Notes to Accounts of Alstone Textiles (India) Ltd.

Mar 31, 2025

3.22. Provisions, Contingent Liabilities and Contingent Assets

3.22.1. Provisions

Provisions are recognized when there is a present obligation (legal or constructive) as a result
of a past event and 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. Provisions are determined by discounting the expected future cash flows
(representing the best estimate of the expenditure required to settle the present obligation
at the balance sheet date) at a pre-tax rate that reflects current market assessments of the
time value of money and the risks specific to the liability. The unwinding of the discount is
recognized as finance cost.

3.22.2. Contingent Liabilities

Contingent liability is a possible obligation arising 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 Company or a present obligation that
arises from past events but is not recognized because it is not possible that an outflow of
resources embodying economic benefit will be required to settle the obligations or reliable
estimate of the amount of the obligations cannot be made. The Company discloses the
existence of contingent liabilities in Other Notes to Financial Statements.

3.22.3. Contingent Assets

Contingent assets usually arise from unplanned or other unexpected events that give rise to
the possibility of an inflow of economic benefits. Contingent Assets are not recognized
though are disclosed, where an inflow of economic benefits is probable.

3.22.4. Intangible Assets

3.22.4.1. Recognition and Measurement

Intangible assets are stated at cost on initial recognition and subsequently measured at cost
less accumulated amortization and accumulated impairment loss, if any.

3.23. Amortization

3.23.1. Software''s are amortized over a period of three years.

3.23.2. The amortization period and the amortization method are reviewed at least at the end of
each financial year. If the expected useful life of the assets is significantly different from
previous estimates, the amortization period is changed accordingly.

3.24. Operating Segment

Operating segments are reported in a manner consistent with the internal reporting

provided to the chief operating decision maker. The chief operating decision maker of the
Company is responsible for allocating resources and assessing performance of the operating
segments and accordingly is identified as the chief operating decision maker. The Company
has identified one reportable segment only based on the information reviewed by the
CODM.

4. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING
POLICIES

4.1. Estimates and judgments are continually evaluated. They are based on historical experience
and other factors, including expectations of future events that may have a financial impact
on the Company and that are believed to be reasonable under the circumstances.
Information about Significant judgments and Key sources of estimation made in applying
accounting policies that have the most significant effects on the amounts recognized in the
financial statements is included in the following notes:

4.2. Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be
recognized is based on an assessment of the probability of the Company''s future taxable
income against which the deferred tax assets can be utilized. In addition, significant
judgment is required in assessing the impact of any legal or economic limits.

4.3. Classification of Leases: The Company enters into leasing arrangements for various assets.
The classification of the leasing arrangement as a finance lease or operating lease is based on
an assessment of several factors, including, but not limited to, transfer of ownership of
leased asset at end of lease term, lessee''s option to purchase and estimated certainty of
exercise of such option, proportion of lease term to the asset''s economic life, proportion of
present value of minimum lease payments to fair value of leased asset and extent of
specialized nature of the leased asset.

4.4. Where the rate implicit in the lease is not readily available, an incremental borrowing rate is
applied. This incremental borrowing rate reflects the rate of interest that the lessee would
have to pay to borrow over a similar term, with a similar security, the funds necessary to
obtain an asset of a similar nature and value to the right of-use asset in a similar economic
environment. Determination of the incremental borrowing rate requires estimation.

4.5. Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of
actuarial assumptions which include mortality and withdrawal rates as well as assumptions
concerning future developments in discount rates, medical cost trends, anticipation of future
salary increases and the inflation rate. The Company considers that the assumptions used to
measure its obligations are appropriate. However, any changes in these assumptions may
have a material impact on the resulting calculations.

4.6. Provisions and Contingencies: The assessments undertaken in recognising provisions and
contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37,
''Provisions, Contingent Liabilities and Contingent Assets''. The evaluation of the likelihood of

the contingent events is applied best judgment by management regarding the probability of
exposure to potential loss.

4.7. Impairment of Financial Assets: The Company reviews it carrying value of investments carried
at amortized cost annually, or more frequently when there is indication of impairment. If
recoverable amount is less than its carrying amount, the impairment loss is accounted for.

4.8. Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through
appropriate estimations of irrecoverable amount. The identification of doubtful debts
requires use of judgment and estimates. Where the expectation is different from the original
estimate, such difference will impact the carrying value of the trade and other receivables
and doubtful debts expenses in the period in which such estimate has been changed.

