Notes to Accounts of STL Global Ltd.

Mar 31, 2025

1.16 Contingent Liability

Contingent liabilities in respect of show cause notices received is considered only when they are converted into demands.
Payments in respect of such demands, if any are shown as advances.

Contingent liabilities under various fiscal laws includes those in respect of which the company/ Department is in appeal. No
Provision is made for a liability which is contingent in nature but if material is disclosed in the financial statement by way of
notes.

1.17 Current versus non-current classification

The classification of Assets and liabilities of the Company into current or no-current is based on the criterion specified in the
schedule III to the Companies Act,2013. The Company has ascertained its operating cycle as 12 months for the purpose of
current and non-current classification of assets and liabilities except trade receivables.

1.18 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity. Financial assets and financial liabilities are recognised when Company becomes a party to the
contractual provisions of the instruments.

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) 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 the statement of profit and loss.

(i) 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 the Company are recognised at the proceeds received. Incremental costs directly
attributable to the issuance of new ordinary equity shares are recognized as a deduction from equity, net of tax effects.

(ii) Financial assets

(a) Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost using the Effective Interest Rate method (EIR) if these
financial assets are held within a business whose objective is to hold these 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 amount outstanding.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from
impairment are recognised in the profit or loss. This category generally applies to bank deposits, loans and other financial
assets.

(b) Financial assets at fair value through profit or loss (FVTPL)

Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value
through other comprehensive income on initial recognition.

(c) Impairment of financial assets

In accordance with Ind-AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of
impairment loss on the financial assets and credit risk exposure.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the statement
of profit and loss (P&L). This amount is reflected under the head ‘other expenses’ in the P&L. In balance sheet, ECL is
presented as an allowance, i.e., as an integral part of the measurement of financial assets.

(d) Derecognition

The Company derecognises 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.

(iii) Financial liabilities

(a) Financial liabilities at amortised cost

Financial liabilities are measured at amortised cost using the effective interest rate method (EIR). Gains and losses are
recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised
cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of
the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss. This category applies to trade
and other payables.

(b) Derecognition

The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or
have expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid /
payable is recognised in the statement of profit and loss.

(iv) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets
and settle the liabilities simultaneously.

1.19 New and amended standards

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31
March 2023 to amend the following Ind AS which are effective for annual periods beginning on or after 1 April 2023. The
Company applied for the first-time these amendments.

(i) Definition of Accounting Estimates - Amendments to Ind AS 8 The amendments clarify the distinction between changes in
accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities
use measurement techniques and inputs to develop accounting estimates.

The amendments had no impact on the Company’s financial statements

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1 The amendments aim to help entities provide accounting
policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’ accounting
policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the
concept of materiality in making decisions about accounting policy disclosures. The amendments have had an impact on the
Company’s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the
Company’s financial statements

28 Employee Benefits
a) Defined Contribution Plans

The Company has defined contribution plan for post employment benefit namely Provient fund which are administered by
appropriate authorities. The Company contributes to a government administered Provident fund and has no further obligation
beyond making its contributions.

The Company contributes to State Plans namely Employees''state Insurance fund and has no further obligation beyond making
the payment to them.

b) Defined Benefit plan

In Accordance with the payment of Gratuity Act,1972, the Company has a defined Benefit plan (unfunded) namely "Gratuity
Plan" covering its employee who has completed five year of service is entitled to gratuity benefit. The Company has made
provisions in the financial statement for payment of gratuity, but has not get it covered the same by insurance or has
maintained an approved fund.

The Company has also provided for leave encashment which is unfunded

The following Table summarises the net component of net benefit expenses recognised in the statement of Profit & loss and
amount recognised in the Balance sheet for the respective plans:

29 Segment Reporting

a) Primary Segment

The Company''s management examines the Company performance from a product prospective and during the year the
Company''s primary business segment is Textile only. Accordingly no disclosure relationg to Revenue segment are made.

b) Secondary Segment Reporting ( By Geographical Segments) :

The distribution of Company''s consolidated sales is within india, accordingly no disclosure relating to Geographical Segment
are made.

30 The Company have received notices from the Department under section 148 of the Income Tax Act requiring details of specific
transactions and documents. In response, the Company submitted the required information, pursuant to which the Company
has received demand orders amounting to Rs. 305.35 Lakhs (excluding penalties) for the Assessment Years from 2016-17 to
2022-23. The amount of penalty & further interest is not ascertainable at this stage.

