Based on the best estimate provisions are recognized when there is a present obligation (legal or
constructive) as a result of a past event and it is probable ("more likely than not") that it is required to
settle the obligation, and a reliable estimate can be made of the amount of the obligation at reporting
date.

A contingent liability is a possible obligation that arises from a past event, with the resolution of the
contingency dependent on uncertain future events, or a present obligation where no outflow is
probable. Major contingent liabilities are disclosed in the financial statements unless the possibility of
an outflow of economic resources is remote.

Contingent assets are not recognized in the financial statements but disclosed, where an inflow of
economic benefit is probable.

2.13 Financial Instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the
contractual provisions of the instruments. Financial assets and financial liabilities are initially measured
at fair value. Transaction cost that are directly attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and financial liabilities at fair value through profit or
loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial
assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or
loss.

Notes to the financial statements for the year ended March 31", 2024

Financial Assets Initial recognisation and measurement

All financial assets are recognised initially at fair value, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are attributable to the acquisition of the financial
asset.

Classifications

The Company classifies its financial assets as subsequently measured at either amortised cost or fair
value depending on the company's business model for managing the financial assets and the
contractual cash flow characteristics of the financial assets.

Financial assets at amortised cost

Afinancial asset is measured at amortised cost only if both of the following conditions are met:

- it is held within a business model whose objective is to hold assets in order to collect contractual cash
flows.

- the contractual terms of the financial asset represent contractual cash flows that are solely payments
of principal and interest.

After initial measurement, such financial assets are subsequently measured at amortised cost using
the Effective Interest Rate ('EIR') method. Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortisation is included as finance income in the Statement of Profit and Loss. The losses arising from
impairment are recognised in the Statement of Profit and Loss.

Financial assets affair value through Other Comprehensive Income (FVOCI)

Financial assets with contractual cash flow characteristics that are solely payments of principal and
interest and held in a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets are classified to be measured at FVOCI.

Financial assets affair value through profit and loss (FVTPL)

Any Financial assets, which does not meet the criteria for categorization as at amortized cost or as
FVOCI, is classified as at FVTPL.

In addition, the company may elect to classify a Financial assets, which otherwise meets amortized
cost or FVOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or
eliminates a measurement or recognition inconsistency (referred to as 'accounting mismatch').

Financial assets included within the FVTPL category are measured at fair value with all changes
recognized in the Statement of Profit and Loss.

Equity Instruments

All equity instruments in scope of Ind AS 109 are measured at fair value. On initial recognition an equity
investment that is not held for trading, the Company may irrevocably elect to present subsequent
changes in fair value in OCI. This election is made on an investment-by-investment basis.

Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i .e. removed from the company's balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a 'pass¬
through' arrangement; and either (a) the company has transferred substantially all the risks and
rewards of the asset, or (b) the company has neither transferred nor retained substantially all the risks
and rewards of the asset, but has transferred control of the asset.

When the company has transferred its rights to receive cash flows from an asset or has entered into a
pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of
ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the
asset, nor transferred control of the asset, the company continues to recognize the transferred asset to
the extent of the company's continuing involvement. In that case, the company also recognizes an
associated liability. The transferred asset and the associated liability are measured on a basis that
reflects the rights and obligations that the company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration that the
company could be required to repay.

On derecognition of a financial asset, the difference between the carrying amount of the asset (or the
carrying amount allocated to the portion of the asset derecognised) and the sum of (i) the consideration
received (including any new asset obtained less any new liability assumed) and (ii) any cumulative gain
or loss that had been recognised in OCI is recognised in the Statement of Profit and Loss.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its
assets carried at amortised cost and FVOCI. The impairment methodology applied depends on
whether there has been a significant increase in credit risk.

With regard to trade receivable, the Company applies the simplified approach as permitted by Ind AS
109, Financial Instruments, which requires expected lifetime losses to be recognised from the initial
recognition of the trade receivables.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss, amortised cost, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of amortised cost, net of
directly attributable transaction costs.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial Liabilities measured at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the
liabilities are derecognised as well as through the El R amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR.

The EIR amortisation is included as finance costs in the Statement of Profit and Loss.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit and loss include financial liabilities designated upon initial
recognition as at fair value through profit and loss.

Gains or losses on liabilities held for trading are recognised in the Statement of Profit and Loss.

Financial liabilities designated upon initial recognition at fair value through profit and loss are
designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied.
For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk
are recognized in OCI. These gains/ loss are not subsequently transferred to the Statement of Profit
and Loss. However, the Company may transfer the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised in the Statement of Profit and Loss.

