Notes to Accounts of Baroda Rayon Corporation Ltd.

Mar 31, 2025

h. Provisions and contingencies

A provision is recognized if, as a result of a past event, the group has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation.

Provisions for onerous contracts are recognized when the expected benefits to be derived by the
Company from a contract are lower than the unavoidable costs of meeting the future obligations

under the contract.

A disclosure for contingent liabilities is made where there is a possible obligation or a present
obligation that may probably not require an outflow of resources or an obligation for which the future
outcome cannot be ascertained with reasonable certainty. When there is a possible or a present
obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made.

i. Earning per share

Basic EPS is arrived at based on net profit after tax available to equity shareholders to the weighted
average number of equity shares outstanding during the year.

The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of
potential dilutive equity shares unless impact is anti-dilutive.

j. Cash and cash equivalents

Cash and Cash equivalents include cash and Cheque in hand, bank balances, demand deposits with
banks and other short-term highly liquid investments that are readily convertible to known amounts of
cash & which are subject to an insignificant risk of changes in value. Where original maturity is three
months or less.

k. Cash flow statement

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

l. Use of estimates and judgements

The estimates and judgments 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 expectations of future events) that the Company believes to be reasonable
under the existing circumstances. Differences between actual results and estimates are recognized in
the period in which the results are known/materialized.

The said estimates are based on the facts and events, that existed as at the reporting date, or that
occurred after that date but provide additional evidence about conditions existing as at the reporting
date

The above policies were followed to the extent wherever applicable. Subsequently there were no
activities carried, hence there is no specific requirement for adherence of accounting policies.
However, there is no specific information relating to any change of policies due to loss of key
managerial personnel in accounts as well as finance department.

m. Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard 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 notified Ind AS - 117 Insurance Contracts and amendments to Ind
AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Company w.e.f. April
01, 2024. The Company has reviewed the new pronouncements and based on its evaluation has
determined that it does not have any significant impact in its financial statements, standards or
amendments to the existing standards applicable to the Company.

n. Non-current assets (or disposal groups) held for sale and discontinued operations:

Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be
recovered principally through a sale transaction rather than through continuing use and a sale is
considered highly probable. They are measured at the lower of the carrying amount and the fair value
less cost to sell. An impairment loss is recognized for any initial or subsequent write-down of the asset
(or disposal group) to fair value less costs to sell. A gain is recognized for any subsequent increases
in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative
impairment loss previously recognized. A gain or loss not previously recognized by the date of the
sale of the non-current asset (or disposal group) is recognized at the date of de-recognition. Non¬
current assets (including those that are part of a disposal group) are not depreciated or amortized
while they are classified as held for sale. Non-current assets (or disposal group) classified as held for
sale are presented separately in the balance sheet. Any profit or loss arising from the sale or
measurement of discontinued operations is presented as part of a single line item in statement of
profit and loss.

Critical estimates and judgment in applying accounting policies

The management believes that the estimates used in preparation of the financial statements are
prudent and reasonable. Information about estimates and judgments made in applying accounting

policies that have the most significant effect on the amounts recognized in the financial statements
are as follows:

i) Provisions and contingencies

A provision is recognized if, as a result of a past event, the group has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation.

Provisions for onerous contracts are recognized when the expected benefits to be derived by the
Company from a contract are lower than the unavoidable costs of meeting the future obligations
under the contract.

A disclosure for contingent liabilities is made where there is a possible obligation or a present
obligation that may probably not require an outflow of resources or an obligation for which the future
outcome cannot be ascertained with reasonable certainty. When there is a possible or a present
obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made.

ii) Accounting policy on taxation

In preparing financial statements, the Company recognizes income taxes of the jurisdiction in which it
operates. There are certain transactions and calculations for which the ultimate tax determination is
uncertain. The Company recognizes liabilities for anticipated tax issues based on estimates of
whether additional taxes will be due. The uncertain tax positions are measured at the amount
expected to be paid to taxation authorities when the Company determines that the probable outflow of
economic resources will occur. Where the final tax outcome of these matters is different from the
amounts that were initially recorded, such differences will impact the current and deferred income tax
assets and liabilities in the period in which such determination is made.

iii) Fair value measurement

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

Fair value is the price that would be received to sell an asset or to settle a liability in an ordinary
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 to settle a liability takes place either:

- In the principal market for the asset or liability, or

- 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 non-financial 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:

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

Level 2 — other techniques for which all input which have a significant effect on the recorded fair
value are observable, either directly or indirectly.

Level 3 — Inputs which are not based on observable market data

NATURE AND PURPOSE OF RESERVES
Capital reserve

Capital reserve was created under the previous GAAP (Indian GAAP) out of the profit earned from a specific
transaction of capital nature. Capital reserve is not available for the distribution to the shareholders.

Securities premium

Securities premium includes premium on issue of shares. It will be utilized in accordance with the provisions of
the Companies Act, 2013.

Other Comprehensive Income

The Company has elected to recognize changes in the fair value of certain investments in equity securities in
other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve
within equity.

Retained Earnings

Represents surplus/(deficit) in statement of Profit and Loss.

27. Pending Litigation - Various cases filed against the company

Various cases relating to labour, excise, custom, income tax and PF/ESI matters have been filed against
the Company during the normal course of business, which are insignificant to affect the existence of the
Company in the opinion of the management.

Labour -

The Hon''ble High Court of Gujarat vide its order pronounced on January 11, 2021 has disposed the
Letters Patent Appeals No. 948/2015 and allied LPA''s and Civil Applications in terms of the Consent
Terms entered between The Baroda Rayon Corporation Limited and Baroda Rayon Employee''s Ekta
Union.

However aggrieved by the said order, some workmen challenged the same in Hon''ble Supreme Court of
India. The apex court vide order dated January 03, 2022 has disposed of the matter. Thereafter the
aggrieved workmen had approached the Labour Court, Surat and the matter is pending. Further company
had made provision of dues amounting to ? 1407.16 lakh in books of accounts as per norms of settlement
during the year 2021-22.

Excise -

Payment of Excise Duty disputed by the Company in respect of CENVAT utilization of: Input & Capital
Goods Matters ? 4449.29 lakh (Principal amount of 1880.88 lakh and penalty and fine of
? 2568.41 lakh) (Previous Year ? 4449.29 lakh). Final hearing was held on March 22, 2023 and order was
pronounced on May 29, 2023 and remand back to Excise Department for re- examine. As a general rule,
when the matter is remanded back to Department, the disputed amount is treated as NIL. Matter is still
pending.

Custom -

Customs, Excise & Service Tax Appellate Tribunal, Ahmedabad vide its order dated January 31, 2022 has
allowed the company to re-export the warehoused goods without payment of duty/fine/penalty if any.
Regarding interest on Excise duty, company had requested to BIFR for waiver of interest, fine and penalty
on duty for default period and it is also mentioned in circulated MDRS dated October 13, 2015. However
Commissioner of Custom, Ahmedabad had not allowed the permission of re-export and therefore
company had filed Special Civil Application (SCA) before Hon''ble High Court of Gujarat and the
company''s SCA was dismissed on January 02, 2023. Aggrieved by the impugned order, company had
filled Special Leave Petition (Civil) with the Hon''ble Supreme Court of India which was admitted vide order
dated May 09, 2023.