The Company has filed appeals against the demand orders received from the department with the Commissioner of Income
Tax (Appeals) for the AY 2016-17 to 2022-23. As per Company''s own assessment and also based on legal opinion,
management is confident of favourable outcome for such appeals. Pending outcome of appeal proceedings, no adjustment has
been made to these financial statements and the said demand amount has been disclosed as contingent liability in note no 27
to the financial statement.

32 Financial Instruments and risk management
32.1 Capital Management

The Group''s capital management is intended to create value for shareholders by facilating the meeting of long term and short
term gain goals of the Company.

The group''s objective when managing capital are to:

- safeguard their ability to continue as A going concern, so that they can continue to provide returns for shareholders and
benefits for other stakeholders, and

- Maintain an optimal capital structur to reduce the cost of Capital.

The group determines the amount of capital required on the basis of annual business plan also taking into consideration any
long term strategic investment and expansion plans. The funding needs are met through equity and cash generated from
operations.

32.3 Financial risk management framework

Company''s activities expose it to financial risks viz credit risk and liquidity risk

a) Credit Risk

Based on the overall credit worthiness of Receivables, coupled with their past track records, Company expects No / Minimum
risk with regards to its outstanding receivables. Also, there is a mechanism in place to periodically track the outstanding amount
and assess the same with regard to its realisation. Company expects that all the debtors will be realised in full, and adequate
provisions has been made in the books of accounts for doubtful receivables

b) Liquidity Risk

(i) Liquidity Risk Management

The Company manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring
forecast and actual cash flow and by matching the maturity profiles of financial assets and liabilities.

(ii) Maturities of Financial Liabilities

The following tables details the Company''s remaining contractual maturities for its non-derivative financial liabilities with agreed
repayment periods. The amount disclosed in the tables have been drawn up based on the earliest date on which the Company
can be requierd to pay.

Fair value measurement

The management assessed the fair value of loans, current investments (unquoted), cash and cash equivalents, trade
receivebles, trade payables and other current liabilities approximate to their carrying amount largly due to the short-term
maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions
were used to estimate the fair values.

(i) The fair value of unquoted instruments are evaluated by the Company based on parameters such as interest rates and its
investments ratting.

(ii) The fair value of loans are estimated by discounted cash flow method to capture the present value of the expected future
economic benefits that will flow to the company.

34 Previous figures have been regrouped/rearranged wherever necessary to make them comparable.

35 Additional Regulatory Information Required By Schedule III

(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.

(ii) The Company does not have any transactions with struck off companies.

(iii) Registration of charges or satisfaction with Registrar of Company (ROC):

In following cases charges or satisfaction yet to be registered with ROC beyond the statutory period

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

(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding at the Intermediary shall;

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(vii) The company has not been declared willful defaulter by any bank or financial institutations or any lender.

(viii) There is no transaction which are not recorded in the books of account that has been surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act, 1961.

(ix) The Company did not have any long-term contracts including derivative contracts, for which there were any material
foreseeable losses.

36 There are no major events which has occurred after the balance sheet date.

The accompanying notes form an integral part of these Financial statements
As per our Audit Report of even date annexed

For M.M.Goyal & Co. For and on behalf of the Board

Chartered Accountants

Firm''s Registration Number : 007198N Sd/- Sd/-

Vinod Kumar Aggarwal Sanjiv Kumar Agarwal

Director Director

DIN : 00170712 DIN : 00227251

Sd/- Sd/- Sd/-

Manmohan Goyal

Proprietor Anil Jodhani Aggarwal Manil Kumar Nagar

Membership No. 086085 Chief Financial Officer Company Secretary

Place : New Delhi M.No. A37299

Date : May 29, 2025

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Mar 31, 2024

There are no material dues on by the Comapnyy to Micro and small Enterprises, which are outstanding for more than 45 days during the year ended 31st march 2024 and 31st March 2023. This information as required under the Micro,small and medium Enterprises Development Act,2006, has been determined to the extent such parties have been identified on the basis of information available with the Company and has been relied upon by the Auditors.

