Note: Trade Receivables Over 6 months & above include amounts receivable from Future Enterprises Ltd, Future Retail Ltd and Future Lifestyle Fashion Ltd amounting to Rs. 1,08,52,590/-, Rs. 50,43,248/- and Rs. 88,23,286/- respectively for which no provision is done in books of accounts, awaiting decision from The National Company Law tribunal (NCLT) (previous year figures are Rs. 1,08,52,590/-, Rs. 50,43,248/- and Rs. 88,23,286/- respectively.

b) Terms /rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10. The equity shares have rights, preferences and restrictions which are in accordance provisions of law, in particular the Companies Act, 2013.

Details of Security:-

First and exclusive mortgage charge on immoveable properties in name of the Company situated at: a) Factory L and B on Plot nos. 13-16, Dewan, Palghar, Thane, b) Flat no. 302, Shree Raj apartment, Janaki nagar, Palghar and c) Office no. B-1303, Naman Midtown, Elphinstone road, Mumbai 400013.

Second charge on property in name of the Company situated at a) Flat No 802, 8th Floor, A Wing, Lodha Evoq, New Cuffe Parade, Wadala East, Mumbai

Personal Guarantee of Promoter Director of the Company, Mr. Danny Hansotia

Terms of Re-payment:- Loan to be repaid in 116 equated monthly instalment beginning from 05.05.2022 and ending till 05.11.2031

WCTL from Kotak Bank under ECLGS1 : (takeover from DCB Bank Ltd.)

DCB Bank, in terms of Government of India's Emergency Credit Line Guarantee Scheme (ECLGS) has sanctioned a Guaranteed Emergency Credit Line (GECL) by way of Working Capital Term Loan, which has been subsequently taken over by Kotak Bank Ltd w.e.f 07.04.22

Details of Security :- WCTL under ECLGS is taken from Kotak Bank for Working Capital purposes and secured by Extension of charge over existing primary and collateral securities, including mortgage created in favour of the bank, on second charge basis and personal guarantee of promoter director of the Company, Mr. Danny Hansotia

Terms of Repayment :- Loan to be repaid in 26 equated monthly instalment beginning from 05.05.2022 and ending till 05.06.2024

ICICI Bank, in terms of Government of India's Emergency Credit Line Guarantee Scheme (ECLGS) has sanctioned a Guaranteed Emergency Credit Line (GECL) by way of Working Capital Term Loan, which has been subsequently taken over by Kotak Bank Ltd w.e.f 07.04.22

Details of Security :- WCTL under ECLGS is taken from Kotak Bank for Working Capital purposes and secured by Extension of charge over existing primary and collateral securities, including mortgage created in favour of the bank, on second charge basis and personal guarantee of promoter director of the Company, Mr. Danny Hansotia

Terms of Repayment :- Loan to be repaid in 26 equated monthly instalment beginning from 05.05.2022 and ending till 05.06.2024

Provision for Gratuity is made on the assumption that such benefits are payable on termination of employment and method adopted for its calculation has been worked on Acturial Valuation basis.

Details of Security:-

1) Working capital - CC/OD taken from Kotak Bank Ltd. is secured by:

a) First pari-passu hypothecation charge to be shared with DCB Bank on all existing and future receivables / current assets of the Company

b) First and exclusive hypothecation charge on all moveable fixed assets of the Company

c) First and exclusive mortgage charge on immoveable properties situated at:

i. Factory L and B on plot no.13-16, Dewan, Palghar, Thane, in the name of the Company

ii. Flat no.302, Shree Raj Apartment, Janaki Nagar, Bhausaheb Dabdekar Marg, Tal. Palghar, Dist. Thane, in the name of the Company

iii. Office no. 1303-B wing, Elphinstone, Naman Midtown, Off Senapati Bapat Marg, Mumbai-400013, owned by the Company

d) Second Charge on Flat no.802, 8th floor, A wing, Lodha EVOQ, New Cuffe Parade, Wadala (E), Mumbai, in the name of the Company. The security is currently held with DCB Bank Limited.

e) Personal guarantee of promoter director of the Company, Mr. Danny Hansotia

2) Working capital - CC/STL taken from DCB Bank Ltd. is secured by:

a) First pari-passu hypothecation charge to be shared with Kotak Bank on all existing and future receivables / current assets of the Company

b) Equitable Mortgage of Flat no.802, 8th floor, A wing, Lodha EVOQ, New Cuffe Parade, Wadala (E), Mumbai, in the name of the Company.