4.9. Fair value measurement of financial Instruments: When the fair values of financial assets and
financial liabilities recorded in the balance sheet cannot be measured based on quoted prices
in active markets, their fair value is measured using valuation techniques including the
Discounted Cash Flow model. The input to these models are taken from observable markets
where possible, but where this not feasible, a degree of judgement is required in establishing
fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility.

Other Notes

4.10. Details of Crypto / Virtual Currency

There were no Transaction and Financial Dealing in Crypto / Virtual Currency during the
Financial Year 2024-25

4.11. There are no micro, Small and Medium Enterprises, to whom the Company owes dues which
outstanding for more than 45 days as at 31^st March 2025. This information as required to be
disclosed under the micro, small and medium Development Act, 2006 has been determined
to the extent such parties have been identified on the basis of information available with
company.

The Note Referred to above form as an integral part of Balance Sheet.

For ALSTONE TEXTILES (INDIA)

^{0r S} & LIMITED

Associates

Chartered

Accountants

Sd/-

(CA. RAHUL JAIN) DEEPAK KUMAR BHOJAK RAMESH KUMAR

p_artner (MANAGING DIRECTOR) (Director)

m k k- m nocna/i DIN- 06933359 DIN No- 00537325

^{Membership N}°. O⁹⁹¹³⁴ Add: Kalu bas , ward no 03, Dungargarh, Add: W_ard _n0 16, p_uj_ari

Bikaner, Rajasthan -331803 Colony, Chirawa, Jhunjhunun,

FRN_: 011199N Date: 31/05/2025 Rajasthan, 333026

Date: 31/05/2025

Place : New Delhi

^Date^d : ^31/05/2025 DEEPAK VERMA ScHRADsHcAtaS^^

UDIN: 25099134BMJQCQ2898 (CFO) (_M._No. - A59₂₆o)^y)

^{PAN- AEEPV1418N} Add: 3/80, Nagar Nigam Colon ,

^{Add: 3198/15}, ^{4th Floor}, ^{Gali no 1}, Amer Road, Behind Brahmpur

sangat Rashan , Paharganj New Delhi

¹¹⁰⁰⁵⁵ Dated : 31/05/2025

Dated : 31/05/2025

---

Mar 31, 2024

(j) Provisions and Contingent Liabilities:

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. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.

If the effect of the time value of money is material, provisions are discounted to reflect its present value using a current pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

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 the obligation or a reliable estimate of the amount cannot be made.

(k) Revenue Recognition:

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract, there is no continuing managerial involvement with the goods and the amount of revenue can be measured reliably. The Company retains no effective control of the goods transferred to a degree usually associated with ownership and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods. Revenue is measured at fair value of the consideration received or receivable, after deduction of any trade discounts, volume rebates and any taxes or duties collected on behalf of the government which are levied on sales such as sales tax, value added tax, goods and services tax, etc. Interest income is recognized using the effective interest rate (EIR) method. Dividend income on investments is recognized when the right to receive dividend is established.

(l) Expenditure:

Expenses are accounted on accrual basis.

(m) Income Taxes:

Income tax expense for the year comprises of current tax and deferred tax. It is recognized in the Statement of Profit and Loss except to the extent it relates to a business combination or to an item which is recognized directly in equity or in other comprehensive income.

Current tax is the expected tax payable/receivable on the taxable income/loss for the year using applicable tax rates at the Balance Sheet date, and any adjustment to taxes in respect of previous years. Interest expenses and penalties, if any, related to income tax are included in finance cost and other expenses respectively. Interest Income, if any, related to Income tax is included in current tax expense.

Deferred tax is recognized in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes.

A deferred tax liability is recognized based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted, or substantively enacted, by the end of the reporting period. Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority.

(n) Employee Benefits:

No provision of retirement benefits of employees such as leave encashment, gratuity has been made during the year by the company. The same shall be accounted for as and when arises.

22. Previous year’s figures have been reworked, regrouped, & reclassified wherever necessary to confirm to the current year presentation.

23. In the opinion of Board of Director, the current Assets, loans & advances have a value on realization in the ordinary course of business at least equal to the amount at which these are stated.

24. The company state that one of loan given by the company in financial year 2008-09 to Mr. Satyendra Kumar Jain amounting of Rs. 26,92,000/- as on 31.03.2024 has not recovered till date. The management of the company assure full recovery in ensuing years. Hence any provision for doubtful assets has not been made.

25. The company’s business activity falls within single primary/ secondary business segment viz. Finance Activity. The disclosure requirement of IND AS-108“Segment Reporting “issued by the Institute of chartered Accountants of India, therefore is not applicable.

