b. Terms/ rights attached to equity shares

{i) The company has only one class of equity shares having a face value of ? 10 per share,

(ii) Each holder of equity share is entitled to one vote per share.

(iii) The dividends recommended by the Board of Directors if any, are subject to the approval of the shareholders in the ensuing finnual General meeting.

<iv} In the event of liquidation of the Company, the equity share holders are entitled to receive the remaining assets of the Company after distribution of all preferential claims, in proportion to the number of shares held.

d, 2,00,000 5% non Cummulative Redeemable Preference Share of ?100/- each and 5,00,000 10% Cummulative Redeemable Preference Share of ?100/- each were issued and reclasified as Financial Liability and shown as Unsecured Loan. (Refer noted 7}

H. nil the installments falling due uuithin 12 months from the date of Balance Sheet have been classified as current maturities, the aggregate amounts are shotun under 'Short Term Borroiuings'.

B. 1. The term loan referred at (a)(i) above is secured by mortgage of {present & future) movable and immovable

properties of the company on first charge pari passu & second charge pari passu on the current assets of the company uuith existing term lenders and guaranteed by two directors of the company in their personal capacities.

2. The term loans referred at (a){ii) to (a){iii) and b(i) to b{iv) above are secured by mortgage of (present & future) movable and immovable properties of the company on first charge pari passu & second charge pari passu on the current assets of the company uuith existing term lenders and guaranteed by three directors of the company in their personal capacities.

C. (i) Vehicle loans are secured by hypothecation of the respective vehicles and guaranteed by one of the directors

of the company.

(ii) Term loan from Candi Solar in 1 Pvt Ltd., is secured by hypothication of Solar Plant situated at Spinning Division, fimangallu.

a. Secured:

Working capital loans from (a) to {e} are secured by hypothecation of stocks of rauj materials, yarn, fabric, stock-in-process, stores and spares and book debts and by a second mortgage over the (present and future) movable & immovable properties of the company on pari-passu basis and further guaranteed by three Directors of the Company in their personal capacities

a) Fire Accident

On June 22,2023, there was a fire accident in one of the godowns of Denim Division at Ramtek in maharastra. There were no human casualties reported. Evacuation team conducted successful evacuation of persons present in at the time of fire. After preliminary investigation, it was found that the cause of fire was due to short circuit.

Consequent to the above, during the year ended march 31,2024, the carrying value of inventories of ? 393.55 lakhs (including expenses incurred and GST reversals) and carrying value of property plant and equipment of? 51.20 Lakhs has been written off in the statement of profit and loss.

The Company received ? 393.95 Lakhs (including salvage value) from the Insurance Company for the claim lodged against the fire accident. Accordingly, the balance unrecoverable amount of? (50.80) Lakhs is shown as an exceptional loss.

b) ? (80.01) Lakhs on account of Interest Paid on Right of Recompense ("ROR") to Banks.

c) ? (236.92) Lakhs on account of write off of Advance Recoverable form Rajvir Industries For the year ended 31 march, 2023

a) Interest paid on ROR to banks of ? (453.08) Lakhs

b) Arrears of wages of? (204.16) Lakhs

c) Claims written off of ? (62.12) Lakhs

Other Litigations:

fin order has been received from the office of DGFT, Hyderabad for alleged violation of Target Plus Scheme to recover ? 3807 Lakhs including interest and penalties in Fy201 0-11. The High Court of Telangana alloujed the UUrit Petition filed by the company challenging aforesaid order and that of the appellate authority and directed the JDGFT to refund ? 500 lakhs deposited by the company. The office of JDGFT has filed a UUrit fippeal before the High Court of Telangana against this order ujhich is pending, fi shouj cause notice on the same issue uuas issued by DRI and the Commissioner of Customs & Central Excise, nagpur has confirmed the same ujhich has been challenged by the company before CESTRT, mumbai and the same is pending. The company has been advised that no liability is likely to arise under the notice in viem of the High Court alloujing the UUrit Petition filed by the company and the allegations are unfounded and the company is taking adequate steps to defend itself.

34.3 There ujas a major fire accident in spinning department of denim division at Ramtek.nagapur district, maharashtra state during January, 2008, in ujhich the Building, Plant & machinery, Electrical Installations and stocks uuere totally damaged. The factory uuas fully insured under reinstatement policy for fixed assets and under declaration policy for stocks. The Company's Insurance claim is processed and settled partly. The Company received an amount of ?2,609 lakhs from the Insurance Company including salvage during Fy2007-08 & 2008-09. The part claim of ?490 lakhs ujhich is still to be settled by the Insurance Company is shouun non-Current Other Financial Rssets as under Claims receivable. The Company's complaint in this matter is pending before national consumer disputes Redressal commission{nCDRC), neuj Delhi.

34.4 Other Statutory Information

i) The Company does not have any Benami property, ujhere any proceeding has been initiated or pending against the Company for holding any Benami property.

ii) The Company does not have any transactions uuith struck off companies.

iii) Quarterly returns or statements of current assets filed by the Company ujith banks or financial institutions are in agreement ujith the books of accounts.

iv) The Company does not have any transaction ujhich is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Ret, 1961

v) fis at march 31,2024, the register of charges of the Company as available in records of the ministry of Corporate Affairs (ITICR) includes charges that ujere created/modified since the inception of the Company. There are certain charges uuhich are historic in nature and it involves practical challenges in obtaining no objection certificates (FIOCs) from the charge holders of such charges, despite repayment of the underlying loans. The Company is in the continuous process of filing the charge satisfaction e-form uuith ITICR, uuithin the timelines,as and ujhen it receives FIOCs from the respective charge holders.

vi) The Company has not revalued its property plant and equipment during the year.

vii) The Company has not been declared as uuilful defaulter by any bank or financial institution or other lender

viii) The Company has complied uuith the number of layers prescribed under clause (87) of section 2 of the Ret read uuith the Companies (Restriction on number of Layers) Rules, 201 7.

ix) no Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Ret, 2013, during the year.

