(O) Provision, Contingent Liabilities and Contingent Assets:

Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates reviewed at each reporting date and adjusted to reflect the current best estimate

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are not recognised in the financial statements.

(P) Earnings Per Share:

Basic earnings per share is calculated by dividing the net profit/ loss for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes, if any) by weighted average number of equity shares outstanding during the year.

i) Current Assets, Loans and Advances are realizable in the ordinary course of Business, as the value at which they are stated.

ii) The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

Note 31. We have verified the vouchers and documentary evidence wherever made available. Where no documentary evidence was available, we relied on the authentication given by the management.

Note 32. Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and the country in which customers operate.

The Company’s Management has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s review includes market check, industry feedback, past financials, and external ratings, if they are available, and in some cases bank references.

In monitoring customer credit risk, customers are reviewed according to their credit characteristics, including whether they are an individual or a legal entity, their geographic location, industry, and existence of previous financial difficulties

The Company has classified the suppliers based on the Micro and Small Enterprises status in its balance sheet based on confirmation received from its suppliers. But still many suppliers have not confirmed its MSME status, and company has classified such suppliers as due to other than Micro and Small Enterprise in its Balance Sheet. Dues outstanding to Micro, Small & Medium Enterprises (MSMEs) is not more than 45 days, as on the Balance Sheet date.

Note 35. The company has been sanctioned working capital limits below Rs.5 crores, in aggregate, from banks on the basis of security of current assets. Differences were found in the quarterly returns/ statements filed by the Company with such banks, which were material on comparison with the unaudited books of accounts of the company of the respective quarters is mentioned under point ii(b) of Annexure A to the Independent Auditors’ Report. The company is in process of implementation of standards and processes in order to mitigate the above risk.

Note 36 Contingent Liabilities not acknowledged as debt

Bank has sanctioned total bank guarantee upto Rs. 200.00 lakhs (Pre. Year 200.00) which is issued in favour of PGVCL, Central Government for duty receivable under EPCG.

As at 31 March, 2024 Company has an export obligation of Rs. 5074.13 lakhs (Pre. Year 5074.13 Lakhs), against advance authorization license issued under EPCG Scheme, which needs to be fulfilled within 6 years from the date of authorisation. This amount pertains to import made at concessional rate of import duty against advance license. The management has informed and said that the company has already started the process of extension of EPCG license period and hope will be received in next three to four months.

Note 37 Gujarat Textiles Policy

As per Gujarat Textile Policy, 2012 company is eligible for VAT subsidy in against investment in plant and machinery. After implementation of GST with effect from 01.07.2017, benefit of VAT is subsumed into SGST. During the year company has booked the claim of SGST subsidy for the year and recognised in Statement of Profit and Loss.

Note 43. The title deeds of immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

Note 44. The Company has not revalued any of its Property, Plant and Equipment during the year.

Note 45. There is no any work in progress of any assets (capital goods) during the year.

Note 46. The Company has not granted Loans and Advances in the nature of loans to Promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013) either severally or jointly with any other person during the year.

Note 47. No proceedings have been initiated during the year or are pending against the Company at the end of year for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

Note 48. The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

Note 49. There were no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period at the end of the year.

Note 50. The Company does not have any layers prescribed under clause (87) of Section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

Note 51. There were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

Note 52. The Company is not covered under section 135 of the Companies Act during the year.

Note 53. The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.

Note 54. The Company had not entered any transactions with companies struck off under sections 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

Note 55. Previous Year’s Figure & Rounding off:

Figures for the previous year have been regrouped\ rearranged wherever necessary to make them comparable with those of the current year. Moreover, all amounts are Indian Rupees in Lakhs with decimal thereof and rounded off decimal to nearest thousand.

As per our attached report of even date

For R P C & Co. For and on behalf of the Board

Chartered Accountants

Reg. No. 121723W

Maganlal Parvadiya Chandulal Parvadiya

(Prashant J Tilala) Chairman and Whole time Director Whole time Director

Partner DIN: 03190749 DIN: 03197876

M.No. 109132 Place: Gondal Dated 25/05/2024

UDIN: 24109132BKAEJR4723 Paras Parvadiya Naresh Kanzaria

Chief Financial Officer Company Secretary & Compliance officer

PAN: APNPP8668K M.No. A60683