In this regard, we wish to inform that the Hon''ble Supreme Court of India has vide its order dated July 15,
2024 (Interlocutory Application in SLP) granted permission to export the warehoused goods/machineries,
which are the subject matter of the Special Leave Petition (Civil), subject to the proceeds of the said
export being deposited before the Registry of this Court within a period of two weeks from the date of the
receipt of the proceeds of the said export sale.

On such deposit being made, the Registry shall transmit the same in an interest bearing Fixed Deposit
Account in a nationalised bank offering highest rate of interest initially for a period of six months on auto¬
renewal basis. The Interlocutory application stands disposed of. However, the above referred Special
Leave Petition (Civil) filed by the company at the Hon''ble Supreme Court of India is still pending.

Income Tax -

Income tax department raised a demand notice under Section 147 read with Section 144B of the Income
Tax Act, 1961 of ? 809.43 lakh for AY 2014-15 vide assessment order dated March 26, 2022. Aggrieved
by the said demand, company had filled grievance two times against the said demand stating that with the
available brought forward losses, the department has not considered the carried forward losses against
the income determined under Section 68 of the Income Tax Act, 1961. Further the department raised
demand notice under Section 271(1)(c) of the Income Tax Act, 1961, for a penalty of ? 412.98 lakh. The
matter is now pending at Income Tax Appellate Tribunal (ITAT), Mumbai. Company has not made any
provision in this matter in view of already available Carried forwarded losses.

Company had received an Appellate order dated December 28, 2023 from Commissioner of Income-tax
(Appeals), National Faceless Assessment Centre (''AO''), Delhi under section 250(6) of Income Tax Act,
1961 stating -

Ground 1 -

Appeal dismissed for unexplained cash credits u/s 68 of Income Tax Act, 1961 for ? 1215 lakh for FY
2013-14.

Ground 2 -

Appeal partly allowed by directing AO to examine the contention of the Appellant by giving adequate
opportunity of being heard that there are brought forward losses in its case which are eligible for set off.

The Company has filled appeal before Income Tax Appellate Tribunal (ITAT), Mumbai against the said
order on February 12, 2024 and matter is pending.

Company has further received an Appellate order dated February 21,2024 from Commissioner of Income-
tax (Appeals), National Faceless Assessment Centre (''AO''), Delhi under section 250 of Income Tax Act,
1961 stating that the penalty of ? 412.98 lakh is hereby confirmed and the appeal has been dismissed.
The company has filed the appeal before Income Tax Appellate Tribunal (ITAT), Mumbai against the said
order.

Damages on PF/ESI

The Company has received a "No Dues" certificate from the Provident Fund (PF) authorities confirming
that there are no outstanding dues with respect to the principal payment of Provident Fund contributions.
Furthermore, the Company has duly deposited the applicable interest on PF contributions under Section
7Q of the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952. As of March 31, 2022, a
total of ? 509.81 lakh has been deposited under this section, and no outstanding liability remains under
Section 7Q. The PF authorities have also issued a communication to the Board for Industrial and Financial
Reconstruction (BIFR) recommending waiver of damages arising from delays in PF contributions.
Pursuant to the payment of interest under Section 7Q, the Company filed an application in March 2022
requesting waiver of Damages on Provident Fund: ? 799.79 lakhs and Damages on Employees'' State
Insurance Corporation (ESIC): ? 367.39 lakhs. These applications are currently under review, and the
matter remains pending before the relevant authorities.

State Government Liabilities

The Company has made a representation to the BIFR requesting waiver of interest, fines, and penalties
associated with these liabilities for the default period. An application was also submitted to the
Government of Gujarat (GoG) on January 11, 2011, in accordance with Government Resolution (GR)
dated July 15, 2010, which outlines reliefs and concessions available to sick industrial units. With regard to
liabilities arising from State Government dues i.e. Interest on Electricity Duty: ? 623.09 lakhs and Dues to
Surat Canal Division: ? 387.57 lakhs The GoG has provided its in-principal consent to the BIFR for
granting reliefs and concessions as per the aforementioned GR. The matter is currently under active
consideration by the appropriate authorities.

28. The balances of Sundry Debtors, Sundry Creditors, Bank balances and Loans & Advances are subject to
confirmation and are shown as appearing in the Account.

29. Income tax -

As per Management representation, provisions for Minimum Alternate Tax (MAT) are not applicable
because company has decided to opt for Section 115BAA of The Income Tax Act, 1961.

30. Borrowings -

The company has entered into a Debt Settlement Agreement dated March 08, 2025 with Bhavani Syntex
Limited, Ramsons Properties Private Limited and Unipat Rayon Limited, in respect of loans which were
availed under the Modified Draft Restructuring Scheme (MDRs) and which was overdue. Pursuant to the
said agreement, amount of ? 6,321.87 Lakhs has been settled.

Further, under the under the Modified Draft Restructuring Scheme (MDRS), the company had also availed
unsecured loans from various other lenders. The company has successfully negotiated and reached
settlement arrangements with the respective lenders. The completion of these settlement is expected
within the next financial year.

31. Segment reporting -

Entire operational activities in the textile segments are standstill since August 2008. The Company is
currently engaged in the business of Real Estate Development and activities connected and incidental
thereto. All operating segments'' operating results are reviewed regularly by the Company''s Managing
Director (MD) to make decisions about resources to be allocated to the segments and assess their
performance. On that basis, the Company has identified two reportable business segment for the purpose

32. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the
current year''s classification / disclosure.

33. There are no amounts due and payable to Investors Education and Provident Fund as on the date of
Balance sheet.

34. The entire operational activities of the textile segment of the company are standstill since August 2008,
due to labour & other regulatory issues. Till date there are no plants or units in operation. However
company has started new business in real estate segment. Management does not expect any adverse
impact on its future cash flows and shall be able to continue as a going concern. The Company will
continue to monitor future economic conditions for any significant change. The internal financial control
over financial reporting, disclosure controls and risk assessment and minimization procedures are
maintained, continued and followed and there is no change in the same.

The Company''s spend towards CSR does not involve any long term projects and accordingly, disclosure
requirements relating to ongoing projects is not applicable as at reporting dates. Also, there are no related
party transactions in CSR.

37. Financial Instruments - Fair value and Risk Management
(i) Fair value hierarchy

The fair values of the financial assets and liabilities are included at the amount at which the instrument
could be exchanged in a current transaction between willing parties, other than in a forced or liquidation
sale.

The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash and short-term deposits, trade and other short term receivables, trade payables,
other current liabilities, short term loans from banks and other financial institutions approximate their
carrying amounts largely due to short term maturities of these instruments.

2) Financial instruments with fixed and variable interest rates are evaluated by the Company based on
parameters such as interest rates and individual credit worthiness of the counterparty. Based on this
evaluation, allowances are taken to account for expected losses of these receivables. Accordingly,
fair value of such instruments is not materially different from their carrying amounts.