26. Related Party Disclosure:

As per IND AS-24, on related Party disclosure issued by the Institute of chartered Accountants of India, the detail of such related party transaction recognized during the year is as under:

27. Details of Policy Developed And Implemented by the Company on its Corporate Social Responsibility Initiatives

The Company has not developed and implemented any Corporate Social Responsibility initiatives as the said provisions are not applicable.

28. Details of Crypto / Virtual Currency

There were no Transaction and Financial Dealing in Crypto / Virtual Currency during the Financial Year 2023-24.

29. Contingent liabilities and pending litigations

a) There is a pending Tax demand of Rs. 12,35,97,620/- against the company. The above demand was raised by the department in A.Y. 2012-13. The company has filed an appeal

before CIT(A) against demand. The appeal is pending before CIT(A). The company is hopeful to get relief from CIT(A).

(b) There is a pending Tax demand of Rs. 6,14,721/- against the company. The above demand was raised by the department in A.Y. 2017-18. The company has filed an appeal before CIT (A) against demand. The appeal is pending before CIT (A). The company is hopeful to get relief from CIT (A).

30. Earnings per Share “IND AS-33” issued by the Institute of chartered Accountants of India:

31. There are no micro, Small and Medium Enterprises, to whom the Company owes dues which outstanding for more than 45 days as at 31^st March 2024. This information as required to be disclosed under the micro, small and medium Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with company.

IN TERMS OF OUR REPORT OF EVEN DATE ANNEXED.

FOR GSA & ASSOCIATES LLP FOR AND BEHALF OF

CHARTERED ACCOUNTANTS ALSTONE TEXTILES (INDIA) LIMITED.

FRN: 000257N/N500339

CA. MANINDRA K. TIWARI DEEPAK KUMAR BHOJAK RAMESH KUMAR

(PARTNER) (MANAGING DIRECTOR) (DIRECTOR)

M.NO: 501419 DIN: 06933359 DIN: 00537325

SHRADHA SHARMA DEEPAK VERMA

PLACE: NEW DELHI COMPANY SECRETARY) (CFO)

DATE: 23.05.2024 M.NO: A59260

---

Mar 31, 2023

(j) Provisions and Contingent Liabilities:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a resu of a past event, it is probable than outflow of resources embodying economic benefits will be required t settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the pbeigation at the Balance Sheet date .

If the effect of the time value of money is material, provisions are discounted to reflect its presen value using a current prax rate that reflects the current market assessments of the time value ofdmhney ;i risks specific to the obligation. When discounting is used, the increase in the provision due to the pa sage of time is recognised as a finance cost.

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

(k) Revenue Recognition:

Revenue from sale of goods is recognised when all the significant risks and rewards of ownership i the goods are transferred to the buyer as per the terms of the contract, there is no continuing maisgerir involvement with the goods and the amount of rnue can be measured reliably. The Company retains nc effective control of the goods transferred to a degree usually associated with ownership and no signi cant uncertainty exists regarding the amount of the consideration that will be derived from oftegoode.

Revenue is measured at fair value of the consideration received or receivable, after deduction of any rade discounts, volume rebates and any taxes or duties collected on behalf of the government which are le ied on sales such as sales tax, valiadded tax, goods and services tax, etc. Interest income is recognized usin the effective interest rate (EIR) method. Dividend income on investments is recognised when the ri it to receive dividend is established .

(l) Expenditure:

Expenses aretccounted on accrual basi s.

(m) Income Taxes:

Income tax expense for the year comprises of current tax and deferred tax. It is recognised in the Sta :ment of Profit and Loss except to the extent it relates to a business combination or to an itEurwogrioi sed directly in equity or in other comprehensive income.

Current tax is the expected tax payable/receivable on the taxable income/loss for the year using applica e tax rates at the Balance Sheet date, and any adjustment to taxes in res previous years. Interest expenses and penalties, if any, related to income tax are included in finance cost and other expenses respectively. Interest Income, if any, related to Income tax is included in current tax expense.

Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the correspondingntmoused for taxation purpos es.

A deferred tax liability is recognised based on the expectnanner of realization or settlement of th carrying amount of assets and liabilities, using tax rates enacted, or substantively enacted, by the end of the reporting period. Deferred tax assets are recognised only to the extent that it is probablurtiiaaxfible profits will be available against which the asset can be utilised. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realized.

C urrent tax assets and current tax liabilities are offset when there is a legally enforceable right to se off ¦ recognised amounts and there is an intention to settle the asset and the liability on a net basis. Defer ed ta assets and defered tax liabilities are offset when there is a legally enforceable right to set off curre t tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities re ate t income taxes levied by the same taxation authyo.r it

(n) Employee Benefits:

No provision of retirement benefits of employees such as leave encashment, gratuity has been made d ''ing the year by the company. The same shall be accounted for as and when ar ises.

