1.11 Provisions, Contingent Liability and Contingent Assets

Disputed liabilities and claims against the company including claims raised by fiscal
authorities (e.g. Sales Tax, Income Tax, Excise etc.) pending in appeal or court for
which no reliable estimate can be made and or involves uncertainty of the outcome of
the amount of the obligation or which are remotely poised for crystallization are not
provided for in accounts but disclosed in notes to accounts.

However, present obligation as a result of past event with possibility of outflow of
resources, when reliable estimation can be made of the amount of obligation, if any, is
recognized in accounts in terms of discounted value, if the time value of money is material
using a current pre-tax rate that reflects the risk specific to the liability. No contingent
asset is recognized by the company.

1.12 Foreign Currency Translation

The company's financial statements are presented in INR, which is also the company's
functional currency.

i. Transactions in foreign currencies, if any, are recognized at rate of overseas
currency ruling on the date of transactions. Gain/Loss arising on account of rise
or fall in overseas currencies vis-a-vis functional currency between the date
and that of payment is charged to Statement of Profit and Loss.

ii. Monetary Assets in foreign currencies, if any, are translated into functional
currency at the exchange rate ruling at the Reporting Date and the resultant
gain or loss is accounted for in the Statement of Profit and Loss.

iii. Non-Monetary items which are carried at historical cost denominated in a foreign
currency, if any, are reported using the exchange rate at the date of transaction.

iv. Impact of exchange fluctuation, if any, is separately disclosed in the notes to
accounts.

1.13 Earnings Per Share

Basic Earnings per share is calculated by dividing:

c

- the net profit for the period attributable to equity shareholders

- by the weighted average number of equity shares outstanding during the period. For
the purpose of calculating diluted earnings per share:

- the net profit for the period attributed to equity shareholders

- and the weighted average number of shares outstanding during the period

- is adjusted for the effects of all dilutive potential equity shares.

1.14 Borrowing Costs

Borrowing cost, if any, that are directly attributable to the acquisition, construction, or
production of a *qualifying asset are capitalized as a part of the cost of such asset till
such time the asset is ready for its intended use or sale.

Borrowing cost consists of interest and other costs that an entity incurs in connection with
the borrowing of funds. Borrowing costs also includes exchange differences, if any, to
the extent regarded as an adjustment to the borrowing costs. All other borrowing
costs are recognized as expense in the period in which they are incurred.

* A qualifying asset is an asset that necessarily requires a substantial period of time to
get ready for its intended use or sale.

1.15 Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash
equivalents includes cash on hand, deposits held at call with financial institutions, other
short- term, highly liquid investments with original maturities of three months or less
that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.

(B) NOTES FORMING PART OF THE ACCOUNTS

1. The Company has prepared cash flow projections and also, assessed the recoverability of
receivables, contract assets, factored assumptions used in annual impairment using the various
internal and external information up to the date of approval of these financial statements. On the
basis of evaluation and current indicators of future economic conditions, the Company expects to
recover the carrying amount of these assets and does not anticipate any impairment to these
financial and non-financial assets. The Company will continue to closely monitor any material
changes to future economic conditions.

2. In the opinion of the Board, the current assets, loans and advances are approximately of the
value stated if realized in the ordinary course of the business, the provision for all known
liabilities is adequate and no in excess of the amount considered reasonably necessary.

11. Segment Information

The company has identified only one reportable segment viz. spinning mill. Segment
has been identified and reported considering nature of products and services, the
differing risks and returns and the internal business reporting system.

12. The company does not hold any crypto currency or any other digital virtual asset.

13. The issue of ‘disclosure or otherwise of any undisclosed income in the hands of
the company’ is not applicable to the company.

14. Loans obtained by the company from the banks have been utilized by the company
for the purpose for which they were obtained.

15. Title deeds of the immovable properties are held by the company in its own name.

16. The company has not granted any loans to any related parties during the year.

17. No proceedings have been initiated against the company under the Prohibition of
Benami Transactions (Prohibition) Amendment Act, 2016.

18. The company has not been declared willful defaulter by any of the
banks/financial institutions.

19. The company has no transactions with companies struck off either under section 248
of the Companies Act, 201 3 or under section 560 of the Companies Act, 1 956.

20. The provisions of section 1 35 relating to CSR are applicable to the company in
F Y 2022-23 and the same are fulfilled accordingly.

21. All charges of the banks have been duly registered with the Registrar of Companies.

Jitendrakumar G Chopra Deepak C Choudhari

Managing Director Chairman & Managing Director

DIN - 08196887 DIN - 03175105

Kolhapur
May 31,2024