28	Contingent liabilities and commitments (to the extent not provided for)	( ? in lakhs)
	Particulars	As at	As at
	31	March, 2024	31 March, 2023
	Contingent liabilities
	Disputed tax demands/ liabilities
	Sale Tax	52.61	52.61

29 Employee Benefits a) Defined Contribution Plans

The Company has defined contribution plan for post employment benefit namely Provient fund which are administered by appropriate authorities. The Company contributes to a government administered Provident fund and has no further obligation beyond making its contributions.

The Company contributes to State Plans namely Employees''state Insurance fund and has no further obligation beyond making the payment to them.

b) Defined Benefit plan

In Accordance with the payment of Gratuity Act,1972, the Company has a defined Benefit plan (unfunded) namely "Gratuity Plan" covering its employee who has completed five year of service is entitled to gratuity benefit. The Company has made provisions in the financial statement for payment of gratuity, but has not get it covered the same by insurance or has maintained an approved fund.

The Company has also provided for leave encashment which is unfunded

The following Table summarises the net component of net benefit expenses recognised in the statement of Profit & loss and amount recognised in the Balance sheet for the respective plans:

Sensitivity Analysis: Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:

30 Segment Reporting

a) Primary Segment

The Company''s management examines the Company performance from a product prospective and during the year the Company''s primary business segment is Textile only. Accordingly no disclosure relationg to Revenue segment are made.

b) Secondary Segment Reporting ( By Geographical Segments) :

The distribution of Company''s consolidated sales is within india, accordingly no disclosure relating to Geographical Segment are made.

32 Financial Instruments and risk management 32.1 Capital Management

The Group''s capital management is intended to create value for shareholders by facilating the meeting of long term and short term gain goals of the Company.

The group''s objective when managing capital are to:

- safeguard their ability to continue as A going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- Maintain an optimal capital structur to reduce the cost of Capital.

The group determines the amount of capital required on the basis of annual business plan also taking into consideration any long term strategic investment and expansion plans. The funding needs are met through equity and cash generated from operations.

32.3 Financial risk management framework

Company''s activities expose it to financial risks viz credit risk and liquidity risk

a) Credit Risk

Based on the overall credit worthiness of Receivables, coupled with their past track records, Company expects No / Minimum risk with regards to its outstanding receivables. Also, there is a mechanism in place to periodically track the outstanding amount and assess the same with regard to its realisation. Company expects that all the debtors will be realised in full, and adequate provisions has been made in the books of accounts for doubtful receivables

b) Liquidity Risk

(i) Liquidity Risk Management

The Company manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring forecast and actual cash flow and by matching the maturity profiles of financial assets and liabilities.

(ii) Maturities of Financial Liabilities

The following tables details the Company''s remaining contractual maturities for its non-derivative financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the earliest date on which the Company can be requierd to pay.

Fair value measurement

The management assessed the fair value of loans, current investments (unquoted), cash and cash equivalents, trade receivebles, trade payables and other current liabilities approximate to their carrying amount largly due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values.

(i) The fair value of unquoted instruments are evaluated by the Company based on parameters such as interest rates and its investments ratting.

(ii) The fair value of loans are estimated by discounted cash flow method to capture the present value of the expected future economic benefits that will flow to the company.

34 Previous figures have been regrouped/rearranged wherever necessary to make them comparable.

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Mar 31, 2018

1. The Company has prepared the opening balance sheet as per Ind AS as of April 1, 2016 (the transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognized assets and liabilities. However, this principle is subject to the certain exception and certain optional exemptions availed by the Company as detailed below.

Deemed cost of property, plant and equipment and intangible assets

The Company has elected to continue with the carrying value of all its property, plant and equipment and intangible assets recognized as of April 1, 2016 (transition date) measured as the previous GAAP and used that carrying value as deemed cost as of the transition date.

2. Notes to the Ind AS reconciliation

a) The transition from Indian GAAP to Ind AS has no effect on the Balance sheet, Equity statement of Profit & loss & cash flows. Therefore reconciliation statement for effect of Ind AS adoption on the Balance sheet , Equity Statement and statement of profit and loss has not been given.

b) Under previous GAAP, there was no concept of other comprehensive income. Under Ind AS, specified item of income, expenses, gains or losses are required to be presented in other comprehensive income.

c) Previous GAAP figures have been regrouped/rearranged wherever necessary to make them comparable in line with Ind AS.

