Notes to Accounts of Samtex Fashions Ltd.

Mar 31, 2025

h) 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, that can be reliably estimated,
will be required to settle such an obligation. If the effect of the time value of money is material,
provisions are determined by discounting the expected future cash flows to net present value using
an appropriate pre-tax discount rate that reflects current market assessments of the time value of
money and, where appropriate, the risks specific to the liability. Unwinding of the discount is
recognized in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each
reporting date and are adjusted to reflect the current best estimate.

A present obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle or a reliable estimate of the amount cannot be made, is
disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible
obligation arising from past events, the existence of which will be confirmed only by the occurrence
or non -occurrence of one or more uncertain future events not wholly within the control of the
Company.

Contingent assets are not recognized in financial statements since this may result in the recognition
of income that may never be realized. However, when the realization of income is virtually certain,
then the related asset is not a contingent asset and is recognized.

i) Revenue Recognition:

Revenue is measured at the fair value of the consideration received or receivable, net of discounts,
volume rebates, outgoing sales taxes and other indirect taxes excluding excise duty/GST.

Revenue from sales is recognised when all significant risks and rewards of ownership of the
commodity sold are transferred to the customer which generally coincides with delivery. Revenues
from sale of byproducts are included in revenue.

Export benefits are accounted on recognition of export sales.

j) Employee benefits:

i. The company has not undertaken any business activity during the year and moreover majority of
the employees of the company left the company and their dues are settled full and final over the
period of time. Considering this fact, the company has not followed the treatment for recognition
and remeasurement of employee benefit costs as detailed in the Ind AS 19.

However, for brought forward defined benefit plans recognized and remeasured during earlier
years, the cost of providing benefits is determined using the projected unit credit method, with
actuarial valuations being carried out at the end of each annual reporting period. Re-measurement,
comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable)
and the return on plan assets (excluding net interest), was reflected immediately in the Balance
Sheet with a charge or credit recognized in Other Comprehensive Income (OCI) in the period in
which they occur. Re-measurement recognized in OCI was reflected immediately in retained
earnings and will not be reclassified to Statement of Profit and Loss. Past service cost was
recognized in the Statement of Profit and Loss in the period of a plan amendment. Net interest is
calculated by applying the discount rate at the beginning of the period to the net defined benefit
liability or asset.

k) Income Tax:

Income Tax expenses comprise current tax and deferred tax charge or credit. Current Tax is
measured on the basis of estimated taxable income for the current accounting period in
accordance with the applicable tax rates and the provisions of the Income-tax Act, 1961 and other
applicable tax laws. Deferred tax is provided, on all temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes. Deferred tax assets and liabilities are measured at the tax rates that are expected to be
applied to the temporary differences when they reverse, based on the laws that have been enacted
or substantively enacted at the reporting date. Tax relating to items recognized directly in equity or
OCI is recognized in equity or OCI and not in the Statement Profit and Loss. Deferred tax assets and
liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets,
and they relate to income taxes levied by the same tax authority. A deferred tax asset is recognized
to the extent that it is probable that future taxable profits will be available against which the
temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and
are reduced to the extent that it is no longer probable. Deferred tax asset if any is created on the
temporary difference attributable to Property and Equipment and expense allowable on actual
payment basis and in case of accumulated losses and unabsorbed depreciation deferred tax asset is
only created to the extent of deferred tax liability, considering the certainty of future profits.

l) Earnings Per Share:

The basic Earnings Per Share ("EPS") is computed by dividing the net profit / (loss) after tax for the
year attributable to the equity shareholders by the weighted average number of equity shares
outstanding during the year.

For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year
attributable to the equity shareholders and he weighted average number of equity shares
outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

m) Foreign Currency Transactions:

In the financial statements of the Company, transactions in currencies other than the functional
currency are translated into the functional currency at the exchange rates ruling at the date of the
transaction. Monetary assets and liabilities denominated in other currencies are translated into the
functional currency at exchange rates prevailing on the reporting date. Non-monetary assets and
liabilities denominated in other currencies and measured at historical cost or fair value are
translated at the exchange rates prevailing on the dates on which such values were determined. All
exchange differences are included in the statement of profit and loss except any exchange
differences on monetary items designated as an effective hedging instrument of the currency risk
of designated forecasted sales or purchases, which are recognized in the other comprehensive
income. The Company has applied paragraph 46A of AS 11 under Indian GAAP. Ind AS 101 gives an
option, which has been exercised by the Company, whereby a first time adopter can continue its
Indian GAAP policy for accounting for exchange differences arising from translation of long-term
foreign currency monetary items recognized in the Indian GAAP financial statements for the period
ending immediately before the beginning of the first Ind AS financial reporting period.

