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A Oneindia Venture

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Nifty 24,298.20 +1.12%

22k Gold ₹ 14,885 /gm

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Notes to Accounts of Manomay Tex India Ltd.

Mar 31, 2025

1.7 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when the Company has 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. When the Company expects some or all of a provision to be reimbursed, for
example, under an insurance contract, the reimbursement is recognized as a separate asset,
but only when the reimbursement is virtually certain. The expense relating to a provision is
presented in the statement of Profit and Loss net of any reimbursement.

The amount recognized as a provision is the best estimate of the consideration required to settle
the present obligation at the end of the reporting period, taking into account the risks and
uncertainties surrounding the obligation. When a provision is measured using the cash flows
estimated to settle the present obligation, its carrying amount is the present value of those cash
flows (when the effect of the time value of money is material).

Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility
of reimbursement, unless the possibility of an outflow of resources embodying economic
benefits is remote.Contingent Liabilities are not recognized but are disclosed in notes.

Contingent Assets are not recognized. However, when the realization of income is virtually certain,
then the related asset is no longer a Contingent Asset, but it is recognized as an asset.

1.8 Earnings Per Share

Basic Earnings Per Equity share is computed by dividing the Net Profit attributable to the equity
holders of the Company by the weighted average number of equity shares outstanding during the
period. Diluted earnings per equity share is computed by dividing the Net Profit attributable to
the equity holders of the Company by the weighted average number of equity shares considered
for deriving basic earnings per equity share and also the weighted average number of equity
shares that could have been issued upon conversion of all dilutive potential equity shares. The
dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares

been actually issued at fair value (i.e. the average market value of the outstanding equity shares).
Dilutive potential equity shares are deemed converted as of the beginning of the period, unless
issued at a later date. Dilutive potential equity shares are determined independently for each
period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for
all periods presented for any Share Splits and Bonus Shares issues including for changes effected
prior to the approval of the Financial Statements by the Board of Directors.

1.9 Cash Flow Statement

Cash Flows are reported using the indirect method, prescribed in Ind-AS 7 ''Statement of Cash
Flows''. Whereby Profit Before Tax for the period is adjusted forthe effects of transactions of
a non-cash nature, any deferrals or accruals of Past or Future Operating Cash Receipts or
Payments and Item of Income or expenses associated with investing or financing cash flows. The
Cash Flows from Operating, Investing and Financing Activities of the Company are segregated.

1.10 Borrowing Costs

Borrowing costs are interest and other costs (including exchange differences relating to
foreign currency borrowings to the extent that they are regarded as an adjustment to interest
costs) incurred in connection with the borrowing of funds. Borrowing costs directly attributable
to acquisition or construction of an asset which necessarily take a substantial period of time to
get ready for its intended use are capitalized as part of the cost of the asset. All other borrowing
costs are recognized as an expense in the period in which they are incurred.

1.11 Cash and Cash Equivalents

Cash and Cash Equivalent in the Balance Sheet comprise Cash at Banks and on Hand, Cheques
on Hand and Short-Term Deposits with an original maturity of three months or less and highly
liquid investments that are readily convertible into known amounts of cash and which are
subject to an insignificant risk of changes in value net of outstanding bank overdrafts as they
are considered an integral part of the Company''s Cash Management.

For the purpose of the Statement of Cash Flows, Cash and Cash Equivalents consist of Cash
and Short-Term Deposits, as defined above, net of outstanding bank overdrafts that are
repayable on demand, as they are considered an integral part of the Company''s cash
management.

1.12 Exceptional Items

When items of Income and Expense within Profit or Loss from ordinary activities are of such
size, nature or incidence that their disclosure is relevant to explain the performance of the
enterprise for the period, the nature and amount of such items is disclosed separately as
Exceptional Items.

1.13 Non-Current Assets held for Sale

The Company classifies Non-Current Assets and disposal groups as held for sale if their carrying
amounts will be recovered principally through a sale/ distribution rather than through
continuing use and the sale is considered highly probable. Management must be committed
to the sale within one year from the date of classification.

The Company treats sale/distribution of the asset or disposal group to be highly probable when:

â¢ The appropriate level of management is committed to a plan to sell the Asset (or

disposal group),

â¢ An active Programme to locate a buyer and complete the plan has been initiated (if
applicable),

â¢ The Asset (or disposal group) is being actively marketed for sale at a price that is
reasonable in relation to its current fair value.

â¢ The Sale is expected to qualify for recognition as a completed Sale within one year
from the date of classification, and

â¢ Actions required to complete the plan indicated that it is unlikely that significant changes
to the plan will be made or that the plan will be withdrawn.

Non-Current Assets held for Sale and disposal groups are measured at the lower of their carrying
amount and the fair value less costs to sell. Assets and liabilities classified as held for sale are
presented separately in The Balance Sheet.

Property, Plant and Equipment and Intangible Assets once classified as held for sale are not
depreciated or amortized.

1.14 Critical Accounting Estimates and Judgments

In the course of applying the policies outlined above, the Company is required to make judgments,
estimates and assumptions about the carrying amount of Assets and Liabilities that are not
readily apparent from other sources. The estimates and associated assumptions are based on
historical experience and other factors that are considered to be relevant. Actual results may
differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision and future period, if the revision affects
current and future periods.

a) Impairment of Financial Assets

The impairment provisions for Financial Assets are based on assumptions about risk of default
and expected Loss rates. The Company uses judgment in making assumption and selecting the
inputs to the impairment calculation, based on Company''s past history, existing market
conditions as well as forward estimate at the end of each reporting period.

b) Income Taxes

Management judgment is required for the calculation of provision for Income Taxes and
Deferred Tax Assets and Liabilities. The Company reviews at each Balance Sheet date the
carrying amount of Deferred Tax Assets. The amount of tax payable in respect of any period is
dependent upon the interpretation of the relevant tax rules. The factors used in estimates
may differ from actual outcome which could lead to significant adjustment to the amounts
reported in the Financial Statements.

c) Defined Benefit Plans

The cost of the defined benefit plan and other post-employment benefits and the present
value of such obligation are determined using actuarial valuations. An actuarial valuation
involves making various assumptions that may differ from actual development in the future.
These Includes the determination of the discount rate, future salary increases, mortality rates
and attrition rate. Due to the complexities involved in the valuation and its long-term nature,

a defined benefit obligation is highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

d) Fair Value Measurements

Some of the Company''s Assets and Liabilities are measured at fair value for financial reporting
purposes. The management determines the appropriate valuation techniques and inputs for
fair value measurements. In estimating the fair value of an Asset or a Liability, the Company
uses market-observable data to the extent it is available. In case where level 3 inputs are
applied, the Company engages third party qualified valuers to perform the valuation. The
management works closely with the qualified external valuers to establish the appropriate
valuation techniques and inputs to the model.

e) Insurance Claims

Insurance Claims are recognized when the Company has reasonable certainty of recovery.
Subsequently any change in recoverability is provided for.