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Mar 31, 2016

1. (a) Security

* Secured by a first charge over the Company''s immovable and movable properties (except land situated at 12/6 Mathura Road, Faridabad) including its movable machinery, spare & tools and accessories, present & future, and a first charge on all the remaining assets of the Company, present & future ( save and except book debts in the case of hypothecation) subject to prior charges and/ or to be created in favour of the company''s bankers for securing its working capital requirement and further guaranteed by personal guarantee of promoters directors.

The above secured borrowings are further secured by way of Pledge of 60,00,000 equity share of the Promoters of the Company.

** Secured by pari passu first charge on current assets , stock of raw material, semi finished and finished goods, consumable stores & spares, bills receivables & books debts and all other movables, present & future, and also a second parri passu large ranking after the charge to be created in favour of the term lenders on immovable and movable properties, both present and future.

2.(d) Punjab National Bank as consortium leader issued the Notice u/s 13(2) and further u/s 13(4) of the Securitization & Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002. by declaring accounts as NPA and amount demanded in both the notices are exorbitant high The Company disputes the validity of the aforesaid notices and has a separate claim for losses due to action/inaction of various parties and filed an Appeal U/s 17 of the same Act before Hon''ble Debt Recovery Tribunal (DRT-I), Chandigarh and are under consideration. Apart from the above Uco Bank have separately filed Recovery suit against the Company before the Hon''ble Debt Recovery Tribunal (DRT) and the matter is still pending.

3.(e). Oriental Bank of Commerce, Uco Bank and ICICI Bank Limited have assigned their debts to Assets Reconstruction Company i.e Alchemist Assets Reconstruction Company Ltd. And further Company have entered One time settlement (OTS) with Punjab National Bank and Allahabad Bank.

4.(f) The Company have allotted 23355 sqft of built up area in IT Park (being developed by RPS Infrastructure Limited on land owned by the Company, in pursuance of Collaboration Agreement between RPS Infrastructure Limited and the Company) to DBS Bank Limited against their full amount of outstanding dues. The Company will adjust the loan amount of DBS Bank Limited on fulfillment of conditions for possession of sale area.

5.(g). Interest on secured loans has not been provided for the current financial year

6.(a). Security

Secured by pari passu first charge on current assets , stock of raw material, semi finished and finished goods, consumable stores & spares, bills receivables & books debts and all other movables, present & future, and also a second pari passu charge ranking after the charge to be created in favours of the term lenders on immovable and movable properties, both present and future.

The Company have allotted 20052 sqft of built up area in IT Park (being developed by RPS Infrastructure Limited on land owned by the Company, in pursuance of Collaboration Agreement between RPS Infrastructure Limited and the Company) to Inducing Bank Limited against their full amount of outstanding dues. The Company will adjust the loan amount of Indusind Bank Limited on fulfillment of conditions for possession of sale area. Further The Company has not provided interest on working loans from Inducing Bank Ltd.

Includes Rs.1586322 as on 31st March,2016 (previous year Rs. 13,25,240) due to Micro, Small and Medium Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. further there was no delays in payment to Micro, Small and Medium Enterprises. The information regarding Micro, small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors

b) Secondary Segment Reporting ( By Geographical Segments) :

The distribution of Company''s consolidated sales is within India, accordingly no disclosure relating to Geographical Segment are made.

7. Deferred Tax

No provision for deferred tax assets has been provided by the Company, as there is no certainty that there will sufficient future taxable income to realize such assets.

8. As at the Balance Sheet date, the accumulated losses of the Company are more than fifty percent of its net worth in the current financial year and in the previous year also. The Company has made a Reference to the Hon''ble Board for Industrial & Financial Reconstruction (BIFR) pursuant to the provisions of Sick Industrial Companies (Special Provision Act,1985), and the Hon''ble Board have decided abatement and the Company has filed an appeal before AAIFR and was also dismissed on dated 10.12.2014.

9. The previous year''s figure have been regrouped/reclassified, wherever considered necessary to make comparable with the current year figures.

