- First and exclusive charge by way of hypothecation on all existing and future receivables/ current assets/ movable assets' movable fixed assets of the borrower.

*Car loans are secured by way of hypothecation of specific vehicle Collateral:

Equitable morgaged of

a Plot no.A/13, M1DC Tarapur Industrial area, Village Pamtembhi, Taluka Palghar, Dist. Thane

b. Flat no. 605, 6th Floor, Building No. 2, Man Mandir Suraksha CHS, Mulund West, Mumbai - 400080 owned by Mrs. Sejal Shah

c. Flat no. 504,5th Floor, Tower 1, Gemini Building, Runwal Authurium, LBS Road, Mulund Wet, Mumbai - 400080 owned by Mr. Dixit Shah & Mr. Manekchand Shah

d. Flat no. 1201,12th Floor. B-Wing. E/6 Apartment, Nahar Sarvodaya Heights CHSL, Mulund West. Mumbai - 400080 owned by Mr. Jignesh Shah, Mr. Himmatlal Shah and Mrs. Sejal J Shah.

e. Personal guarantee of following directors:

Himmatlal Shah, Jignesh Shah, Nitin Shah Dixit Shah and Manekchand Shah

B. Unsecured

- First and exclusive charge by way of hypothecation on all existing and future receivables/ current assets/ movable assets/ movable fixed assets of the borrower.

Collateral:

Equitable morgaged of

a. Plot no.A/13. MIDC Tarapur Industrial area. Village Paintembhi. Taluka Palghar. Dist. Thane

b. Flat no. 605, 6th Floor, Building No.2, Man Mandir Suraksha CHS, Mulund West, Mumbai - 400080 owned by Mrs. Sejal Shall

c. Flat no. 504, 5th Floor, Tower 1, Gemini Building, Runwal Authurium, LBS Road, Mulund Wet, Mumbai - 400080 owned by Mr. Dixit Shall & Mr. Manekchand Shall

d. Flat no. 1201, 12th Floor, B-Wing, E/6 Apartment, Naliar Sarvodaya Heiglits CHSL, Mulund West, Mumbai - 400080 owned by Mr. Jignesh Shah, Mr. Himmatlal Shall and Mrs. Sejal J Shall.

e. Personal guarantee of following directors:

Himmatlal Shall, Jignesh Shall, Nitin Shall, Dixit Shall and Manekchand Shall

36 Coiporate Social Responsibility (CSR):

As per section 135 of the Compnaies Act 2013 along with the Companies (Corporate Social Responsibility Policy) Rules, 2014 read with DPS guidelines no F No. 15 (13)/2013-DPE(GM), the Company is required to spend, in every financial year, at least two percent of the

average net profits of the Compnay during the three immediately preceding financials years in accordance with its CSR Policy.

During the period under review, the company did not meet this criteria and therefore was not required to spend any amount towards CSR activity.

37 The Ministry of Corporate Aflairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of accounts, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of accounts along with the date when such changes were made and ensuring that the audit trail cannot be disabled

The Company uses accounting software (Tally Prime) for maintaining its books of account which have a feature of recording audit trail (edit log) facility. The company uses Trac ERP software for Tarapur Umt and Foxpro software for Saravali Umt for recording of inventory. With regard to the tally prime, the audit trail (edit log) facility has been operational throughout the year for all relevant transactions recorded in the accounting software. However, in Trac ERP software and Foxpro software which is used for maintaining inventory records the audit trail (edit log) facility has not been operational throughout the period under audit.

38 Penalty amounting to INR 251.54 lakhs has been levied by NGT for alleged violation of environmental norms by the Company at its factory located at Tarapur MTDC As per the directions of the Honourable Supreme Court dated December 14, 2020, the Company has deposited 30% of the penalty amounting to INR 75.46 lakhs which was disclosed as recoverable advance in financial year 2020-21. The order of penalty was stayed by the Honourable Supreme Court and has directed to hear the case afresh by giving opportunity to the concerned parties. Pursuant to the directions of the Honorable Supreme Court dated December 14, 2020, National Green Tribunal had reheard the matter and vide its direction dated January 24, 2022 had reduced the portion of compensation attributable to the company for alleged violations of environmental norms of manufacturers at Tarapur MIDC to an amount of of Rs 98.88 lakhs from Rs.251.51 lakhs. In view' of the same the company has debited penalty amouting to INR 98.88 lakhs in the financial year 2021-22.