3) Working capital - Overdraft against FD from DCB Bank Ltd. & ICICI Bank Ltd. is secured by:

a) 100% Lien on Fixed Deposit with respective Banks.

Dues to micro and small enterprises have been determined to the extent such parties have been identified on the basis of intimation received from the " suppliers" regarding their status under the Micro, small and Medium Enterprises Development Act, 2006.

Dues to micro and small enterprises have been determined to the extent such parties have been identified on the basis of intimation received from the " suppliers" regarding their status under the Micro, small and Medium Enterprises Development Act, 2006.

Note 36: Contingent Liabilities

i) Claims against the Company not acknowledgement as debts

a) Income tax matters TDS Default on Traces

There is old TDS default towards Short deduction, Interest, Late Fees etc. of Rs. 3,68,056/-not yet claimed by TDS department (previous year - Rs. 364,429/-)

39. Some of the sundry debtors, sundry creditors and loans & advances are subject to confirmation and reconciliation. Consequential adjustment thereof, if any, will be given effect into the books of accounts in the year of such adjustment.

40. In the opinion of the Board, the Current Assets, Loans & Advances are approximately of the value stated and are realizable in the ordinary course of business

41. The items of inventories are measured at lower of cost or net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition. Raw material comprises of Yarn and packing material at cost, Wastage is valued at net realizable value. Cost of Raw material, finished goods, Spare and Consumables are determined on First in First out basis. (FIFO)

42. Previous year figure have been regrouped / reclassified to confirm with current year

presentation, whenever considered necessary.

Installed capacity for the year has been calculated on the basis of machines in use and running in production. As of March 31, 2024, out of the 267 machines, 178 machines have been put to use in production. Installed capacity of machines in production during the year is taken on a pro rata basis based on the number of days machines were put to use.(Previous year figures are 270 and 227 respectively)

43. a) Insurance claim of Rs. 89.35 Lacs along with interest theron upto date of settlement is filed by the company on account of fire occurred at the Company's Godown at Aliyali - Palghar, Maharashtra on 26 th August, 2008 damaging complete Building and Stock in hand and the same is still pending with the insurance company. The Company has filled a case against the insurance company in the National Consumer Court, New Delhi. The case is under hearing as on March 31, 2024.

i) The Company had filied an Appeal before Income Tax Appellate Tribunal, Mumbai against Income Tax Demand of Rs. 74,46,117/- for A.Y. 2005-06 and A.Y. 2006-07 and paid Rs. 28,61,057/- had been paid by the Company in 2012. The said ITAT appeal decided in favor of company vide consolidated ITAT Appeal order dated 15/09/2016 and refund of Rs. 32,81,628/- received in May'2022. Interest on the said amount is short received, and Company has filed a appeal with CP Gram for recovery of said amount - Rs. 23,36,863/- which is outstanding on 31/03/2024.

45. The Company has to fulfil export obligations under EPCG licence granted to the same on conversion from EOU status to DTA status. Since the Machineries required for completion of the said obligation has destroyed in fire in Dec' 2004, the Company has taken up the matter with the relevant authorities for cancellation of the said Licence. The matter is still pending with relevant Authority as on March 31, 2024

^Remuneration is being disclosed based on actual payment made on retirement/resignation of services, but does not includes provision made on actuarial basis as the same is available for all the employees together.

Note: Related party relationship is as identified by the Company and relied upon by the Auditors Note 48: Segment Reporting

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the Chief Operating Decision Maker, in deciding how to allocate resources and assessing performance. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. Based on the management approach as defined in Ind AS 108, the Chief Operating Decision Maker evaluates the Company's performance based on only one segment i.e. Knitted Socks

Note 49: During the FY 23-24, the Company has 1 customers doing individual business of 10% or more of the revenue and such customers accounted for 47.66% of revenue (FY 22-23, the Company had 2 such customers accounting for 64.23% of revenue)

Note 49 (A): Other Statutory Information

a) Disclosure of transactions with Struck off companies - NIL

b) Title deeds of Immovable Property not held in name of the Company - NIL

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

d) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

e) The Company is not declared wilful defaulter by any bank or financials institution or lender during the year.

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

g) The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person

h) 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.

i) 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.

j) 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).

k) Clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 does not apply to the Company.