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Mar 31, 2015

1. Contingent liabilities and commitments (to the extent not provided for) (Figure in Lakhs)

Particulars As at As at 31 March 31 March 2015 2014

Contingent liabilities

Disputed Liability towards Sale Tax 57.93 57.93

Disputed Liability towards Local Area 47.99 47.99 Development Tax

Surety given to Sale Tax Dept for third 1 1 party

Commitments

Estimated amount of contracts remaining 105.00 90.00 to be executed on capital account and not provided for Tangible assets

2. Related party transactions

A. List of Related Parties :

Key Managerial Personnel

J.P.Aggarwal Vishal Aggarwal S.K.Aggarwal

Relative of Key Managerial Personnel

Vikas Aggarwal Sumitra Aggarwal

Enterprises over which Key management personnel or relative having influence

Reckon Industries Ltd. Ruchi India Limited Shyam Tex Exports Limited Target Fashion Limited

3. Deferred Tax

No provision for deffered tax assets has been provided by the Company, as there is no certainty that there will sufficient future taxable income to realise such assets.

4. In pursuance of Collaboration Agreement dated 23-05-2007 entered into by the Company with RPS Infrastructure Limited (RPS) for development of IT Park on Company's land situated at 12/6 Mathura Road, Faridabad, the Company executed mortgage on the said land as security for loan raised by RPS Infrastructure Limited from two banks, which include Oriental Bank of Commerce,the banker and charge holder of assets of the Company and member of consortium of banks of the Company and United Bank of India for construction of IT Park at the above said land. The aforesaid loan availed by RPS Infrastructure Limited was though expected to be utilized for development of IT Park on the aforesaid land. but Neither M/s RPS Infrastructure Ltd nor the Banker i.e Oriental Bank of Commerce and United Bank of India are providing any detail for end use of the loan disbursed to RPS. The Company have filed a writ petition vide No. 7354/2013 before the Hon'ble High Court Delhi for availing details basis of loan disbursement and its utilization on construction of IT Park and the same has been disposed off on dated 29.09.2014.

5. As at the Balance Sheet date, the accumulated losses of the Company are more than fifty percent of its net worth in the current financial year and in the previous year also. The Company has made a Reference to the Hon'ble Board for Industrial & Financial Reconstruction (BIFR) pursuant to the provisions of Sick Industrial Companies (Special Provision Act,1985), and the Hon'ble Board have decided abatement and the Company has filed an appeal before AAIFR and was also dismissed on dated 10.12.2014.

6. The previous year's figure have been regrouped/reclassified, wherever considered necessary to make comparable with the current year figures.

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Mar 31, 2014

1(a) 32,00,000 ( Previous year 32,00,000) Equity shares out of the issued, subscribed & paid up share capital were issued as fully paid -pursuant to scheme of Amalgamation in the year 2006-2007

1(b) The Reconcilation of the number of shares outstanding and the amount of share capital as at March 31,2014 and March 31,2013 is set out below:

* Represents excess amount retained by ICICI Bank Limited out of sale proceeds of assets located at plot No.4 Sector-6 Faridabad over and above outstanding secured term loan. The Company is claiming this amount with interest.

2. (a) Security

* Secured by a first charge over the Company''s immovable and movable properties (except land situated at 12/6 Mathura Road, Faridabad) including its movable machinery, spare & tools and accessories, present & future, and a first charge on all the remaining assets of the Company, present & future ( save and except book debts in the case of hypothecation) subject to prior charges and/ or to be created in favour of the company''s bankers for securing its working capital requirement and further guaranteed by personal guarantee of promoters directors.

The above secured borrowings (excluding vehicle loan) are further secured by way of Pledge of 60,00,000 equity share of the Promoters of the Company.

** Secured by pari passu first charge on current assets , stock of raw material, semi finished and finished goods, consumable stores & spares, bills receivables & books debts and all other movables, present & future, and also a second parri passu charge ranking after the charge to be created in favour of the term lenders on immovable and movable properties, both present and future.

*** Secured by Subservient charge on the current assets of the Company.

**** Secured by first charge on certain movable assets (Vehicles)

3. (a) Punjab National Bank as consortium leader issued Notice u/s 13(2) and further u/s 13(4) of the Securitisation & Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. by declaring accounts as NPA and amount demanded in both the notices are exorbitant high The Company disputes the validity of the aforesaid notices and has a separate claim for losses due to action/inaction of various parties and filed an Appeal U/s 17 of the same Act before Hon''ble Debt Recovery Tribunal (DRT-I), Chandigarh and are under consideration. Apart from the above DBS Bank, ICICI Bank and UCO Bank have separately filed Recovery suit against the Company before the Hon''ble Debt Recovery Tribunal (DRT) and the matter is still pending.

