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NOTES TO ACCOUNTS

Seasons Textiles Ltd.

You can view the entire text of Notes to accounts of the company for the latest year
Market Cap. (₹) 15.07 Cr. P/BV 0.43 Book Value (₹) 46.43
52 Week High/Low (₹) 25/14 FV/ML 10/1 P/E(X) 0.00
Bookclosure 27/09/2024 EPS (₹) 0.00 Div Yield (%) 0.00
Year End :2025-03 

J. Provisions, Contingent Liabilities and Contingent Assets:

For the provisions, contingent liabilities and contingent assets, provisions of Ind AS 37 have been
adhered. A provision is recognised when the company has a present obligation as a result of a past
event and it is probable that an outflow of resources will be required to settle the obligation and in
respect of which a reliable estimate can be made. Provisions are determined based on management
estimate required to settle the obligation at the balance sheet date and are not discounted to
present value. Contingent liabilities are disclosed on the basis of judgment of the
management/independent experts. Contingent Assets are also disclosed on the basis of judgment
of the management/independent experts. These are reviewed at each balance sheet date and are
adjusted to reflect the current management estimate.

K. Employees Benefits:

Ind AS 19 on the aspects of employee benefits have been adhered and the actuarial impact have
been shown in the other comprehensive income.

1) Short Term Employee Benefits:-

Short Term Employee Benefits are recognized as an expense on an undiscounted basis in the Profit
& Loss account of the year in which the related service is rendered.

2) Post Employment Benefits:-

(a) Defined Contribution Plan:

The Employer's contribution to the Provident Fund and Pension Scheme, a defined contribution
plan is made in accordance with the Provident Fund Act, 1952 read with the Employees Pension
Scheme, 1995

(b) Defined Benefit Plan:

The liability for gratuity is provided through a policy taken from Life Insurance Corporation of India
(LIC) by an approved trust formed for that purpose. The present value of the company's obligation
is determined on the basis of actuarial valuation at the year end and the fair value of plan assets
is reduced from the gross obligations under the gratuity scheme to recognize the obligation on a
net basis

L. Taxation:

Provision for current tax is made and retained in the accounts on the basis of estimated tax liability
as per the applicable provisions of the Income Tax Act, 1961.

(a) Deferred tax assets and liability are recognised for timing differences, using the balance sheet
approach, based on tax rates that have been enacted or substantively enacted by the Balance Sheet
date. Where there are unabsorbed depreciation or carry forward losses, Deferred tax assets are
recognised only if there is virtual certainly of realisation of such assets. Other deferred tax assets
are recognised only to the extent there is reasonable certainly of realisation in future.Ind AS 12
principles have been adhered on the calculation of deferred taxes using the Balance sheet approach
and the same are accounted in the non current assets/ liabilities depending upon the workings on
the amounts provided.

M. Borrowing Costs:

Borrowing costs that are attributable to the acquisition of or construction of qualifying
assets are capitalized as part of the cost of such assets. A qualifying assets is one that
necessarily takes substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.

N. Impairment of Assets:

Intangible Assets and property, plant & equipment

Intangible assets and property, plant & equipment are evaluated for recoverability whenever events
or changes in circumstances indicate that their carrying amount may not be recoverable. For the
purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to
sell and the value-in-use) is determined on an individual asset basis unless the asset does not
generate cash flows that are largely independent of those from other assets. In such case, the
recoverable amount is determined for the CGU to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the statement of
profit and loss is measured by the amount by which the carrying value of the assets exceeds the
estimated recoverable amount of the asset. An impairment loss is reversed in the statement of
profit and loss if there has been a change in the estimates used to determine the recoverable
amount. The carrying amount of the asset is increased to its revised recoverable amount, provided
that this amount does not exceed the carrying amount that would have been determined (net of
any accumulated amortization or depreciation) has no impairment loss been recognized for the
asset in prior years.

Financial Assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial
assets which are not fair value through profit or loss.

Loss allowance for trade receivables with no significant financing component is measured at an
amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at
an amount equal to the 12 month ECL, unless there has been a significant increase in credit risk
from initial recognition in which case those are measured at lifetime ECL.

O. Earning Per Share:

The earnings considered in ascertaining the Company's EPS comprises of net profit after tax. The
number of shares used in computing basic EPS is the weighted average number of shares
outstanding during the period. The diluted EPS is calculated on the same basis as basic EPS, after
adjusting for the effects of potential dilutive equity shares unless the effect of the potential dilutive
share is anti-dilutive.

P. Fair Value Measurement:

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input
that is significant to the fair value measurement as a whole:

Level 1 - Quoted (unadjusted) market price in active markets for identical assetsor liabilities

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable

Level 3- Valuation techniques for which the lower level input that is significant to the fair value
measurement is Unobservable

For assets and liabilities that are recognized in the financial statements on a recurring basis, Seasons
Textiles Ltd. determines whether transfers have occurred between levels in the hierarchy by re¬
assessing categorization (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period or each case.

For the purpose of fair value disclosure, Seasons Textiles Ltd. has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of
the fair value hierarchy as explained above.

This note summarizes accounting policy for fair value. Other fair value related disclosures are given
in the relevant notes.