n) Segment reporting

The Company has two reportable segments based on geographic locations India & New York.
Segments have been identified as reportable segments by the Company''s chief operating decision
maker ("CODM"). Segment profit amounts are evaluated regularly by the Board, which has been
identified as the CODM, in deciding how to allocate resources and in assessing performance.
Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to
each of the segments and amount allocated on a reasonable basis. Unallocated expenditure
consists of common expenditure incurred for all the segments and expenses incurred at corporate
level. The assets and liabilities that cannot be allocated between the segments are shown as
unallocated corporate assets and liabilities respectively.

The accounting policies of the reportable segments are the same as the Company''s accounting
policies described in Note 3. Segment profit (Earnings before interest, depreciation and
amortization, and tax) amounts are evaluated regularly by the Board that has been identified as its

CODM in deciding how to allocate resources and in assessing performance. The Company''s
financing (including finance costs and finance income) and income taxes are reviewed on an overall
basis and are not allocated to operating segments. Transfer prices between operating segments are
on an arm''s length basis in a manner similar to transactions with third parties.

However, during the current year the reportable segment did not exceed the quantitative
threshold limits as per the applicable accounting standard.

o) Financial Instruments:

Financial assets and financial liabilities are recognized when a Company becomes a party to the
contractual provisions of the instruments Initial Recognition. Financial assets and financial liabilities
are initially measured at fair value. Transaction costs that are directly attributable to the acquisition
or issue of financial assets and financial liabilities (other than financial assets and financial liabilities
at fair value through profit or loss and ancillary costs related to borrowings) are added to or
deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are recognised immediately in Statement of Profit and
Loss.

Classification and Subsequent Measurement: Financial Assets

The Company classifies financial assets as subsequently measured at amortised cost, fair value
through other comprehensive income

• the entity''s business model for managing the financial assets and

• the contractual cash flow characteristics of the financial asset.

Amortized Cost:

A financial asset shall be classified and measured at amortized cost if both of the following
conditions are met

• the financial asset is held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows and

• the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal

Fair Value through OCI:

A financial asset shall be classified and measured at fair value through OCI if both of the following
conditions are met:

• the financial asset is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets and

• the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal

Fair Value through Profit or Loss:

A financial asset shall be classified and measured at fair value through profit or loss unless it is
measured at amortized cost or at fair value through OCI.All recognized financial assets are
subsequently measured in their entirety at either amortized cost or fair value, depending on the
classification of the financial assets.

Classification and Subsequent Measurement: Financial liabilities

Financial liabilities are classified as either financial liabilities at FVTPL or ''other financial l liabilities.
Financial Liabilities at FVTPL:

Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are
designated upon initial recognition as FVTPL: Gains or Losses on liabilities held for trading are
recognized in the Statement of Profit and Loss.

Other Financial Liabilities:

Other financial liabilities (including borrowings and trade and other payables) are subsequently
measured at amortized cost using the effective interest method.

Impairment of financial assets:

Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of
each reporting period.

Trade receivables amounting to Rs 671.07 lacs which are long overdue and not provided for
allowance for expected credit loss have not been recognized on these financial assets. The
company has neither carried out impairment exercises of Trade Receivables nor provided for the
same and recognized the same as non-current assets since long outstanding.

Derecognition of financial assets:

The Company derecognizes a financial asset when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another party. If the Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues to control the transferred asset, the Company
recognizes its retained interest in the asset and an associated liability for amounts it may have to
pay. If the Company retains substantially all the risks and rewards of ownership of a transferred
financial asset, the Company continues to recognize the financial asset and also recognizes a
collateralized borrowing for the proceeds received. On de recognition of a financial asset, other
than investments classified as FVOCI, in its entirety, the difference between the asset''s carrying
amount and the sum of the consideration received and receivable and the cumulative gain or loss
that had been recognized in other comprehensive income and accumulated in equity is recognized
in profit or loss if such gain or loss would have otherwise been recognized in profit or loss on
disposal of that financial asset.