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

xi) The Company has not advanced or loaned or invested funds to any other person(s) or entity{ies}, including foreign entities (Intermediaries) ujith the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner mhatsoever by or on behalf of the company (Ultimate Beneficiaries) or

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

xii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) ujith the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

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

notes:

i) Return on Equity Ratio - Profit after tax has decreased during the current year Fy 23-24 due to lower margins in competitive market.

ii) Trade payable Turnover Ratio - Increase in ratio is on account of decrease in Average Trade Payables.

34.7 Capital management

The company's capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the company.

The company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and other long-term/short term borrowings.

The company's policy is aimed at combination of short term and long-term borrowings. The company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the company.

34.12 non Current Assets Held for sale and discontinued operations

Rs required by the Ind RS 105, non Current Rssets held for Sale and Discontinued Operations, Some of the Rssets of Garment division are lying in fisset held for sale and the same is expected to be sold during the coming financial year.

34.13 Financial Instruments

The folloujing table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into level 1 to level 3 as described belouu.

Level 1 - Quoted prices in an active market:

This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of Listed Equity shares.

Level 2 - Valuation techniques uuith observable inputs:

This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly {i.e„ as prices) or indirectly (i.e., derived from prices).

Level 3 - Valuation techniques uuith significant unobservable inputs:

This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market (unobservable inputs). Fair values a re determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

34.14 Financial Risk management Objectives and Policies

The company is exposed to financial risks arising from its operations and the use of financial instruments. The key financial risks include interest rate risk, foreign currency risk, market risk, credit risk and liquidity risk. The company has a risk management policy ujhich not only covers the foreign exchange risks, but also other risks associated niith the financial assets and liabilities such as interest rate risks and credit risks. The risk management frameujork aims to:

1. Create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the company's business plan.

2. Rchieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

The folloLuing sections provide the details regarding the Company's exposure to the financial risks associated uuith financial instruments held in the ordinary course of business and the objectives policies and processes for the management of these risks.

(i) market Risk:

market risk is the risk that the fair value or future cash floujs of a financial instrument will fluctuate because of changes in market prices, market prices comprise three types of risk, currency rate risk, interest rate risk and other price risks such as equity risk. Financial instruments affected by market risk include investments in equity shares.

a. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of the Company and the Company's financial instruments will fluctuate because of changes in market interest rates. Since the Company hasonly fixed interestbearing debts, exposure to interest rate risk is minimal.

b. Foreign Currency Risk

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Currency risk arises when transactions are denominated in foreign currencies.

The Company has transactional currency exposures arising from goods supplied or received that are denominated in a currency other than the functionalcurrency. The foreign currencies in which these transactions are denominated are mainly in US Dollars ($). The Company's trade receivable and trade payable balances at the end of the reporting period have similar exposures.

c. Other price risk

Other price risk is the risk that the fair value or future cash flows of the Company's financial instruments will fluctuate because of changes in market prices {other than those arising from interest rate risk or currency risk) whether those changes are caused by factors specific to the individual financial instrument or its issuer or by factors affecting all similar financial instruments traded in the market.

The Company is exposed to price risk arising mainly from investments in Equity shares recognized at FVTOCI.

(ii) Credit Risk:

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The credit risk arises from its operation activity primarily from trade receivable and from its financial activity. Customer credit risk is controlled by analysis of credit limit and credit worthiness of the customer on a continuous basis to whom the credit has been granted.

Long outstanding receivable from customer are regularly monitored. The maximum exposure to credit risk at the reporting date is the carrying value of trade and other receivable.

(iii) Liquidity Risk:

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

The company ensures that it has sufficient cash on demand to meet expected operational demands including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted.

34.15 Operating Segments

The company's operating segments are established on the basis of those components of the company that are evaluated regularly by the Chairman & managing Director {the 'Chief Operating Decision maker as defined in Ind AS 108 - 'Operating Segments'), in deciding houj to allocate resources and in assessing performance. These have been identified taking into account nature of products and services, the differing risks and returns and the internal business reporting systems.

During the year, the Company has changed the structure of its internal organization in a manner that caused the composition of its reportable segments to change from tujo principal operating and reporting segments Viz; Spinning & Denim {Fabrics) as reported till Fy 2022-23 to Only One Operating and Reporting Segment i.e Textiles.

Therefore, there is only one operating and reporting segment namely, "Textiles"

(c) Information about major customers

Revenue from transactions with a single customer exceed 10% or more of entity revenues - During the year under report and in the previous year there is no single customer having transactions ujith the Company's three operating segments exceeding 10% or more of the entity revenues.

34.16 Leases

The company takes on lease premises (offices/godouuns) for operations and storage purposes. Rccordingly, the Company recognizes a right-of-use asset and a lease liability for its leases, if the contract conveys the right to control the use of an identified asset.

34.17 Dues to micro, Small and medium Enterprises

The information as required to be disclosed m.r.t. micro and Small Enterprises under the micro, Small and medium Enterprises Development Ret, 2006 (Ret) is as given belouj and the information mentioned under Trade Payable uj.r.t. dues to micro and Small Enterprises, has been determined to the extent such parties have been identified on the basis of information available ujith the Company and relied on by the Auditors :

34.18 Previous year's figures have been reclassified, ujherever necessary so as to conform ujith those of Current year.