4. Segment Reporting:

The operation of the Company represents only one business segment, viz. ‘Trading in Textiles'. Accordingly, all earnings, assets and liabilities relate to this activity only and there is no separate Segment.

5. Financial risk management

Company's activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and its impact on the financial statements

(i) Credit Risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Company. The credit risk arises from trade receivables, security deposits, cash and cash equivalents and deposits with banks.

Trade receivables

The company supplies yarn / fabric to customers. Concentrations of credit risk with respect to trade receivables are limited as majority credit sales are made to high credit worthy entities. All trade receivables are reviewed and assessed for default on regular basis. Our historical experience of collecting receivables, supported by the level of default, is that credit risk is low.

For trade receivables, except for specifically identified cases, Company follows a simplified approach where provision is made as per the ageing buckets which are designed based on historical facts and patterns.

(ii) Liquidity Risk

Liquidity risk is the risk that the Company will find it difficult in meeting its obligations associated with its financial liabilities in time. 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 and to close out market positions. Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The tables below analyses the Company's financial liabilities into relevant maturity groupings based on their contractual maturities.

‘(iii) Market Risk

Foreign Exchange Risk

Company is not exposed to foreign exchange risk presently.

Interest Rate Risk:

The Company's investments in fixed deposits with banks are for short durations, and therefore do not expose the Company to significant interest rates risk.

6. Disclosure as required by Indian Accounting Standard 40, “Investment Property”

1) Accounting Policy for measurement of Investment Property

o Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property.

o Investment property is measured initially at its cost, including related transaction costs and borrowing costs where applicable. Subsequent expenditure is capitalized to the asset's carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. o Investment properties are depreciated using the straight line method over their estimated useful lives which is 60 years.

o Fair valuation is based on projected rent capitalization method, which is Rs. Nil (previous year Rs. 793.80 Lakhs). The fair value measurement is categorized in Level 3 fair value hierarchy. This property has been sold during the year. Refer Note 1.11.1

3) Depreciation Method used: Straight Line Method

4) Useful remaining life of the asset: 23 years

5) Contractual obligations for repairs, maintenance or enhancements: Nil

6) The Investment Properties have been sold during the year. Refer Note 1.11.1 for further details.

7. Earnings per Share

Earnings per share is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. The numbers used in calculating basic and diluted earnings per equity share are as stated below:

8. OTHER STATUTORY INFORMATION: (to the extent applicable)

(i) The Company has not obtained any term loan from banks or any other lender. The Company has not borrowed from banks or financial institutions on the basis of security of current assets.

(ii) The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties, either severally or jointly with any other person.

(iii) The Company has not been declared a willful defaulter by any bank or other lender.

(iv) The Company does not have any Benami property, where any proceedings has been initiated or pending against the Company for holding any benami property.

(v) The Company does not have any transaction with struck off companies.

(vi) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

(viii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding that 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.

(ix) 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 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 to or on behalf of the Ultimate Beneficiaries.

(x) 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 provision of the Income Tax Act, 1961).

(xi) The Company is not covered under Section 135 of the Companies Act, 2013 with regard to CSR activities.

9 Financial instruments

A Accounting classification and fair values:

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value Fair value hierarchy

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices in an active market. This included listed equity instruments and mutual funds that have quoted price. The fair value of all equity 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 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

B Measurement of fair values

Valuation techniques and significant unobservable inputs

The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current

transaction between willing parties. The following methods and assumptions were used to estimate the fair value.

1. The equity investments included in the level 3 of the fair value hierarchy have been valued using the cost approach to arrive a their fair value. Cost of unquoted equity instruments (refer Note 1.12) has been considered as an appropirte estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.

2 The Company has not disclosed the fair value of financial instruments such as trade receivables, trade payables, etc. because their carrying amounts are a reasonable approximation of fair value.

3. Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. Financial instruments such as unlisted equity shares, loans are included in this hierarchy.

4. The management considers that the carrying amount of financial liabilities carried as amortised cost approximates their fair value

(*) Average = (opening closing)/2.

(**) Reasons for variation.

(i) The current ratio has improved due to increase in cash and cash equivalents during the year on disposal of investment property and dividend received.

(ii) The Company has not borrowed any funds and debts was Rs. NIL in both the years

(iii) Return on Equity has improved in view of increase in net profit after tax for the year on account of profit on sale of investment property and receipt of dividend income on shares.

(iv) The Company did not have any inventory at the end of the financial year or previous year

(v) Trade receivable ratio with revenue from operations increased due to increase in the amount of trade receivable at the end of the financial year.

(vi) Trade payable ratio is not applicable since there were no trade payables at the end of financial year or previous year.

(vii) Net profit ratio and return on capital employed increased due to increase in net profit after tax for the financial year as compared to net loss in the previous year.

(viii) Return on investment was on account of dividend income on shares and capital gain on mutual fund.

11. The figures of the previous year have been regrouped / reclassified, wherever necessary, to conform to the current

year's presentation.