(m) PROVISION, CONTIGENT LIBILITIES CONTINGENT ASSETS:

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event,
it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the
amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation
at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligations. When a
provision is measured using the cash flow estimated to settle the present obligation, its carrying amount is the present
obligations of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party,
a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the
receivable can be measured reliably.

Contingent liabilities and Contingent assets are not recognized in the financial statements.

(n) TAXES ON INCOME:

Tax expense represents the sum of the current tax and deferred tax.

Current Tax

The tax currently payable is based on taxable profit for the year. Current tax is measured at the amount expected to be
paid to the tax authorities, based on estimated tax liability computed after taking credit for allowances and exemption in
accordance with the local tax laws. The Company's current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities
are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all
deductible temporary differences to the extent that it is probable that taxable profits will be available against which those
deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the
temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the
taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 liabilities and assets are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner
in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets
and liabilities.

Deferred tax assets include Minimum Alternate Tax (MAT) credit paid in accordance with the tax laws in India, which is
likely to give future economic benefits in the form of availability of set off against future income tax liability. Accordingly, MAT

credit is recognized as deferred tax asset in the Balance sheet when the asset can be measured reliably and it is
probable that the future economic benefit associated with the asset will be realized.

Current and deferred tax for the year

Current and deferred tax are recognized in the statement of profit and loss, except when they relate to items that are
recognized in other comprehensive income, in which case, the current and deferred tax are also recognized in other
comprehensive income.

(o) GOVERNMENT GRANTS:

Government Grants are recognized where there is reasonable assurance that the Company has complied with the
conditions attached to them and that the Grant will be received. Government grants related to fixed assets are shown as
deduction from the gross value of the assets concerned in arriving at their book value. The depreciation on such assets
is calculated as such reduced value. The government grants related to revenue are recognized on a systematic basis in
the profit and loss statements over the period necessary to match them, with the related cost which they are intended to
compensate. The grant so received is deducted in reporting the related expenses.

(p) NON-DERIVATIVE FINANCIAL INSTRUMENTS:

Financial assets and financial liabilities are recognized when a Company becomes a party to the contractual provisions
of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs 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 measured on initial
recognition of 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 recognized
immediately in the statement of profit and loss.

Financial assets at amortized cost

Financial assets are subsequently measured at amortized cost if these financial assets are held within a business
whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.

Financial assets at fair value through profit or loss (FVTPL)

Financial assets are measured at fair value through profit and loss unless it is measured at amortized cost or at fair
value through other comprehensive income on initial recognition. The transaction costs directly attributable to the
acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognized in statement
of profit and loss.

Financial liabilities

Financial liabilities are measured at amortized cost using the effective interest method.

Equity instruments

An equity instrument is a contract that evidences residual interest in the assets of the Company after deducting all of its
liabilities. Equity instruments recognized by the Company are measured at the proceeds received net off direct issue
cost.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in financial statements if there is a
currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to
realize the assets and settle the liabilities simultaneously.

(q) OPERATING CYCLE:

The Company presents assets and liabilities in the balance sheet based on current / non-current classification based
on operating cycle.

An asset is treated as current when it is:

1. Expected to be realized or intended to be sold or consumed in normal operating cycle;

2. Held primarily for the purpose of trading;

3. Expected to be realized within twelve months after the reporting period, or

4. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

1. It is expected to be settled in normal operating cycle;

2. It is held primarily for the purpose of trading;

3. It is due to be settled within twelve months after the reporting period, or

4. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The company has identified twelve months as its operating cycle.

(r) CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINITY:

The preparation of the financial statements in conformity with the Ind AS requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities and disclosures as at date of the financial statements and the reported amounts of the revenues and
expenses for the years presented. The estimates and associated assumptions are based on historical experience and
other factors that are considered to be relevant. Actual results may differ from these estimates under different
assumptions and conditions. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that
period or in the period of the revision and future periods if the revision affects both current and future periods.

Key sources of estimation uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end
of the reporting period that may have a significant risk of causing as material adjustment to the carrying amounts of
assets and liabilities within next financial year.

i. Income taxes

The Company's tax jurisdiction is India. Significant judgments are involved in estimating budgeted profits for the purpose
of paying advance tax, determining the provision for income taxes, including amount expected to be paid/recovered for
uncertain tax positions.

ii. Discount rate used to determine the carrying amount of the Company's defined benefit obligation

In determining the appropriate discount rate for plans operated in India, the management considers the interest rates
of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

iii. Useful lives of property, plant and equipment

The Company reviews the estimated useful lives and residual values of property, plant and equipment at the end of each
reporting period.

iv. Fair value measurement of Financial Instruments

When the fair values of financials assets and financial liabilities recorded in the Balance Sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using valuation techniques, including the
discounted cash flow model, which involve various judgments and assumptions.