1.15 Key Sources of Estimation Uncertainties

The key assumptions concerning the future and other key sources of estimation uncertainty at
the reporting date, that have a significant risk of causing a material adjustment to carrying
amounts of Assets and Liabilities within the next financial years are described below. The
Company based its assumptions and estimates on parameters available when the financial
statements were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are reflected in the assumptions when they
occur.

(i) Useful lives and residual value of Property, Plant and Equipment

Useful life and residual value of Property, Plant and Equipment are based on
management''s estimate of the expected life and residual value of those Assets and is as
per schedule II to the Companies Act 2013. These estimates are reviewed at the end of
each reporting period. Any reassessment of these may result in change in depreciation
expense for future years.

(ii) Impairment of Property Plant and Equipment

At the end of each reporting period, the Company reviews the carrying amounts of
its Property, Plant and Equipment to determine whether there is any indication that
those Assets have suffered an Impairment Loss. If any such indication exists, the
recoverable amount of the Asset is estimated in order to determine the extent of the
Impairment Loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. Value
in use is usually determined on the basis of discounted estimated future cash flows. This
involves management estimates onanticipated commodity prices, market demand and
supply, economic and regulatory environment, discount rates and other factors. Any
subsequent changes to cash flow due to changes in the above mentioned factors could
impact the carrying value of Assets.

(iii) Deferred Tax Assets

Deferred Tax Assets are recognized only to the extent it is considered probable that
those assets will be recoverable. This involves an assessment of when those Deferred
Tax Assets are likely to reverse and a judgment as to whether or not there will be
sufficient taxable profits available to offset the tax assets when they do reverse. The
Company reviews the carrying amount of Deferred Tax Assets at the end of each reporting
period. Any change in the estimates of future taxable income may impact the
recoverability of Deferred Tax Assets.

(iv) Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other
claims against the Company. Potential liabilities that are possible but not probable of
crystallizing or are very difficult to quantify reliably are treated as contingent liabilities.
Such liabilities are disclosed in the notes but are not recognized.

1.16 Segment Reporting

The Board of Directors of the Company identified Textiles as primary business segment as the
company mainly dealing in Textile business only.

Further the board has identified two geographical segments i.e. ''Domestic'' and ''Export''
considering the Political and Economic Environment. Type A customers, assets employed and risk
parameters associated in respect of each of the geographical area.

1.17 CSR Expenditure

Amount spent on CSR activities during the year is charged to Statement of Profit & Loss, if the
same is of revenue nature.

Term Loans Covered:-

i. Primary Security:

(a) first pari-passu charge over all that pieces and parcels of the (i) Industrial Land measuring 1.82
Hectares, comprised in Araji No. 991, 992/1568, 993/1570; (ii) Industrial Land measuring 1.41
Hectares, comprised in Araji No.983; and (iii) Industrial Land measuring 20,400 sq. mtrs., comprised
in Araji No. 989 and 990, village Undwa, tehsil Gangrar, district Chittorgarh, Rajasthan, together with
all super-structures, construction thereof, easements, right to way and appurtenances thereon, both
present and future.

(b) first pari-passu charge over all that pieces and parcels of the land measuring 2.03 Hectare, i.e., 20300
sq. mtrs. converted for industrial purposes from Araji No. 5 measuring 0.61 Hectare, Araji No. 6
measuring 0.99 Hectare and Araji No. 7 measuring 0.43 Hectare, village Jojaro ka Khera, Gram
Panchayat Jojaro ka Khera, Patwar Circle Jojaro ka Khera, tehsil Gangrar, district Chittorgarh,
Rajasthan, together with all super-structures, construction thereof, easements, right to way and
appurtenances thereon, both present and future.

ii. Collateral Security & Equitable Mortgage:

(a) Equitable mortgage of Residential, situated at Plot No. A-133, Araji no. 637/2 Kamla Vihar Vistar
Yojana, Bhilwara, 311001, standing in the name of Smt. Pallavi Laddha.

(b) Equitable mortgage of Industrial Land situated at Araji No 13/2, 14/2 & 16/2,(New Araji No
890/13, 892/14, 894/16) Village Jorjo ka Khera, Tehsil Gangrar -312901 Distt Chittorgarh
Rajasthan, standing in the name of Shri Yogesh Laddha.

(c) Equitable mortgage of Industrial Land & Building situated at Araji No. 18 Means, 19, Village Jojro
ka Khera, Tehsil Gangrar - 312901 Distt Chittorgarh, Rajasthan, standing in the name of M/s
Manomay Tex India Limited.

(d) Equitable mortgage of shop at 32, Heera Panna Market Pur Road, Bhilwara -311001 Rajasthan,
standing in the name of Kailashchandra Hiralal Laddha.

(e) Equitable mortgage of Industrial Land situated at Araji No 9,10,11 & 12, Village Zojaro ka Khera,
Tehsil Gangrar -312901 Distt Chittorgarh Rajasthan, standing in the name of M/s Arav Export
Prop. Shri Kailashchandra Hiralal Laddha.

(f) first pari-passu charge over the fixed deposit(s) amounting to Rs. 2,77,00,000.00 (Rupees Two
Crores Seventy Seven Lakhs Only), held/ maintained with the State Bank of India, together with
all the benefits arising therefrom including accrued interest (the "Fixed Deposit 1").

