అకౌంట్స్ గమనికలుSumeet Industries Ltd.

Mar 31, 2025

The sensitivity analysis has been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting

period, which is the same method as applied in calculating the defined benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Risks associated with defined benefit plan

Gratuity is a defined benefit plan and company is exposed to the Following Risks:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in salary of the members more than assumed level will increase the plan’s liability.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Company has to manage pay- out based on pay as you go basis from own funds.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

(G) Foreign Currency: [Ind AS 21]

Functional and presentation currency

The financial statements are presented in Indian Rupees (INR), which is the company’s functional and presentation currency.

Foreign currency transactions

• Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Realised gains and losses on settlement of foreign currency transactions are recognised in the Standalone Statement of Profit and Loss.

• Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange rates and the resultant exchange differences are recognised in the Standalone Statement of Profit and Loss.

• Non-monetary items, which are carried in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of transaction.

• Exchange difference arising on settlement of monetary items or reporting monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expense in the year in which they arise.

(H) Finance Cost: [Ind AS 23]

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cost of such asset. A Qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. Interest income earned on the temporary investment of specific borrowing pending their expenditure on qualifying asset is deducted from the

borrowing cost eligible for capitalization. All Other borrowing costs are charged to statement of profit and loss for the period in which they are incurred

(J) Separate Financial Statements: [Ind AS 27]

Measurement Options:

Ind AS 27 allows a parent company to account for its investments in subsidiaries, joint ventures, and associates in its separate financial statements either:

-At Cost, or

-At Fair Value through Profit or Loss (FVTPL) or Fair Value through Other Comprehensive Income (FVOCI)(As per Ind AS 109).

Disclosure:

The method used (Cost or fair value) must be consistently applied and disclosed in the separate financial statements.

(K) Earnings Per Share: [Ind AS 33]

Basic and Diluted earnings/(loss) per share are calculated by dividing the net profit / (loss) for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average numbers of equity shares outstanding during the period are adjusted for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the board of directors.

*The fair value of cash and cash equivalents, trade receivables, borrowings, trade payables, other current financial assets and liabilities approximate their carrying amount largely due to the short-term nature of these instruments. The Company''s long-term debt and investment in fixed deposit have been contracted at market rates of interest. Accordingly, the carrying value of such instruments approximates their fair value.

(L) Provisions and Contingent Liabilities: [Ind AS 37]

A provision is recognised when the company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimates required to settle the obligation at the balance sheet date.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

Contingent Liabilities:

The details of outstanding demands of Goods & Service Tax and Tax Deducted at Source, based on records available on the GST and Traces portal, are summarized in the table below. However, the same is not treated as contingent liability considering the company had filed proceedings under the Insolvency and Bankruptcy Code, 2016 and the order of National Company Law Appellate Tribunal (NCLAT) dated 05/04/2024 approved the resolution plan. The resolution plan provides that “After the payment of the dues to the creditors, as per the resolution plan, all the liabilities/claims of the said stakeholders shall stand extinguished and other claims including Government/Statutory Authority, whether lodged during CIRP or not, shall stand extinguished after approval of the resolution plan. ”

(M) Intangible assets (Excluding Goodwill): [Ind AS 38]

Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the assets can be measured reliably.

Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates less accumulated amortization/depletion and impairment loss, if any. Such cost includes purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets. Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable

that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.

(N) Segment reporting: [Ind AS 108]

Ind AS 108 establishes standards for the way public business enterprises report information about operating segments and related disclosures about product, services, geographic areas, and major customers.

Operating segment

Operating segments are defined as components of a company for which discrete financial information is available that is evaluated regularly by Chief Operating Decision Maker ("CODM"), in deciding how to allocate resources and assessing performance. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The operations of the company are limited to one segment viz. Yarn manufacturing.

(O) Financial instruments: [Ind AS 109]

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets:

Classification

The Company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and

• those measured at amortized cost.

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

Initial recognition and measurement

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through Profit and Loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through Profit and Loss are expensed in the Statement of Profit and Loss.

Subsequent measurement

After initial recognition, financial assets are measured at:

• fair value (either through other comprehensive income or through Profit and Loss), or

• amortized cost.

Amortised cost:

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost is recognized in the Standalone Statement of Profit and Loss when the asset is derecognized or impaired. Interest income from these financial assets is included in other income using the effective interest rate method.

Fair Value through Other Comprehensive Income (FVOCI):

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets, cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in the Standalone Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss previously recognised in OCI is reclassified from equity to Standalone Statement of Profit and Loss and recognised in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

Fair Value through Profit and Loss (FVTPL):

Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognised in Standalone Statement of Profit and Loss in the period in which it arises. Interest income from these financial assets is recognised in the Standalone Statement of Profit and Loss.

Equity instruments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company decides to classify the same either as at FVTOCI or FVTPL.

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the company changes its business model for managing financial assets.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in Other Comprehensive Income (OCI). There is no recycling of the amounts from OCI to Standalone Statement of Profit and Loss, even on sale of such investments.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Standalone Statement of Profit and Loss.

Debt instruments

Debt instruments are subsequently measured at amortized cost on the basis of :

(i) the entity''s business model for managing the financial assets and

(ii) the contractual cash flow characteristics of the financial asset.

De-recognition

A financial asset shall be derecognized only when:

(a) the contractual rights to the cash flows from the financial asset expire, or

(b) it transfers the financial asset and the transfer qualifies for derecognition.

(c) On de-recognition of a financial asset, the difference between:

a. the carrying amount (measured at date of derecognition); and

b. the consideration received shall be recognized in Standalone Statement of Profit and Loss.

Note:

On subsequent measurement of Investments the cumulative balance of OCI account related to those investments is been transferred to OCI Reserve

The fair values of the investments are adjusted as per closing rate quoted in active market through Other Comprehensive Income based on the assessment of the management. Further, investment in Unquoted shares are assessed at cost.

In regards to the market Value of Questfin Ltd. and Zylog Systems Ltd, the management is not receiving any communication from the company and hence the value has been recorded at cost due to lack of data from the party.