The Financial Instruments are categorised in three level based on the inputs used to arrive at fair value
measurements as described below:-

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

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

Level 3: Inputs which are not based on observable market data

(ii) Financial risk management objectives and policies

The Company Financial risk management is an integral part of how to plan and execute its business
strategies. The company risk management policy is set by the Managing Board.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a
change in the price of a financial instrument. The value of a financial instrument may change as a result
of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes
that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial
instruments including investments and deposits, foreign currency receivables, payables and loans and
borrowings.

(a) Market Risk- Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate
because of changes in market interest rates. In order to optimize the company''s position with regards to
interest income and interest expenses and to manage the interest rate risk, treasury performs a
comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and
floating rate financial instruments in its total portfolio.

(c) Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as
agreed. To manage this, the company periodically assess financial reliability of customer, taking into
account the financial condition, current economic trends, and analysis of historical bad debts and ageing
of accounts receivable. Individual risk limits are set accordingly.

The company considers the probability of default upon initial recognition of asset and whether there has
been a significant increase in credit risk on an ongoing basis through each reporting period. To assess
whether there is a significant increase in credit risk the company compares the risk of default occurring on
asset as at the reporting date with the risk of default as at the date of initial recognition. It considers
reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the
counterparty''s ability to meet its obligations,

iv) Significant increase in credit risk on other financial instruments of the same counterparty,

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the

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(d) Liquidity Risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligations on
time, or at a reasonable price. The company''s treasury department is responsible for liquidity, funding as
well as settlement management. In addition, processes and policies related such risk are overseen by
senior management. Management monitors the company''s net liquidity position through rolling forecasts
on the basis of expected cash flows.

41. Cash and Cash Equivalents and Bank Balances includes balances in Escrow Account which shall be used
only for specified purposes as defined under Real Estate (Regulation and Development) Act, 2016.

42. Previous year''s figures are regrouped and rearranged wherever necessary.

43. Other Statutory Disclosures:

a. The Company does not have Lease liability and hence no reporting related to the same has been made.

b. There has been no revaluation to Property, Plant and Equipment''s.

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

d. The Company holds all the title deeds of immovable property in its name.

e. The Company has not granted any loans or advances to promoter, director, KMP in nature of loan.

f. The Company is not declared willful defaulter by bank or financial institution or other lender.

g. The Company has not applied for any scheme of arrangement under Sections 230 to 237 of Companies
Act, 2013.

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

i. The Company have not traded or invested in Crypto Currency or Virtual Currency during the period/year.

j. The Company does not have any transaction not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961.

k. The Company has not advanced or loaned or invested funds to any other persons or entities, including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

1. 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

2. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

l. The Company has not received any fund from any persons or entities, including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

1. 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

2. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

m. The Company does not have number of layer of Companies as prescribed under clause (87) of section 2 of
the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

The financial statements were approved by the Board of Directors on May 30, 2025.

As per our report of even date attached For and on behalf of the Board of Directors

The Baroda Rayon Corporation Limited

For Kansariwala &Chevli Damodarbhai Patel Viral Bhavani

Chartered Accountants Chairman & Managing Director Whole Time Director

Firm Registration No. 123689W DIN: 00056513 DIN: 02597320

A.H. Chevli Jugal Kishore Jakhotia Kunjal Desai

Partner Chief Financial Officer Company Secretary

Membership No. 038259 ACS: 40809

Place - Surat Place - Surat

Date - May 30, 2025 Date - May 30, 2025

---

Mar 31, 2024

h. Provisions and contingencies

A provision is recognized if, as a result of a past event, the group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract.

A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not require an outflow of resources or an obligation for which the future outcome cannot be ascertained with reasonable certainty. When there is a possible or a present obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made.

i. Earning per share

Basic EPS is arrived at based on net profit after tax available to equity shareholders to the weighted average number of equity shares outstanding during the year.

The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless impact is anti-dilutive.

j. Cash and cash equivalents

Cash and Cash equivalents include cash and Cheque in hand, bank balances, demand deposits with banks and other short-term highly liquid investments that are readily convertible to known amounts of cash & which are subject to an insignificant risk of changes in value. Where original maturity is three months or less.

k. Cash flow statement

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

l. Use of estimates and judgements

The estimates and judgments 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 expectations of future events) that the Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognized in the period in which the results are known/materialized.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date

The above policies were followed to the extent wherever applicable. Subsequently there were no activities carried, hence there is no specific requirement for adherence of accounting policies.

However, there is no specific information relating to any change of policies due to loss of key managerial personnel in accounts as well as finance department.

m. Recent pronouncements

The Company applied for the first time these amendments of Ind AS 8, Ind AS 1 and Ind AS 12 and there is no material impact on financials.

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

n. Non-current assets (or disposal groups) held for sale and discontinued operations:

Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of the carrying amount and the fair value less cost to sell. An impairment loss is recognized for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognized for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognized. A gain or loss not previously recognized by the date of the sale of the non-current asset (or disposal group) is recognized at the date of de-recognition. Noncurrent assets (including those that are part of a disposal group) are not depreciated or amortized while they are classified as held for sale. Non-current assets (or disposal group) classified as held for sale are presented separately in the balance sheet. Any profit or loss arising from the sale or measurement of discontinued operations is presented as part of a single line item in statement of profit and loss.

Critical estimates and judgment in applying accounting policies

The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Information about estimates and judgments made in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are as follows:

i) Provisions and contingencies

A provision is recognized if, as a result of a past event, the group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract.

A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not require an outflow of resources or an obligation for which the future outcome cannot be ascertained with reasonable certainty. When there is a possible or a present obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made.

ii) Accounting policy on taxation

In preparing financial statements, the Company recognizes income taxes of the jurisdiction in which it operates. There are certain transactions and calculations for which the ultimate tax determination is uncertain. The Company recognizes liabilities for anticipated tax issues based on estimates of whether additional taxes will be due. The uncertain tax positions are measured at the amount expected to be paid to taxation authorities when the Company determines that the probable outflow of economic resources will occur. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made.

iii) Fair value measurement

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

Fair value is the price that would be received to sell an asset or to settle a liability in an ordinary 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 to settle a liability takes place either:

- In the principal market for the asset or liability, or

- 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 non-financial 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:

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

Level 2 — other techniques for which all input which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3 — Inputs which are not based on observable market data

NATURE AND PURPOSE OF RESERVES Capital reserve

Capital reserve was created under the previous GAAP (Indian GAAP) out of the profit earned from a specific transaction of capital nature. Capital reserve is not available for the distribution to the shareholders.

Securities premium

Securities premium includes premium on issue of shares. It will be utilized in accordance with the provisions of the Companies Act, 2013.

Other Comprehensive Income

The Company has elected to recognize changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within equity.

Retained Earnings

Represents surplus/(deficit) in statement of Profit and Loss.

27. Contingent Liabilities (Not acknowledge as debt) -

(i) Claims against the Company not acknowledged as debts:

Payment of Excise Duty disputed by the Company in respect of CENVAT utilization of: Input & Capital Goods Matters ? 44,49,28,525/- (Principal amount of ? 18,80,87,415/- and penalty and fine of ? 25,68,41,110/-) (Previous Year ^: 44,49,28,525/-). Final hearing was held on 22^nd March, 2023 and order was pronounced on 29^th May, 2023 and remand back to Excise Department for re- examine. Matter is still pending.