3 (b). Interest on Bank borrowing has been provided on the basis of interest rates as per the sanctioned Scheme under CDR, penal or other interests claimed by the bank are not accounted.

4(a). Security

Secured by pari passu first charge on current assets , stock of raw material, semi finished and finished goods, consumable stores & spares, bills receivables & books debts and all other movables, present & future, and also a second pari passu charge ranking after the charge to be created in favour of the term lenders on immovable and movable properties, both present and future.

20052 sqft of built up area in IT Park being developed by RPS Infrastructure Limited on land owned by the Company, in pursuance of Collaboration Agreement between RPS Infrastructure Limited and the Company has been allotted by the Company, to Indusind Bank Limited against their full amount of outstanding dues.

The Company will adjust the loan amount of Indusind Bank Limited on fulfillment of condition for sale of area.

4 (b). Interest on Bank borrowing has been provided on the basis of interest rates as per the sanctioned Scheme under CDR, penal or other interests claimed by the bank are not accounted.

4(c). The Company has not provided interest on working capital loans from DBS Bank, as it not participated in the CDR Package (approved by more than 3/4 majority of lenders) and filed recovery suit against the Company before the Hon''ble Debt Recovery Tribunal ( DRT),The proceedings in the matter are pending.

''Includes Rs.15,45,952 as on 31st March,2014 (previous year Rs. 12,18,786) due to Micro, Small and Medium Enterprises as required to be disclosed under the Micro,Small and Medium Enterprises Development Act, 2006. further there was no delays in payment to Micro,Small and Medium Enterprises. The information regarding Micro,small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors.

The Company have various legal dispute with M/s RPS Infrastructure Ltd and the matter is sub-judice and pending before Hon''ble Court. However The Company has recognized revenue from Real Estate Business of Development of IT Park on the basis of accounts submitted by M/s RPS Infrastructure Ltd

(Figure in Lakhs) Particulars As at As at 31 March, 2014 31 March, 2013

Contingent liabilities

Disputed Liability towards Sales Tax 57.93 57.93

Disputed Liability towards Local Area 47.99 47.99 Development Tax

Bank Gurantee Towards HSPCB - 3.00

Surety given to Sale Tax Deptt for third Party 1 1

Commitments

Estimated amount of contracts remaining to 90.00 90.00 be executed on capital account and not provided for Tangible assets

5. Employee Benefits

In accordance with Accounting standard 15 "Employee Benefits", the Company has classified verious benefits provided to the employee are as follows:

6. Related party transactions

A. List of Related Parties :

Key Managerial Personnel

J.P. Aggarwal Vishal Aggarwal S.K.Aggarwal

Relative of Key Managerial Personnel

Vikas Aggarwal Sumitra Aggarwal

Enterprises over which Key management personnel or relative having influence

Reckon Industries Ltd.

Ruchi India Limited Shyam Tex Exports Limited Target Fashions Limited

B. Related Party Transactions :

7. Segment Reporting a) Primary Segment

Based on the guidelines on Segment Reporting ( AS-17) issued by the ICAI. The Company''s primary business segment is Textile, during the current financial year The Company have revenue from Real Estate also.

Fixed assets used in the Company''s business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. Accordingly no disclosure relating to total segment assets and liabilities are made.

b) Secondary Segment Reporting ( By Geographical Segments) :

The distribution of Company''s consolidated sales is within india, accordingly no disclosure relating to Geographical Segment are made.

8. Deferred Tax

No provision for deffered tax assets has been provided by the Company, as there is no certainty that there will sufficient future taxable income to realise such assets.

9. In pursuance of Collaboration Agreement dated 23-05-2007 entered into by the Company with RPS Infrastructure Limited (RPS) for development of IT Park on Company''s land situated at 12/6 Mathura Road, Faridabad, the Company executed mortgage on the said land as security for loan raised by RPS Infrastructure Limited from two banks, which include Oriental Bank of Commerce,the banker and charge holder of assets of the Company and member of consortium of banks of the Company and United Bank of India for construction of IT Park at the above said land.