p) Financial Instruments

Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as
equity in accordance with the substance of the contractual arrangements and the definitions of a
financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity
after deducting all of its liabilities. Equity instruments issued by a Company are recognized at the
proceeds received.

q) Cash and cash equivalents:

Cash and cash equivalents in the Balance Sheet comprise cash at bank, Cheques and Cash in hand
and short-term deposits with banks that are readily convertible into cash which are subject to
insignificant risk of changes in value and are held for the purpose of meeting short-term cash
commitments.

r) Use of Estimates and Judgments

The preparation of the financial statements in conformity with Ind AS requires management to
make judgments, estimates and assumptions that affect the application of accounting policies and
the reported amounts of assets, liabilities, income, expenses and disclosures of contingent assets
and liabilities at the date of these financial statements and the reported amounts of revenues and
expenses for the years presented. Actual results may differ from these estimates under different
assumptions and conditions. 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 and future periods affected.

FOR KAPIL KUMAR & CO
CHARTERED ACCOUNTANTS
FIRM REGISTRATION NO: 006241N

MOHIT KAKKAR
(PARTNER)

MEMBERSHIP NUMBER: 538844
28^th May, 2025
New Delhi

UDIN: 25538844BMIWOO8380

---

Mar 31, 2016

b) GRATUITY

In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, a non -funded, defined benefit retirement plan (the gratuity plan) covering all employees. The plan, subject to the provisions of the Act, provides a lump sum payment to vested employees at retirement or termination of employment with the company.

The Company estimates its liability on adhoc basis in the interim financial reports and on an actuarial valuation basis as of yearend balance sheet date carried out by an independent actuary, and is charged to Profit & Loss Account in accordance with AS-15 (revised).

c) LEAVE ENCASHMENT

Leave encashment cost is a defined benefit, and is accrued on adhoc basis in the interim financial reports and on An actuarial valuation basis as of yearend balance sheet date carried out by an independent actuary, and is charged to Profit & Loss Account in accordance with AS-15 (revised).

NOTE NO. 2- CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

CASH AND CASH EQUIVALENTS

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid time deposits that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

(b) Terms / Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of ? 2/- per share. The equity shareholders of the Company have voting rights and are subject to the preferential rights as prescribed under law, if any. The equity shares are also subject to restriction as prescribed under the Companies Act, 2013. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting.

During the year ended 31st March 2016, no dividend is declared by Board of Directors. (Previous year - Nil)

(c) Shares held by Holding / Ultimate holding company and/or their subsidiaries/associates: Nil (Previous year -Nil)

(A) NATURE OF SECURITY (I) PRIMARY SECURITY

Term Loan from IDBI is secured by first charge on immovable & movable assets, present and future except book debts, subject to the charge created or to be created in favor of bankers for securing working capital loan on stocks of raw material, semi finished goods, finished goods, stores and spares, consumables, book debts and other current assets held by the Company both present and future in the ordinary course of the business and further guaranteed by the Managing Director, Promoter Directors and an independent Director.

(B) Terms of Repayments :-

Repayable in equated quarterly installments of Rs 55,68,000/- each from the date of loan. Interest will be payable at 10%.

NATURE OF SECURITY :-

The Working Capital Loan taken from State Bank of India is secured by first exclusive hypothecation charge on all existing and future current assets, second hypothecation charge on all movable fixed assets (other than specially charged with other lenders) and personal guarantee of directors -Mr. Rita Mittal, Mr. Vinay Mittal and Mr. Atul Mittal.

NOTE 28 : OTHER NOTES

A. CONTINGENT LIABILITIES

(a) No provision has been made in the books of accounts by the company for a sum of Rs.5902380/-, Rs.1205225/- , Rs.4080705/- & Rs.1353174/- for which the demand has been raised by the Income Tax Department for the A.Y. 2000-01, A.Y.2003-04, A.Y.2007-08 & A.Y. 2012-13 respectively, against which a sum of Rs 5859356/- Rs.1205225/- & Rs.40,00,000/- has already been paid for A.Y 2000-01, A.Y.2003-04 & A.Y.2007-08 under protest. All the above liabilities stands before the Appellate Authority/Delhi High Court.

b) Guarantees

The company has guaranteed a sum of Rs. 80,746 Lacs (Previous Year Rs. 77,384 Lacs) against secured Loans taken by SSA International Ltd. from financial institutions; these are wholly owned subsidiaries of the Company.