(s) Recent Pronouncements for Indian Accounting Standards (Ind AS)

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. On March 31, 2024, MCA has not notified any new
standards or amendments to the existing standards applicable to the Company.

Note: 27 Contingent Liabilities and Commitments (to the extent not provided for)

1) The interest liability amounting to Rs. 8.95 lakhs and the prepayment charges amounting to Rs. 47.99 lakhs are in
dispute with Axis Bank Ltd due to take over by bank. Hence, the demand by Axis Bank Ltd for interest and prepayment
charges are not provided in the books of accounts and the matter is sub judice.

2) The Demand of income tax amounting to Rs. 2.44 lakhs which is disputed for F.Y 17-18 (A.Y 2018- 19). The matter is
pending at Commissioner (Appeals) - Gandhinagar. The company has filed application under Income Tax Vivaad Se
Vishwas Scheme and the same is pending.

3) The Demand of income tax amounting to Rs. 62.06 lakhs which is disputed for F.Y. 18-19 (A.Y 2019- 20). The matter is
pending at Commissioner (Appeals).

Note: 28 Long Term Contracts

1) There are no long term contracts as on 31/03/2024, including derivative contracts for which there are any material
foreseeable losses.

The Company's business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit
risks. The company's senior management has the overall responsibility for establishing and governing the company's risk
management framework. The company's risk management policies Considers market conditions and reflect the
changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the
company.

A. Management of Liquidity Risk

Liquidity risk is the risk that the company will face in meeting its obligation associated with its financial liabilities.
The Company's approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities
when due without incurring unacceptable losses. In doing this management considers both normal and stressed
conditions.

Due to dynamic nature of the underlying businesses, company treasury maintains flexibility in funding by maintaining
availability of under committed credit lines. Management monitors rolling forecasts of the company's liquidity

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. The
Company is exposed to credit risk primarily trade receivables and other financial assets including deposits with
banks. The Company's exposure and credit ratings of its counterparties are continuously monitored and the aggregate
value of transactions is reasonably spread amongst the counterparties. To manage this, the Company periodically
assesses financial reliability of customers, taking into account the financial condition, current economic trends, and
analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

Other financial assets

This comprises mainly of deposits with banks and other intercompany receivables. Credit risk arising from these
financial assets is limited and there is no collateral held against these are banks and recognized financial
institutions. Banks and recognized financial institutions have high credit ratings assigned by the international credit
rating agencies.

Trade receivables

The company considers the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis through out each reporting period. To assess whether there is
a significant increase in credit risk, the company compares the risk of default occurring on asset as at the reporting
date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding¬
looking information such as:

Actual or expected significant adverse changes in business,

Actual or expected significant changes in the operating results of the counterparty,

Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to meet
its obligations,

Significant increase in credit risk on other financial instruments of the same counterparty,

Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees
or credit enhancements.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on
historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on
actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not
material hence no additional provision considered.

B. Management of Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk.
Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables and
loans.

Within the various methodologies to analyze and manage risk, Company has implemented a system based on
“sensitivity analysis” on symmetric basis. This tool enables the risk managers to identify the risk position of the
entities. Sensitivity analysis provides an approximate quantification of the exposure in the event that certain specified
parameters were to be met under a specific set of assumptions. The risk estimates provided here assume:

- a parallel shift of 50-basis points of the interest rate yield curves in all currencies.

- a simultaneous, parallel foreign exchange rates shift in which the INR appreciates / depreciates against all
currencies by 2%

The potential economic impact, due to these assumptions, is based on the occurrence of adverse / inverse
market conditions and reflects estimated changes resulting from the sensitivity analysis. Actual results that are
included in the Statement of profit and loss may differ materially from these estimates due to actual developments in
the global financial markets.

The analyses exclude the impact of movements in market variables on the carrying values of gratuity, pension and
other post-retirement obligations and provisions.

The following assumption has been made in calculating the sensitivity analysis:

The sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market
risks. This is based on the financial assets and financial liabilities held at 31^st March, 2024 and 31^st March, 2023.
Interest Rate Risk

Interest rate risk is that the future cash flow with respect to interest payments on borrowing will fluctuate because of
change in market interest rates. The company's exposure to the risk of changes in market interest rates relates
primarily to the Company's long- term debts obligation with floating interest rates.

