a) Terms and rights attached to the equity shares:

The Company has only one class of equity shares having a par value ^ 10/- per share. The holders of the equity shares are entitled to voting rights proportionate to their share holding at the meetings of shareholders. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholder in the ensuing Annual General meeting.

(i) Capital Reserve: Capital Reserves include Capital Subsidy received by the Company in earlier years.

(ii) Securities Premium Reserve: Securities premium is used to record the premium received on issue of shares. This reserve can be utilized in accordance with the provisions of the Companies Act 2013.

(iii) Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

(iv) Equity Instruments & FVBDO though OCI: Any changes in the Asset i.e., Investments due to change in Market Price of Investments and Changes in liabilities over the year due to changes in actuarial assumptions or experience adjustments within the plans, are recognized in ‘Other comprehensive income’ and subsequently not reclassified to the Statement of Profit and Loss.

14(C) The Company has not received any Fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:

a) directly or indirectly lend or investment in other persons or entities identified in any manner whatsoever by or behalf of the funding party (Ultimate Beneficiaries) or,

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

14(D) The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time during the financial year, or after the end of the reporting period but before the date when financial statements are approved.

As on 31st March 2023- Credit Card Dues - Rs. 81,56,912/-, Cheque Issued but not presented - Rs.20,00,966/-Electricity Bill Payable - Rs.1,21,41,629/-, Advances from customers - Rs. 42,400/-, Capital Creditors-Rs. 68,29,534/- and Other Expenses Payable- Rs. 72,92,306/-

As on 31st March 2022- Credit Card Dues - Rs. 45,55,593/-, Cheque Issued but not presented - Rs.12,70,669/-Electricity Bill Payable - Rs. 92,12,160/-, Advances from customers - Rs. 650/-, Capital Creditors Rs.6,45,19,500/- and Other Expenses Payable- Rs. 6,54,67,120/-

Note- The aforesaid Finance cost excludes installation period interest & Other Borrowing Cost charged on specific borrowings from bank, capitalized during the year amounting to CY - Rs.1,52,16,738/-, PY- Rs. 12,04,526/-

Note: 27A Corporate Social Responsibility Expense

The company has spent Rs. 10,60,000/- of Corporate Social Responsibility (CSR) funds towards Ancient Indian Sciences These are eligible CSR activities Schedule VII of the Companies Act, 2013. The details are:

I. Gross amount required to be spent by the Company during the year: Rs. 10,57,0000/-

II. Amount spent during the year on:

i. Above includes a contribution of Rs. 10,60,000/-Dr. Narayan Dutt Shrimali foundation which is a Section 8 registered Company under Companies Act, 2013, with the main objectives of working in the areas of Ancient Indian sciences.

ii. The Company does not carry any provisions for Corporate social responsibility expenses for current year and previous year.

iii. There are no shortfalls as at the current year or previous years. Moreover, the Company does not wish to carry forward any excess amount spent during the year.

iv. The Company does not have any ongoing projects as at 31st March, 2023.

Note:

1. Earnings per share calculations are done in accordance with IND AS 33 “Earnings per share”. Weighted average number of equity shares is the number of equity shares outstanding at the beginning of the year adjusted by the number of equity shares issued during the year and subsequent to the Balance sheet date but before approval of accounts in the Board is multiplied by the time weighing factor. The time weighing factor is the number of days for which the specific shares are outstanding as a proportion of total number of days during the year.

2. The earnings per share figure for the year ended 31st March 2022 and 31st March 2021 have been adjusted to give effect to the allotment of the bonus shares, as required by Ind AS-33. Bonus issue in the ratio 2:1 has been declared on 26th April 2021.

Note: 30 CORPORATE INFORMATION

AB COTSPIN INDIA LIMITED is one of the leading names in textile industry in north india. The company is well accepted as a quality manufacturer in cotton yarns & fabrics circle. The company lays its emphasis on manufacturing quality yarns & fabrics with competence. The Company has matured over a period of time from ginning, cotton trading and then integrating to a cotton spinning mill and further adding knitting facility at the same premises.

