xv. Provisions, contingent liabilities and contingent assets

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

The amount recognised 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 obligation. When a provision is measured using the cash flows
estimated to settle the present obligation, it carrying amount is the present value of those cash
flows (when the effect of the time value of money is material).

28 Other Statutory information:

_n The Company does not have any Benami property, where any proceeding has been initiated or pending
^{( )} against the Company for holding any Benami Property.

.... The Company does not have any charges or satisfactory which is yet to be registered with ROC beyond the
^{( )} statutory period.

(i i i) The Company has not traded or invested in Crypto currency or Virtual Currency during the Financial Year.

The Company has not received any fund from any person(s) or entities, including foreign entities (funding
party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a)
(iv) 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.

, . The Company has not been declared willful defaulter by any bank or financial institution or government or
^{( )} any government authority.

(vi) The Company has no transactions with Companies struck off under Companies Act.

The Company has no transactions which are not recorded in the books of accounts that has been

(vii) 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 Act, 1961).

The company has filed a writ petition before the Honorable High Court of Andhra Pradesh, challenging
the excess electricity duty levied by APSPDCL. On 15.09.2023, the Honorable High Court of Andhra
Pradesh, Amaravati, through interim order in W.P. Nos. 16619 of 2022 and related cases, directed
APSPDCL to refund or adjust the excess electricity duty collected beyond 6 paise per unit from the
consumers. During the Financial Year 2023-24, by virtue of the above interim order of Honble AP High
Court, the company has reversed the entire provision created for Electricity Duty. However, the Final
Judgement is yet to be pronounced by the Honorable High Court of Andhra Pradesh.

31 Fuel and Power Purchase Cost Adjustment (FPPCA) Charges

The Andhra Pradesh Electricity Regulatory Commission (APERC) through Press Note released on 25-10¬
2024 and 29-11-2024, authorized the electricity distribution companies (DISCOMs) to recover Fuel and
Power Purchase Cost Adjustment (FPPCA) charges relating to the FY 2022-23 and 2023-24 from various
consumers. APERC further instructed the DISCOMS to recover these FPPCA Charges along with the
monthly electricity bills starting from November'2024 to November'2026 based on the predetermined
monthly rates.

An appeal has been filed by the textile industry association before the Appellate Tribunal for Electricity
contesting the retrospective applicability and calculation of these charges. The matter is currently
under adjudication, and no final decision has been delivered as on the date of approval of these
financial statements.

No demand is raised either APERC or by Discoms to the Company contends that it is not liable to pay
FPPCA charges amounting to T1.13 crores for FY 2022-23 and T1.11 crores for FY 2023-24, aggregating to
T2.24 crores. The management of the company decided to recognize the FPPCA charges as expenses as
and when the amounts are demanded by DISCOMS.

During the Financial Year 2024-25, the Company was demanded T0.55 crores towards FPPCA charges by
DISCOMS as part of monthly electricity bills from November 2024 to March 2025. The company has paid
and recognised T0.55 crores as expenses in the Statement of Profit & Loss for the Financial Year 2024¬
25. Accordingly, the balance FPPCA charges payable by the company is T 1.69 crores and the same will
be recognized and paid as and when the amounts are demanded by DISCOMS.

Notes to the Ind AS financial statements for the year ended March 31, 2025 (continued)

32 Employee Benefits Obligation

Defined contribution plans - Provident fund:

Contribution towards employee provident fund, which is a defined contribution plan for the period aggregated to
Rs 39.57 lacs charged in the statement of profit and loss.

33 Defined Benefit Plan - Gratuity:

In accordance with the 'Payment of Gratuity Act, 1972' of India, the Company provides for gratuity, a defined
retirement benefit plan (the 'Gratuity Plan') covering eligible employees. Liabilities with regard to such gratuity
plan are determined by an independent actuarial valuation and are charged to the Statement of Profit and Loss

in the period determined. The gratuity plan is administered by life Insurance Corporation of India,

Balances due to or due from parties are subject to confirmation

Previous year figures have been regrouped / reclassified wherever necessary to confirm to the current
year classification.

Figures have been rounded off to nearest rupee.

As per our report of even date For and On behalf of the Board

For Aditya Spinners Limited

For. T Mohan & Associates,

Chartered Accountants Sd/- Sd/-

(FRN No 012482S) K Vijay Kumar K Sriram

Sd/- Managing Director Joint Managing Director

Mohan Reddy T DIN: 00769568 DIN: 05103429

Partner

M No: 239635 Sd/- Sd/-

UDIN: 25239635BMKZMP1269 Priyanka Baldewa P Ramamoorthy

Place: Hyderabad Company Secretary Chief Financial Officer

Date: 30.05.2025 ACS: 48077