During the year, the management identified, based on company records, that 1,400 equity shares of Garware Hi-Tech Films Limited are held in physical form, though the original certificates are currently untraceable. The Company has initiated the process of reclaiming ownership. A dividend of Rs. 14,000/- was received during the year, confirming continued ownership. Accordingly, the investment has been recognized at fair market value as on 31st March 2025 and classified as FVTOCI in accordance with Ind AS 109. The corresponding unrealized gain has been routed through Other Comprehensive Income and presented under equity as FVTOCI.

Financial liabilities:

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. In the case of a financial liability not at FVTPL, transaction costs that are directly attributable to the issue/origination of the financial liability.

Preference Shares being redeemable at fixed date and having right of cumulative dividend are considered as financial liability.

Optionally Convertible Preference shares are considered as equity.

Subsequent measurement

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held for trading, or it is a derivative or it is designated as such an initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in standalone statement of profit and loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in Standalone Statement of Profit and Loss. Any gain or loss on de-recognition is also recognized in Standalone Statement of Profit and Loss.

De-recognition

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the standalone statement of profit or loss.

Offsetting of financial instruments:

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

(P) Fair value measurement [Ind AS 113]

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured or disclosed in the financial statements are categorised 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) prices in active market for identical assets or liabilities. Investments in Quoted Shares are valued as per quoted price in active market.

• Level 2 -(Inputs other than quoted prices included in Level 1) 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 lowest level input that is significant to the fair value measurement is unobservable

The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

For financial assets and liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the carrying amount approximates fair value due to the short maturity of these instruments.

(Q) Revenue from Contracts with Customers: [Ind AS 115]

> Revenue from contract with customer is recognized when control of Goods or services are transferred to the buyer as per the terms of the contract; the entity retains neither continuing managerial involvement nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

> Revenue is measured at fair value of the consideration received or receivable, after deduction of any trade discounts, volume rebates and any taxes or duties collected on behalf of the government which are levied on sales.

> Export sales are accounted when the goods have left the premises or when the goods are received by the customers and incoterms are fulfilled at the exchange rate prevailing on the date

of invoice. These are net of commission and do not include freight wherever applicable as per the terms of the sales contract.

> Dividend income is recognized when the right to receive the dividend is established by the reporting date, which is generally when shareholders approve the dividend.

> Interest income is recognized using the effective interest method (EIR) and accounted on accrual basis. EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of a financial liability or a financial asset to their gross carrying amount.

(R) Cash and cash equivalents:

For the purpose of presentation in the Statement of Cash Flows, Cash and Cash Equivalents includes Cash on hand, balance with banks and demand deposits with banks and other short term highly liquid investments that are readily convertible into cash and which are subject to an insignificant risk of changes in value.

25. Corporate Insolvency Resolution Process (CIRP)

The Company was under Corporate Insolvency Resolution Process (CIRP) during the preceding financial period in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016. The NLCAT vide order dated 30.05.2024 for the appeal no. Company Appeal (AT) (Insolvency) No. 922 of 2024 [Arising out of order dated 05.04.2024 passed by the Adjudicating Authority (National Company Law Tribunal, Ahmedabad Bench, Court - II), in I.A. No. 1394 of 2023 in C.P. (IB) No.38 of 2020] accepted the resolution plan submitted by the SRA. For the implementation of the approved Resolution Plan and in compliance with applicable Ind AS, the following accounting treatments have been made during the current financial year:

i) Non-realisation from Debtors - Quantity Discounts

Amounts under-recovered from trade receivables, arising during the CIRP period and not claimed by the Company as part of the insolvency process, have been recognised as quantity discounts. In accordance with Ind AS 115, these amounts have been reflected as a reduction in revenue in the Statement of Profit and Loss.

ii) Write-off of Obsolete Inventory

Inventories pertaining to the period prior to CIRP commencement and identified as obsolete during the valuation exercise under the Resolution Plan have been written off in the Statement of Profit and Loss. This treatment is in line with the requirements of Ind AS 2 - Inventories, which mandates valuation at the lower of cost and net realisable value.

iii) Write-off of Related Party Unsecured Loans

As per the Resolution Plan, no settlement amount is payable to related parties or entities connected with the erstwhile promoter group. Consequently, unsecured loans from:

Somani Overseas Pvt. Ltd. - Rs. 1,105.91 Lakhs/-Ganga Devi Somani - Rs. 1,613.22 Lakhs/-

have been derecognised and credited to the Statement of Profit and Loss under “Other Income.” In accordance with Ind AS 109, the extinguishment of these liabilities has been accounted as a gain, and the same is considered taxable as business income.

iv) Corporate Guarantee Claims - Not Admitted

Claims filed by lenders in respect of corporate guarantees given on behalf of related parties (viz. Sitaram Prints Pvt. Ltd. and Somani Overseas Pvt. Ltd.) were not admitted under the CIRP. As per Ind AS 109 and Ind AS 37, no liability has been recorded, and the extinguishment of potential obligations has not resulted in any accounting impact.

v) Extinguishment of NCRPS

Non-Convertible Redeemable Preference Shares (NCRPS) were extinguished under the approved Resolution Plan without any payout to the holders. As these instruments were classified as financial liabilities, the Company has derecognised the same in accordance with Ind AS 109, and the resulting gain has been recognised in the Statement of Profit and Loss.

vi) Capital Reduction and Reorganisation As part of the capital restructuring:

a. The equity share capital held in demat form was reduced in the ratio of 4 shares for every 77 shares.

b. Total no. of equity shares post reduction is 52,65,136.

c. Physical shares (22,88,515) were cancelled as per the Resolution Plan.

d. New capital of Rs. 1,000.00 Lakhs was introduced by the Successful Resolution Applicant (SRA) for 1,00,00,000 equity shares, resulting in total post-resolution number of equity shares of 10,52,65,136.

e. The condition of maintaining minimum 5% shareholding by existing public shareholders has been complied with.

f. The reduction of equity share capital does not involve return of funds to shareholders and has been accounted by adjusting against general reserves. No Capital Redemption Reserve (CRR) has been created, in line with Ind AS 32.

vii) Settlement and Write-off of Financial Liabilities-

Financial liabilities were settled through a mix of cash, preference shares, and pre-CIRP cash balances. Gains arising from settlement and remaining write-offs were recognised through the Realisation Account in accordance with Ind AS 109.

viii) Accounting for Operational Creditors and Pre-CIRP Items

Claims of operational creditors not previously recorded have been recognised through a Claim Account and paid as per the Resolution Plan. The unpaid portion and non-recoverable pre-CIRP receivables/payables have been written off through the Realisation Account, in line with Ind AS 109.

ix) Impairment of Investment in Subsidiary

Based on the CIRP valuation report, impairment loss has been recognised against investment in a subsidiary as the fair value was NIL, in accordance with Ind AS 36.