B. DEFINED BENEFIT PLANS/LONG TERM COMPENSATED ABSENCES

The employee gratuity fund & leave encashment scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

As per actuarial valuations as on 31st March 2016 and recognized in the financial statement in respect of employee benefit schemes :-

C. RELATED PARTY DISCLOSURES

I. Related Parties with Whom Transactions have been Taken Place and Relationships.

S. No. Name of Related Parties Relationship

1 SSA International Limited Wholly owned Subsidiary company

2 Sam Buildcon Limited Wholly owned Subsidiary company

II. Related Parties with Whom Transactions have been Taken Place and Nature of Transactions (Amount in INR)

D. SEGMENT REPORTING

The company has identified a geographical reportable segment viz M/S Samtex Fashions Ltd. New York. Segments have been identified and reported taking into account the Differing risk and returns and the Financial business reporting systems. The accounting policies adopted for segment reporting are in line with the Accounting Policy of the Company. Except the Accounting period which is for the Segment is calendar year.

E. IMPAIRMENT OF ASSETS

The Company has revised the future discounted cash flows based on value in use of fixed assets and is hopefully sure that the recoverable amount is more than the amount carried in the books. Accordingly, no provision is required to be made for the impairment in the accounts.

L. TRANSACTION WITH MICRO, SMALL AND MEDIUM ENTERPRISES

The Company has not received information from vendors regarding their status and status under the Micro, Small and Medium

Enterprises Development Act, 2006. Hence necessary disclosures under this Act have not been given.

M. OTHERS

(i) Fixed assets installed and put to use have been certified by the management and relied upon by the auditors, being a technical matter.

(ii) In the opinion of the directors, current assets, loans and advances are of the value stated if realized in the ordinary course of business except otherwise stated. The provision for all the known liabilities is adequate and not in excess of the amount considered reasonably necessary.

(iii) The personal accounts of the parties are subject to their respective confirmations

(iv) Security deposit includes Rs. 26,36,950/- (Previous Year Rs. 1857055/-) equivalent US$ 39815 (Previous Year US$ 30920) representing security given by the New York Trading Office of the company.

(v) The Company had applied for Issue of exemption cetficate from service tax and under notification no. 12/2013 on November 21, 2014 the issuance of certificate is still pending. According the company has not deposited service tax under reverse charge mechanism on payment made for service availed and covered under reverse charge mechanism.

(vi) Investment of Rs. 60 lakhs invested in M/S Yogendra Worsted Limited are valued at cost since the said company is unlisted company accordingly management is unable to ascertain the market value of the investment.

(vii) The Amount of sale and purchase includes Inter Branch transaction of Rs. 20,95,93,144 during the year and in previous year of Rs. 24,48,69,795.(Refer Note No. 28 (D).

(viii) Balances of Debtors & Creditors are subject to confirmation and reconciliation consequential effect (if any) on the account remained unascertained.

N. PREVIOUS YEAR FIGURES

The Company has regrouped/reclassified the previous year figures to make them comparable with current year figures.

---

Mar 31, 2015

1. Terms / Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. The equity shareholders of the Company have voting rights and are subject to the preferential rights as prescribed under law, if any. The equity shares are also subject to restriction as prescribed under the Companies Act, 2013. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting.

During the year ended 31st March 2015, no dividend is declared by Board of Directors. (Previous year - Nil).

2. A NATURE OF SECURITY:-

(I) PRIMARY SECURITY

Term Loan from IDBI is secured by first charge on immovable & movable assets, present and future except book debts, subject to the charge created or to be created in favor of bankers for securing working capital loan on stocks of raw material, semi finished goods, finished goods, stores and spares, consumables, book debts and other current assets held by the Company both present and future in the ordinary course of the business and further guaranteed by the Managing Director, Promoter Directors and an independent Director.

(B) Terms of Repayments :-

Repayable in equated quarterly installments of Rs. 55,68,000/- each from the date of loan. Interest will be payable at 10%.

3. NATURE OF SECURITY

The Working Capital Loan taken from State Bank of India is secured by first exclusive hypothecation charge on all existing and future current assets, second hypothecation charge on all movable fixed assets (other than specially charged with other lenders) and personal guarantee of directors -Mrs. Rita Mttal, Mr. Vinay Mittal and Mr. Atul Mittal.