• Disclosures for valuation methods, significant estimates and assumption

• Quantitative disclosures of fair value measurement hierarchy

Q. Current versus non-current classifica7on:

The Company presents assets and liabilities in the balance sheet based on current/non-current
classification. An asset is treated as current when it is:

(a) expected to be realised in, or is intended to be sold or consumed in normal operating cycle;

(b) held primarily for the purpose of being traded;

(c) expected to be realised within 12 months after the reporting date; or

(d) cash or cash equivalent unless restricted from being exchanged or used to settle a liability
for at least 12 months after the reporting date.

All other assets are classified as non-current.

A Liability is current when:

(e) it is expected to be settled in normal operating cycle;

(f) it is held primarily for the purpose of being traded;

(g) it is due to be settled within 12 months after the reporting date; or

(h) the Company does not have an unconditional right to defer settlement of the liability for at
least 12 months after the reporting date.

All other liabilities are classified as non-current.

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

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in
cash or cash equivalents. The Company has identified twelve months as its operating cycle.

R. Risk Management and disclosures:

In compliance with Ind AS 107 with regard to disclosures - The nature and extent of risks arising from
financial instruments to which Seasons Textiles Limited is exposed during the period and at the end
of the reporting period, and how Seasons Textiles Limited is managing these risks.

i) Credit risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The company is exposed to credit risk from its operating
activities (primarily trade receivables) and from its financing activities including loans/advances etc
given to employees.

ii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and
collateral obligations without incurring unacceptable losses.

iii) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market prices comprise three types of risk:

1. Currency rate risk,

2. Interest rate risk and

3. Other price risks, such as equity price risk and commodity risk.

Financial instruments affected by market risk include loans and borrowings, deposits and investments.

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in foreign exchange rates. The company is into export business as well
and there are risks in relation to foreign currency exposure for the un-hedged portion.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates.

Environment:- The company operates in a market oriented environment. There is a stiff competition
from various players in the domestic and international market as well.

Any variation in prices of material, interest rate, currency exchange rate variations and other price risk

variations impact the profitability of the company.

Management of those Risks (mitigants)-

1. The Company extends credit to customers in normal course of business. The Company
monitors the payment track record of the customers. Outstanding customer receivables are
regularly monitored and any expected losses are provided for as well.

2. The Company evaluates the concentration of risk with respect to trade receivables as low, as
its customers are mainly Distributors and exports and the past track records do not envisage
any defaults on the payments seen so far and all payments are either though LC or through
secured payments.

3. The Company does not envisage either impairment in the value of receivables from customers
or loss due to time value of money due to delay in realization of trade receivables.

4. However, the Company assesses outstanding trade receivables on an ongoing basis
considering changes in operating results and payment behavior and provides for expected
credit loss on case-to-case basis.

5. As at the reporting date, company does not envisage any default risk on account of non¬
realisation of trade receivables.

NOTE-26 OTHERNOTES ON ACCOUNTS

(All figures are in '00000 except otherwise stated)

a. Previous year figures have been re-arranged and regrouped to make it comparable with the
current year figures.

b. Contingent Liabilities and Commitments to the extent not provided for:-

Contingent Liabilities

a. Foreign bill (Export) Rs.42.37 & under letter of Credit Rs.244.41(Previous
Year Foreign Bill (Export) Rs.143.30 & under letter of Credit Rs.269.12)

Commitments

a. Estimated amount of contract remaining to be executed on Capital Account and not provided for
is - NIL

b. All the known liabilities have been provided for and there are no disputed liabilities as
confirmed by the directors

c. Wherever the balance confirmation is not available from the parties, the balances as
appearing in the books of account have been considered.

d. Profit & Loss account includes remuneration to Auditors as given below:

h. Segmental Information: -

The Company has only one business segment of Textiles only. The company operates its business
from India. Therefore, there is only one business and geographical segment.

i. Deferred Taxation:

In accordance with Indian Accounting Standard (Ind AS) the deferred tax liability (on account of
timing difference) for the current year amounted to Rs.182.64. (Previous year Rs.175.97).

j. In the opinion of the management, the Current Assets, Loans and Advances have a value on
realisation in the ordinary course of business, at least equal to the amount at which they are
stated in the Balance Sheet.

k. In terms of Ind AS 36 on Impairment of Assets, the assets are not impaired because the
recoverable amount of fixed assets collectively determined by the present value of estimated
future cash flows is higher than its carrying value.

l. Tour and Travelling Expenses include Rs.6.75. (Previous Year Rs.9.01) on account of Directors.

m. VALUE OF IMPORT ON CIF BASIS:

The Cash Flow Statement has been prepared on the basis of indirect method as set out in the Indian

Accounting Standard (Ind AS) 7 on Statement of Cash Flow issued by the Institute of Chartered

Accountants of India.

q. Other Statutory Information

• 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 transactions with companies struck off.

• The Company does not have any charges or satisfaction which is yet to be registered with
ROC beyond the statutory period.

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

• The Company has not advanced or loaned or invested funds in any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the ultimate
beneficiaries.

• The Company has not received any fund from any person(s) or entity(ies), including foreign
entities (Funding Party) with 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)

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

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

As per our Separate Report of
even date as annexed hereto.

For M/s Bhatia & Bhatia

Chartered Accountants

Firm's Registration Number- 003202N For and on behalf of the Board

C.A. Ravinder Bhatia Inderjeet S. Wadhwa Kavita Rani

Proprietor Chairman & Managing Director Director

Membership No. 017572

UDIN:25017572BMKNRE4782

Sanjay Katyal Saurabh Arora

Chief Financial Officer Company Secretary

Place: New Delhi
Date: 20/05/2025

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