27. The Interest payable as per section 16 of MSMED Act 2006 has not been ascertained and not provided for by the company.

29. As at the reporting date, the Company has an unclaimed public deposit of ?2.90 lakhs in IDBI Bank disclosed under Other Financial Liabilities. An equivalent amount has been placed in a fixed deposit in IDBI Bank and recognised under Other Financial Assets. Interest accrued pertaining to previous financial years of ?2.15 lakhs has been recognised as both Interest Receivable and Interest Payable in accordance with Ind AS 1 and Ind AS 109. The amounts shall be released upon valid claims by the deposit holders.

30. Previous year’s figures have been regrouped and recasted wherever necessary.

31. Additional regulatory information required by Schedule III of Companies Act, 2013

(i) The Company has not revalued its property, plant and equipment during the current or previous year.

(ii) No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made there under.

(iii) The Company has no transactions with struck off companies during the year.

(iv) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

(v) The Company has not entered into any scheme of arrangement in terms of sections 230 to 237 of the Companies Act, 2013, which has an accounting impact on current or previous financial year.

(vi) The Company has not advanced or loaned funds to any persons or entities, 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.

(vii) 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) or

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

(viii) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(ix) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

32. The figures have been rounded off to the nearest lakhs of rupees upto two decimal places.

See accompanying notes to the financial statements for and on behalf on Board of Directors

As per our report of even date

---

Mar 31, 2024

(L) Provisions and Contingent Liabilities: [Ind AS 37]

A provision is recognised when the company has a present obligation as a result of past events and
it is probable that an outflow of resources will be required to settle the obligation, in respect of which
a reliable estimate can be made. Provisions are not discounted to their present value and are
determined based on best estimates required to settle the obligation at the balance sheet date.

A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized because it is not probable that
an outflow of resources will be required to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot be recognized because it cannot be
measured reliably.

Contingent Liabilities:

a) The Company has given corporate guarantee to Bank of Baroda, Singapore for term loan given
to Sumeet Global PTE Limited and the present outstanding is Rs 64.18 Crores
($78,10,016.82)

b) A sum of Rs. 71,109/- has been paid against the demand raised by GST Department during FY
2022-23 against which an appeal has been filed before the Appellate Authority. The same
amount has been shown under other current Assets for the GST Penalty paid against appeal
filed.

(M) Intangible assets (Excluding Goodwill): [Ind AS 38]

Intangible assets are recognized when it is probable that the future economic benefits that are
attributable to the asset will flow to the enterprise and the cost of the assets can be measured
reliably.

Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates
less accumulated amortization/depletion and impairment loss, if any. Such cost includes purchase
price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition
for the intended use, net charges on foreign exchange contracts and adjustments arising from
exchange rate variations attributable to the intangible assets. Subsequent costs are included in the
asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the entity and the cost can be
measured reliably.

(N) Segment reporting: [Ind AS 108]

Ind AS 108 establishes standards for the way public business enterprises report information about
operating segments and related disclosures about product, services, geographic areas, and major
customers.

Operating segment

Operating segments are defined as components of a company for which discrete financial information
is available that is evaluated regularly by Chief Operating Decision Maker ("CODM"), in deciding
how to allocate resources and assessing performance. Operating segments are reported in a manner
consistent with the internal reporting provided to the chief operating decision-maker. The operations
of the company are limited to one segment viz. Yarn manufacturing.

(O) Financial instruments: [Ind AS 109]

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Financial assets:

Classification

The Company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income,
or through the Statement of Profit and Loss), and

• those measured at amortized cost.

The classification depends on the entity''s business model for managing the financial assets and the
contractual terms of the cash flows.

Initial recognition and measurement

Financial assets are recognized when the Company becomes a party to the contractual provisions of
the instrument. Financial assets are recognized initially at fair value plus, in the case of financial
assets not recorded at fair value through Profit and Loss, transaction costs that are attributable to the
acquisition of the financial asset. Transaction costs of financial assets carried at fair value through
Profit and Loss are expensed in the Statement of Profit and Loss.

Subsequent measurement

After initial recognition, financial assets are measured at:

• fair value (either through other comprehensive income or through Profit and Loss), or

• amortized cost.

Amortised cost:

Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment
that is subsequently measured at amortized cost is recognized in the Standalone Statement of Profit

and Loss when the asset is derecognized or impaired. Interest income from these financial assets is
included in other income using the effective interest rate method.

Fair Value through Other Comprehensive Income (FVOCI):

Assets that are held for collection of contractual cash flows and for selling the financial assets, where
the assets, cash flows represent solely payments of principal and interest, are measured at FVOCI.
Movements in the carrying amount are taken through OCI, except for the recognition of impairment
gains or losses, interest revenue and foreign exchange gains and losses which are recognised in the
Standalone Statement of Profit and Loss. When the financial asset is derecognized, the cumulative
gain or loss previously recognised in OCI is reclassified from equity to Standalone Statement of
Profit and Loss and recognised in other gains/ (losses). Interest income from these financial assets is
included in other income using the effective interest rate method.

Fair Value through Profit and Loss (FVTPL):

Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or
loss on a debt investment that is subsequently measured at FVTPL is recognised in Standalone
Statement of Profit and Loss in the period in which it arises. Interest income from these financial
assets is recognised in the Standalone Statement of Profit and Loss.

Equity instruments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which
are held for trading are classified as at FVTPL. For all other equity instruments, the Company decides
to classify the same either as at FVTOCI or FVTPL.

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period
the company changes its business model for managing financial assets.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes
on the instrument, excluding dividends, are recognized in Other Comprehensive Income (OCI).
There is no recycling of the amounts from OCI to Standalone Statement of Profit and Loss, even on
sale of such investments.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the Standalone Statement of Profit and Loss.