The aforesaid loan availed by RPS Infrastructure Limited was though expected to be utilized for development of IT Park on the aforesaid land. but Neither M/s RPS Infrastructure Ltd nor the Banker i.e. Oriental Bank of Commerce and United Bank of India are providing any detail for end use of the loan disbursed to RPS. The Company have filed a writ petition vide No. 7354/2013 before the Hon''ble High Court of Delhi for availing details basis of loan disbursement and its utilization on construction of IT Park and the case is still pending.

10. As at the Balance Sheet date, the accumulated losses of the Company are more than fifty percent of its net worth in the current financial year and in the previous year also. Total accumulated losses as at 31st March,2014 was Rs. 15,940.83 lakhs ( previous year Rs 13,052.71 lakhs ) against net worth of the Company for the current year Rs 7,885.42 lakhs (Previous year7,885.42 lakhs) excluding revaluation reserve of Rs.2044.38 lakhs. The Company has made a Reference to the Hon''ble Board for Industrial & Financial Reconstruction (BIFR) pursuant to the provisions of Sick Industrial Companies (Special Provision Act,1985), and the Hon''ble Board have decided abatement and the Company is filing Appeal before appropriate authority.

11. The previous year''s figure have been regrouped/rearranged, wherever considered necessary to make comparable with the current year figures.

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Mar 31, 2013

1. Deferred Tax

An amount of Rs. 21,46,33,257 pertaining to deferred tax assets created up to the financial 2010-2011 was reversed in the previous financial year 2011-2012 for reasons of lack of certainty that there will be sufficient future taxable income available to realize such assets. As there is no change in the aforesaid assessment of future income as at March 31,2013, Deferred Tax Asset is not recognized.

2. In pursuance of Collaboration Agreement dated 23-05-2007 entered into by the Company with RPS Infrastructure Limited for development of IT Park on Company''s land situated at 12/6 Mathura Road, Faridabad, the Company executed mortgage on the said land as security for loan raised by RPS Infrastructure Limited from two banks, which include Oriental Bank of Commerce, the banker and charge holder of assets of the Company and member of consortium of banks of the Company and United Bank of India for construction of IT Park at the above said land.

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Mar 31, 2012

STL Global Limited having its plant situated at Plot no 207-208 Sector-58 Faridabad , the company deals in business of Manufacturing of knitted fabrics and processing, dyeing and finishing of Knitted Fabrics.

1.1.a) 32,00,000 ( Previous year 32,00,000) Equity shares out of the issued, subscribed & paid up share capital were issued as fully paid -persuant to scheme of Amalgamation in the year 2006-2007

1.1.b) The Reconcilation of the number of shares outstanding and the amount of share capital as at March 31,2012 and March 31, 2011 is set out below

1.2.a Security

* Secured by a first charge over the Company's immovable and movable properties ( except land situated at 12/6 Mathura Road, Faridabad) including its movable machinery, spare & tools and accessories, present & future, and a first charge on all the remaining assets of the Company, present & future ( save and except book debts in the case of hypothecation) subject to prior charges and/ or to be created in favour of the company's bankers for securing its working capital requirement and further guaranteed by personal guarantee of promoters directors

** Secured by equitable mortgage of land measuring 13370 Sq Yards situated at 12/6 ,Mathura Road Faridabad.

*** Secured by pari passue first charge on current assets , stock of raw material, semi finished and finished goods, consumable stores & spares, bills receivables & books debts and all other movable, present & future and also a second parri passue charge ranking after the charge to be created in favours of the term lenders on immovable and movable properties both present and future.

**** Secured by Subservient charge on the current assets of the Company.

***** Secured by first charge on certain movable assets ( Vehicles)

1.3.a Security

Secured by pari passu first charge on current assets , stock of raw material, semi finished and finished goods, consumable stores & spares, bills receivables & books debts and all other movable, present & future and also a second parri passu charge ranking after the charge to be created in favours of the term lenders on immovable and movable properties both present and Future.