(ii) Contingent Liabilities not provided for:

(a) Customs, Excise & Service Tax Appellate Tribunal, Ahmedabad vide its order dated 31.01.2022 has allowed the company to re-export the warehoused goods without payment of duty/fine/penalty if any. Regarding interest on Excise duty, company had requested to BIFR for waiver of interest, fine and penalty on duty for default period and it is also mentioned in circulated MDRS dated 13^th October 2015. However Commissioner of Custom, Ahmedabad had not allowed the permission of re-export and therefore company had filed Special Civil Application (SCA) before Hon''ble High Court of Gujarat and the company''s SCA was dismissed on 02^nd January, 2023. Aggrieved by the impugned order, company had filled Special Leave Petition (Civil) with the Hon''ble Supreme Court of India which was admitted vide order dated 09^th May, 2023. Matter is now pending at the Apex Court.

However aggrieved by the said order, some workmen challenged the same in Hon''ble Supreme Court of India. The apex court vide order dated 03^rd January, 2022 has disposed of the matter. Thereafter the aggrieved workmen had approached the Labour Court, Surat and the matter is pending. Further company had made provision of dues amounting to ? 14,07,16,909/- in books of accounts as per norms of settlement during the year 2021 -22.

Excise -

Payment of Excise Duty disputed by the Company in respect of CENVAT utilization of: Input & Capital Goods Matters 44,49,28,525/- (Principal amount of 18,80,87,415/- and penalty and fine of ? 25,68,41,110/-) (Previous Year 44,49,28,525/-). Final hearing was held on 22^nd March, 2023 and order was pronounced on 29^th May, 2023 and remand back to Excise Department for re- examine. Matter is still pending.

Custom -

Customs, Excise & Service Tax Appellate Tribunal, Ahmedabad vide its order dated 31.01.2022 has allowed the company to re-export the warehoused goods without payment of duty/fine/penalty if any. Regarding interest on Excise duty, company had requested to BIFR for waiver of interest, fine and penalty on duty for default period and it is also mentioned in circulated MDRS dated 13^th October 2015. However Commissioner of Custom, Ahmedabad had not allowed the permission of re-export and therefore company had filed Special Civil Application (SCA) before Hon''ble High Court of Gujarat and the company''s SCA was dismissed on 02^nd January, 2023. Aggrieved by the impugned order, company had filled Special Leave Petition (Civil) with the Hon''ble Supreme Court of India which was admitted vide order dated 09^th May, 2023. Matter is now pending at the Apex Court.

Income Tax -

Income tax department raised a demand notice under Section 147 read with Section 144B of the Income Tax Act, 1961 of ? 8,09,43,740/- for AY 2014-15 vide assessment order dated 26^th March, 2022. Aggrieved by the said demand, company had filled grievance two times against the said demand stating that with the available brought forward losses, the department has not considered the carried forward losses against the income determined under Section 68 of the Income Tax Act, 1961. Further the department raised demand notice under Section 271 (1)(c) of the Income Tax Act, 1961, for a penalty of ? 4,12,97,850/-. The matter is now pending at Income Tax Appellate Tribunal (ITAT), Mumbai. Company has not made any provision in this matter in view of already available Carried forwarded losses.

Company had received an Appellate order dated 28^th December, 2023 from Commissioner of Income-tax (Appeals), National Faceless Assessment Centre (‘AO''), Delhi under section 250(6) of Income Tax Act, 1961 stating -

Ground 1 -

Appeal dismissed for unexplained cash credits u/s 68 of Income Tax Act, 1961 for ? 12,15,00,000 for FY 2013-14.

Ground 2 -

Appeal partly allowed by directing AO to examine the contention of the Appellant by giving adequate opportunity of being heard that there are brought forward losses in its case which are eligible for set off.

The Company has filled appeal before Income Tax Appellate Tribunal (ITAT), Mumbai against the said order on 12^th February, 2024 and matter is pending.

Company has further received an Appellate order dated 21^st February, 2024 from Commissioner of Income-tax (Appeals), National Faceless Assessment Centre (‘AO''), Delhi under section 250 of Income Tax Act, 1961 stating that the penalty of ? 4,12,97,850/- is hereby confirmed and the appeal has been dismissed. The company is in process of filing an appeal before Income Tax Appellate Tribunal (ITAT), Mumbai against the said order.

29. The balances of Sundry Debtors, Sundry Creditors, Bank balances and Loans & Advances are subject to confirmation and are shown as appearing in the Account.

30. Employee benefit -

(i) The liability for retiring/resigned employee''s gratuities payable in accordance with the payment of Gratuities Act and Company''s rule are determined and overdue for the employees up to 31^st March, 2024 is NIL. (PY ? 16,13,49,871/-). The amount has been regrouped during the FY 2023-24.

(ii) The Company has received no dues certificate from Provident fund authorities relating to principal payment of Provident fund. Further company had deposited every month interest on PF contribution under 7Q of The Employees'' Provident Funds and Miscellaneous Provisions Act, 1952. The total amount was ? 5,09,81,677/- and company had deposited the said amount till 31.03.2022 amount of ? 5,09,81,677/- and no outstanding dues are pending under 7Q of Provident Fund Act, 1952. The Provident fund authorities

have issued letter to BIFR for waiver of damages for delayed in depositing & payment of P.F. contribution. After depositing interest under 7Q, company has made application for waiver of damages during the month of March, 2022.

31. Income tax -

As per Management representation, provisions for Minimum Alternate Tax (MAT) are not applicable because company has decided to opt for Section 115BAA of The Income Tax Act, 1961.

32. Borrowings -

i) As per the Modified Debt Restructuring Scheme (MDRS) the company had availed loans amounting to 157,29,49,931/- from Bhavani Syntex Limited, Ramsons Properties Pvt. Ltd., Unipat Rayon Ltd. and others by the way of assignment of debt. These debts have become overdue, however the Company has not made interest provision for the said debt. The interest provision will be made at the time of final settlement. The debt was assigned by way of Deed of Assignment dated 28.05.2019.

ii) Under the Modified Draft Restructuring Scheme (MDRS), the Company has availed the loan with immediate object to revive the Company.

The loan amount of ? 157,29,49,931/- received under MDRS on which interest is not provided is included with the borrowings under long term borrowings (refer Note 13) as Secured loans & unsecured loans and amount reported under (Note 14) as short term borrowings are aggregating to ? 211,39,80,066/-.

33. Segment reporting -

Entire operational activities in the textile segments are standstill since August 2008. The Company is currently engaged in the business of Real Estate Development and activities connected and incidental thereto. All operating segments'' operating results are reviewed regularly by the Company''s Managing Director (MD) to make decisions about resources to be allocated to the segments and assess their performance. On that basis, the Company has identified two reportable business segment for the purpose of IND AS 108 - Real Estate and Textile, the results of which are embodied below. The Company operates in only one geographical segment-within India.

*Currently there are no operational activities in textile segment.

34. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

35. There are no amounts due and payable to Investors Education and Provident Fund as on the date of Balance sheet.

36. The entire operational activities of the textile segment of the company are standstill since August 2008, due to labour & other regulatory issues. Till date there are no plants or units in operation. However company has started new business in real estate segment. Management does not expect any adverse impact on its future cash flows and shall be able to continue as a going concern. The Company will continue to monitor future economic conditions for any significant change. The internal financial control over financial reporting, disclosure controls and risk assessment and minimization procedures are maintained, continued and followed and there is no change in the same.

38. Financial Instruments - Fair value and Risk Management (i) Fair value hierarchy

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The Financial Instruments are categorised in three level based on the inputs used to arrive at fair value measurements as described below:-

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

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

Level 3: Inputs which are not based on observable market data

(ii) Financial risk management objectives and policies

The Company Financial risk management is an integral part of how to plan and execute its business strategies. The company risk management policy is set by the Managing Board.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.

(a) Market Risk- Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the company''s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

(c) Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the company periodically assess financial reliability of customer, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations,

iv) Significant increase in credit risk on other financial instruments of the same counterparty,

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

Act, 2013.

h. The Company is not required to spent CSR under Section 135 of Companies Act, 2013.

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

j. The Company have not traded or invested in Crypto Currency or Virtual Currency during the period/year.

k. The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961.

l. The Company does not have number of layer of Companies as prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules,2017.

As per our report of even date attached For and on behalf of the Board of Directors

The Baroda Rayon Corporation Limited

For Kansariwala &Chevli Damodarbhai Patel Viral Bhavani

Chartered Accountants Chairman & Managing Director Whole Time Director

Firm Registration No. 123689W DIN-00056513 DIN-02597320

A.H. Chevli Jugal Kishore Jakhotia Kunjal Desai

Partner Chief Financial Officer Company Secretary

Membership No. 038259 ACS-40809

Place - Surat Place - Surat

Date - 30^th May, 2024 Date - 30^th May, 2024

---

Mar 31, 2023

Note:

(i) The Company has applied the rate of depreciation on the basis of residual value of above fixed assets as contemplated in Schedule II of Companies Act'' 2013, as the entire fixed register have been updated with physical verification. As all the plants are very old, the useful life of assets are completed as per the years mentioned in the Schedule II of the Companies Act'' 2013. Consequently, the net block of assets is consisting of residue value to the extent of 5% of cost and revaluation portion (except for car & vehicles).

NOTE-

i. GST (CENVAT & Service tax) receivable of ? 28,02,445/- includes ? 25,00,000/- towards deposit against Order passed by CESTA and ? 3,02,445/- towards disputed matter of service tax & Capital goods CENVAT matter.

ii. The advances recoverable in cash or kind includes advances for expenses, staff loan, prepaid expenses, security deposit etc.

Note - In the current year, the management has revised the value of stock in trade as per valuation report obtained from Government Approved Valuer, from ? 371,37,69,192/- to realisable value of ? 604,78,19,381/-. Since there is high escalation in real estate valuation, management has decided to give the true and fair value to the real estate inventory on the basis of principal of Net realisable value method.

As such the difference of ? 233,40,50,189/- is credited to increase/decrease in stock and retained earnings have been created in Other Equity as per Ind AS- 16. In view of provision of section 45(2) of the Income Tax Act. 1961, Conversion of capital assets in to stock in trade of a business shall be chargeable to Income tax as its income of the year in which such stock in trade is sold or otherwise transferred. As such, in the current year, there will be no tax/ MAT liability.

As per Management representation, provisions for Minimum Alternate Tax (MAT) are not applicable because company has decided to opt for Section 115BAA of The Income Tax Act, 1961.

(ii) Terms & rights of shareholder:

The company has one class of equity shares having face value of ? 10/- each. Each shareholder is eligible for one vote per share held.

1) *Sold pursuant to Share Purchase Agreement (SPA) dated 06^thJuly, 2022

2) ^ABecame promoters pursuant to Share Purchase Agreement (SPA) dated 06^thJuly, 2022

3) #Strike off

4) Mohanlal Patel (to the extent of 27000 shares), Sejima Texyarn Pvt. Ltd., Raj Bhavani, Umang Bhavani, Upesh Bhavani and Hetal Bhavani holds shares prior to forming part of Promoter & Promoter Group. However

NATURE AND PURPOSE OF RESERVES Capital reserve

Capital reserve was created under the previous GAAP (Indian GAAP) out of the profit earned from a specific transaction of capital nature. Capital reserve is not available for the distribution to the shareholders.

Securities premium

Securities premium includes premium on issue of shares. It will be utilized in accordance with the provisions of the Companies Act, 2013.

Other Comprehensive Income

The Company has elected to recognize changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within equity.

NOTE:

a) As per the Modified Debt Restructuring Scheme (MDRS) the company had availed loans from Bhavani Syntex Limited, Ramsons Properties Pvt. Ltd. and Unipat Rayon Ltd. by the way of assignment of debt. These debts have become overdue, however the Company has not made interest provision for the said debt. The interest provision will be made at the time of final settlement. The debt was assigned by way of Deed of Assignment dated 28.05.2019. Please Refer Note No. 33(i)

b) Unsecured loan from Corporate Body is also part of MDRS scheme. It has become overdue and Company has yet to make provision for interest. As the Company could not make the payment of unsecured loans as per stipulated time as mentioned in MDRS scheme, the unsecured loans has been regrouped under above long term unsecured loans from other current liabilities. Please refer note 33(i).

28. Contingent Liabilities (Not acknowledge as debt) -

(i) Claims against the Company not acknowledged as debts:

Payment of Excise Duty disputed by the Company in respect of: Input & Capital Goods Matters -? 44,24,28,525/- (Previous Year 44,24,28,525/-). Final hearing was held on 22^nd March, 2023 and order was to be pronounced on or before 29^th May, 2023. Final verdict order is awaited.

(ii) Contingent Liabilities not provided for:

(a) Customs, Excise & Service Tax Appellate Tribunal, Ahmedabad vide its order dated 31.01.2022 has allowed the company to re-export the warehoused goods without payment of duty/fine/penalty if any. Regarding interest on Excise duty, company had requested to BIFR for waiver of interest, fine and penalty on duty for default period and it is also mentioned in circulated MDRS dated 13^th October 2015. However Commissioner of Custom, Ahmedabad had not allowed the permission of re-export and therefore company had filed Special Civil Application (SCA) before Hon''ble High Court of Gujarat and the company''s SCA was dismissed on 02^ndJanuary, 2023. Aggrieved by the impugned order, company had filled Special Leave Petition (Civil) with the Hon''ble Supreme Court of India which was admitted vide order dated 09^th May, 2023. Matter is now pending at the Apex Court.

Note -

i) Interest on dues of Maharastra Sales Tax was paid under the Scheme of Settlement Amnesty - 2022 and the amount derived as per Scheme amounting to ? 5,82,606/- was paid for which No Due Certificate was received by the company on 22^nd October, 2022. Hence there are no outstanding dues in this regard.

Regarding interest on Electricity duty, Surat canal division, company had requested before BIFR for waiver of interest, fine and penalty on duty for default period and company had also submitted an application to Government of Gujarat for waiver of interest etc. on 11/01/2011 as per GR dated 15/07/2010 in the terms of relief and concessions to sick company and. the matter is in process. Further GOG had given the consent before BIFR for relief and concessions to sick company as per their GR.