Debt instruments

Debt instruments are subsequently measured at amortized cost on the basis of :

(i) the entity''s business model for managing the financial assets and

(ii) the contractual cash flow characteristics of the financial asset.

De-recognition

A financial asset shall be derecognized only when:

(a) the contractual rights to the cash flows from the financial asset expire, or

(b) it transfers the financial asset and the transfer qualifies for derecognition.

The management assessed that fair value of Cash and short-term deposits, trade and other short-term
receivables, trade payables, other current liabilities, approximate their carrying amounts largely due to
the short- term maturities of these instruments.

The fair values of the investments are not based on the observable market data (unobservable inputs) and
are based on the assessment of the management. Further, investment in unquoted shares are assessed on
book value.

*In regards to the market Value of Questfin Ltd., the management is not receiving any communication
from the company and hence the value has been recorded at cost due to lack of data from the party.

Financial liabilities:

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in
an effective hedge, as appropriate. In the case of a financial liability not at FVTPL, transaction costs
that are directly attributable to the issue/origination of the financial liability.

Preference Shares being redeemable at fixed date and having right of cumulative dividend are
considered as financial liability.

Subsequent measurement

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is
classified as at FVTPL if it is classified as held for trading, or it is a derivative or it is designated as
such an initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains
and losses, including any interest expense, are recognized in standalone statement of profit and loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest
method. Interest expense and foreign exchange gains and losses are recognized in Standalone
Statement of Profit and Loss. Any gain or loss on de-recognition is also recognized in Standalone
Statement of Profit and Loss.

De-recognition

A financial liability is derecognized when the obligation specified in the contract is discharged,
cancelled or expires. When an existing financial liability is replaced by another from the same lender
on substantially different terms, or the terms of an existing liability are substantially modified, such
an exchange or modification is treated as the derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognised in the standalone
statement of profit or loss.

Offsetting of financial instruments:

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

(P) Fair value measurement [Ind AS 113]

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot
be measured based on quoted prices in active markets, their fair value is measured or disclosed in the
financial statements are categorised 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) prices in active market for identical assets or liabilities.
Investments in Quoted Shares are valued as per quoted price in active market.

• Level 2 -(Inputs other than quoted prices included in Level 1) 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 lowest level input that is significant to the fair value
measurement is unobservable

The inputs to these models are taken from observable markets where possible, but where this is not
feasible, a degree of judgement is required in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions
about these factors could affect the reported fair value of financial instruments.

For financial assets and liabilities maturing within one year from the Balance Sheet date and which
are not carried at fair value, the carrying amount approximates fair value due to the short maturity of
these instruments.

(Q) Revenue from Contracts with Customers: [Ind AS 115]

> Revenue from contract with customer is recognized when control of Goods or services are
transferred to the buyer as per the terms of the contract; the entity retains neither continuing
managerial involvement nor effective control over the goods sold; the amount of revenue can
be measured reliably; it is probable that the economic benefits associated with the transaction
will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can
be measured reliably.

> Revenue is measured at fair value of the consideration received or receivable, after deduction
of any trade discounts, volume rebates and any taxes or duties collected on behalf of the
government which are levied on sales.

> Export sales are accounted when the goods have left the premises or when the goods are
received by the customers and incoterms are fulfilled at the exchange rate prevailing on the date
of invoice. These are net of commission and do not include freight wherever applicable as per
the terms of the sales contract.

> Dividend income is recognized when the right to receive the dividend is established by the
reporting date, which is generally when shareholders approve the dividend.

> Interest income is recognized using the effective interest method (EIR) and accounted on
accrual basis. EIR is the rate that exactly discounts the estimated future cash payments or
receipts over the expected life of a financial liability or a financial asset to their gross carrying
amount.

(R) Cash and cash equivalents:

For the purpose of presentation in the Statement of Cash Flows, Cash and Cash Equivalents includes
Cash on hand, balance with banks and demand deposits with banks and other short term highly liquid
investments that are readily convertible into cash and which are subject to an insignificant risk of
changes in value.

25. The following term loans are called up by banks so now these are payable on demand basis. We are
shown under the head Current Liabilities as Borrowing.

• BOB (FDY Winder) Term Loan

• Canara Bank Term Loan [Texturizing]

• IDBI Corporate Loan

• Bremer Kredit bank AG*

• ECB London Term Loan (BOB)

*The Company has taken loan from Bremer Kreditbank AG. During the F.Y. 2019-20 on the basis of
information received by the company the name was changed from Bremer Kreditbank AG to
Oldenburgische Landesbank AG. But Oldenburgische Landesbank AG has unable to provide any
document for the same, hence during the current financial year the name has been taken as Bremer
Kreditbank AG, which is shown under the current maturity of long-term debt.

29. Previous year’s figures have been regrouped and recasted wherever necessary.

30. Additional regulatory information required by Schedule III of Companies Act, 2013

(i) The Company has not revalued its property, plant and equipment during the current or previous
year.

(ii) No proceedings have been initiated or are pending against the Company for holding any Benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made
there under.

(iii) The Company has no transactions with struck off companies during the year.

(iv) The Company does not have any charges or satisfaction which is yet to be registered with Registrar
of Companies beyond the statutory period.

(v) The Company has not entered into any scheme of arrangement in terms of sections 230 to 237 of
the Companies Act, 2013, which has an accounting impact on current or previous financial year.

(vi) The Company has not advanced or loaned funds to any persons or entities, 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.

(vii) 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) or

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

(viii) There is no income surrendered or disclosed as income during the current or previous year in the
tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of
account.

(ix) The Company has not traded or invested in crypto currency or virtual currency during the current
or previous year.