(g) first pari-passu charge over the fixed deposit(s) amounting to Rs. 2,93,00,000.00 (Rupees Two
Crores Ninety Three Lakhs Only), held/ maintained with the State Bank of India, together with all
the benefits arising therefrom including accrued interest (the "Fixed Deposit 2").

(h) first pari-passu charge over the fixed deposit(s) amounting to Rs. 12,00,000.00 (Rupees Twelve
Lakhs Only), held/ maintained with the State Bank of India, together with all the benefits arising
therefrom including accrued interest (the "Fixed Deposit 3").

(i) Second pari-passu charge over the entire current assets of the Company, both present and future
for Term loans.

iii. Personal Guarantees

(a) Shri Kailashchandra Hiralal Laddha s/o Shri Hiralal Bhagwan Laddha.

(b) Shri Yogesh Laddha s/o Shri Kailashchandra Hiralal Laddha.

(d) Shri Kamlesh Kailashchandra Laddha s/o Shri Kailashchandra Hiralal Laddha.

(e) Smt. Pallavi Laddha w/o Shri Yogesh Laddha.

iv. Corporate Guarantees

(a) Aarav Export Prop. Shri Kailashchandra Hiralal Laddha s/o Shri Hiralal Bhagwan

Laddha.

Unsecured loans are repayable after one year and bearing interest rate as per Mutual Consent Basis.

Vehicle loans are secured against respective vehicles.

Details of security

First pari passu charge on stock of raw material, WIP, finished goods laying in borrower''s factory, godown
elsewhere and including goods in transit, consumables, stores and spares, book debts, consumables, Book
Debts arising out from genuine trade transactions of the business, Loans & Advances and all other current
assets of the company (Present & future).

Disclosure - Borrowings from Banks on basis of Security of Current Assets

In respect of borrowings from banks on the basis of security of current assets, Monthly /quarterly statements
of current assets filed by the Company with banks are in agreement with the books of accounts.

Each year, the Board reviews the level of funding in the gratuity plan. Such a review includes the
asset-liability matching strategy and investment risk management policy. The Board decides its
contribution based on the report of actuarial valuer.

Interest Risk

A decrease in the bond interest rate will increase the Plan Liability.

Longevity Risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate
of the mortality of Plan participants both during and after their employment. An increase in the life
expectancy of the Plan participants will increase the Plan''s Liability.

Salary Risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries
of plan participants. As such, an increase in the salary of the plan participants will increase the Plan''s
Liability.

33. The response to letters sent requesting confirmation of balances has been insignificant. In the
management''s opinion, adjustments on reconciliation of the balances, if any required, will not be
material in relation to the Financial Statements of the group and the same will be adjusted in the
Financial Statements as and when the confirmations are received and reconciliations completed.

34. The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and
post-employment benefits received Presidential assent in September 2020.
The Code has been published in the Gazette of India. However, the date on which the Code will come
into effect has not been notified. The group will assess the impact of the Code when it comes into
effect and will record any related impact in the period the Code becomes effective.

35. Disclosures as per Ind AS-108 "Operating Segments"

The company is engaged in the business of textile & other products. Current operations, according
to the management, constitute a single segment and no reportable segment in accordance with the
requirement of Ind AS- 108 ''Operating Segment Reporting" notified under the companies (Indian
Accounting Standards) Rules, 2015.

See accompanying notes forming part of Financial Statements
As per our report of even date annexed
For KARP & Co.

[Formerly known as Alok Palod & Co.] MANOMAY TEX INDIA LIMITED

Chartered Accountants

(F.R.N. 018061C) For and on behalf of the Board

Sd/- Sd/- Sd/-

Alok Palod

Partner Mr. Yogesh Laddha Mrs. Pallavi Laddha

M. No. :- 417729 (Managing Director) (Whole Time Director)

Date:14/05/2025 DIN :02398508 DIN :06856220

Place : Bhilwara (Rajasthan) India

UDIN:25417729BMGYML9593 Sd/- Sd/-

Mr. Kamesh Shri Shri Mal Mr. Raj Kumar Chechani
(Company Secretary) (Chief Financial Officer)

(PAN- CJEPM3737M) (PAN- AXKPC6508J)

Mar 31, 2024

1.7 Provisions, Contingent Liabilities and contingent Assets

Provisions are recognized when the Company has 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. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement, unless the possibility of an outflow of resources embodying economic benefits is remote.Contingent liabilities are not recognized but are disclosed in notes.

Contingent assets are not recognized. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognized as an asset.

1.8 Earnings per share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.

1.9 Cash flow statement

Cash flows are reported using the indirect method, prescribed in Ind AS 7 ''Statement of Cash Flows''. Whereby profit before tax for the period is adjusted forthe effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

1.10 Borrowing costs

get ready for its intended use are capitalized as part of the cost of the asset. All other borrowing costs are recognized as an expense in the period in which they are incurred.

1.11 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand, cheques on hand and short-term deposits with an original maturity of three months or less and highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts that are repayable on demand, as they are considered an integral part of the Company''s cash management.

1.12 Exceptional Items

When items of income and expense within profit or loss from ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period, the nature and amount of such items is disclosed separately as Exceptional items.

1.13 Non-Current Assets held for sale

The Company classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale/ distribution rather than through continuing use and the sale is considered highly probable. Management must be committed to the sale within one year from the date ofclassification.

The Company treats sale/distribution of the asset or disposal group to be highly probable when:

â¢ The appropriate level of management is committed to a plan to sell the asset (or disposal group),

â¢ An active programme to locate a buyer and complete the plan has been initiated (if applicable),

â¢ The asset (or disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value.

â¢ The sale is expected to qualify for recognition as a completed sale within one year from the date of classification, and

â¢ Actions required to complete the plan indicated that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Non-current assets held for sale and disposal groups are measured at the lower of their carrying amount and the fair value less costs to sell. Assets and liabilities classified as held for sale are presented separately in the balance sheet.

Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized.

1.14 Critical accounting estimates and judgments

In the course of applying the policies outlined above, the Company is required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on

historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future period, if the revision affects current and future periods.

a) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making assumption and selecting the inputs to the impairment calculation, based on Company''s past history, existing market conditions as well as forward estimate at the end of each reporting period.

b) Income taxes

Management judgment is required for the calculation of provision for income taxes and deferred tax assets and liabilities. The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The amount of tax payable in respect of any period is dependent upon the interpretation of the relevant tax rules. The factors used in estimates may differ from actual outcome which could lead to significant adjustment to the amounts reported in the financial statements.

c) Defined benefit plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual development in the future. These Includes the determination of the discount rate, future salary increases, mortality rates and attrition rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

d) Fair value measurements

Some of the Company''s assets and liabilities are measured at fair value for financial reporting purposes. The management determines the appropriate valuation techniques and inputs for fair value measurements. In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available. In case where level 3 inputs are applied, the Company engages third party qualified valuers to perform the valuation. The management works closely with the qualified external valuers to establish theappropriate valuation techniques and inputs to the model.

e) Insurance claims

Insurance claims are recognized when the Company has reasonable certainty of recovery. Subsequently any change in recoverability is provided for.

1.15 Key sources of estimation uncertainties

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next financial years are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

(i) Useful lives and residual value of property, plant and equipment

Useful life and residual value of property, plant and equipment are based on management''s estimate of the expected life and residual value of those assets and is as per schedule II to the Companies Act 2013. These estimates are reviewed at the end of each reporting period. Any reassessment of these may result in change in depreciation expense for future years

(ii) Impairment of property plant and equipment

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. Value in use is usually determined on the basis of discounted estimated future cash flows. This involves management estimates on anticipated commodity prices, market demand and supply, economic and regulatory environment, discount rates and other factors. Any subsequent changes to cash flow due to changes in the above mentioned factors could impact the carrying value of assets.

(iii) Deferred tax assets

Deferred tax assets are recognized only to the extent it is considered probable that those assets will be recoverable. This involves an assessment of when those deferred tax assets are likely to reverse and a judgment as to whether or not there will be sufficient taxable profits available to offset the tax assets when they do reverse. The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. Any change in the estimates of future taxable income may impact the recoverability of deferred tax assets.

(iv) Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential liabilities that are possible but not probable of crystallizing or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognized.

1.16 Segment reporting

The Board of Directors of the Company identified Textiles as primary business segment as the company mainly dealing in Textile business only.

Further the board has identified two geographical segments i.e. ''Domestic'' and ''Export'' considering the political and economic environment. Type A customers, assets employed and risk parameters associated in respect of each of the geographical area.

1.17 CSR Expenditure

Amount spent on CSR activities during the year is charged to Statement of Profit & Loss, if the same is of revenue nature.

Note: - For this Standalone Financial Results only board of Directors are responsible.

MANOMAY TEX INDIA LIMITED For and on behalf of the Board

Sd/- Sd/-

Mr. Yogesh Laddha Mrs. Pallavi Laddha

(Managing Director) (Whole Time Director)

DIN :02398508 DIN :06856220

Sd/- Sd/-

Mr. Kamesh Shri Shri Mal MR. Raj Kumar Chechani

(Company Secretary) (Chief Financial Officer)

Loans covered in Sr. No. 1 to 12 above:

a. Primary Security

1.1st pari passu charge by way of Hypothecation first pari-passu charge on entire fixed assets of the company including factory land and building situated at RS No 983,989,990,991,992/1568,993/1570,village -Undwa Gangrar,Chittorgarh.

2.Hypothecation First pari-passu charge on entire fixed assets of the company including factory land & building situated at khasra no 5,6,& 7Gram Jojra ka khera panchayat Soniyana Gangrar,Gangrar,312901 (Present & future)

b. Collateral Security & Equitable Mortgage:

1. Equitable mortgage of Residential, situated at Plot No. A-133 Kamla Vihar Vistar Yojana, Bhilwara, 311001, standing in the name of pallavi laddha.

2. Equitable mortgage of Industrial Land situated at Araji No 13/2, 14/2, 16/2, Village Jorjo ka Khera, Tehsil Gangrar Distt Chittorgarh Rajasthan, Gangrar, 312901, standing in the name of Yogesh laddha.

3. Equitable mortgage of industrial land & building Araji Khasra no 18 Means, 19, Village Jojro ka Khera, Tehsil Gangrar, District Chittorgarh, Raj. Standing in the name of M/s Manomay tex india limited.

4. Equitable mortgage of Commercial Building bearing Survey Number: Plot No. 11, situated at Ichalkarnaji Industrial Co. Op. Estate Ltd. Ichalkaranji & C.S. No. T.P. Scheme No. 2 Final Plot No. 119 (Part) & Estate Plot No. 11 it''s old C.S. No. 12277, Ichalkaranji, 416115, maharastra standing in the name of Shri Kamlesh Laddha

5. Equitable mortgage of shop at 32, heera panna market pur road, Bhilwara raj, 311001, standing in the name of Kailash Chandra Laddha.

6. Lien over Fixed deposit of Rs. 2.39 crore under bank lien with pari-passu basis standing in the name of M/s Manomay tex india limited.

7. Lien over Fixed deposit of Rs. 0.12 crore under bank lien with pari-passu basis standing in the name of M/s Manomay tex india limited.

c. Personal Guarantees

1. Shri Kailash Chandra Laddha s/o Shri Hiralal Laddha

2. Shri Mahesh Chandra Kailash Chandra Laddha s/o Shri Kailash Chandra Laddha

3. Shri Kamlesh Kailash Chandra Laddha s/o Shri Kailash Chandra Laddha

4. Shri Yogesh Laddha s/o Shri Kailash Chandra Laddha

5. Smt. Pallavi Laddha w/o Shri Yogesh Laddha

d. Corporate Guarantees

1. Arav Exports Prop. Shri Kailash Chandra Laddha s/o Shri Hiralal Laddha

Unsecured loans are repayable after one year and bearing interest rate of 6.00% to 9.00%.