20. Previous year’s figures have been reworked, regrouped, & reclassified wherever necessary to confirm t the current year presentat ion.

21. In the opinion of Board of Director, the current Assets, loans & advances have a value on realization the ordinary course of business at least equal to the nmoti which these are stated.

22. During the year the company has increase its authorized share capital by Rs. Ib,CQCQCCCind the company has issued bonus to its shareholders in ratio 19 shares and also spilt its share from face vali: Rs. 0/ - to Rs. f- per equity share.

23. The company’s business activity falls within single primary/ secondary business segment viz. Finance Activity. The disclosure requirement of IND1AS“Segment Reporting “issued by the Institute of chartered Accountants of Indthprefore is not applicabl e.

24. Related Party Disclosure:

As per IND AS4, on related Party disclosure issued by the Institute of chartered Accountants of India the detail of such related party transaction recognized during the year is as under:

25. Details of Policy Developed and Implemented by the Company on its Corporate Social

Responsibility Initiatives

The Company has not developed and implemented any Corporate SoRals ponsibility initiatives as the

said provisions are not applicabl e.

26. Details of Crypto / Virtual Currency

There were no Transaction and Financial Dealing in Crypto / Virtual Currency dyeing the

27. Contingent liabilities and pending litigations

a) There is a pending Tax demand of Rs. 2,35,97,620^ against the company. The above demand was raised by the department in A.Y. 20-3. The company has filed an appeal before CIT (A) against demand. The appeal is pending before CIT (A). Thmpany is hopeful to get relief from CIT (A).

b) There is a pending Tax demand of Rs. 6,4,721- against the company. The above demand was raised by the department in A.Y. 20FB. The company has filed an appeal before CIT (A) against demand. The appeal ispending before CIT (A). The company is hopeful to get relief from CIT (A).

29. There are no micro, Small and Medium Enterprises, to whom the Company owes dues which outstailing for more than 45 days as at ^s3 March 2023. This information as required to be disclosed under tl micro, small and medium Development Act, 2006 has been determined to the extent such parties hav been identified on the basis of information available with company.

IN TERMS OF OUR REPORT OF EVEN DATE ANNEXED.

FOR TIWARI & MISHRA FOR AND BEHALF OF

(CHARTERED ACCOUNTANTS) ALSTONE TEXTILES (INDIA) LIMITED.

FRN: 018393N

CA. MANINDRA K. TIWARI DEEPAK KUMAR BHOJAK PANKAJ SAXENA

(PARTNER) (MANAGING DIRECTOR) (DIRECTOR)

M.NO: 501419 DIN: 06933359 DIN: 08162590

UDIN: 23501419BGWNBH7118

SHRADHA SHARMA DEEPAK VERMA

PLACE: NEW DELHI (COMPANY SECRETARY) (C.F.O)

DATE: 26.05.2023 M.NO: 59260

---

Mar 31, 2015

Note : 1

The company has only one class of equity Shares having Par Value of Rs 10 per Share. All these Shares have Same right & preferences with respect to payment of dividend, repayment of Capital & Voting.

Note : 2

Previous years figures have been reworked, regrouped, & reclassified wherever necessary to confirm to the current year presentation.

Note : 3

Balance standing to debit & credit of parties are subject to confirmation.

Note : 4

As per AS-13, all long term investments are to be carried at cost less diminution in the value except for temporary diminution.

Note : 5

As per the Provision of AS-2, Accounting of Inventories, Stock in trade should be valued at cost or market price whichever is lower, so that the company has valued it's currently purchased all stock in trade at less value that is cost.

Note : 6

The company's business activity falls within single primary/ secondary business segment trading in fabric & textiles viz. . The disclosure requirement of Accounting standard (AS) -17 "Segment Reporting "issued by the Institute of chartered Accountants of India, therefore is not applicable.

Note : 7

Related Party Disclosure:

As per Accounting Standard 18 on related Party disclosure issued by the Institute of chartered Accountants of India, there is no related party transaction recognized during the year.

Note : 8

Payment to Auditor 2014-2015 2013 -2014

Audit Fee 6,742/- 4,494/-

Note : 9

There are no micro, Small and Medium Enterprises, to whom the Company owes dues which outstanding for more than 45 days as at 31st March 2015. This information as required to be disclosed under the micro, small and medium Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with company.