31. CIRP Status-

a. The Standalone Financial Statement explains that the Company was admitted under the CIRP
vide order dated 20.12.2022 as the Corporate Debtor was admitted into CIRP, in an application
filed by the Financial Creditor, namely, IDBI Bank u/s 7 of the IB Code, triggering moratorium
under section 14 of the IB Code and Mr. Kuresh Hatim Khambati was appointed as Interim
Resolution Professional (hereinafter referred to as “IRP"), who made a public announcement in
Form-A on 28.12.2022

b. After collating the claims received from the creditors of the Corporate Debtor, the IRP formed
the CoC on 18.01.2023 comprised of Six Financial Creditors, namely: Union Bank of India with
4.61% voting share, Bank of Baroda with 60.98 % voting share, IDBI Bank Limited with 25.10
% voting share, Canara Bank with 3.04 % voting share, Central Bank of India with 4.68 % voting
share, Oldenburgische Landesbank AG with 1.59 % voting share (with which Bremer Kredibank
AG, formerly known as KBC Bank Deutschland AG merged).

c. The 1st CoC meeting was held on 24.01.2023 wherein the members of the COC did not confirm
the IRP as RP. Further, in the 2nd COC meeting was held on 09.02.2023 in which COC passed
the resolution for the appointment and replacement of IRP from RP Mr. Satyendra Prasad
Khorania. It is also decided by the CoC for the appointment of two Registered Valuers to carry
out the valuation. The 03rd CoC meeting was held on 04.03.2023 wherein the COC approved the
resolution for publication of FORM- G along with the eligibility criteria and the same was
published on 12.03.2023.

d. The Resolution Professional had examined and admitted the claims from Secured Financial
Creditors amounting to Rs. 583.48 Cr, Unsecured Financial Creditors amounting to Rs. 107.61
Cr and from Operational Creditors (other than Workmen, Employees and Government dues)
amounting to Rs. 36.64 Cr. The variations between balances as per books and amount claimed
by the Secured financial creditors was due to charging of interest and other charges claimed by
the financial creditors and by unsecured financial creditors amounting was due to claim by Bank
of Baroda against Corporate Guarantee by Company for Sumeet Global Pte Ltd and claim by
Sitaram Prints Pvt. Ltd. against Corporate Guarantee given in favour of secured creditors of
company, as explained to us.

e. Then an application was been filed by Mr. Satyendra Prasad Khorania, Resolution Professional
of M/s. Sumeet Industries Ltd. under section 30(6) read with Section 31 and 60(5) of Insolvency
& Bankruptcy Code, 2016 (hereinafter referred to as IBC, 2016) for approval of the Resolution
Plan submitted by the M/s Eagle Fashions Private Limited, Eagle Fibers Limited, Eagle
Synthetics Private Limited, Padmini Polytex Private Limited, Eagle Sizers & JPB Fibers Jointly
as Eagle Group / Successful Resolution Applicant(hereinafter referred to as “SRA”) which was
approved by Committee of Creditors ("COC") of Sumeet Industries Limited (“Corporate
Debtor”). However, pertaining to the observations as mentioned in the points a) to k) of Para 20
of the NCLT order pronounced on 05.04.2024 the application was rejected. The company have
filed an appeal before the NCLAT against the order passed vide Company Appeal (AT)
(Insolvency) No. 922 of 2024 registered on 29.04.2024 and the order is awaited.

f. The Holding Company’s ability to continue as a going concern is dependent upon many factors
including continued support from the financial creditors, operational creditors and approval of a
viable resolution plan by the prospective investor. These events or conditions indicate that a
material uncertainty exists that may cast significant doubt on the Holding Company’s ability to
continue as a going concern. In view of the opinion of the Directors and KMPs, resolution and
revival of the Holding Company is possible in foreseeable future. Further the RP is required to
make every endeavor to protect and preserve the value of the property of the corporate debtor
and manage the operations of the corporate debtor as a going concern. In view of the aforesaid
details and pending outcome of the CIRP at NCLAT, the financial results of the Holding
Company have been prepared on going concern basis.

32. The figures have been rounded off to the nearest lakhs of rupees upto two decimal places.

See accompanying notes to the financial statements for and on behalf on Board of Directors

As per our report of even date

FOR H T K S & Co.

CHARTERED ACCOUNTANTS

Shankarlal Somani- Chairman

CA. HARISHANKAR TOSNIWAL Sumeet Kumar Somani - Mg. Director.

PARTNER

M.NO.: 055043

PAN : AACFH 1890 B Anil Kumar Jain - Company Secretary.

FIRM REG. NO: 111032W

PLACE:SURAT

DATE : 28.05.2024

Abhishek Prasad - CFO.

Taken on Record

Satyendra P. Khorania - RP

Reg. No. IBBI/IPA-002/IP-N00002/2016-17/10002

AFA NO.: AA2/10002/02/101224/203107 & Valid

upto 10.12.2024

---

Mar 31, 2018

1) RECENT ACCOUNTING DEVELOPMENTS

Standards issued but not yet effective:

In March 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendment) Rules, 2018, issuing Ind AS 115, Revenue from Contracts with Customers. The standard j is applicable from April 01, 2018. The Corresponding Ind AS 18, ‘Revenue’ and Ind AS 11, ‘Construction | Contract’ have been omitted. Relevant amendments have been made to Ind AS 101, 103, 104, 107, 109, i 112, 1, 2, 8, 12, 16, 17, 21, 23, 28, 32, 34, 36, 37, 38 and 40.

The Company has not applied these amendments since they are effective for periods beginning on or after April 01, 2018.

2) FIRST TIME ADOPTION OF IND AS

These are the Company’s first financial statements prepared in accordance with Ind AS.

The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate

Affairs with effect from April 01, 2017 with a transition date of April 1, 2016. These financial statements for the year ended March 31, 2018 are the first the Company has prepared under Ind AS. For all period’s up to and including the year ended 31st March, 2017, the Company prepared its financial statements in accordance with the previously applicable Indian GAAP (previous GAAP).

The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian

Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements be applied retrospectively and consistently for all financial years presented. Accordingly, the Company has prepared financial statements which comply with Ind As for year ended 31st March 2018, together with the comparative information as at and for the | year ended 31st March 2017. The Company’s opening Ind AS Balance Sheet has been prepared as at 1^st April, 2016, the date of transition to Ind AS.

In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act. ;

An explanation of how the transition from previous GAAP to Ind AS has affected the Company financial position, financial performance and cash flows is set out in the following tables and notes

I. Optional Exemptions from retrospective application

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions.

(a) Deemed cost of property, plant and equipment.

Ind AS 101 permits a first time adopter to elect to continue with the carrying values for all of its Property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. Accordingly, the Company has opted to consider the carrying value for all of its Property, plant and equipment’s as recognized in its previous GAAP financials as its deemed cost at the transition date

(b) Fair value of financial assets and financial liabilities.

