(xii) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized, when there is a present legal or constructive obligation as a result of past events, where it is
probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the
obligation can be made. Where a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows. Where the effect is material, the provision is discounted to net
present value using an appropriate current market-based pre-tax discount rate and the unwinding of the discount is included
in finance costs.

Contingent liabilities are recognised only when there is a possible obligation arising from past events, due to occurrence or
non-occurrence of one or more uncertain future events, not wholly within the control of the Company, or where any present
obligation cannot be measured in terms of future outflow of resources, or where a reliable estimate of the obligation cannot
be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are
provided for.

Contingent assets are not disclosed in the financial statements unless an inflow of economic benefits is probable.

(xiii) Leases

The Company assesses whether a contract is or contains a lease, at inception of a contract. A contract is, or contains, a
lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

At the date of commencement of the lease, the Company recognises a right-of-use asset (“ROU”) and a corresponding
lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short¬
term leases) and leases of low value assets. For these short-term and leases of low value assets, the Company recognises
the lease payments as an operating expense on a straight-line basis over the term of the lease.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability. They are
subsequently measured at cost less accumulated depreciation and impairment losses, if any. Right-of-use assets are
depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the
underlying asset.

The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted
using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. The lease
liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the
carrying amount to reflect the lease payments made.

A lease liability is remeasured upon the occurrence of certain events such as a change in the lease term or a change in an
index or rate used to determine lease payments. The re-measurement normally also adjusts the leased assets.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been
classified as financing cash flows.

(xiv) Foreign Currency Transactions

Transactions in foreign currency are recorded at the rate of exchange in force at the date of the transaction. Assets and
Liabilities in foreign currency outstanding at the year end, if any, are stated at the rate of exchange prevailing at the close
of the year and the resultant gain / loss is recognised in the Statement of Profit and Loss.

(xv) Cash and Cash Equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash
that are subject to an insignificant risk of change in value and having original maturities of three months or less from the
date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted
for withdrawal and usage.

a) Capital Reserve

Capital Reserve is created on account of subsidy received from State Government. The Same will not be used for distribution
of dividend.

b) Securities Premium

Securities Premium is used to record the premium on issue of shares. The Reserve is utilised in accordance with the provision
of Section 52 of The Companies Act, 2013.

c) Balance in Statement of Profit and Loss

Balance in Statement of Profit and Loss are the losses that the Company has incurred till date, less any transfers to general
reserve, dividends or other distributions paid to Shareholders.

(a) Financial Risk Management

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The purpose of these
financial liabilities is to finance the Company’s operations and to provide to support its operations. The Company’s principal
financial assets trade and other receivables and cash and cash equivalents that derive directly from its operations.

The Company’s activities exposes it to Liquidity Risk, Market Risk and Credit Risk. The Board of Directors reviews and agrees
policies for managing each of these risks, which are summarised as below.

i. Liquidity Risk

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by
delivering cash or another financial asset. Liquidity risk management implies maintenance sufficient cash including availability
of funding through an adequate amount of committed credit facilities to meet the obligations as and when due.

The Company manages its liquidity risk by ensuring as far as possible that it will have sufficient liquidity to meet its short
term and long term liabilities as and when due. Anticipated future cash flows, undrawn committed credit facilities are
expected to be sufficient to meet the liquidity requirements of the Company.

ii. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity
price risk and commodity risk.

a) Foreign Currency Risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates. The Company does not have foreign currency exposere as at the year end.

b) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of the financial instruments will fluctuate because of
changes in market interest rates. The Company’s long term borrowings have fixed rate of interest and are carried at
amortised costs. The interest rate risk exposure is mainly from changes in floating interest rates. The interest rate are
disclosed in the respective notes to the financial statement of the Company. The following table analyse the breakdown
of the financial assets and liabilities by type of interest rate:

iii. Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations.
The Company is exposed to credit risks from its operating activities, primarily trade receivables, cash and cash equivalents,
deposits with banks and other financial instruments.

NOTE 34

Capital Management

For the purpose of the Company’s capital management, capital includes issued capital and other equity reserves. The primary
objective of the Company’s Capital Management is to maximise shareholders value. The Company manages its capital structure
and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The Company monitors capital using Adjusted net debt to equity ratio. For this purpose, adjusted net debt is defined as total debt
less cash and bank balances

Balances of certain trade receivables, loans and advances given and trade payables are subject to confirmation/reconciliation. In
the opinion of the Board, the difference as may be noticed on such reconciliation will not be material.

NOTE 38

Operating Leases

The Company has taken certain godowns under cancelable operating leases. The lease agreements are usually renewable by
mutual consents on mutually agreeable terms. Rent payment of Rs. 0.72 Lakhs (Previous Year Rs. 0.72 Lakhs) has been disclosed
as rent in the Note No. 29 ‘Other Expenses’.

The Company’s main business is trading of Polymer and Yarn etc. Accordingly, there are no separate reportable segment as per
IND AS 108.

NOTE 41

Other Statutory Information:

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.

(ii) The Company do not have any transactions with struck off Companies.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,
except for eight charges created between the period from 1993 to 1999 where date of satisfaction is not reflected on the MCA
portal and therefore, shown as outstanding. These are being regularised.

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) 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.

(vi) 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 on behalf of the Ultimate Beneficiaries.

(vii) The Company do 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).

(viii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017.

(ix) The quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement
with the books of accounts.

(x) The Company is not declared wilful defaulter by any bank or financial institution or lender during the year.

NOTE 42

Recent Accounting Pronouncements

There has been no announcements in respect of amendments announcement in INDAS applicable for next financial Year 2024¬
2025.

NOTE 43

The Indian Parliament has approved the Code on Social Security, 2020 (“the Code”) which, inter alia, deals with employee benefits
during employment and post-employment, and the same has 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 and recognise the same when the Code becomes effective.

NOTE 44

Figures for the previous years have been regrouped / restated wherever necessary to conform to current year’s presentation.
NOTE 45

Approval of Fianancial Statements

The financial statements were approved for issue by the Board of Directors on May 29, 2024.

As per our attached report of Even Date

For SHANKER AND KAPANI
Chartered Accountants

Firm Registration No : 117761W For and on Behalf of Board of Directors

PAWAN KUMAR RUNGTA Sanjay M Jatia Pannalal N Jyotshi

Partner Chairman and Managing Director Director

Membership No. 42902 DIN: 00913405 DIN: 07248640

Navalkishor Gadia Manorama Yadav

Place : Mumbai Chief Financial Officer Company Secretary

Date : May 29, 2024 Membership No. A36619