41 During the financial year 2024-2025. in order to give effect to the oral family understanding of July 2022. the members of the promoter.'family of Jakhana group entered into a family settlement to amicably restructure their respective shareholdings, business interests, and control rights across various entities within the Group The arrangement was executed through mutual consent, to avoid any likely dispute or litigauon. and was formalized via a wntten memorandum of family arrangement dated 3006-2024. The understandings as emulating from the family arrangement were as under

a. The family arrangement seperated and compartnetalised the ownership, management and control of different "Jakharia group entities" and distnbute the same amongst the three groups defined therein compnsing of "Jignesh group". "Nitin group" and "Dixit group"

b. The ownership, management and control of the Saravali unit of the company shall be with Dixit group

c. The ownership, management and control of M/s Jakharia Industnes and Jakhana Synthetic Pvt Ltd shall be with Jignesh Group consequent upon this, the company shall retire from the firm M/s Jakharia Industnes m which it was partner

d The brand name "Jakhana’ can be used by all the groups

e. The promoted group has since been reclassified the inter sc transfer of shares have been effected amongst the family members such as to align m line with the family settlement arrangement

The implementation of family settlement involved transaction to give effect to the same, m3 or transactions inter alia which have impact on the financial statement are below

(A) Hive-off of Saravali Unit

•The Saravali Umt ofthe Company, engaged in processing of grey fabncs. was hived off m favour of Jakhana Processors LLP

• In terms ofthe Family Settlement, all assets and liabilities pertaining to the Saravali Umt. including plant and machinery, inventones, receivables, payables, employees, and related operational obligations, were transfared as on 30th June 2024 at then respective book values

• Operations of the Sxavali Umt have been included in the Company's financial statements only up to 30th June 2024. Subsequent to that, the Company has no continumg involvement m the said Umt.

(B) Retirement from Partnership Firm

• The Company was a partner in Jakhana Industries with 65% share of profits Under the Family Settlement, the Company has retned from the said firm with effect from 30 06.2025.

•The capital balance of ? 12,47,29.461 standing to the credit ofthe Company m the books ofthe Firm were settled as per the terms ofthe agreement, without any dispute.

•No goodwill has been recognised or received by the Company in respect of its retnement, as the transaction was affected as part ofthe overall family arrangement

(C) Consideration and Settlement Terms

•Both the hive-off of the Umt and the retirement from the Partnership Firm were affected at book values

•The transfers were m the nature of family realignment and therefore no monetary consideration or gam loss has been recorded

•Adjustments have been made in the Company's books against investments, capital accounts, and reserves as per the settlement

(D) Accounting Treatment

•The above transactions have been accounted for at book values, m lme with the principle that a bona fide family settlement does not constitute a commercial transfer. •Accordingly, no profit or loss has been recognised m the Statement of Profit and Loss.

(E) Impact on Financial Statements

•Revenue and expenses relating to the hived-off Umt are reflected only up to 30.06.2025.

•Post hive-off and retirement, the Company's financial statements reflect only the continuing busmess operations •There is no matenal impact on the gomg concern status of the Company

42 Other Statu tors’

Information :

(1) The company do not have any Benann property, where any proceeding has been initiated or pending against the company for holding any Benann property.

(ii) The company do not have any transactions with companies shuck off.

(in) The Company has not entered into any scheme of arrangement w’hich has an accouting impact on current or previous financial year.

(iv) The Company has not haded or invested m crypto currency or virtual currency during the cunent or previous year.

(v) The Company has not declared wilfUl defaulter by any bank or financial institution or Government or Government Authority.

(si) There is no mcome sunendered or disclosed as income during the cunent or previous year in the tax assessment under Income Tax Act, 1961 that has not been recorded in the books of accounts.

(vn) There are no otha significant events w’hich have occurred after the report mg period.

(vm) The company has not traded or in vets ed m Crypto currency or Virtual currency dunng the financial year.

43 As per the information available with the Company, there are Micro. Small and Medium Enterpnses as defined m the Micro. Small and Medium Enterpnses Development Act. 2006 to w’hom the Como any ow’s dies on account of Principal and Interest

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

44 The Company operates in a single reportable business segment, which is textile processing and related activity. Further, the Company operates primanly m India and there is no other significant geographical segment Accordingly, no significant information has been submitted as a part of these financial statements

45 Previous year figures :

Previous year figures have been regrouped to comply with cunent year groupings