Ind AS 101 permits a first time adopter to apply requirement of Ind AS 109 prospectively to | transactions entered into on or after the date of transition. Accordingly the company has opted to consider the measurement of financial assets and liabilities arisen before the date of transition of Ind AS as per previous GAAP.

II. Mandatory Exceptions to retrospective application

(a) Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies).

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 01, 2016, the date of transition to Ind AS and as of March 31, 2018.

(b) Classification and measurement of financial assets

The classification of financial assets to be measured at cost or fair value made on the basis of the facts and circumstances that existed on the date of transition to Ind AS.

III. Transition to Ind AS - Reconciliations

The following reconciliations provide the explanations and quantification of the differences ; arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101: ;

i. Reconciliation of Statement of Profit and Loss for the year ended 31^st March, 2018.

ii. Adjustments to Statement of Cash Flows for the year ended 31^st March, 2018.

Previous GAAP figures have been reclassified/regrouped wherever necessary to conform to ; Standalone financial statements prepared under Ind AS.

Notes to reconciliation

1) Remeasurement of defined benefit obligations :

Under the Previous GAAP, actuarial gains and losses on defined benefit obligations were recognized in the statement of profit and loss. Under Ind AS, these are recognized in other comprehensive income. This difference has resulted in an increase in net income for the year ended March 31, 2016. However, the same does not result in difference in equity or total comprehensive income.

2) Difference in current tax expense :

Tax adjustments include deferred tax impact on account of differences between Previous GAAP and Ind AS.

(ii) Terms and rights attached to equity shares.

The company has only one class of equity shares having face value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The final dividend if proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive | remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholder.

During the immediate preceding five years, no shares were bought back. However, 250,000 shares held by Vishvas Infrastructure Ltd. were cancelled during the financial year 2013-14 as per the order of High Court.

Nature of security

Hypothication of 1st charge on all fixed assets of the company and 2nd pari passue charge on all current assets of the company.

Mortgage of Fixed Assets of M/S. Sitaram Prints Pvt. Ltd. And Residence Bunglow of Shri Shankar Lal Somani and Smt.Ganga devi Somani. Hypothication of Exclusive Charges of Machinery Financed by them only.

Vehicle Loans are secured by hypothecation of vehicles itself.

LIC has Key Man Insurance policy hypothecated against Premium Amt. Paid.

Note # 3

Other Notes to Accounts:

1) There was no employee in receipt of remuneration aggregating to Rs. 102,00,000/- or more per year or | Rs 8,50,000/- or more per month for the part or whole of the year. Previous year also there was no such i employee.

2) Balances of loans, advances, Cash & Bank and Creditors & Debtors are subject to confirmation and have been taken as appeared in the books of account of the company.

3) The quantity and value of closing stock is certified by the management as true and correct.

4) In the absence of information regarding outstanding dues of MICRO or Small Scale Industrial Enterprise(s) as per The Micro, Small & Medium Enterprise Development Act, the Company has not disclosed the same | as required by Schedule III to the Companies Act, 2013.

5) Advances include Rs. 1357 Lacs (Pre.Year Rs. 1255 Lacs) to companies in which directors are interested.

6) Defined Benefit Plan - Gratuity

The Company has a defined benefit gratuity plan in India (unfunded). The company’s defined benefit gratuity plan is a final salary plan for employees.

Gratuity is paid from company as and when it becomes due and is paid as per company scheme for Gratuity.

During the year, the company has changed the benefit scheme in line with Payment of Gratuity Act, 1972 j by increasing monetary ceiling from 10 lakhs to 20 lakhs. Change in liability (if any) due to this scheme | change is recognized as past service cost.

The Company’s obligation in respect of the gratuity plan is provided for based on actuarial valuation using the projected unit credit method. The Company recognizes actuarial gains and losses immediately in other comprehensive income, net of taxes. Amount recognized in the statement of profit and loss in respect of gratuity cost (defined benefit plan) is as follows:

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognized in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Risks associated with defined benefit plan

Gratuity is a defined benefit plan and company is exposed to the Following Risks:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Company has to | manage pay- out based on pay as you go basis from own funds.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

4) The fair value of cash and cash equivalents, trade receivables, borrowings, trade payables, other current j financial assets and liabilities approximate their carrying amount largely due to the short-term nature of ; these instruments. The Company’s long-term debt and investment in fixed deposit have been contracted at market rates of interest. Accordingly, the carrying value of such instruments approximates their fair value.

5) Contingent Liabilities:

(a) Letter of credit outstanding is 2,18,280 US$ as on 31.03.2018 (Pre. Year 380000 US$ and JPY 14269760 respectively).

(b) SEBI had imposed penalty of Rs.2.00 crore U/S 15-of Securities and Exchange Board of India Act, 1992 read with rule 5 of SEBI (procedure for holding enquiry and imposing penalties by educating officer) Rules 1995 vide Adjudication order no. IVD/SIL/AO/DrK-CS/EAD-3/473-486/16-29-14. The j Company has filed petition before SAT against the said order. The same has been remanded back to SEBI for fresh order on merits.

(c) The Company has given corporate guarantee to State Bank of India for term loan given to Sumicot Ltd (Formally known as Sumeet Poly Power Limited) and the present outstanding was Rs. 27.93 Crores.

(d) Income Tax Assessment for A.Y. 2012-13, 2014-15 and 2015-16 is pending with CIT (Appeals) and A.Y. 2009-10 is pending with Dy. Commissioner of Income Tax, Surat. Total amount of demand involved in all these cases is amounting to Rs. 8.06 crores which is subject to final order and rectification.

6) Operating Segment:

The operations of the company are limited to one segment viz. Polyester Yarn manufacturing (textile).

Operating segments are defined as components of a company for which discrete financial information is available that is evaluated regularly by Chief Operating Decision Maker (“CODM”), in deciding how to allocate resources and assessing performance.

---

Mar 31, 2016

A. Borrowings shall be further classified as Secured/ Unsecured. Nature of security to be disclosed. Classification of secured borrowings and Nature of security :

Term Loan From Banks :

(Secured by way of hypothication of 1st charge on all fixed assets of the company and 2nd pari passue charge on all current assets of the company.

