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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. (₹) 14.42 Cr. P/BV 0.41 Book Value (₹) 46.43
52 Week High/Low (₹) 26/14 FV/ML 10/1 P/E(X) 0.00
Bookclosure 27/09/2024 EPS (₹) 0.00 Div Yield (%) 0.00
Year End :2024-03 

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:

(a) 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.

(b) 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 assets or 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 classification:

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 behaviour 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 OTHER NOTES 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

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 (IndAS) the deferred tax liability (on account of timing difference
) for the current year amounted to Rs.175.97. (Previous year Rs.183.84).

j. In the opinion of the management, the Current Assets, Loans and Advances have avalue 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.

p. Statement of Cash Flow:

The Statement of Cash Flow has been compiled from and is based on the Balance Sheet as on March 31, 2024
and Profit & Loss Account for the year ended on that date.

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 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.

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 Neelam Wadhwa

Proprietor Chairman & Managing Director Director

Membership No. 017572

UDIN: UDIN: 24017572BKAUCF4801

Sanjay Katyal Saurabh Arora

Chief Financial Officer Company Secretary

Place : New Delhi
Date :24/05/2024

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