Note 1.4 Contingent liabilities and commitments (to the extent not provided for)

(Figure in Lakhs)

Particulars As at 31 As at 31 March, 2012 March, 2011

Contingent liabilities

Letter of Credit (Net of Margin of Rs. 47.71 Lakhs 351.07 353.92 previous year Rs. 44.72 Lakhs)

Disputed Liability towards Income Tax 39.33 39.33

Disputed Liability towards Sale Tax 27.23 27.23

Disputed Liability towards Local Area Development Tax 47.99 47.99

Disputed Liability towards A.E.P.C - 9.85

Bank Gurantee towards HSPCB 3.00 -

Surity given to Sale Tax Deptt for third party 1 1

Commitments

Estimated amount of contracts remaining to be executed 120.00 42.00 on capital account and not provided for Tangible assets

Fixed assets used in the Company's business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. Accordingly no disclosure relating to total segment assets and liabilities are made.

b) Secondary Segment Reporting ( By Geographical Segments) :

The distribution of Company's consolidated sales is within India, accordingly no disclosure relating to Geographical Segment are made.

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Mar 31, 2010

AS AT AS AT

31.03.2010 31.03.2009

(Rs. in lakhs) (Rs. in lakhs)

1. CONTIGENT LIABILITIES

(a) Letter of Credit (Net of Margin of Rs. 65.67 197.97 1102.55 Lakhs previous year Rs. 281.60 Lakhs)

(b) Disputed Liability towards Income Tax 44.62 39.33

c) Disputed Liability towards Sale Tax 56.05 44.25

(d) Disputed Liability towards Local Area 47.99 47.99 Development Tax

(e) Disputed Liability towards A.E.P.C 9.85 Nil

(f) Surety given to Sale Tax Deptt. For third party 1 1

2. Estimated amount of contracts remaining to be executed on Capital account is Rs. 60.00 lakhs (Previous Year Rs.275.00 lakhs)

3. Computation of Net Profit in accordance with section 198/349 of the Companies Act, 1956 has not been given as no commission is payable to managing/whole time Director.

4. Previous years figures have been regrouped / rearranged wherever considered necessary to make comparable with the current year figures.

5. Sundry creditors includes Rs. 15,45,688.00 as on 31st March 2010 (Previous year Rs. 19,22,572) due to Micro, Small and Medium Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. further there are no delays in payment to Micro, Small and Medium Enterprises. The information regarding Micro and Small enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

6. RELATED PARTY TRANSACTIONS

As per AS-18 issued by the Institute of Chartered Accountants of India, the Companys related parties and transactions with them are disclosed below:

Related Parties

(a) Subsidiaries : Nil

b) Associates : Nil

(c) Key Managerial Personnel 1. J.RAggarwal

2. Vishal Aggarwal

3. S.K.Aggarwal

(d) Relative of key Managerial 1. Sumitra Aggarwal

Personnel 2. Vikas Aggan/val

(e) Enterprises over which key 1. M/s Reckon Industries Ltd.

management personnel (KMP) 2. M/s Ruchi India Limited

or relative having influence 3. M/s Target Fashion Limited.

4. M/s Vinsan Healthcare Ltd.

5. M/s Reckon Pharmachem Pvt. Ltd.

6. M/s Shyam Tex Exports Ltd.

7. SEGMENT INFORMATION:

a) Primary Segment Reporting by Business Segment:

Based on the guidelines in Accounting Standard on segment Reporting (AS-17) issued by the ICAI, The Companys primary business segment is Manufacture in textiles. The Textile Business incorporate the product groups namely: Dyeing and Processing of woven and knitted Fabrics and Processing and dyeing of Yarn and Manufacture of Readymade Garments and Sewing threads, which mainly have similar risks and returns.

The Company has common fixed assets for producing goods for overseas market and domestic markets, hence separate figures for fixed assets/additions to fixed assets etc. cannot be furnished.

8. FINANCIAL AND DERIVATIVE INSTRUMENTS

a) The Company have entered into derivative contract under the category Currency swaps and Notional Principal amount outstanding as on 31st March 2010 amounts to Rs. 20,00,00,000 (Previous year Rs.20,00,00,000)

b) In respect of outstanding derivative contracts which are stated in para a above, there is a net unrealized profit of Rs. 30.67 lakhs ason31st March 2010due to reversal in M to M Provision and Rs 25.53 Lakhs .which has been credited to Profit & Loss account, considering the principles of prudence as enunciated in Accounting Standard I "Disclosure of Accounting policies" notified in the Companies (Accounting Standard) Rules 2006.

c) Foreign currency exposure i.e Assets (Trade Receivables) .that are not hedged by the company are Rs 21.68 lakhs (Previous year Rs. 347.61 lakhs).

9. Additional Information pursuant to part II of schedule VI of the Companies Act, 1956 as certified by the management.