Mortgage of Fixed Assets of M/S. Sitaram Prints Pvt. Ltd. and Residence Bunglow of Shri Shankarlal Somani and Smt. Ganga devi Somani.

Term Loan From Others :

Vehicle Loans are secured by hypothecation of vehicles itself.

LIC has Key Man Insurance policy hypothecated against Premium Amt. Paid.

Loans & Advances from Corporates :

Loans taken here are unsecured in nature.

A. Borrowings shall be further classified as Secured / Unsecured. Nature of security to be disclosed. Classification of secured borrowings and Nature of security :

Cash Credit facility is secured by 1st pari passue charge on all current assets of the company and 2nd pari -passue charge on fixed assets of the company. Buyers credit secured by letter of comfort issued by B.O.B Cosortium Banker.

NOTE # 1

Other Notes to Accounts :

(1) Advances include Rs.1020 Lakh (Pre.Year Rs.1471 Lakh) to companies in which directors are interested.

(2) Contingent Liabilities (AS 29) :

(a) Letter of credit outstanding is 133477.68 US$ and JPY:14327760 and UAE/AED:2645000 as on 31.03.2016 (Pre. Year 20.313 Lakh US$).

(b) SEBI has imposed penalty of Rs.2 crore U/S 15-I of Securities and exchange board of India Act, 1992 read with Rule 5 of SEBI (procedure for holding enquiry and imposing penalties by educating officer) Rules 1995 wide Adjudication order no.IVD/SIL/AO/DRK-CS/EAD-3/473-486/16-29-14. The Company has filed petition before SAT against the said order.

(3) The liability of excise duty amounting to Rs. 5,90,96,290 (Prev. year Rs. 7,12,69,293) has been provided for the goods manufactured but not cleared as on 31.3.2016, the effect of which on profit and loss account of the year is Nil.

---

Mar 31, 2015

1. Corporate information

Sumeet Industries Ltd. is a Public Limited Listed Company domiciled in India and Incorporated under the provisions of the Companies Act, 1956.The Company is engaged in the business of manufacturing and Exporting Poly Propylene (Crimped & FDY) Yarn, Polyester Yarn & Polyester Chips. The company caters to both domestic and international markets.

2. Borrowings shall be further classified as Secured / Unsecured. Nature of security to be disclosed. Classification of secured borrowings and Nature of security:

3. Term Loan From Banks :

Secured by way of hypothication of 1st charge on all fixed assets of the company and 2nd pari passue charge on all current assets of the company.

Mortgage of Fixed Assets of M/S. Sitaram Prints Pvt. Ltd. and Residence Bunglow of Shri Shankar Lai Somani and Smt. Ganga devi Somani.

4. Term Loan From Others:

Vehicle Loans are secured by hypothecation of vehicles itself.

LIC has Key Man Insurance policy hypothecated against Premium Amt. Paid.

Loans & Advances from Corporates:

Loans taken here are unsecured in nature.

5. All loans taken from Bank have been guaranteed by Directors/ Others, Jointly & the aggregate amount is as below:

Name of Directors / Others

Mr. Shankarlal Sitaram Somani

Mr. Rajkumar Sitaram Somani " Term Loan: 50Crores & US$ 14.71 Millions Working Capital:143Crores

Mr. Sumeetkumar Shankarlal Somani Non Fund Based 278 Crores

Smt. Gangadevi Shankarlal Somani

Corporate Guarantee of M/s. Sitaram Prints Private Limited.

Mr. Shankarlal Sitaram Somani has personally gauranteed amount of Euros 7987660.04 for loan taken from Bremer Kredit Bank AG .

A. Borrowings shall be further classified as Secured/ Unsecured. Nature of security to be disclosed. Classification of secured borrowings and Nature of security :

Cash Credit facility is secured by 1st pari passue charge on all current assets of the company and 2nd pari - passue charge on fixed assets of the company. Buyers credit secured by letter of comfort issued by Bank of Baroda Cosortium Banker.

B. Loan taken as C.C. facilities have been guaranteed by Directors/ Others & the aggregate amount of loans is as below :

Name of Directors / Others

Mr. Shankarlal Sitaram Somani

Mr. Rajkumar Sitaram Somani Term Loan: SOCrores & US$ 14.71 Millions Working Capital : 143 Crores

Mr.SumeetkumarShankarlalSomani Non Fund Based 278 Crores

Smt. Gangadevi Shankarlal Somani

Corporate Guarantee of M/s. Sitaram Prints Private Limited.

Mr. Shankarlal Sitaram Somani has personally gauranteed amount of Euros 7987660.04 for loan taken from Bremer Kredit Bank AG.

6. Non-Current Investments are Trade Investments.

A. - Name of Body Corporate (also indicating whether it is a subsidiary/associate/JV/SPE)

Nature & Extent of Investment so made (showing separately investments that are partly paid)

7. Other Notes to Accounts :

(1) Advances include 1054.62 Lacs to companies in which directors are interested.

(2) Contingent Liabilities (AS 29):

(a) Letter of credit outstanding is (20.313 Lacs US$) as on 31.03.2015.

(b) Excise duty of Rs. 3,52,429/-, was demanded by the department, which had been paid; for which appeal had been filed. More over the appeal filed has been resolved in the favor of company.

(c) SEBI has imposed penalty of Rs.2crore U/S 15-1 of Securities and Exchange Board of India Act, 1992 READ with rule 5 of SEBI (procedure for holding enquiry and imposing penalties by Adjudicating officer) Rules 1995 vide Adjudication order no.lVD/SIL/AO/DRK-CS/EAD-3/473-486/16-29-14. The Company has filed petition before SAT (Securities Appellate Tribunal) against the said order.

8. Figures of previous year have been regrouped and / or recast wherever necessary.

9. Cash Flow statement is as per Annexure "A "

10. Signature to notes "1" to "24"

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Mar 31, 2014

Note: 1

Corporate information

Sumeet Industries Ltd. is a Public Limited Listed Company domiciled in India and Incorporated under the provisions of the Companies Act, 1956.The Company is engaged in the business of manufacturing and exporting Polyester Chips, Polyester Filament Yarn (POY & FDY) and Polypropylene Multifilament Yarn. The company caters to both domestic and international markets.