AB COTSPIN INDIA LIMITED is a spinning mill located at BathindaRroad, Jaitu distt. Faridkot (Punjab), the company has 18000 spindles of world class technology with automation of various processes and knitting machines from Mayer & Cie. (Germany). The company is engaged in manufacturing world class 100% cotton yarns & fabrics both combed and karded, catering to requirements of niche customers who in turn are engaged in making garments for their international buyers. The company has world class state of art R & D

facility with both online and offline quality monitoring system round the clock. The company has added manufacturing slub yarns, BCI yarns, Double yarns into its product basket. The company is certified producer of BCI yarns from well acclaimed certifying agency and is planning to convert entire unit of spinning & knitting on to BCI yarns & fabrics production in near future. The company maintains complete traceability of BCI Products right from farmers to ginning, spinning yarns & fabrics.

d) Following disclosures shall be made where Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under companies Act, 2013) either severally or jointly with any other person that are:

(a) repayable on demand or

(b) without specifying any terms or period of repayment

f) Terms and conditions of transactions with the related parties

Transactions with the related parties are made on normal commercial terms and conditions and at market rates.

Note: 32 Provision and Contingency in compliance to the Ind AS 37 I. Contingent Liabilities not provided for

Note: 34 Capital Management

The capital includes issued equity capital and other equity reserves attributable to the equity holders of the company. The primary objective of the company's capital management is to maintain optimum capital structure to reduce cost of capital and to maximize the shareholder value.

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximizing the return to stakeholders through the optimisation of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual planning and budgeting and its plan for working capital and long-term borrowings. The funding requirements are met through equity, internal accruals and a combination of both long-term and short-term borrowings.

Note: 35 Previous Years Figure

Previous year's figure has been regrouped/ rearranged /recast, wherever necessary, to make them comparable with the current year's figures.

The Company is primarily in the business of manufacturing, purchase and sale of yarns and other allied products. The Chairman and Managing Director of the Company, which has been identified as being the Chief Operating Decision Maker (CODM), evaluates the Company’s performance, allocate resources based on the analysis of the various performance indicator of the Company as a single unit. Therefore, there is only one reportable segment for the Company.

Domestic information includes sales and services to customers located in India.

Overseas information includes sales and services rendered to customers located outside India.

Non-current segment assets includes property, plant and equipment, capital work in progress, intangible assets and other non-current assets.

The Company's activities are exposed to market risk, liquidity risk and credit risk. The Company's Board of Directors has overall Company's responsibility for the establishment and oversight of the Company's risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

a) Credit Risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits. Other financial assets measured at amortized cost includes abandonment cost, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

b) Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company liquidity position and cash and cash equivalents on the basis of expected cash flows.

The Company does not have international transactions and is not exposed to foreign exchange risk arising from foreign currency transactions.

Note: 39 The Company has a process whereby periodically all long-term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the company has reviewed and ensured that adequate provision as required under any law/ accounting standards for material foreseeable losses on such long-term contracts (including derivative contracts) has been made in books of accounts.

Note: 40 The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 and no proceeding has been initiated or is pending against the Company for holding any benami property.

Note: 41 The Company has not surrendered or disclosed any income during the year in the tax assessments under the Income Tax Act,1961.

Note: 42 No scheme of arrangement for the Company has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

Note: 43 The Company has earned a profit of Nil (FY 2022-23: Nil) on sale of cryptocurrencies during the year. The Company does not hold any cryptocurrency or virtual currency as at 31st March 2023 and 31st March 2022. The Company has also not received any deposits or advances for the purpose of investing in cryptocurrencies or virtual currencies.

a) Economic Assumptions

The principal assumptions are the discount rate & salary growth rate. The discount rate has been determined with reference to expected market yields on CG-Secs of currency and term consistent with those of benefit obligations. Salary increases rate takes into account of inflation, seniority, promotion and other relevant factors on long term basis. Valuation assumptions selected by the Corporation are as follows:

Actuarial Method

a) Projected Unit Credit (PUC) Actuarial Method has been used to assess the plan's liabilities of exiting employees for retirement, death-in-service and withdrawals (Resignations / Terminations).

b) Under the PUC method, a projected accrued benefit is calculated at the beginning of the period and again at the end of the period for each benefit that will accrue for all active members of the plan. The projected accrued benefit is based on the plan accrual formula and upon service as at the beginning or end of period, but using member's final compensation, projected to the age at which the employee is assumed to leave active service. The plan liability is the actuarial present value of the projected accrued benefits as on the date of valuation.

Sensitivities due to mortality & withdrawals are not material & hence impact of change has not been calculated.

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