4. CONTINGENT LIABILITIES

(a) No provision has been made in the books of accounts by the company for a sum of Rs.5902380/-, Rs.1205225/- , Rs.4080705/- & Rs.1353174/- for which the demand has been raised by the Income Tax Department for the A.Y. 2000-01, A.Y.2003-04, A.Y.2007-08 & A.Y. 2012-13 respectively, against which a sum of Rs 5859356/- Rs.1205225/- & Rs.40,00,000/- has already been paid for A.Y 2000-01, A.Y.2003-04 & A.Y.2007-08 under protest. All the above liabilities stands before the Appellate Authority/ Delhi High Court.

5 .GUARANTEES

The company has guaranteed a sum of Rs. 77,384 Lacs (Previous Year Rs. 73,841 Lacs) against secured Loans taken by SSA International Ltd. from financial institutions; these are wholly owned subsidiaries of the Company.

6. DEFINED BENEFIT PLANS/LONG TERM COMPENSATED ABSENCES

The employee gratuity fund & leave encashment scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

7. SEGMENT REPORTING

The company has identified a geographical reportable segment viz M/S Samtex Fashions Ltd. New York. Segments have been identified and reported taking into account the Differing risk and returns and the Financial business reporting systems. The accounting policies adopted for segment reporting are in line with the Accounting Policy of the Company. Except the Accounting period which is for the Segment is calendar year.

8. IMPAIRMENT OF ASSETS

The Company has revised the future discounted cash flows based on value in use of fixed assets and is hopefully sure that the recoverable amount is more than the amount carried in the books. Accordingly, no provision is required to be made for the impairment in the accounts.

9. TRANSACTION WITH MICRO, SMALL AND MEDIUM ENTERPRISES

The Company has not received information from vendors regarding their status and status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence necessary disclosures under this Act have not been given.

10 OTHERS

(i) Fixed assets installed and put to use have been certified by the management and relied upon by the auditors, being a technical matter.

(ii) In the opinion of the directors, current assets, loans and advances are of the value stated if realized in the ordinary course of business except otherwise stated. The provision for all the known liabilities is adequate and not in excess of the amount considered reasonably necessary.

(iii) The personal accounts of the parties are subject to their respective confirmations.

(iv) Security deposit includes Rs.18,57,055/- (Previous Year Rs. 16,81,708/-) equivalent US$ 30920 (Previous Year US$ 30920) representing security given by the New York Trading Office of the company.

11. PREVIOUS YEAR FIGURES

The Company has regrouped/reclassified the previous year figures to make them comparable with current year figures.

---

Mar 31, 2014

NOTE 1 : OTHER NOTES

A. CONTINGENT LIABILITIES

a) No provision has been made in the books of accounts by the company for a sum of Rs.5902380/-, Rs.1205225/-, & Rs.4080705/- for which the demand has been raised by the Income Tax Department for the A.Y. 2000-01, A.Y. 2003-04, & A.Y.2007-08 respectively, against which a sum of Rs 5859356/- Rs.1205225/- & Rs.40,00,000/- has already been paid for A.Y 2000-01, A.Y.2003-04 & A.Y.2007-08 under protest. All the above liabilities stands before the Appellate Authority/Delhi High Court.

b) GUARANTEES

The company has guaranteed a sum of Rs. 73,841 Lacs (Previous Year Rs. 59,360 Lacs) & Rs.NIL (Previous Year Rs. 575 Lacs) against secured Loans taken by SSA International Ltd. & Sam Buildcon Ltd. respectively from financial institutions; these are wholly owned subsidiaries of the Company.

B. DEFINED BENEFIT PLANS/LONG TERM COMPENSATED ABSENCES

The employee gratuity fund & leave encashment scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

I. As per actuarial valuations as on 31st March 2014 and recognized in the financial statement in respect of employee benefit schemes :-

C. RELATED PARTY DISCLOSURES

I. Related Parties with Whom Transactions have been Taken Place and Relationships.

Name of the Parties Relationship

1. SSA International Ltd. Wholly Owned Subsidiary Co.

2. Sam Buildcon Ltd. Wholly Owned Subsidiary Co.

3. Samtex Foundation Associated concern

II. Related Parties with Whom Transactions have been Taken Place and Nature of Transactions (Amount INR)

D. SEGMENT REPORTING

The company has identified a geographical reportable segment viz M/S Samtex Fashions Ltd. New York. Segments have been identified and reported taking into account the Differing risk and returns and the Financial business reporting systems. The accounting policies adopted for segment reporting are in line with the Accounting Policy of the Company. Except the Accounting period which is for the Segment is calendar year.