Vehicle loans are secured against respective vehicles.

B Fair value hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the financial instruments have been classified into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Valuation techniques used to determine fair value

Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities measured at amortized cost is approximate to their carrying amounts largely

i due to the short-term maturities of these instruments. The fair value of other non-current financial assets and liabilities (security deposit taken/given and advance to employees) carried at amortized cost is approximately equal to fair value. Hence carrying value and fair value is taken same.

The fair value of forward foreign exchange contracts is determined using quoted forward exchange

_ii rates at the reporting date. Management has evaluated the credit and non-performance risks associated with its derivative counterparties and believe them to be insignificant and not warranting a credit adjustment.

Long-term variable-rate borrowings measured at amortized cost are evaluated by the group based

_iii on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. Risk of other factors for the group is considered to be insignificant in valuation.

_i Fair value change through Profit & Loss has been disclosed in statement of Profit & loss under the heading -"Foreign exchange gain/loss.

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values:

Except for those financial instruments for which the carrying amounts are mentioned in the above table, the group considers that the carrying amounts recognized in the financial statements approximate their fair values. For financial assets that are measured at fair value, the carrying amounts are equal to the fair values.

40 Financial instruments - Fair values and risk management D Financial risk management

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of directors is responsible for developing and monitoring the Company''s risk management policies.

The Company''s risk management policies are established to identify and analyze the risk faced by the Company, to set appropriate risks limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in the market condition and Company''s Activities.

The Company''s Board of Directors oversee how management monitors compliances with the company''s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to risks faced by the Company.

Financial risk factors

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk.

(i) Market Risk:

Market risk is the risk that changes in the market prices such as foreign currency risk, interest risk, equity price and commodity prices. The market risk will affect the company''s income or value of its holding of financial instruments. The objective of the market risk management is to manage and control market risk exposure within acceptable parameters, while optimizing the returns.

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.

The Company undertakes transactions denominated in foreign currencies and is exposed to foreign exchange risk. Foreign currency risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the Company''s functional currency. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies, including the use of derivatives like foreign exchange forward contracts to hedge exposure to foreign currency risk.

(iii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates

As the Company has no significant variable interest-bearing assets other than loans to its related parties, the income and operating cash flows are substantially independent of changes in market interest rates.

(iv) Price Risk

The company is not exposed to any instrument which has price risks arising from equity investments which is not material.

(v) Credit Risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company''s exposure to credit risk primarily arises from trade receivables, balances with banks, investments and security deposits. The credit risk on bank balances is limited because the counterparties are banks with good credit ratings.

Financial assets are written off when there is no reasonable expectation of recovery. Where the loans and receivables were written off and subsequently recoveries are made, these are recognized as an income in the financial statements.

Trade Receivables

The Company assesses the creditworthiness of customers internally to whom goods are sold on credit terms in the normal course of business. The credit exposure for each customer is defined in accordance with this assessment. Outstanding customer receivables are regularly monitored Credit risk is managed through credit approvals, establishing credit limits, continuous monitoring of creditworthiness of customers to which the company grants credit terms in the normal course of business. The Company also assesses the financial reliability of customers taking into account the financial condition, current economic trends and historical bad debts and ageing of accounts receivables

Cash & Cash Equivalents

Credit risk on cash and bank balances is limited as the Company generally invests in deposits with banks and financial institutions with good ratings assigned by credit rating agencies. Investments primarily include investment in liquid mutual fund units, bonds, fixed maturity plan etc. issued by institutions having proven track record. The Company''s credit risk in case of all other financial instruments is negligible

(vi) Liquidity risk management

The Company''s objective is at all times to maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risk are overseen by senior management. The Company relies on a mix of borrowings, capital infusion and excess operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

Expected contractual maturity for financial liabilities

41 Capital management

The company manages its capital to ensure that it will be able to continue as going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the group consists of net debt and total equity of the group

The group determines the amount of capital required on the basis of annual as well as long term operating plans and other strategic investment plans. The funding requirements are met through long-term /short-term borrowings. The group monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the group.

1 Additional regulatory disclosures

i. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder

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

iii. The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority

iv The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year

v The Company does not have any transactions with companies struck off

vi The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

vii The Company has not advanced or loaned or invested funds (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries)

viii The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

ix In respect of working capital borrowings from banks on the basis of security of current assets, quarterly statements of current assets filed by the Company with banks are in agreement with the books of accounts

x New Loan taken and their utilization -The Company has taken loan of Rs 13100 Lacs for running new project as spinning Unit & Rs 33.29 Lac for Motor Vehicle loan in spinning Unit & 38.95 lac during the year and the same purpose for which there ae taken.

43. Approval of financial statements

These standalone financial statements were authorized for issue by the company''s Board of Directors on Date-20.05.2024

Note:-For this Standalone Financial Results only board of Directors of the Company are responsible.

As per our report of even date

For Alok Palod & CO. MANOMAY TEX INDIA LIMITED

Chartered Accountants

F.R.N. 018061C For and on behalf of the Board

SD/- SD/-

Partner Mr. Yogesh Laddha Mrs. Pallavi Laddha

M. No. :- 417729 (Managing Director) (Whole Time Director)

Date: 20.05.2024 DIN :02398508 DIN :06856220

Place : Bhilwara

UDIN:- SD/- SD/-

24417729B KATZ L2404 Mr. Kamesh Shri Shri Mal Mr. Raj Kumar Chechani

CS CFO

Mar 31, 2023

Nature and purpose of Reserves

Securities Premium

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Companies Act, 2013.

Retained Earnings

Balance of retained earnings consist of surplus retained from earned profit after payment of dividend. Actuarial gains and losses for defined benefit plans are recognized through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.

1. On transition date, the Company has opted to continue with carrying value of all of its intangible asset as deemed cost and net carrying value under previous GAAP as on 31st March 2021 is recognised as gross carrying amount in Ind AS as on 01-04-2021.

2. All property, plant and equipment mentioned above are held as security towards borrowings as specified in note no-13a, 13b.