Regarding damages on Provident Fund & Employee State Insurance, company had requested to BIFR for waiver of damages which is also mentioned in circulated MDRS dated 13^th October 2015, for which department had given written consent on 23^rd December, 2015 for waiver of damages subject to recommendation of BIFR/AAIFR.

Further company had deposited the interest amount under section 7Q of The Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 before 31^st March, 2022 and application for waiver of damages before PF Authority as well as ESIC Authority was made in the month of March, 2022.

29. Pending Litigation - Various cases filed against the company

Various cases relating to labour matters, excise matters, gratuity matters, income tax have been filed against the Company during the normal course of business, which are insignificant to affect the existence of the Company in the opinion of the management.

Labour -

The Hon''ble High Court of Gujarat vide its order pronounced on 11^th January, 2021 has disposed the Letters Patent Appeals No. 948/2015 and allied LPA''s and Civil Applications in terms of the Consent Terms entered between The Baroda Rayon Corporation Limited and Baroda Rayon Employee''s Ekta Union.

However aggrieved by the said order, some workmen challenged the same in Hon''ble Supreme Court of India. The apex court vide order dated 03^rd January, 2022 has disposed of the matter. Thereafter the aggrieved workmen had approached the Labour Court, Surat and the matter is pending. Further company

had made provision of dues amounting to ? 14,07,16,909/- in books of accounts as per norms of settlement during the year 2021-22.

Excise -

Payment of Excise Duty disputed by the Company in respect of: Input & Capital Goods Matters -? 44,24,28,525/- (Previous Year ? 44,24,28,525/-). Final hearing was held on 22^nd March, 2023 and order was to be pronounced on or before 29^th May, 2023. Final verdict order is awaited.

Custom -

Customs, Excise & Service Tax Appellate Tribunal, Ahmedabad vide its order dated 31.01.2022 has allowed the company to re-export the warehoused goods without payment of duty/fine/penalty if any. Regarding interest on Excise duty, company had requested to BIFR for waiver of interest, fine and penalty on duty for default period and it is also mentioned in circulated MDRS dated 13^thOctober 2015. However Commissioner of Custom, Ahmedabad had not allowed the permission of re-export and therefore company had filed Special Civil Application (SCA) before Hon''ble High Court of Gujarat and the company''s SCA was dismissed on 02^nd January, 2023. Aggrieved by the impugned order, company had filled Special Leave Petition (Civil) with the Hon''ble Supreme Court of India which was admitted vide order dated 09^th May, 2023. Matter is now pending at the Apex Court.

Income Tax -

Income tax department raised a demand notice under Section 147 read with Section 144B of the Income Tax Act, 1961 of ? 8,09,43,740/- for AY 2014-15 vide assessment order dated 26^th March, 2022. Aggrieved by the said demand, company had filled grievance two times against the said demand stating that with the available brought forward losses, the department has not considered the carried forward losses against the income determined under Section 68 of the Income Tax Act, 1961. Further the department raised demand notice under Section 271(1)(c) of the Income Tax Act, 1961, for a penalty of ? 4,12,97,850/-. The matter is now pending at Commissioner of Income-tax (Appeals), Mumbai. Company has not made any provision in this matter in view of already available Carried forwarded losses.

30. The balances of Sundry Debtors, Sundry Creditors, Bank balances and Loans & Advances are subject to confirmation and are shown as appearing in the Account.

31. Employee benefit -

(i) The liability for retiring/resigned employee''s gratuities payable in accordance with the payment of Gratuities Act and Company''s rule are determined and overdue for the employees up to 31^st March, 2023 is ? 16,13,49,871/-. (PY ? 20,06,89,488/-).

(ii) The Company has received no dues certificate from Provident fund authorities relating to principal payment of Provident fund. Further company had deposited every month interest on PF contribution under 7Q of The Employees'' Provident Funds and Miscellaneous Provisions Act, 1952. The total amount was ? 5,09,81,677/- and company had deposited the said amount till 31.03.2022 amount of ? 5,09,81,677/- and no outstanding dues are pending under 7Q of Provident Fund Act, 1952. The Provident fund authorities have issued letter to BIFR for waiver of damages for delayed in depositing & payment of P.F. contribution. After depositing interest under 7Q, company has made application for waiver of damages during the month of March, 2022.

32. Income tax -

a. In view of provision of section 45(2) of the Income Tax Act, 1961, conversion of capital asset into stock-in-trade of a business shall be chargeable to income tax as its income of the year in which such stock-in-trade is sold or otherwise transferred. As such, in the current year, there will be no Tax/ MAT liability.

As per Management representation, provisions for Minimum Alternate Tax (MAT) are not applicable because company has decided to opt for Section 115BAA of The Income Tax Act, 1961.

b. In view of substantial accumulated losses carried forward and unabsorbed depreciation under the Income Tax Act, the Ind AS (12) relating to “Accounting for Taxes on Income” cannot be implemented on Balance Sheet date as sufficient future taxable income is not yet achieved.

33. Borrowings -

i) As per the Modified Debt Restructuring Scheme (MDRS) the company had availed loans amounting to ? 197,76,91,423/- from Bhavani Syntex Limited, Ramsons Properties Pvt. Ltd., Unipat Rayon Ltd. and others by the way of assignment of debt. These debts have become overdue, however the Company has not made interest provision for the said debt. The interest provision will be made at the time of final settlement. The debt was assigned by way of Deed of Assignment dated 28.05.2019.

ii) Under the Modified Draft Restructuring Scheme (MDRS), the Company has availed the loan with immediate object to revive the Company.

The loan amount of ? 197,76,91,423/- received under MDRS on which interest is not provided is included with the borrowings under long term borrowings (refer Note 13) as Secured loans & unsecured loans and amount reported under (Note 14) as short term borrowings are aggregating to ? 245,09,26,719/-.

34. Segment reporting -

Entire operational activities in the textile segments are standstill since August 2008. The Company is currently engaged in the business of Real Estate Development and activities connected and incidental thereto. All operating segments'' operating results are reviewed regularly by the Company''s Managing Director (MD) to make decisions about resources to be allocated to the segments and assess their performance. On that basis, the Company has identified two reportable business segment for the purpose of IND AS 108 - Real Estate and Textile, the results of which are embodied below. The Company operates in only one geographical segment-within India.

The following tables present revenue and profit information for the Company''s operating segments for the year ended 31^st March, 2023 and 31^st March 2022 respectively:

35. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

36. There are no amounts due and payable to Investors Education and Provident Fund as on the date of Balance sheet.

37. The entire operational activities of the textile segment of the company are standstill since August 2008, due to labour & other regulatory issues. Till date there are no plants or units in operation. However company has started new business in real estate segment. Management does not expect any adverse impact on its future cash flows and shall be able to continue as a going concern. The Company will continue to monitor future economic conditions for any significant change. The internal financial control over financial reporting, disclosure controls and risk assessment and minimization procedures are maintained, continued and followed and there is no change in the same.