Interest rate sensitivity

Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of change in interest rates.
The following table demonstrates the sensitivity of floating rate financial instruments to a reasonably possible change
in interest rates. The risk estimates provided assume a parallel shift of 50 basis points interest rate across all
yield curves.

Equity Share capital and other equity are considered for the purpose of company's capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns to
shareholders. The Capital structure of the company is based on management's judgment of its strategic and day-to-day
needs with a focus on total equity to maintain investor, creditors and market confidence and to sustain future development
and growth of its business. The Company monitors capital using Debt-Equity ratio, which is net debt divided by total
equity. .

The management and the Board of Directors monitors the return on capital. The company may take appropriate steps in
order to maintain, or if necessary adjust, its capital structure.

Debt is defined as Borrowings - long term and short term and Current Maturities of long term Borrowings
In order to achieve this overall objective, the company's capital management, amongst to there things, aims to ensure that
it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and
borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the
current period. No changes were made in the objectives, policies or processes for managing capital during the years ended
31st March, 2024 and 31^st March, 2023.

Note: 34 - Additional Notes

1) In the opinion of the Board of Directors:

(a) Current assets, non-current loans and advances are realizable in the ordinary course of business, at the value
at which they are stated

(b) The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary, if
any.

2) Balance of Trade receivables, Trade payables, loans and advances, Unsecured Loans are subject to reconciliation,
confirmation and subsequent adjustments, if any, from the respective parties.

3) The Company has not been declare willful defaulter by any bank or financial institution or government or any
government authority.

4) The provision of section 135 of the Companies Act 2013 in relation to Corporate Social Responsibility are not
applicable to the company during the year.

5) There are no transactions with Companies Struck off under section 248 of the Companies Act, 2013 or section 560
of the Companies Act, 1956.

6) The company does not hold any benami property as defined under the Benami T ransactions (Prohibition) Act, 1988
(45 of 1988) and the rules made thereunder. No proceedings have been initiated during the year or are pending
against the company as at 31st March 2024 for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 and rules made there under.

7) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee) as disclosed in the financial statements included under
Property, Plant and Equipment are held in the name of the company as at the balance sheet date.

8) The Company has not done revaluation of Property, Plant & Equipments / Intangible assets.

9) Utilization of Borrowed fund or share premium:

(a) During the year, 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 person or entity , including
foreign entity (“Intermediaries”, with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall, whether, 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 provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.

(b) During the year, no funds have been received by the company from any person or entity, including foreign entity
(“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall,
whether, 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 provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

10) There were no transactions relating to previously unrecorded income that have been surrender or disclosed as
income during the year in the tax assessment under the Income Tax Act,1961.

11) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

12) The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory
period.

13) The company has incurred cash losses in current year and preceding financial year. During the previous year the
company has executed debt restructuring scheme and restructured its overall borrowings. This will result into
substantial reduction in the interest outflow for future period and has extended the repayment plan in relation to
restructured borrowings. Further, the Company expects to generate operational cash-inflows in near future, which will
support the Company to meets its near future cash obligations. Taking these factors into consideration, the
Company believes financial information is fairly presented on going concern basis.

14) The bank has debited an amount of Rs. 82.29 lacs to the company's term loan account during the moratorium period in

previous years. The company has debited it's profit and loss account for such interest expense. During the current
period, the bank has reversed the said interest expense relating to moratorium period, amounting to Rs. 82.29 lakhs
and credited the said amount to the loan account of the company. Accordingly, the company has shown the same
under the head "Other Income" during the period.

Note 1: T rade payables, only to the extent in excess of the accepted level in financial projections, have been deducted from
the drawing power available in the monthly stock statements submitted to the bank.

See accompanying notes to the financial statements
In terms of our report attached

For, Manghani & Co. For and on behalf of the Board of

Chartered Accountants Minaxi Textiles Limited

Firm Registration No. 022372C CIN: L17119GJ1995PLCO25007

Dinesh Manghani K.S. Patel D.P.Patel

Proprietor Chairperson Managing Director

Membership no. 535603 DIN: 00372855 DIN: 02268757

Parind Patel Priyanka Patel

Chief Financial Officer Company Secretary

Place: Ahmedabad Place: Chhatral

Date: 14^th May, 2024 Date: 14^th May, 2024