On transition date, the Company has opted to continue with carrying value of all of its intangible asset as deemed cost and net carrying value under previous GAAP as on 31st March 2021 is recognised as gross carrying amount in Ind AS as on 01-04-2021

(ii) Terms and right attached with equity shares:

The Company has only one class of equity shares, having a par value of ^10 each. Each holder of the equity share is entitled to one vote per share. There is no restrictions attached to any equity shares. The dividend proposed, if any, by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend. The repayment of equity share capital in the event of liquidation and buy back of shares is possible subject to prevalent regulations. In the event of liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding

(iii) The Company does not have any holding / ultimate holding company.

(v) The Company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash nor allotted any fully paid up shares by way of bonus shares nor bought back any class of shares during the period of five years immediately preceding the balance sheet date.

(vi) Disclosure of Shareholding of Promoters.

Disclosure of shareholding of promoters as at March 31, 2023.

Terms and repayment schedule

a) Term loans from banks are repayable in monthly installment and having floating interest RLLR 1.00% spread as at 31st March 2023(Previous Year 1.00% as at 31st March 2022)

b) Vehicle loan are repayable in monthly installments and having fixed interest rates 8.20% is at 31st March 2023 (Previous Year 7.30% )

MANOMAY TEX INDIA LIMITED

Notes to the Standalone Financial Statements

Loans covered in Sr. No. 1 to 12 above :

a. Primary Security:

1. 1st pari passu charge by way of Hypothecation first pari-passu charge on entire fixed assets of the company including factory land and building situated at RS No

983,989,990,991,992/1568,993/1570,village -Undwa Gangrar,Chittorgarh.

2. Hypothecation First pari-passu charge on entire fixed assets of the company including factory land & building situated at khasra no. 5, 6 & 7 Gram Jojro ka Khera, Panchayat Soniyana Gangrar, Gangrar, 312901 (present and future).

b. Collateral Security & Equitable Mortgage:

1. Equitable mortgage of Residential, situated at Plot No. A-133 Kamla Vihar Vistar Yojana, Bhilwara, 311001, standing in the name of pallavi laddha.

4. Equitable mortgage of Commercial Building bearing Survey Number: Plot No. 11, situated at Ichalkarnaji Industrial Co. Op. Estate Ltd. Ichalkaranji & C.S. No. T.P. Scheme No. 2 Final Plot No. 119 (Part) & Estate Plot No. 11 it''s old C.S. No. 12277, Ichalkaranji, 416115, Maharashtra standing in the name of Shri Kamlesh Laddha.

5. Equitable mortgage of shop at 32, heera panna market pur road, Bhilwara raj, 311001, standing in the name of Kailash Chandra Laddha.

6. Lien over Fixed deposit of Rs. 2.39 crores under bank lien with pari-passu basis standing in the name of M/s Manomay tex india limited.

7. Lien over Fixed deposit of Rs. 0.12 crores under bank lien with pari-passu basis standing in the name of M/s Manomay tex india limited.

c. Personal Guarantees

1. Shri Kailash Chandra Laddha s/o Shri Hiralal Laddha

2. Shri Mahesh Chandra Kailash Chandra Laddha s/o Shri Kailash Chandra Laddha

3. Shri Kamlesh Kailash Chandra Laddha s/o Shri Kailash Chandra Laddha

4. Shri Yogesh Laddha s/o Shri Kailash Chandra Laddha

5. Smt. Pallavi Laddha W/o Shri Yogesh Laddha

d. Corporate Guarantees

1. Arav Exports Prop. Shri Kailash Chandra Laddha s/o Shri Hiralal Laddha.

Unsecured loans are repayable after one year and bearing interest rate of 6.00% to 9.00%.

Vehical loans are secured against respective vehiclas.

Details of security

Cash credit and other working capital facilities from other banks are secured by way of first pari-passu charge on the entire current assets of the Company, and pari-passu second charge on all the fixed assets of the Company, present and future.

Note:

(i) The Company did not have any potentially dilutive shares in any of the period presented.

30. Employee benefits Defined contribution plans

Retirement benefits in the form of provident fund are defined contribution schemes for eligible employees. The group has no obligation, other than the contribution payable to the separately administered funds. The provident fund contributions as specified under the law are paid to the statutory provident fund authorities. Contributions are recognised as an expense in the year they are incurred.

Defined benefit plans Gratuity Plan

The company has a defined benefit gratuity plan, governed by provisions of the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of five years are eligible for gratuity. The level of benefits provided depends on the member''s length of service and salary at the retirement date.

The Board decides its contribution based on the report of actuarial valuer. Leave encashment are paid on yearly basis and no leave is carried forward.

Interest risk

A decrease in the bond interest rate will increase the plan liability.

Longevity risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

Disclosures for defined benefit plans based on actuarial valuation reports

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown above. Although the analysis does not take account of the full distribution of cash

flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

Sensitivities due to mortality and withdrawals are insignificant and hence ignored.

Sensitivities as to rate of inflation, rate of increase of pensions in payments, rate of increase of pensions before retirement & life expectancy are not applicable being a lump sum benefit on retirement.

31. Contingent liabilities & commitments (to the extent not provided for)
	Year ended	Year ended
Particulars	March 31, 2023	March 31, 2022
A. Contingent liabilities	-	-
i) Claims against the company not acknowledged as debts	-	-
ii) Disputed demands in respect of	-	-
Central excise & service tax	-	-
Income tax	-	-

The company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The company also believes that the above issues, when finally settled are not likely to have any significant impact on the financial position of the company. The company does not expect any third party reimbursements in respect of above contingent liabilities.

B. Commitments	EURO INR	EURO INR
	31.03.2023	31.03.2022
i) Duty Saved For the unmatched Export Obligation	4,193.73	4,193.73
ii) Company GWS subsidy Reversal	32.26	32.26
iii) a) Capital Commitments	4,264.12	3,188.80
iii) b) Capital Commitments	43.88 3,607.68	43.88 3,688.97

33.

