Nature and purpose of Reserves

Securities Premium

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

Retained Earnings

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

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

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

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

(ii) Terms and right attached with equity shares:

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

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

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

(vi) Disclosure of Shareholding of Promoters.

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

Terms and repayment schedule

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

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

MANOMAY TEX INDIA LIMITED

Notes to the Standalone Financial Statements

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

a. Primary Security:

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

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

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

b. Collateral Security & Equitable Mortgage:

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

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

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

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

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

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

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

c. Personal Guarantees

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

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

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

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

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

d. Corporate Guarantees

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

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

Vehical loans are secured against respective vehiclas.

Details of security

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

Note:

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

30. Employee benefits Defined contribution plans

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

Defined benefit plans Gratuity Plan

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

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

Interest risk

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

Longevity risk

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

Salary risk

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

Disclosures for defined benefit plans based on actuarial valuation reports

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

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

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

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

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

33.

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

34.

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

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

35.

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

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

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

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

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

36.

Ind AS 24 Related Party disclosures

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

B. Fair value hierarchy

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

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

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

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

Valuation techniques used to determine fair value

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

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

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

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

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

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

38. Financial instruments - Fair values and risk management

D. Financial risk management

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

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

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

Financial risk factors

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

1. Market Risk:

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

2. Foreign currency risk:

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

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

b. Derivative financial instruments

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

3. Interest rate risk:

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

Sensitivity Analysis:

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

4. Price risk:

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

5. Credit risk:

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

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

Trade Receivables

The Company assesses the creditworthiness of customers internally to whom goods are sold on credit terms in the normal course of business. The credit exposure for each customer is defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

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

Cash & Cash Equivalents

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

6. Liquidity risk management:

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

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

39. Capital management

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

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

Notes:

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

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

3. Debt Service: Interest lease payments principal repayments

4. PAT : Profit after taxes

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

6. Total debt: Borrowings lease liabilities

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

8. Working capital refers to current assets minus current liabilities

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

10. Average investments excludes investments in associates & subsidiaries

Explanation for variances exceeding 25%:

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

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

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

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

Additional regulatory disclosures

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

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

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

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

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

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

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

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

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

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

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

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

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

Notes:

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

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

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

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

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

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

42. Approval of financial statements

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

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