b) Terms / rights attached to equity shares
i) The Company has one class of equity shares having a par value of Rs. 5 per share. Each holder of equity shares is entitled to one
vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual General Meeting.
ii) In the event of the liquidation of the Company, the equity shareholders will be entitled to receive remaining assets of the
Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
a) Securities Premium Reserve : Securities Premium Reserve is used to record the premium on issue of shares. This reserve is
utilised in accordance with the provision of the Act.
b) General Reserve : The Company has transferred a portion of Net Profit to General Reserve. Mandatory transfer to General
Reserve is not required under the Companies Act 2013.
c) Retained Earnings : Retained Earnings are the profit, the company has earned till date, less any transfer to general reserve,
dividend or other distributions paid to shareholders.
As per Section 73 of the Companies Act, 2013 the Company has designated it's cash credit account as Deposit repayment reserve
account for the purpose of deposit mature in the financial year and maintains 20% of the amount of its deposit maturing in the
financial year.
The Term Loans of Rs. 1,204.17 lacs are secured by first pari passu charge on office premises situated at Mumbai, and respective
Plant & Machinery together with spares, tools and accessories and other movables, both present and future at Amravati along with
factory premises and personal guarantees of three Directors.
There are no defaults in repayment of loan and interest thereon as on March 31, 2025 for the loan under this head.
32 The Company is engaged only in Textile business and there are no separate reportable segments as per Ind AS 108.
33 Related Party Disclosures
As per Accounting Standard 24, the disclosures of transactions with the related parties as defined in the Accounting Standard are
given below.
List of related parties where control exists and related parties with whom material transactions have taken place and relationships:
(a) Key Management Personnel (KMP)
Shri Arunkumar Biyani - Chairman & Director
Shri Aman Biyani - Managing Director
Shri Aditya Biyani - Whole-Time Director
Shri Indrajit kanase - Company Secretary
Shri Sheetal Prashad Singhal -Chief Financial officer
(b) Relatives of Key Management Personnel (KMP) :
Mrs. Kanta Biyani, Mr. Aman Biyani, Mr. Akshay Biyani, Mrs. Manju Biyani, Mrs. Sanju Biyani, Ms. Risha Biyani, Mrs. Payal Biyani,
Mrs. Bhawna Biyani, Mrs. Savitridevi D Biyani, Mr. Aditya Biyani, Ms. Reiya Biyani, Ms. Jia Biyani, Ms. Kiara Biyani, Mrs. Radhika
Biyani, Master Yuvan Biyani, Mr. Abhishek Biyani, Ms. Aarika Biyani, Ms. Anushree Biyani & Ms Janvi Biyani
(c) Other Related Parties (Enterprises - KMP having significant influence / Owned by Major Shareholders)
M/s. Shri Damodar Yarn Manufacturing Pvt.Ltd., M/s. RRKJ Warehouse, M/s. Calves & Leaves Initative Pvt. Ltd., M/s. Suam
Overseas Pvt. Ltd., M/s. Damosuam carriers Pvt. Ltd., Ajay Biyani HUF, Arun Kumar Biayni HUF & Shri Damodar Foundation.
36 Fair value measurement
Financial Instrument by category and hierarchy
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were
used to estimate the fair values :
1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities,
short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term
maturities of these instruments.
2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest
rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for
expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying
amounts.
Financial risk management objectives and policies
In the course of business, the company is exposed to certain financial risk that could have considerable influence on the Company's
business and its performance. These include market risk (including currency risk, interest risk and other price risk), credit risk and
liquidity risk. The Board of Directors review and approves risk management structure and policies for managing risks and monitors
suitable mitigating actions taken by the management to minimise potential adverse effects and achieve greater predictability to
earnings.
In line with the overall risk management framework and policies, the treasury function provides service to the business, monitors
and manages through an analysis of the exposures by degree and magnitude of risks. It is the Company's policy that no trading in
derivatives for speculative purposes may be undertaken. The company uses derivative financial instruments to hedge risk exposures
in accordance with the Company's policies as approved by the board of directors.
a) Market Risk- Foreign currency risk.
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to its
operating activities. The Company manages its foreign Currency risk by hedging transaction that are expected to occur within
a maximum 12 month periods for hedge of forecasted sales and purchases in foreign currency.
c) Equity Price Risk
Equity price risk is related to the change in market reference price of the investments in quoted equity securities. The fair value
of some of the Company's investments exposes the company to equity price risks. At the reporting date, the company do not
hold any equity securities.
d) Credit Risk
Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control
relating to customer credit risk management. Credit quality of a customer is assessed based on customer profiling, credit
worthiness and market intelligence. Trade receivables consist of a large number of customers, spread across geographical
areas. Outstanding customer receivables are regularly monitored.
The average credit period is in the range of 30 -90 days. However in select cases credit is extended which is backed by security
deposit/bank guarantee/letter of credit and other firms. The Company's Trade receivables consist of a large number of
customers, across geographies hence the Company is not exposed to concentration risk.
The Company measures the expected credit loss of trade receivables from individual customers based on historical trend,
industry practices and the business environment in which the entity operates.
** The company management is actively taking various measures for recovery of overdue receivables. The company
management is confident of its full recovery.
Financial Assets are considered to be part of good quality and there is no significant increase in credit risk.
e) Liquidity Risk :
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company
has obtained fund and non-fund based working capital limits from various banks. Furthermore, the Company access to funds
from debt markets through short term working capital loans.
38 The previous period figures have been regrouped reclassified, wherever considered necessary.
As per our report of even date attached
For Devpura Navlakha & Co For and on behalf of Board of Directors
Chartered Accountants
Firm Registration No.: 121975W
Arunkumar Biyani Aman Biyani
Chairman Managing Director
(Satyendra Lahoti)
Partnership
Membership No. : 1 35975
Indrajit Kanase Sheetal Prashad Singhal
Place : Mumbai Company Secretary Chief Financial
officer Date : 26th May, 2025
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