3.2 Terms/Right attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share . The company declares and pays dividend in Indian rupees. In the event of liquidation of the company , the holders of the equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amount. The distribution will be in proportion of the number of equity shares held by the shareholders.

A. Vehicle Loan of Rs. 127 Lakhs (Outstanding Balance Rs. 115.12 Lakhs) is secured by hypothecation of said vehicle finaced is repayable under 48 Monthly Installments.

B. Loan of Rs. 73.84 Lakhs (Outstanding Balance Rs. 58.90 Lakhs) is secured by second Pari-Passu charge on the Fixed & Current Assets of the company is repayable under 36 Monthly Installments.

C. Loan of Rs. 119 Lakhs (Outstanding Balance Rs. 79.33 Lakhs) is secured by second Pari-Passu charge on the Fixed & Current Assets of the company is repayable under 36 Monthly Installments.

D. Vehicle Loan of Rs. 22.06 Lakhs (Outstanding Balance Rs. 6.20 Lakhs) is secured by hypothecation of said vehicle finaced is repayable under 39 Monthly Installments.

The Company has defined benefit gratuity plan. Every employee who has completed five or more of service gets a gratuity on post employment at 15 days salary ( Last drawn salary) for each completed year of service as per rules of the company. The aforesaid liability is provided for on the basis of an actuarial valuation made at the end of the financial period.

(i) Defined benefit plan

(a) Reconciliation of opening and closing balances of defined benefit obligation

Total Debts includes Long term and Short term debts

EBITDA = Profit before Tax Finance Cost Depriciation expense

EBIT = Profit before Tax Finance Cost

Capital Employed = Total Equity Total Debts Deferred tax liability

PY Current Ratio and Net Capital Turnover Ratio has been changed due to Recalssification. (Refer Note -49)

Notes:-

1 Current ratio : The decrease is on account of over utilisation of Working Capital Limit as compare to previous year and payment to creditors.

2 Debt-Equity Ratio : The variance is on account of procurement of loans duing the year.

3 Debt Service Coverage Ratio : The variance is on account of decrease in profit and increase in loan repayment liability due to prepayment of few Term Loans.

4 Return On Equity (ROE) : The increase is on account of decrease in Net Profit during the year as compare to previous year.

5 Inventory Turnover Ratio : The decrease is on account of decrease in Revenue from Operation and increade in closing stock of finished goods due to consideration of sales cut-off .

6 Trade Payable Turnover Ratio : The decrease is on account of increase in the level of trade payables as compare to previous year.

7 Net Profit Ratio : The decrease is on account of decrease in the profit for the year as compare to previous year.

8 Return On Capital Employed (ROCE) : The decrease is on account of decrease in the profit for the year and increase in long term bborrowings as compare to previous year.

40 The amount unpaid as at 31st March, 2025 and 31st March, 2024 is disclosed on the basis of intimation received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 by the Company.

41 The amount due to Small Scale Undertakings (SSIs) is furnished under the relevant head. On the basis of information available with the Company regarding small scale industry status of the suppliers is Nil.

42 The Board of Directors and the Shareholders of the Company have approved a Scheme called as "Mohini Employees Stock Purchase Scheme - 2020" ("Scheme") in their meeting held on September 29, 2020. This scheme is effective from September 29, 2020. Pursuant to the Scheme, the Company has constituted Mohini Employees Welfare Trust ('Trust') to acquire, hold and allocate/transfer equity shares of the Company to eligible employees from time to time on the terms and conditions specified under the Scheme. However, no offer was

made to eligible employees under the Scheme till March 31,2025. The said trust had sold, Company's equity shares aggregated to 49,500 equity shares in the secondary market at price of 63.66 per share during the year. The Total outstanding share held by the Mohini Employee Welfare Trust as at March 31,2025 are 1,84,500 Share.

43 On 24th May 2021, a major fire broke out at the manufacturing facility of the company located at Plot No.109, Sector 3, Pithampur Industrial Area, District Dhar (MP) - 454774. There was no harm to human lives or injuries. The company suffered substantial loss to Building, Plant & Machinery and Inventory on account of fire. We have submitted our claim with the Surveyor of the Insurance Company and the Company has booked insurance claim receivable amounting to Rs. 2,503.73 lakhs as at 31 March, 2024 which is still under process with the insurance company. During the F.Y 2024-25 the company has written off insurance claim amounting to Rs. 618.48 lakhs shown as Extraordinary Item on the face of Profit & Loss. Due to fire incident, operations of the Bleaching unit were disrupted during the period from 24.05.2021 to 02.08.2021. Now the routine operations have been restored and plant has achieved optimum capacity utilization.

44 The Board of director of the company, in their meeting held on 29th May,2024, recommended a final dividend of INR 0.5 per fully paid-up equity shares of Rs. 10/- each, for the year ended 31st March 2024 which is paid during the financial year 2024-25. No dividend has been proposed for the financial year ended 31st March 2025.

45 The Company has initiated the process for acquisition of Winsome Yarns Limited which is under the trial of NCLT Approval of Committee of Creditors (CoC) has been received for the acquisition but the approval of NCLT is awaited. Amount of Rs. 2020.19 Lakhs has been paid as a advance appearing as Advance for Capital Goods under Note 19 (Other Current Assets).

46 Prior period expenses of Rs 18.74 Lakhs comprise of lease amortisation pertaining to the period prior to 1st April 2024 which were accrued and accordingly, then booked during the year ended 31 March 2025.

47 The company have submitted the claim with the Insurance Company and the Company has booked insurance claim receivable amounting to Rs. 2,503.73 lakhs as at 31 March, 2024 which is still under process with the insurance company. During the F.Y 2024-25 the company has written off insurance claim and recognised loss by fire amounting to Rs. 618.48 lakhs shown as Extraordinary Item on the face of Profit & Loss.

48 As per As-17 "Segment Reporting" is not applicable as 100% Revenue comes from single segment of Manufacturing.

49 The Company has recognised notional loss of Rs. 12.53 lakhs and Rs. 39.05 lakhs on open forward contracts for the year ended 31st March 2025 and 31st March 2024 respectively.

b. Details of Benami Property held

The Company does not hold any Benami Property and no proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

c. Title deeds of Immovable Property

Title deeds of Immovable Property held are in the name of Company.

e. Details of Revalued Property

The Company has not revalued its Property, Plant and Equipment during the year.

f. Wilful Defaulter by any Bank/ Financial Institution/ Other Lender

The company is not declared as wilful defaulter by any bank / financial institution / other lender.

g. Relationship with struck off companies

The Company has no such transaction with any Struck off Company.

h. Registration of Charges or satisfaction with Registrar of Companies(ROC)

There are no charges pending for registeration with Registrar of Companies (ROC).

i. Compliance with number of layers of companies

The company has complied with clause (87) of section 2 of the Act read with the Companies (Restriction on number of layers) Rules, 2017.

j. Compliance with approved Scheme(s) of Arrangements

The Company has not entered into any Scheme of arrangement approved by Competent Authority.

k. Utillization of Borrowed Fund and Share Premium

A. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies).

B. The company has not received any funds from any other person(s) or entity(ies).

l. Undisclosed Income

There are no transactions which are not recorded in books of accounts i.e. there is no undisclosed income.

m. Crypto Currency or Virtual Currency

The company has not traded or invested in Crypto Currency or Virtual Currency.

The Accompanying notes are an integral part of the standalone financial statements.