39. Financial Instruments - Fair value and Risk Management (i) Fair value hierarchy

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The Financial Instruments are categorised in three level based on the inputs used to arrive at fair value measurements as described below:-

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

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

Level 3: Inputs which are not based on observable market data

(ii) Financial risk management objectives and policies

The Company Financial risk management is an integral part of how to plan and execute its business strategies. The company risk management policy is set by the Managing Board.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.

(a) Market Risk- Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the company''s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

(c) Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the company periodically assess financial reliability of customer, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations,

iv) Significant increase in credit risk on other financial instruments of the same counterparty,

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

(d) Liquidity Risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligations on time, or at a reasonable price. The company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related such risk are overseen by senior management. Management monitors the company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

43. Cash and Cash Equivalents and Bank Balances includes balances in Escrow Account which shall be used only for specified purposes as defined under Real Estate (Regulation and Development) Act, 2016.

44. Other Statutory Disclosures:

a. The Company does not have Lease liability and hence no reporting related to the same has been made.

b. There has been no revaluation to Property, Plant and Equipment''s.

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

d. The Company holds all the title deeds of immovable property in its name.

e. The Company has not granted any loans or advances to promoter, director, KMP in nature of loan.

f. The Company is not declared willful defaulter by bank or financial institution or other lender.

g. The Company has not applied for any scheme of arrangement under Sections 230 to 237 of Companies Act, 2013.

h. The Company is not covered under Section 135 of Companies Act, 2013. Hence it is not required to make CSR expense.

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

j. The Company have not traded or invested in Crypto Currency or Virtual Currency during the period/year.

k. The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961.

l. The Company does not have number of layer of Companies as prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules,2017.

---

Mar 31, 2013

1. Estimated amount of contracts remaining to be executed on Capital Account is Nil.

2. Contingent Liabilities not provided for:

(a) Guarantees given by the Company to Housing Development Finance Corporation Ltd. for loans availed by staff amounting to 760.91 lacs (PreviousYearRs.60.91 lacs)

(b) The Company has to pay interest on the outstanding Customs Duty amount at the time of clearance of goods.

(c) Bank Guarantees to Custom Rs. 25 lacs (Previous year Rs. 25 lacs)

(d) Interest, damages and penalty payable to E.S.I, and Provident fund dues is not ascertainable.

3. The company entered into a wage settlement agreement with its employees on 27th October" 2003 under section 2(p) read with Rule 62 under the provisions of the Industrial Disputes Act, 1947. Under this agreement the Company has settled all past claims relating to wages, salaries, claims with regard to perquisite and any other amounts due to employees prior to December 2003 in full and final satisfaction. The payments under this settlement are spread over a period of 5 years from the recommencement of the operations. The agreement specifies the past liabilities relating to unpaid salary, provident fund E.S.I.C, Gratuities etc. However the said agreement is expired and there is no further renewal/settlement is made. Owing to financial crisis Company could not make the payment, the aggrieved union has filed the litigation with various claims against the Company with Gujarat, High Court. The HC, Gujarat has directed to resolve the dispute by appointing the arbitrator with their permission. The arbitration award is awaited, hence the liabilities are not crystallized and the probable liabilities will be booked on final declaration of the arbitration award subject to acceptance by both the parties.

4. Claims against the Company not acknowledged as debts:

Payment of Excise Duty disputed by the Company in respect of:

Input & Capital Goods Matters -Rs. 2115.59 lacs (Previous YearRs. 2079.46 lacs)

5. Various cases filed against the Company;

(I) 7(Seven) Nos. of Unsecured Creditors have filed Winding Up Petitions against the Company in Ahmadabad High Court for their total claims of 7 44936586/-.The Company has filed necessary appropriate responses and its Petition Leave has been admitted. The matters are pending for further disposal.

(II) Various cases of labour matters, excise matters and gratuity matters have been filed against the Company during the normal course of business, which are insignificant to affect the existence of the Company in the opinion of the management.

6. The settlement with the Secured lenders under the CDR was made a part of the scheme filed with BIFR and pursuant to the sanction of the scheme the amount payable to Principal PNB mutual fund is Rs. 77.70 lakhs, being 42% of the principal amount of Rs. 185 lakhs. The Company has made a payment of Rs. 7.77 Lakhs against the said liability and is awaiting confirmation of the balance from them to make balance payment.

7. The Company has no information of the suppliers covered under the Micro, Small and Medium Enterprises Development Act'' 2006. Accordingly, interest provision required under the said Act is not made.

8. (i) Excise Duty on manufactured goods lying in bond will be taken into account when goods are taken out of bond, as company''s practice.

(ii) The above practice has no effect on the loss.

9. The balances of Sundry Debtors, Sundry Creditors, secured loans, unsecured loans, Bank balances and Loans & Advances are subject to confirmation and are shown as appearing in the Account.

10. (i) The liability for retiring/resigned employee''s gratuities payable in accordance with the payment of Gratuities Act and Company''s rule are determined and overdue for the employee''s retired upto 31 st March 2008 is for 71470.19 lacs. No details of said liabilities are calculated for the employees retired up to 31st March''2009, however the gross liability of the entire employee on accrual basis is provided forRs.4215.88 lacs up to 31 st March'' 2009. No liabilities are calculated up to 31 st March 2010,2011,2012and 2013. (ii) As per the past policy, the company''s liability under Provident Fund Act (Funded) is determined on the basis of actuarial valuation made at the end of the financial year. The Company''s Provident Fund liabilities are covered under defined benefit plans and all the future and current obligations for PF liabilities were secured by way of investment in Government Securities through Company''s PF Trust. However, the company could not make any investment to cover the future and current obligation of PF liabilities as per Accounting Standard 15 and no actuarial losses are determined and debited as per projected unit credit method to Profit & Loss account.

11. Income Tax

a. In view of the loss, the Company has not made any provision of Income Tax.

b. The Income Tax Department has seized Rs. 12.06 lacs bank balance on account of dispute.

12. In the financial year 2011 -12, Asset Care & Reconstructions Enterprise Limited has purchased the IFCI loan for total consideration of Rs. 25 Crore from IFCI by way of Assignment Deed dated 27th March'' 2012. Consequently, all the charges attached with the movable and immovable of the properties are registered with Asset Care & Reconstructions Enterprise Limited.

13. The Company has discontinued operation of NTC plant from financial year 1999-2000 and all other plants have been discontinued from August'' 2008. No provision for impairment of assets of the Company has been made. No effect is separately reported in the profit and loss account as per Accounting Standard 24 related to Discontinue operation.

14. (i) Since no commission is payable to the Managing Director as per the terms of appointment. The computation of net profit in accordance with section 349 of the Companies Act, 1956 is not required.

(ii) During the year, the Company has not paid managerial remuneration like previous year.

15. In view of substantial accumulated losses carried forward and unabsorbed depreciation under the Income Tax Act, the Accounting Standard 22 (AS 22) relating to "Accounting for Taxes on Income" cannot be implemented on Balance Sheet date as sufficient future taxable income is not yet achieved.

16. Owing to the closure of all operation, there are no material consumption, no inflow and outflow of foreign exchange due to import or any other expenditure were incurred during the year.

17. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification /disclosure.

