1.07 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision involving substantial degree of estimation in measurement is recognized when there is a present
obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent
liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor
disclosed in the financial statements.

1.08 REVENUE RECOGNITION

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the
buyer.

1.09 OTHER INCOME

Other Income is accounted on accrual basis an recognised as and when right to receive is established.

1.10 INVENTORIES

Inventories consists of Stock-in-trade which is valued at Cost or NRV whichever is lower.

1.11 TAXES ON INCOME

Income taxes are accounted for in accordance with Accounting Standard (AS-22) - "Accounting for taxes on
income”, notified under Companies (Accounting Standard) Rules, 2014. Income tax comprises of both
current and deferred tax.

Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance
with the provisions of the Income Tax Act, 1961.

The tax effect of the timing differences that result between taxable income and accounting income and are
capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax
liability. They are measured using substantially enacted tax rates and tax regulations as of the Balance Sheet
date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation
under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing
evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there
is a reasonable certainty of its realization.

1.12 CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprises Cash-in-Hand and Balance in Current Accounts with banks. Cash
equivalents are short-term balances (with an original maturity of three months or less from the date of
acquisition), highly liquid investments that are readily convertible into known amounts of cash and which
are subject to insignificant risk of changes in value.

1.13 EARNINGS PER SHARE

Basic earning per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of
extraordinary items, if any) by the weighted average number of equity share outstanding during the year.
Diluted earning per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of
extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net
of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of
equity shares which could have been issued on the conversion of all dilutive potential equity shares.

1.14 SEGMENT REPORTING

The accounting policies adopted for segment reporting are in line with the accounting policies of the
Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating activities of the segment. Inter-segment
revenue is accounted on the basis of transactions which are primarily determined based on market / fair
value factors. Revenue and expenses have been identified to segments on the basis of their relationship to
the operating activities of the segment.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to
segments on reasonable basis have been included under "unallocated revenue / expenses / assets /
liabilities”

Notes:

(a) Rights, Preferences and Restrictions attached to equity shares :

- Right to receive dividend as may be approved by the Board of Directors / Annual General Meeting.

- The equity shares are not repayable except in the case of a buy back, reduction of capital or winding up in
terms of the provisions of the Companies Act, 2013.

- Every member of the company holding equity shares has a right to attend the General Meeting of the
Company and has a right to speak and on a show of hands, has one vote if he is present in person and on a
poll shall have the right to vote in proportion to his share of the paid-up capital of the company.

25 The Company is exclusively engaged in the business of trading of ready-made garments.

This in the context of Accounting Standard (AS 17) “Segment Reporting”, notified under the

Companies (Accounting Standards) Rules, 2006, constitutes one single primary segment.

Accordingly, disclosures required under AS 17 are not applicable.

26 Additional Regulatory Information as per Para Y of Schedule III to Companies Act, 2013:

i. The Company does not have any immovable property (other than properties where
the Company is the lessee and the lease agreements are duly executed in favour of
the lessee) whose title deeds are not held in the name of the company.

ii. The Company has not revalued its Property, Plant and Equipment.

iii. "The Company has not granted loans or advances in the nature of loans are granted
to promoters, Directors, KMPs and the related parties (as defined under Companies
Act, 2013,) either severally or jointly with any other person, that are:

(a) repayable on demand or (b) without specifying any terms or period of
repayment"

iv. The Company does not have any capital work-in-progress.

v. The Company does not have any intangible assets under development.

vi. No proceedings have been initiated or pending against the company for holding any
benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) and the rules made thereunder.

vii. The Company has borrowings from banks or financial institutions on the basis of
security of current assets and quarterly returns or statements of current assets filed
by the Company with banks or financial institutions are in agreement with the books
of accounts.

viii. The company is not declared as wilful defaulter by any bank or financial institution
or other lender.

ix. The company does not have any transactions with companies struck off under
section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956

x. There are no charges or satisfaction yet to be registered with Registrar of
Companies beyond the statutory period.

xi. The company does not have any investments and hence, compliance with the
number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017 is not applicable.

Reasons for Variation more than 25%:

1.

a. Debt Service Coverage Ratio (DSCR): DSCR is increased due to decrease in EBIDTA

b. Return on Equity Ratio : The Company's ROI majorly increase increase in profit.

c. Net Capital Turnover Ratio: It is reduced due to increase in working capital.

d. Net Profit Ratio: There is a major variation as compared to previous year because the Company's
gross profit margin increased

e. Return on Capital employed : The Ratio is majorly increased due to increase in profits

xiii. The Company does not have any scheme of arrangements which has been approved by the
Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

xiv. "A. No funds have been advanced or loaned or invested (either from borrowed funds or
share premium or any other sources or kind of funds) by the Company to or in any other
persons or entities, including foreign entities (“Intermediaries”), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate
Beneficiaries”) by or on behalf of the Company or provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries.

B. No funds have been received by the Company from any persons or entities, including
foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or
otherwise, that the Company shall directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of
the Funding Parties or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries."

27 Previous year's figures have been regrouped / reclassified wherever necessary to correspond
with the current year's classification / disclosure.

Signatures to Notes forming part of Financial Statements

For and on behalf of the Board of Directors

Rajendra Singh Rajpurohit Mahendra Singh Rajpurohit Nehal Kothari

(Director&CFO) (Director) (CS)

DIN:07684092 DIN:07684132

Place : Ahmedabad

Date : 22 May, 2024_