Derecognition of financial liabilities

The Company derecognises a financial liability when its contractual obligations are discharged or
cancelled, or expire.

2.14 Income Tax

Income tax expense comprises current and deferred tax. It is recognised in the Statement of Profit and
Loss except to the extent that it relates to items recognised directly in Equity or in Other Comprehensive
Income.

Current Tax

Current tax comprises the expected tax payable or receivable on the taxable income for the year. It is
measured using tax rates enacted or substantively enacted at the reporting date. Current tax assets
and liabilities are offset only if, the Company:

a) Has a legally enforceable right to set off the recognised amounts; and

b) Intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the
balance sheet and the corresponding tax bases used in the computation of taxable profit. Deferred tax
liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are
generally recognised for all deductible temporary differences to the extent it is probable that taxable
profits will be available against which those deductible temporary differences can be utilised. Such
assets and liabilities are not recognised if the temporary difference arises from initial recognition of
goodwill or from the initial recognition (other than in a business combination) of other assets and
liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

In view uncertainty to have taxable income in immediate future as prudent, no differ tax assets are
recognised for the year.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the
asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period
in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been
enacted or substantively enacted by the balance sheet date.

Minimum Alternative Tax (MAT) is recognized as an asset only when and to the extent there is
convincing evidence that the Company will pay normal income tax during the specified period. In the
year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the
recommendations contained in guidance note issued by the Institute of Chartered Accountants of India,
the said asset is created by way of credit to the Statement of Profit and Loss and included in deferred tax
assets. The Company reviews the same at each balance sheet date and writes down the carrying
amount of MAT entitlement to the extent there is no longer convincing evidence to the effect that
Company will pay normal income tax during the specified period.

2.15 Leases

Lease in which a significant portion of the risks and rewards of ownership are not transferred to the
Company as lessee are classified as operating leases. Payments made under operating leases (net of
any incentives received from the lessor) are charged to Statement of Profit and Loss on a straight line
basis over the period of the lease unless the payments are structured to increase in line with expected
general inflation to compensate for the lessor's expected inflationary cost increases.

2.16 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision maker. The board of directors of the Company has been identified as being the
chief operating decision maker by the Management of the Company.

28 Segment Reporting

Primary Segment

Based on the guiding principal given in the Indian Accounting Standard - 108 "Segment Reporting" issued by the Central
Government, the Company's primary segment are Textile, Automobile Parts & Financial Activities.

The above business segments have been identified considering

i) The nature of products

ii) The related risks and returns

iii) The internal financial reporting systems

Revenue and expenses have been accounted for based on the basis of their relationship to the operating activities of the
segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable
basis, have been included under "Unallocable Expenses". Assets and liabilities which relate to the enterprise as a whole and
are not allocable to segments on a reasonable basis, have been included under “Unallocable Assets / Liabilities”.

. _ ...... i . _H ,, . _r „ , , iniuuuiii m iiiuuaoiiui

d The Company has no Capital Work in Progress at the end of financial year.

e The Company has no Intangible Assets under development at the end of financial year.

f The Company is not declared as wilful defaulter by any bank or financial Institution or other lender.

34 Other Statutory Information

a The company do not have any Benamy property where any proceeding has been initiated or pending against the Company for holding any
Benamy property.

b The Company do not have any transactions with companies which are struck off.

c The Company do not have any pending charges or Satisfaction which is yet it be registered with Register of Companies beyond
the statutory period.

d The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

e The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or
kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether
recorded in writing or otherwise) that the Intermediary shall

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries; the company

f During the year 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

(i) 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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

g The Company do not have any such transaction which are not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessment under the Income Tax Act.1961 (such as search, survey or any
other relevent provisions of the Income Tax Act, 1961)

36 Previous year figure have been regrouped / reclassified to confirm to current years classifications.

37 The figures has been rounded off in thousand.

For M/s. R. C. Jhawer & Co. for and on behalf of Board of Directors

Chartered Accountants

(Firm Registration No.: 310068E)

Director: Gopal Das Sarda (DIN : 00565666)

( R C. JHAWER ) Director: Aditya Sarda (DIN : 00565702)

Partner ¹ ' '

Membership No: 017704

UDIN Ý 24017704BKEKRG5815 C.F.O.: Anup Kumar Saha (PAN NO : AXTPS8001K)

Place: Kolkata

Dated • 28/05/2024 Secretary : Neetu Khandelwal (M NO : A56079)

1

j