2. Borrowings shall be further classified as Secured / Unsecured. Nature of security to be disclosed.

Classification of secured borrowings and Nature of security :

Term Loan From Banks :

Secured by way of hypothication of 1st charge on all fixed assets of the company and 2nd pari passu charge on all current assets of the company.

Mortgage of Fixed Assets of M/S. Sitaram Prints Pvt. Ltd. And Residence Bunglow of Shri Shankar Lal Somani and Smt. Ganga devi Somani.

Term Loan From Others :

Vehicle Loans are secured by hypothecation of vehicles itself.

LIC has Key Man Insurance policy hypothecated against Premium Amt. Paid.

Loans & Advances from Corporates :

Loans taken here are unsecured in nature.

3. Borrowings shall be further classified as Secured/ Unsecured. Nature of security to be disclosed. Classification of secured borrowings and Nature of security :

Cash Credit facility is secured by 1st pari-passu charge on all current assets of the company and 2nd pari-passu charge on fixed assets of the company. Buyers credit secured by letter of comfort issued by Bank of Baroda, Union Bank & IDBI Bank Ltd. by earmarking working capital Limit /FDR.

4. Other Notes to Accounts :

(1) Advances include 761 Lacs to companies in which directors are interested.

(2) Contingent Liabilities (AS 29) :

(a) Letter of credit outstanding is (48.30 Lacs US$) as on 31.03.2014.

(b) Excise duty of Rs. 3,52,429/-, was demanded by the department, which has been paid; but for which appeal has been filed and no conclusion for it is availed till date.

(c) SEBI has imposed penalty of Rs. 2 crore U/S 15-1 of Securities and Exchange Board of India Act, 1992 READ with rule 5 of SEBI (procedure for holding inquiry and imposing penalties by adjudicating officer) Rules 1995 vide Adjudication Order No. IVD/SIL/AO/DRK-CS/EAD-3/473- 486/16-29-14. The Company has filed petition before SAT against the said order.

(3) Figures of previous year have been regrouped and / or recast wherever necessary.

(4) There are no sundry creditors due to small-scale industrial undertakings to whom the company owe a sum exceeding Rs. 1.00 lacs, which is outstanding for more than 30 days for the year ended 31st March 2014. This disclosure is on the basis of information available with the company regarding the status of suppliers.

---

Mar 31, 2013

Note:1

Corporate information :-

Sumeet Industries Ltd. is a Public Limited Listed Company domiciled in India and Incorporated under the provisions of the Companies Act, 1956.The Company is engaged in the business of manufacturing and Exporting Poly Propylene (Crimped & FDY) Yarn, Polyester Yarn & Polyester Chips. The company caters to both domestic and international markets.

(2) Figures of previous year have been regrouped and / or recast wherever necessary.

(3) There are no sundry creditors due to small-scale industrial undertakings to whom the company owe a sum exceeding Rs. 1.00 lacs, which is outstanding for more than 30 days for the year, ended 31sf March 2013. This disclosure is on the basis of information available with the company regarding the status of suppliers.

(4) Cash Flow statement is as per Annexure "A"

(5) Signature to notes''T'' to "24"

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Mar 31, 2012

Note: 1

Corporate information :-

Sumeet Industries Ltd. is a Public Limited Listed Company domiciled in India and Incorporated under the provisions of the Companies Act, 1956.The Company is engaged in the business of manufacturing and exporting Polyester Chips, POY & FDY and Polypropylene Yarns. The company caters to both domestic and international markets.

(1) Advances include Rs. 674.07 Lacs to companies in which directors are interested.

(2) Contingent Liabilities ( AS 29 ) :

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for is NIL, (Previous Year : U.S. $ 1806000 and Euro 113680000)

(b) Export sale bills raised on overseas buyers purchased by company's banker outstanding is NIL, (Previous year Rs. 88.71 Lacs.)

(c) Letter of credit outstanding Rs. 1549.29 Lacs. as on 31.03.2012.

(3) Figures of previous year have been regrouped and / or recast wherever necessary.

(4) There are no sundry creditors due to small-scale industrial undertakings to whom the company owe a sum exceeding Rs. 1.00 lacs, which is outstanding for more than 30 days for the year, ended 31st March 2012. This disclosure is on the basis of information available with the company regarding the status of suppliers.

(5) Cash Flow statement is as per Annexure "A"

(6) Signature to notes"1" to "24"

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Mar 31, 2011

(1) Advances include 511.99 Lacs to companies in which directors are interested.

(2) Contingent Liabilities ( AS 29 ) :

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for US $ 1806000 and EURO 11368000 against which advance of US $ 112800 and EURO 1136800 given (Previous year Rs. 168.87 Lacs Advance Rs. 75.40 Lacs).

(b) Export sale bills raised on overseas buyers purchased by company's banker outstanding Rs. 88.71 Lacs. (Previous year Rs. 630.05 Lacs.).

(c) Letter of credit outstanding Rs. 30.77 Lacs as on 31.03.2011.

3) Figures of previous year have been regrouped and / or recast wherever necessary.

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Mar 31, 2010

(1) Advances include Rs. 513.64 Lacs to companies in which directors are interested.

(2) Contingent Liabilities ( AS 29 ) :

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.168.87 Lacs against which advance of Rs. 75.40 Lacs given (Previous year Rs. 289.98 Lacs Advance Rs.84.30 Lacs).

(b) Export sale bills raised on overseas buyers purchased by companys banker outstanding Rs. 630.05 Lacs. (Previous year Rs 80.61 Lacs.).

(c) Buyers credit outstanding Rs.4663.08 Lacs as on 31.03.2010. (Previous year Rs. 3185.00 Lacs)

(3) Figures of previous year have been regrouped and / or recast wherever necessary.

(4) There are no sundry creditors due to small-scale industrial undertakings to whom the company owe a sum exceeding Rs. 1 lacs, which is outstanding for more than 30 days for the years, ended 31st March 2010. This disclosure is on the basis of information available with the company regarding the status of suppliers.

(5) Part IV of schedule VI to the companies Act is as per Annexure "A".

(6) Cash Flow statement is as per Annexure "B"

(7) Signature to schedules "1" to "22"