Segment Assets and Segment Liabilities represent Assets and Liabilities in Respective segments.

As per Accounting Standard on Segment Reporting As -17, prescribed by Companies (Accounting Standard) Rules 2006, The Company has reported segment information.

E. IMPAIRMENT OF ASSETS

The Company has revised the future discounted cash flows based on value in use of fixed assets and is hopefully sure that the recoverable amount is more than the amount carried in the books. Accordingly, no provision is required to be made for the impairment in the accounts.

L. TRANSACTION WITH MICRO, SMALL AND MEDIUM ENTERPRISES

The Company has not received information from vendors regarding their status and status under the Micro, Small and

Medium Enterprises Development Act, 2006. Hence necessary disclosures under this Act have not been given.

M. OTHERS

(i) Fixed assets installed and put to use have been certified by the management and relied upon by the auditors, being a technical matter.

(ii) In the opinion of the directors, current assets, loans and advances are of the value stated if realized in the ordinary course of business except otherwise stated. The provision for all the known liabilities is adequate and not in excess of the amount considered reasonably necessary.

(iii) The personal accounts of the parties are subject to their respective confirmations.

(iv) Security deposit includes Rs.18,57,055/- (Previous Year Rs. 16,81,708/-) equivalent US$ 30920 (Previous Year US$ 30920) representing security given by the New York Trading Office of the company.

(v) The Gross Block for the current year does not include the Fixed Assets situated at the trading office in New York, accordingly no depreciation has been charged on the same. (previous year depreciation Rs.44,588).

N. PREVIOUS YEAR FIGURES

The Company has regrouped/reclassified the previous year figures to make them comparable with current year figures.

---

Mar 31, 2013

A. CONTINGENT LIABILITIES

a) No provision has been made in the books of accounts by the company for a sum of Rs.5902380/-, Rs.1205225/- , & Rs.4080705/- for which the demand has been raised by the Income Tax Department for the A.Y. 2000-01, A.Y.2003- 04, & A.Y.2007-08 respectively, against which a sum of Rs 5859356/- Rs.1205225/- & Rs.40,00,000/- has already been paid for A.Y 2000-01, A.Y.2003-04 & A.Y.2007-08 under protest. All the above liabilities stands before the Appellate Authority/Delhi High Court.

b) GUARANTEES

The company has guaranteed a sum of Rs. 59360 Lacs (Previous Year Rs. 47,615 Lacs) & Rs.575 Lacs (Previous Year Rs. 575 Lacs) against secured Loans taken by SSA International Ltd. & Sam Buildcon Ltd. respectively from financial institutions; these are wholly owned subsidiaries of the Company.

B. DEFINED BENEFIT PLANS/LONG TERM COMPENSATED ABSENCES

The employee gratuity fund & leave encashment scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

C. SEGMENT REPORTING

The company has identified a geographical reportable segment viz M/S Samtex Fashions Ltd. New York. Segments have been identified and reported taking into account the Differing risk and returns and the Financial business reporting systems. The accounting policies adopted for segment reporting are in line with the Accounting Policy of the Company. Except the Accounting period which is for the Segment is calendar year.

Segment Assets and Segment Liabilities represent Assets and Liabilities in Respective segments.

D. IMPAIRMENT OF ASSETS

The Company has revised the future discounted cash flows based on value in use of fixed assets and is hopefully sure that the recoverable amount is more than the amount carried in the books. Accordingly, no provision is required to be made for the impairment in the accounts.

Note.* (i) The above installed capacity may vary in different types of garments are produced.

(ii) Licensed and installed capacity being technical matter are relied upon as certified by the management.

E. TRANSACTION WITH MICRO, SMALL AND MEDIUM ENTERPRISES

The Company has not received information from vendors regarding their status and status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence necessary disclosures under this Act have not been given.

F. OTHERS

(i) Fixed assets installed and put to use have been certified by the management and relied upon by the auditors, being a technical matter.

(ii) In the opinion of the directors, current assets, loans and advances are of the value stated if realized in the ordinary course of business except otherwise stated .The provision for all the known liabilities is adequate and not in excess of the amount considered reasonably necessary.