The response to letters sent requesting confirmation of balances has been insignificant. In the management''s opinion, adjustments on reconciliation of the balances, if any required, will not be material in relation to the financial statements of the company and the same will be adjusted in the financial statements as and when the confirmations are received and reconciliations completed.

34.

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and postemployment benefits received Presidential assent in September 2020.

The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

35.

The company''s main objects envisage carrying on business in various textile & other products. Current operations, according to the management, constitute a single segment and accordingly there are no

reportable segment in accordance with the requirement of Ind AS- 108 ''Operating Segment Reporting" notified under the companies (Indian Accounting Standards) Rules, 2015.

Further the geographical segment have been considered as secondary segment and bifurcated into Domestic and Export segment.

B. There are no non-Current assets outside India.

C. There are no sales (PY Rs NIL) made to any customer more than 10% of turnover of the company.

36.

Ind AS 24 Related Party disclosures

As per (AS) 24, Related Party Disclosure, issued by the Institute of Chartered Accountants of India, The details of related parties are as below:

B. Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the financial instruments have been classified into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Valuation techniques used to determine fair value

I. Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities measured at amortized cost is approximate to their carrying amounts largely due to the short-term maturities of these instruments. The fair value of other non-current financial assets and liabilities (security deposit taken/given and advance to employees) carried at amortized cost is approximately equal to fair value. Hence carrying value and fair value is taken same.

II. The fair value of forward foreign exchange contracts is determined using quoted forward exchange rates at the reporting date. Management has evaluated the credit and non-performance risks associated with its derivative counterparties and believe them to be insignificant and not warranting a credit adjustment.

III. Long-term variable-rate borrowings measured at amortized cost are evaluated by the group based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. Risk of other factors for the group is considered to be insignificant in valuation.

IV. "Fair value change through profit & loss, has been disclosed in statement of profit & loss under the heading-"Foreign exchange gain/loss".

V. The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values:

VI. Except for those financial instruments for which the carrying amounts are mentioned in the above table, the company considers that the carrying amounts recognised in the financial statements approximate their fair values. For financial assets that are measured at fair value, the carrying amounts are equal to the fair values.

38. Financial instruments - Fair values and risk management

D. Financial risk management

The Company''s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risks limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in the market condition and Company''s Activities.

Financial risk factors

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk.

1. Market Risk:

2. Foreign currency risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.

The Company undertakes transactions denominated in foreign currencies and is exposed to foreign exchange risk. Foreign currency risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company''s functional currency. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies, including the use of derivatives like foreign exchange forward contracts to hedge exposure to foreign currency risk.

b. Derivative financial instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rate on foreign currency exposure. The counterparty for these contracts is generally a Bank or a Financial Institution. These derivative financial instrument are valued based on quoted prices for similar asset and liabilities in active markets or inputs that is directly or indirectly observable in the marketplace.

3. Interest rate risk:

The company is exposed to interest rate risk because it borrows fund at both fixed and floating interest rates. The risk is managed by the company by maintaining an appropriate mix between fixed and floating rate borrowings. The company''s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management seeting of this note.

Sensitivity Analysis:

The Sensitivity analysis have been determined based on the exposure to interest rates for both derivatives and non-derivatives at the end of the reporting period. For floating rate liabilities, the analysis prepared assuming the amount of the liability outstanding at the reporting period was outstanding for whole year. A 50 basis point increase or decrease represent management''s assessment of the reasonably possible change in the interest rate profit for the year ended 31st march 2023 would decrease/increase by Rs 72.67 Lakhs (Previous year Rs 70.64 Lakhs) if interest rates had been 50 basis points higher/lower and all other variables were held constant.

4. Price risk:

The company is not exposed to any instrument which has price risks arising from equity investments which is not material.

5. Credit risk:

Trade Receivables

Credit risk is managed through credit approvals, establishing credit limits, continuous monitoring of creditworthiness of customers to which the company grants credit terms in the normal course of business. The Company also assesses the financial reliability of customers taking into account the financial condition, current economic trends and historical bad debts and ageing of accounts receivables.

Cash & Cash Equivalents

6. Liquidity risk management:

The above table has been drawn up based on the undiscounted contractual maturities of the financial liabilities including interest that will be paid on those liabilities up to the maturity of the instruments, ignoring the call and refinancing options available. The amounts included above for variable interest rate instruments for non-derivative liabilities is subject to change if changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.

39. Capital management

The company manages its capital to ensure that it will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the group consists of net debt and total equity of the group.

The group determines the amount of capital required on the basis of annual as well as long term operating plans and other strategic investment plans. The funding requirements are met through longterm /short-term borrowings. The group monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the group.

Notes:

1. PBIT : Profit before interest and taxes including other income

2. Earning for Debt Service: Net Profit after taxes depreciation interest profit on sale of property, plant & equipment

3. Debt Service: Interest lease payments principal repayments

4. PAT : Profit after taxes

5. Investment income refers net gain on sale of investments and net fair value gain

6. Total debt: Borrowings lease liabilities

7. Adjusted expenses refers to purchases & other expenses net of non-cash expenses and donations

8. Working capital refers to current assets minus current liabilities

9. Capital employed: Shareholders'' equity Debt Deferred Tax Liability

10. Average investments excludes investments in associates & subsidiaries

Explanation for variances exceeding 25%:

1. Debt equity ratio:-Debt equity ratio is decreased mainly due to increase in equity share capital during the year.

2. Debt service coverage ratio:-DSCR is increase mainly due to increase in profit for the year.

3. Net capital turnover ratio:-Net capital turnover ratio is reduced due to increase in working capital as the bank working capital limits are utilised to meet internal accruals.

4. Net Profit%:-Net profit ratio increase due to higher profits in the year.

Additional regulatory disclosures

I. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

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

III. The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

IV. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

V. The Company does not have any transactions with companies struck off.

VI. The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

VII. The Company has not advanced or loaned or invested funds (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

VIII. The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

IX. In respect of working capital borrowings from banks on the basis of security of current assets, quarterly statements of current assets filed by the Company with banks are in agreement with the books of accounts.