---

Mar 31, 2012

(I) The fixed deposit from public Is matured. The deposit could not be paid on due date as the Company became sick, hence the entire fixed deposit has become overdue.

(ii) The said debentures have become overdue for payment since long time. In the financial year 2003-04, the Company had settled various debt due to financial Institution, banks, secured debenture holder> under Corporals debt restructuring scheme, however one of the debenture holder has not participated In the scheme, hence the debentures have become overdue.

Notea:

1. Then an 37 hon-openOve currant account of the Company and la under process of dosun of the acme. The balance* an subject to confirmation.

2. There an 13 account of debenture redemption fund, 1 account of preference there dividend account and 3 account* of preference share application account, which Is subject to reconciliation pending from the bankers and registrar* account On confirmation of and reconcllletlon of balances, the account will be closed or disposed off by transferring to Investor Protection fund.

The above policies were followed up to 31st March' 2009. Subsequently, there were no activities carried, hence there Is no specific requirement for adherence of accounting policies.

1. Estimated amount of contracts remaining to be executed on Capital Account Is Nil.

2. Contingent Liabilities not provided for:

(a) Guarantees given by the Company to Housing Development Finance Corporation Ltd. for loans availed by staff amounting to Rs. 60.91 lacs (Previous Year Rs. 60.91 lacs)

(b) The Company has to pay Interest on the outstanding Customs Duty amount at the time of clearance of goods.

(c) Bank Guarantees (o Custom Rs. 25 lacs (Previous year Rs. 25 lacs)

(d) Interest, damages end penalty payable to E.S.I. and Provident hind dues Is not ascertainable.

(e) Income Tax Matters (For details refer to Paragraph 30 (a), 30(b) Rs. 1056.82 lacs (P.Y. 1484.36 lacs).

3. The company entered Into a wage settlement agreement with Its employees on 27th October'2003 under section 2(p) read with Rule 62 under the provisions of the Industrial Disputes Act, 1947. Under this agreement the Company has settled all past claims relating to wages, salaries, claims with regard to perquisite and any other amounts due to employees prior to December 2003 In full and final satisfaction. The payments under this settlement are spread over a period of 5 years from the recommencement of the operations. The agreement specifies the past liabilities relating to unpaid salary, provident fund E.S.I.C., Gratuities etc. However the said agreement Is expired and there Is no further renewal/settlement Is made, Owing to financial crisis Company could not make the payment, the aggrieved union has filed the litigation with various claims against the Company with Gujarat, High Court The HC, Gujarat has directed to resolve the dispute by appointing the arbitrator with their permission. The arbitration award Is swelled, hence the liabilities are not crystallized and the probable liabilities will be booked on final declaration of the arbitration award subject to acceptance by both the parties.

4. Claims against the Company not acknowledged as debts:

Payment of Excise Duty disputed by the Company in respect of:

Input & Capital Goods Matters - Rs. 211S.SS lacs (Previous Year Rs. 2079.46 lacs)

5. Various cases filed against the Company:

(I) 7(Seven) Nos of Unsecured Creditors have filed Winding Up Petitions against the Company in Ahmadabad

High Court for their total claims of Rs.. 44936586/=.The Company has filed necessary appropriate responses and Its Petition Leave has been admitted. The matters are pending for further disposal.

(II) Various cases of labour matters, excise matters and gratuity matters have been filed against the Company during the normal course of business, which are insignificant to affect the existence of the Company in the opinion of the management '

6. The settlement with the Secured lenders under the CDR was made a part of the scheme filed with BIFR and pursuant to the sanction of the scheme the amount payable to Principal PNB mutual fund is Rs.77.70 lakhs, being 42% of the principal amount of Rs. 185 lakhs. The Company has made a payment of Rs.7.77 Lakhs against the said liability and is awaiting confirmation of the balance from them to make balance payment

7. The Company has no information of the suppi’ers covered under the Micro, Small and Medium Enterprises Development Act 2006. Accordingly, interest provision required under the said Act is not made.

8. (i) Excise Duty on manufactured goods lying in bond will be taken into account when goods are taken out of bond, as company's practice.

(ii) The above practice has no effect on the loss.

9. The balances of Sundry Debtors, Sundry Creditors, secured loans, unsecured loans, Bank balances and Loans & Advances are subject to confirmation and are shown as appearing in the Account

10. As per the past policy, the company’s liability under Provident Fund Act (Funded) is determined on the basis of actuarial valuation made at the end of the financial year. The Company’s Provident Fund liabilities are covered under defined benefit plans and all the future and current obligations for PF liabilities were secured by way of investment in Government Securities through Company's PF Trust However, the company could not make any investment to cover the future and current obligation of PF liabilities as per Accounting Standard 15 and no actuarial losses are determined and debited as per projected unit credit method to Profit & Loss account

11. income Tax

a. In view of the loss, the Company has not made any provision of Income Tax.

b. The Company has received Assessment order for non-compliance of tax deducted at sources demanding tax liability for Rs. 1056.82 lacs for the past matters. The Company has preferred appeal against the said Order with Commissioner of Income Tax (Appeal) at TDS circle, Mumbai. The Company could not made the interest payments due to its potential sickness and financial constrains, to various debenture holders and entries were restricted to mere provision for compliance of Accounting Standard as contemplated in Section 211 (3) (c) of Companies Act 1956. Subsequently, the said Interest provision was written back on account of interest waiver. The Company does not envisage any tax liabilities, as the Company is declared sick by The Board for Industrial and Financial Reconstruction (BIFR) under section 3(1)(0) of the Sick Industrial Companies (Special Provisions) Act f985, matter is pending. '

c. The Income Tax Department has seized Rs. 12.06 lacs bank balance on account of dispute.

12. Asset Care & Reconstructions Enterprise Limited has purchased the IFCI loan for total consideration of Rs. 25 Crone from IFCI by way of Assignment Deed dated 27th March' 2012. Consequently, all the charges attached with the movable and immovable of the properties are registered with Asset Care & Reconstructions Enterprise Limited.

13. The Company has discontinued operation ofNTC plant from financial year 1999-2000 and all other plants have been discontinued from August 2008. No provision for impairment of assets of the Company has been made. No effect Is separately reported in the profit and loss account as per Accounting Standard 24 related to Discontinue operation.

14. (i) Since no commission is payable to the Managing Director as per the terms of appointment The computation of net profit in accordance with section 349 of the Companies Act, 1956 is not required.

(ii) During the year, the Company has not paid managerial remuneration like previous year.

15. In view of substantial accumulated losses canted forward and unabsorbed depredation under the Income Tax Act, the Accounting Standard 22 (AS 22) relating to 'Accounting for Taxes on Income" cannot be Implemented on Balance Sheet date as sufficient future taxable Income Is not yet achieved.

16. The Company has not paid stipulated bonus as required by The Bonus Act 196S, as amended time (0 time. Since the amount Is not ascertained, no provision Is made In the books of account

17. Owing to the closure of all operation, there am no material consumption, no Inflow and outHow of foreign exchange due to Import or any other expenditure were Incurred during the year.

18. The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly Impacted the disclosure and presentation made In the financial statements. Previous years figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.