(iii) The personal accounts of the parties are subject to their respective confirmations

(iv) Gross Block under Fixed Assets includes assets worth Rs.875,266/- (Previous year Rs.875,266/-) or equivalent to US$ 18536 (Previous Year US$ 18,536) situated at the Trading Office of the Company at New York.

(v) Security deposit includes Rs.16,81,708/- (Previous Year Rs. 15,75,064/-) equivalent US$ 30920 (Previous Year US$ 30920) representing security given by the New York Trading Office of the company.

(vi) During the year, The Company has made the preferential allotment of 50,00,000 Equity shares of Rs.28 per share(with Premium of Rs.18 per share) on 29th March, 2013. The Excess amount of Share Application money of Rs.4,75,317 received is pending for refund and same has been shown under the head "Other Current Liabilities".

G. PREVIOUS YEAR FIGURES

Fixed assets installed and put to use have been certified by the management and relied upon by the auditors, being a technical matter.

---

Mar 31, 2012

NOTE 1: CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

CASH AND CASH EQUIVALENTS

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid time deposits that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

NOTE 2 : OTHER NOTES

A. Contingent liabilities

a) No provision has been made in the books of accounts by the company for a sum of Rs.5902380/- Rs.1205225/- Rs.489296/- & Rs.4080705/- for which the demand has been raised by the Income Tax Department for the A.Y. 2000- 01, A.Y.2003-04, A.Y.2006-07 & A.Y.2007-08 respectively, against which a sum of Rs 5859356/- Rs.1205225/- & Rs.40,00,000/- has already been paid for A.Y 2000-01, A.Y.2003-04 & A.Y.2007-08 under protest.All the above liabilities have been disputed by the company before the Appellant Authority/Delhi High Court.

b) Guarantees

The company has guaranteed a sum of Rs. 47615 Lacs (Previous Year Rs. 42450 Lacs) & Rs.575 Lacs (Previous Year Rs. 575 Lacs) against secured Loans taken from financial institutions by SSA International Ltd. & Sam Buildcon Ltd. Respectively; wholly owned subsidiaries of the Company.

c) Other money for which the Company is contingently liable

Letters of Credit in foreign currency established for purchase of raw materials/ consumables and capital goods amounting to Rs.2,13,49,517 (Previous year Rs.180,20,122 ). The liability is converted into Rupees as per the exchange rate prevailing as on 31st March, 2012.

B. Fixed assets installed and put to use have been certified by the management and relied upon the by the auditors, being a technical matter.

D. Share Application Money Pending Allotment

As at 31 March 2012, the Company has received an amount of Rs.6,33,01,941 towards share application money towards equity shares of the Company at a premium of Rs. 18 per share. The share application money was received pursuant to an invitation to offer shares and in terms of such invitation, the Company is required to complete the allotment formalities by 31 March 2013. The Company has sufficient authorized capital to cover the allotment of these shares.

E. In the opinion of the directors current assets, loans and advances are of the value stated if realized in the ordinary course of business except otherwise stated .The provision for all the known liabilities is adequate and not in excess of the amount considered Reasonably necessary.

F. The personal accounts of the parties are subject to their respective confirmations.

3 SEGMENT INFORMATION :-

The company has identified a geographical reportable segment viz M/S Samtex Fashions Ltd. New York. Segments have been identified and reported taking into account the Differing risk and returns and the Financial business reporting systems. The accounting Policies adopted for segment reporting are in line with the Accounting Policy of the Company. Except the Accounting period which is for the Segment is calendar year.

G. a) Gross Block under Fixed Assets includes assets worth Rs.875049/- (Previous year Rs.633,491/-) or equivalent to US$ 18536 (Previous Year US$ 13794) Situated at the Trading Office of the Company at New York.

b) Security deposit includes Rs.15,75,064/- (Previous Year Rs. 13,80,578/-) equivalent US$ 30920 (Previous Year US$ 30920) representing security given by the New York Trading Office of the company.

H. DEFINED BENEFIT PLANS/LONG TERM COMPENSATED ABSENCES :

(A). The employee gratuity fund & leave encashment scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method which recognizes each period of services as giving rise to additional unit of employee benefit entitlement andmeasures each unit separately to build up the final obligation.

I. Micro, Small and Medium Enterprises

The Company has not received information from vendors regarding their status and status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence necessary disclosures under this Act have not been given.

