29. Note on Audit Trail
The Company uses an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has
operated throughout the year for all relevant transactions recorded in the accounting software. Further no instance of audit trail feature being tampered with was
noted in respect of the accounting software.
30. Segment Information
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM is
considered to be the Board of Directors who makes strategic decisions and is responsible for allocating resources and assessing performance of the operating
segments.
Trading in Textile is the Company's only business segment ,hence the disclosure of segment wise information as required by Ind AS 108 on "Segment Reporting" is
not applicable .
31. Recent Pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as
issued from time to time. For the year ended March 31, 2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating
to sale and leaseback transactions, applicable to the Company w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and based on its
evaluation has determined that it does not have any significant impact in its financial statements.
32. Capital management
The Company manages its capital to ensure business continuity and maximize shareholder value by maintaining an optimal balance between debt and equity. It
assesses capital needs through annual planning, funding them via equity, internal accruals, and both short- and long-term borrowings. The Company also aims to
maintain a strong capital base to sustain future growth and uphold investor, creditor, and market confidence.
33. Financial Risk Management
The Company's principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance
the Company's operations and to provide guarantees to support its operations. The Company's principal financial assets include loans, trade and other receivables,
and cash and cash equivalents that derive directly from its operations.
The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk and interest rate risk. The Company's primary focus is to foresee the
unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.
The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:
A. Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises
principally from the Company's receivables from customers and investment securities. Credit risk arises from cash held with banks and financial institutions, as well
as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets.
The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counter parties, taking into
account their financial position, past experience and other factors.
(i) Trade and other receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the
default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. In addition, receivable balances are
monitored on an ongoing basis with the result that the Company's exposure to Bad debt is not significant. Also the Company does not enter into sales transaction
with customers having credit loss history. There are no significant Credit risk with related parties of the Company. The Company's is exposed to Credit risk in the
event of non payment of customers. Credit risk concentration with respect to Trade Receivables is mitigated by the Company's large customer base. Adequate
expected credit losses are recognised as per the assessment.
(ii) Bank Deposits
The company maintains its cash and cash equivalents and bank deposits with reputed and highly rated bank. Hence, there is no significant credit risk on such
deposits.
(iii) Investments
The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The company
does not expect any losses from non- performance by these counter-parties, and does not have any significant concentration of exposures to specific industry
sectors.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk through
credit limits with banks.
The Company's corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to
such risks are overseen by senior management.
The management assessed that fair value of cash and short-term deposits, trade receivables, trade payables, and other current financial assets and liabilities
approximate their carrying amounts largely due to the short-term maturities of these instruments.
The fair value of the financial assets and liabilities is 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.
Fair Value Hierarchy
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual fund units that have a
quoted price. The fair value of all equity instruments which are traded on the Stock Exchanges is valued using the closing price as at the reporting period. The
mutual fund units are valued using the closing net assets value.
Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
35. Events Occuring after the reporting period
The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial statements to determine the
necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As of the date of signing of this financial statements,
there were no subsequent events to be recognised or reported that are not already disclosed.
36. Disclosure Regarding Derivative Instruments and Unhedged Foreign Currency Exposure
i) The company does not have any Foreign currency exposures which is not covered by derivative instruments or otherwise as at March 31, 2025 & March 31, 2024.
ii) The Company does not have any outstanding foreign currency derivative contracts as at March 31, 2025 & March 31, 2024 in respect of various types of
derivative hedge instruments and nature of risk being hedged.
iii) The Company does not enters into derivative financial instruments such as foreign currency forward and option contracts to mitigate the risk of changes in
exchange rates on foreign currency exposures.
37. The Standalone financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors and are subject to final approval
by its Shareholders.
The accompanying notes are an integral part of these financial statements.
For, S S R V & Associates For and on behalf of Board of Directors of
Chartered Accountants Vaxtex Cotfab Limited
Firm Registration No.: 135901W
Aakash Rajeshbhai Thakor Devi Singh
Managing Director Director
Vishnu Kant Kabra DIN: 07960192 DIN: 09528536
(Partner)
Membership No.: 403437
Pratapsingh Zala Shrasti Dubey
(Chief Financial Officer) (Company Secretary)
Place: Mumbai
UDIN: 25403437BMIOWK1780 Place: Ahmedabad
Date: 23rd May, 2025 Date: 23rd May, 2025
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