X. New Loans taken and their utilisation:-The Company has taken loans of Rs 118.36cr for running new project as spinning Unit & Rs 500.74 new Term loan & Rs 52.34 lakhs for vehicles loan in Denim Unit during the year and the same are utilised for the same purpose for which there are taken.

41. First Time Adoption of Ind AS Transition of Ind As

These are the company''s first standalone financial statements prepared in accordance with Ind AS. The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended 31st march, 2023, the comparative information presented in these financial statements for the year ended 31st March 2022 and 1st April, 2021.The effective date for companies Ind AS opening Balance sheet is 1st April, 2021. (The date of transition to Ind AS.) These financial statements, for the year ended 31st March.2022, are the first annual Ind AS financial statements, the company has prepared in accordance with Ind AS. For periods up to and including the year ended 31st March,2022,the company prepared its financial statements in accordance with Accounting Standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) rules 2014 (India GAAP). Accordingly, the company has prepared financial statements which comply with Ind AS applicable for periods ending on 31st March, 2023, together with comparative period data as at and for the year ended 31st March 2022, as described in the summary of significant accounting policies. In preparing these financial statements, the company''s opening balance sheet was prepared as at 01st April 2021, the company''s date of transition to Ind AS. This note explains the principal adjustments made by the company in restating its Indian GAAP financial statements, including the balance sheet as at 01st April, 2021 and the previously published Indian GAAP financial statements as at and for the year ended 31st March, 2022.

The previous GAAP figures have been reclassified / remeasured to conform to Ind AS presentation requirement for the purpose of this note.

Notes:

Under previous GAAP, investments are stated at cost while under Ind AS the same are measured at surrender value. Thus reduction in investment value of Rs. 22.80 lakhs as on 31.03.2022 is considered as comprehensive income and adjusted in fair value reserve under other equity.

Under previous GAAP, Loan processing fees of term loans were capitalised with cost of respective fixed assets while under Ind AS, Loan processing fees to be amortised over the period of loan. However considering the exemptions given in Ind AS 101, adjustments are made of current year loan processing fees only. Thus loan processing fees of Rs. 24.36 lakhs are deducted from CWIP as on 31.03.2022.

Under previous GAAP, actuarial gains/losses were recognised in the statement of profit & loss while under Ind AS the actuarial gains / losses are recognised in the other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income. The actuarial loss for the year ended 31.03.2022 was Rs. 27.33 lakhs and the tax effect there on is Rs.

9.27 lakhs. This change does not affect total equity but there is increase in profit before tax by Rs. 18.06 lakhs.

Under previous GAAP, mark to market loss on forward contracts were charged in the statement of profit & loss while under Ind AS, effective portion of the cash flow hedge to be recognised in other comprehensive income. Effective portion of cash flow hedge was Rs. 8.70 lakhs and tax effect thereon is Rs. 3.04 lakhs.

Under previous GAAP, Capital Subsidy & Excise Refund were treated as capital receipts and credited in Capital Reserve while under Ind AS, excise refund has been deducted from cost of assets and subsidy is transferred to deferred government grant. Consequently deferred government grant of Rs. 27.42 lakhs charged in statement of profit & loss while depreciation of Rs. 4.36 lakhs reversed on refund amount in statement of profit & loss.

42. Approval of financial statements

These standalone financial statements were authorised for issue by the company''s Board of Directors on Date: 30.05.2023.

Note: For this Standalone Financial results only Board of Directors are responsible.

Mar 31, 2018

(A) NOTES ON ACCOUNTS:

1 Directors have given personal guarantee to banks for loan and advances granted to the company and the company is liable for reimbursement to the directors.

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

3. Interest rebate & claim on sales & purchase are accounted for and being. provided for, as when settled with the parties, as the amount is not ascertained

4. The company is done accounting of gratuity on accrual basis, and actuarial valuation is made and Amount related to previous year arises/ settled during the year have been debited/ credited to respective heads .Further Company has made Provision for gratuity in Previous Year.

5. In the opinion of the management and to the best of their knowledge and belief, the value on realization of loans & advances and other current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities has been made.

6 Provision for Income Tax has been made as per the regular provisions of the Income Tax Act, 1961

7. There is no expenditure incurred on employees who were in receipt of remuneration in the aggregate of not less than Rs 60,00.000/- p a if employed through out the year and Rs.5,00,000 per month, if employed for a part of the year.

The previous year figures have been regrouped, rearranged and reclassified wherever necessary. Accordingly, amounts and other disclosure for the preceding year are included as an integral part of the current financial statements and are to be read in relation to amounts and other disclosures relating to the current year.

Previous year ended 31st March 2017 the Company has Issued Bonus share of Rs.71034800 by issuing 7103480 bonus shares of Rs. 10 each For four share in every each share hold

During the year the Company has not raised capital (Previous year ended 31 st March 2017 the Company has raised capital throw initial public offer in SME Platform of Rs. 114120000 by issuing 3804000 equity shares of Rs. 10 each at the premium of Rs. 20 each.)

Note : 8 Deferred Tax Liability/Assets

The Company has recognized deferred tax arising on account of timing differences, being the difference between the taxable income and accounting income, that originates in one period and is capable of reversal in one or more subsequent period(s) in compliance with Accounting Standard (AS - 22) Accounting of Taxes on Income issued by Institute of chartered Accountants of India.

The major components of deferred tax Assets/(Liabilities) arising on account of timing differences as at 31 st March 2018 are as follows:

9 In the opinion of Board the Current Assets, Loans and Advances, are approximately of the value as stated, if realized in the ordinary course of the business,

10 Loans a Advance, Sundry Debtors and Sundry Creditors are subject to confirmation.

11 Other information are Nil or Not applicable.

12 In the opinion of Board the Current Assets, Loans and Advances, are approximately of the value as stated, if realized in the ordinary course of the business.

13 Loans a Advance, Sundry Debtors and Sundry Creditors are subject to confirmation.

14 Accounting Standard 18 - Related Party disclosures

As per iAS) 18, Related Party Disclosure, issued by the Institute of Chartered Accountants of India, The details of related parties are as below:

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