J. Previous years figures have been regrouped and reclassified wherever necessary to make them comparable to those the current year, and have been rounded of to the nearest rupees.

K. Notes 1 to 32 form an integral part of the Financial Statements as at 31st March, 2012 and have been authenticated as such.

---

Mar 31, 2010

1. Contingent liabilities not provided for in respect of:

a) Letters of Credit in foreign currency established for purchase of raw materials/ consumables and capital goods amounting to Rs.380,28,143/- (previous year Rs.203,57,338/- ) the liability is converted into Rupees as per the exchange rate prevailing as on 31st March, 2010.

b) The company has guaranteed a sum of Rs.31090 Lacs (Previous Year Rs. 23202 Lacs) against secured Loans taken from financial institutions by SSA International Ltd., a wholly owned subsidiary of the Company.

2. No provision has been made in the books of accounts by the company for a sum of Rs. 5902380/-, Rs.890698/- Rs.489296/ - & Rs.4080705/- for which the demand has been raised by the Income Tax Department for the A.Y. 2000-01, A.Y.2003- 04, A.Y.2006-07 & A.Y.2007-08 respectively, against which a sum of Rs 5859356/-, Rs. 8,90,698/- & Rs.40,00,000/- has already been paid for A.Y 2000-01, A.Y. 2003-04 & A.Y.2007-08 under protest. All the above liabilities have been disputed by the company before the Appellant Authority / Delhi High Court.

3. Fixed assets installed and put to use have been certified by the management and relied upon the by the auditors, being a technical matter.

4. In the opinion of the directors current assets, loans and advances are of the value stated if realized in the ordinary course of business except otherwise stated .The provision for all the known liabilities is adequate and not in excess of the amount considered Reasonably necessary.

5. The personal accounts of the parties are subject to their respective confirmations.

6. The assets of the company have not been impaired during the year as certified by the management of the company. The management has conducted the test of impairment of assets using the value-in-use method in accordance with the mandatory Accounting Standard -28 (AS 28) on impairment of Assets issued by the Institute of Chartered Accountants of India. For calculation of value-in-use, discount rate of 8% per annum is used being the average market rate of interest in the opinion of the management.

7. Related Party Disclosure : -

i.) List of the Related parties with whom transactions have taken place and the relationships :

s. No. Name of the Party Relationship

1. SSA International Limited Wholly Owned Subsidiary Co.

2. SAM Buildcon Limited Wholly Owned Subsidiary Co.

3. Samtex Foundation Key Personal Management of the

related party

8. a) Gross Block under Fixed Assets includes assets worth Rs.633,491/- (Previous year Rs.709,983/-) or equivalent to US$ 13794 (Previous Year US$ 15426) Situated at the Trading Office of the Company at New York.

b) Security deposit includes Rs.12,74,895/- (Previous Year Rs. 12,97,238/-) equivalent US$ 32017 (Previous Year US$ 32576) representing security given by the New York Trading Office of the company.

9. DEFINED BENEFIT PLANS/LONG TERM COMPENSATED ABSENCES :

(a). The employee gratuity fund & leave encashment scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

10. The company has adopted the accounting standard-15 (revised) i.e. employees benefits from the previous financial year for computation of gratuity & leave encashment. Hence, the excess provision of Rs.25,94,073/- on valuation of gratuity & leave encashment on 01.04.2008 written back to the reserve & surplus account.

(Please see Sch. II).

11. Advance recoverable (Schedule X) includes an amount of Rs.NIL (Previous Year Rs. 16,33,670/-) being Insurance claim receivable against theft of Honda CRV car. The insurance claim is settled during the financial year & short recovery of claim of Rs. 64010/- is debited to Loss on Theft of car (Schedule -XIX).

12. Sundry creditors (Schedule-XI) includes a disputed amount of Rs.9,97,202/- (Previous Year Rs.9,97,202/-) Payable to M/ s Ten Cate Permess Inc. The matter with party is pending before court.

13. The sales made by the company from its Delhi office is of goods are exempt from sales tax, hence no Registration under Sales Tax Act, is obtained.

14. The construction of Flats under Employees Housing Project Scheme has been completed during the Financial year 2009- 10.

15. Previous years figures have been regrouped and reclassified wherever necessary to make them comparable to those the current year, and have been rounded of to the nearest rupees.

16. Schedule I to XXII form an integral part of the Balance Sheet as at 31st March, 2010 and have been authenticated as such.