Note 51.1 : ''The management assessed that the fair values of cash and cash equivalents, trade receivables, trade payables, current borrowings, current loans and other financial assets & liabilities approximates their carrying amounts largely due to the short-term maturities of these instruments. Trade Receivables Over 6 months & above include amounts receivable from Future Enterprises Ltd, Future Retail Ltd and Future Lifestyle Fashion Ltd amounting to Rs. 1,08,52,590/-, Rs. 50,43,248/- and Rs. 88,23,286/- respectively for which no provision is done in books of accounts, awaiting decision from The National Company Law tribunal (NCLT) (previous year figures are Rs. 1,08,52,590/-, Rs. 50,43,248/- and Rs. 88,23,286/- respectively)

Note 51.2 : 'The management considers that the carrying amounts of Financial assets and Financial liabilities recognised at nominal cost/amortised cost in the Financial statements approximate their fair values.

Note 51.3 : Non current borrowings has been contracted at floating rates of interest, which are reset at short intervals. Fair value of floating interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost.

Note 52 : Fair Value Hierarchy

'The following are the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113 "Fair Value Measurement". An explanation of each level follows underneath the tables.

Note 52.1: During the year ended March 31, 2024 and March 31, 2023, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

Note 52.2: Explanation to the Fair Value hierarchy

The Company measures Financial instruments, such as, quoted investments and interest free security deposit at fair value at each reporting date. Fair value is the price 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. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. The valuation of quoted shares have been made based on level 1 inputs as per the hierarchy mentioned in the Accounting Policies. The valuation of quoted equity instruments have been valued based on the closing price at each reporting date from BSE. The valuation of interest free security deposit have been made based on level 3 inputs as per the hierarchy mentioned in the Accounting Policies. The valuation of interest free security deposit have been valued based on valuation technique applicable.

Note 53: Financial risk management objectives and policies

The Company's principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also holds investments. Various kinds of financial risks and their mitigation plans are as follows:

Note 53.1: Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of Foreign Exchange Risk and Interest Rate Risk.

Note 53.1.1: Foreign Exchange Risk

Foreign Exchange Risk is the exposure of the Company to the potential impact of the movement in foreign exchange rate. The Company does not have any material foreign currency exposure at the balance sheet date. The Foreign currency exposure is Unhedged at the balance sheet date.

Note 53.1.2: Interest Exchange Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market rates. The company's exposure to the risk of changes in market interest rate relates primarily to company's borrowing with floating interest rates. The Company do not have any significant interest rate risk on its current borrowing due to their short tenure.

The Company is also exposed to interest rate risk on surplus funds parked in loans. To manage such risks, such loans are granted for short durations with fixed interest rate in line with the expected business requirements for such funds.

Note 53.2: Liquidity Risk

The Company determines its liquidity requirement in the short, medium and long term. This is done by drawing up cash forecast for short term and long term needs.

The Company manage its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalent position. The management has arranged for funding from banks and inter corporate and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a regular basis. The table below summarises the maturity profile of Company's financial liabilities based on contractual undiscounted payments.

The interest payments on variable interest rate loans in the tables above reflect market forward interest rates at the respective reporting dates and these amounts may change as market interest rates change. Except for these financial liabilities, it is not expected that cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts. When the amount payable is not fixed, the amount disclosed has been determined with reference to conditions existing at the reporting date.

Note 53.3: Credit Risk

The credit risk is the risk of financial loss arising from counter party failing to discharge an obligation. The credit risk is controlled by analysing credit limits and credit duration for customers on continuous basis. Further, in order to manage the credit risk, the security deposits are obtained from customers where ever considered necessary.

On account of adoption of Ind AS 109, the Company uses an expected credit loss model to assess the impairment loss. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables.

The ageing of trade receivables and expected credit loss analysis on these trade receivables is given in below table:

Trade receivables outstanding more than 365 days includes Rs. 2,47,19,124/-(previous year - Rs. 2,47,19,124/-) receivable from Future group and the same are not provided for in the books of accounts awaiting decision from The National Company Law tribunal (NCLT).

Note 54: Capital Management

Risk management

The Company's objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, Company may adjust the amount of dividends paid to shareholders.

Note 55: The Board of Directors at its meeting held on 28th May,2024 recommended final dividend of Rs 1.00 per equity share of face value of Rs. 10 each for the financial year ended 31st March, 2024. The same amounts to Rs. 27,64,326/- (No dividend distribution tax to be provided). The above is subject to approval at the ensuing Annual General Meeting of the Company and hence not recognized as a liability.