(xii) Provisions and Contingent Liabilities:

The Company recognizes a provision when there is a present obligation (legal or constructive) as a result of
a past event and it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when there is a possible obligation arising from past events the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company or a present obligation that arises from past
events where it is either not probable that an outflow of resources will be required to settle the obligation or a
reliable estimate of the amount cannot be made.

(xiii) Eamings Per Share:

Basic earnings per share is calculated by dividing the profit / (loss) attributable to the equity shareholders by
weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit / (loss) for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.

(xiv) Investments:

Long-term investments are valued at cost less provision for impairment in value of such investments.

1 (a) USE OF ESTIMATES AND JUDGEMENTS

The preparation of financial statements in conformity with Ind AS requires management to make judgments,
estimates and assumptions that affect the reported amounts of assets, liabilities, income, expenses and
disclosures of contingent liabilities at the reporting date. However, uncertainty about these assumptions
and estimates could result in outcomes that require a material adjustment to the carrying amount of the
asset or liability affected in future periods.

Estimates and underlying assumptions are reviewed at each reporting date. Any revision to accounting
estimates and assumptions are recognised prospectively i.e. recognised in the period in which the estimate
is revised and future periods affected.

CAPITAL RESERVE

This includes the amount of backward area incentive received by the Company. The reserve can be utilised in
accordance with the applicable provisions.

GENERAL RESERVE

General Reserve is used to represent amounts transferred from Retained Earnings for appropriation purpose as
per the requirements of the erstwhile Companies Act, 1956. This General Reserve includes the amount credited
as per the scheme of arrangement in earlier year. The reserve can be utilised in accordance with the provisions of
the Act.

24. The net worth of the Company has been fully eroded due to continuous losses. During the year, the Company has
trading activity in clothes. Further, the Management is in the process of evaluating other options and accordingly,
the accounts have been prepared on going concern basis.

25. The Company has not received any intimation from “suppliers” regarding their status under the Micro, Small and
Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the
year end together with interest paid/payable as required under the said Act have not been given.

26. As there is only one employee in the Company as at the Balance Sheet date and have not completed required
minimum period to become eligible for retirement benefits, accordingly, the provisions relating to Ind As 19
Employee Benefits, are not applicable.

27. Earnings Per Share - (EPS) is calculated by dividing the profit / (loss) attributable to the equity share holders by
weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares, except when the results would be anti-dilutive.

‘During the year, the effect of National Company Law Tribunal (NCLT) order for consolidation of equity shares of
face value from ' 10/- to ' 1,000/- per share has been given and the BSE Limited (i.e. stock exchange where the
Company's shares are listed) has allowed trading of equity shares of the Company having face value of ' 1,000/-
each share w.e.f. 22nd June, 2023. As per the NCLT order, 75 equity shares of face value of ' 10/- have been
cancelled and the same has been adjusted in Capital Reserve. After consolidation, paid up equity share capital of
the Company is ' 300.04 lakhs having 30,004 equity shares of face value of '1,000/- each.

The basic and diluted EPS for the prior year have been restated considering the face value of ' 1,000/- each in
accordance with Ind AS 33 - “Earnings per Share” on account of consolidation of the equity shares of face value
of ' 10/- each into equity shares of face value for ' 1,000/- each.

28. The Company’s activities are classified as belonging to a single business segment of trading of textile products.
The Company’s operations are largely limited to India.

b) Fair value hierarchy and Method of valuation

The Company considers that the carrying value amount recognised in the financial statements approximate
their fair value largely due to the short term maturities of these instruments.

c) Risk management framework

The Company's principal financial liabilities includes borrowings, trade and other payables. The Company's
principal financial assets include loans, trade receivables, cash and cash equivalents and others. The
Company is exposed to credit risk,liquidity risk and market risk. The Company’s senior management oversees

the management of these risks. The Company's senior management provides assurance that the Company's
financial risk activities are governed by appropriate policies and procedures and that financial risks are
identified, measured and managed in accordance with the Company's policies and risk objectives.

d) Financial Risk Management

The Company has exposure to the following risks arising from financial instruments:

i) Credit Risk

ii) Liquidity Risk

iii) Market Risk

i) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company's receivables from
customers, investment in inter corporate deposit.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. Each outstanding customer receivables are regularly monitored and if outstanding is above
due date the further sales are controlled and can only be released if there is a proper justification.

No impairment is observed on the carrying value of trade receivables.

Other financial assets

Credit risk from balances with banks, loans is managed by responsible and authorised person of the
Company. Investments of surplus funds are made only with approved counterparties.

ii) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s
approach to managing liquidity is to ensure as far as possible that it will have sufficient liquidity to meet its
liabilities when they are due, under both normal and stressed condition, without incurring unacceptable
losses or risking damage to the Company’s reputation.

The Management monitors rolling forecasts of the Company's liquidity position on the basis of expected
cash flows. The Company’s objective is to maintain a balance between continuity of funding and flexibility
through the use of surplus funds and inter-corporate loans.

iii) Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and
commodity prices which will affect the Company’s income or the value of its holdings of financial
instruments. The objective of market risk management is to manage and control market exposures within
acceptable parameters, while optimising the return.

Currency risk

There is no currency risk to the Company, as the Company's primary business activities are within India
and does not have any exposure in foreign currency.

Interest rate 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 interest rates. The Company's exposure to risk of changes in market
interest rate is not material as the Company has not taken any loan from outside.

The Company does not account for any fixed rate financial assets and liabilities at fair value through profit
or loss. Therefore, a change in interest rate at the reporting date would not affect profit or loss.

Commodity price risk

Exposure to market risk with respect to commodity prices arises from the cost of procurement of traded
goods and this price may be influenced by factors such as demand and supply, production cost. The
Company does not buy any new material, if it can not be sold to the customers above the cost of
procurement.

31. CAPITAL MANAGEMENT

The capital structure of the Company consists of net debt and the total equity of the Company. For this purpose,
net debt is defined as total borrowings less cash and cash equivalents. The net worth of the Company has been
fully eroded.

The funding requirements are met through short-term/long-term borrowings. The Company monitors the capital
structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

32. CORPORATE SOCIAL RESPONSIBILITY

During the year, the Company was not required to spend any money as per the provision of Section 135 of the
Companies Act, 2013 towards Corporate Social Responsibility (CSR) activities.

Gross amount required to be spent by the Company during the year ' Nil (previous year Nil )

34. There are no transactions and balances with companies struck off under Section 248 of the Companies Act, 2013
or Section 560 of the erstwhile Companies Act, 1956.

35. The Financial Statements of the Company for the year ended 31st March, 2024 were approved by the Board of
Directors on 17th May, 2024.

36. Previous year’s figures have been reclassified, wherever necessary, to conform current year’s presentation.

As per our report of even date attached For and on behalf of the Board

For Khandelwal and Mehta LLP Fatima Fernandes Sabhapati G Shukla

Chartered Accountants Chief Executive Officer and Director

Firm's Registration No. W100084 Chief Financial Officer DIN:02799713

Sunil Khandelwal S hekh ar R Singh

Partner Director

Membership No.101388 DIN_:03357281

Mumbai, 17th May, 2024 Mumbai, 17th May, 2024