Tax Deptt. Which is challanged by the company in appropriate court. 92035.00 92035.00

(Deposited with ESI under protest against demand for the period from October 2007 to December 2008 during which period the factory was closed . This demand has been challenged by the company in appropriate court.)

3. Due to non availability of reliable information regarding SSI status of suppliers/sundry creditors, information regarding outstanding toward them can not be ascertained. However the amount is not likely to be significant.

4. The accounting of deferred tax in terms of "Accounting Standard ( AS22) on "Accounting for Taxes on Income results in deferred Tax Assets. However in view of sickness of the company there is no certainty of realization of such assets in a reasonable period of time, hence the same has not been accounted for.

5. Segments are identified in line with the Accounting Standard 17 (AS17) taking into account the organisation structure. Expenses which were identified were attributed directly i.e manufacturing and depreciation related to Socks segment only and other expenses were attributed on pro-rata basis of sale value.

Segment Reporting

(a) Primary Segment Information

The company's operation primarily relates to manufacturing of Knitted socks, head band and wrist band and trading in yarn. Accordingly segments have been identified in line with Accounting Standard on Segment Reporting "AS-17". Sale of socks and yarn are the primary segment and there is no other segment.

Secondary segment information

The company caters mainly to the need of Indian market and there is no Export sale, therefore no reportable geographical segments.

6. In view of paucity of funds no salary were paid to any of the Director for the financial year, however in view of directors confirmations not to avail any remuneration, no provision for liability is required.

7. In Terms of Provisions of Accounting Standard 28 ( AS28) issued by The Institute of Chartered Accountants of India the company had provided for loss due to impairment of assets during 2004-05. The Value in use being uncertain due to sickness of unit, recoverable amount was reduced from carrying amount and resultant loss ( impairment loss) was debited to balance of Profit and Loss a/c .In view of high obsolence rate of machinery the board had decided to provide depreciation on original value of block of machinery.

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Mar 31, 2010

1. The previous years figures have been re-worked, re grouped, re-arranged and re classified wherever necessary.

Current Year Previous Year (Rs.) (Rs.)

2. Contingent Liabilities Claims against company not

acknowledged as debts* 1,42,048.00 1.42.048.00

Demand of Rs.1,42,048 raised by Land & Building Tax Deptt. which is challenged by the company in appropriate court.

3. In the opinion of Board of Directors the Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

4. Loans & Advances due from Directors - Nil and due from officers Rs. Nil (Maximum amount due at any time during the year Rs. NIL)

5. As the production of the company has restarted from 19-2-2010 so depreciation on fixed assets has been provided for two months only in terms of decision of Board of Directors..

6. The loan of Stressed Assets Stabilization Fund (SASF) to whom account was transferred by IOBI was fully paid during the veer.

7. Due to non availability of reliable information regarding SSI status ofsuppliers/sundrycreditors, information regarding outstanding toward them can not be ascertained. However the amount is not likely to be significant.

6. In terms of decision of Board of Directors, revaluation of Land and Building of the company was got done during 2006-09 by approved valuers so as to represent the true realizable value of assets. The cost of acquisition in case of Land and written down value in case of Building were substituted with the value arrived as per revaluation report and the difference was credited to revaluation reserve. Accordingly depreciation is calculated on revalued portion of Building as adjusted to write off entire value in residual life and the same has been shown reduced from revaluation reserve. In terms of decision of Board of Directors the depreciation has been calculated for two months only .

9. The accounting of deferred tax in terms of "Accounting Standard ( AS22) on " Accounting for Taxes on Income" results in deferred Tax Assets. However in view of sickness of the company there is no certainty of realization of such assets in a reasonable period of time, hence the same has not been accounted for.

10. Related Party Disclosure as per Accounting Standard (AS 18) issued by Institute of Chartered Accountants of India.

Name of The Party : Raj Kumar Sethla

Nature of Relationship : Key Promoter

Unsecured Loan op. balance : 186.89 lacks credit

Received During the Year : 107,25 lacks credit

Closing Balance as on 31-3-2010 : 294.14 lacks credit

11 Segments are identified in line with the Accounting Standard 17 (AS17) taking into account the organisation structure. Expenses which were identified were attributed directly i.e manufacturing and depreciation related to Socks segment only and other expenses were attributed on pro-rata basis of sate value.

Segment Reporting

(a) Primary Segment Information

The companys operation primarily relates to manufacturing of Knitted socks, head band and wrist band and trading in yarn. Accordingly segments have been identified in line with Accounting Standard on Segment Reporting "AS-17". Sale of socks and yam are the primary segment and there is no other segment.

12. In view of paucity of funds no salary were paid to any of the Director for the financial year, however in view of directors confirmations not to avail any remuneration, no provision for liability is required.

13. In Terms of Provisions of Accounting Standard 28 (AS28) issued by The Institute of Chartered Accountants of India the company had provided for loss due to impairment of assets during 2004-05. The Value in use being uncertain due to sickness of unit, recoverable amount has been reduced from carrying amount and resultant loss (impairment loss) was debited to balance of Profit and Loss a/c .In view of high obsolence rate of machinery the board had decided to provide depreciation on original value of block of machinery.

14. The Board of Director have approved vide its meeting dt May 30, 2009, a proposal for reduction of share capital from Rs. 6,47,00,000/- to 64,70,000. The proposal was approved by Share holders of the company at Annual General Meeting dt July 10,2009. On the basis of the approval the company has filed petition in Honble High court of Jaipur . Honble High court of Jaipur by its order no 1/2010 has passed the scheme for reduction of Capital on April 22, 2016.

15. The company has applied to The Central Excise Department for De-bonding of 100% Export oriented status on 28- 1-2010. The central excise has issued final De-bonding of their 100% EOU and LOP dt. 30-9-1994.

16. Additional Information pursuant to the provision of Schedule VI of the Companies Act 1956 for current Year.