2.17 Provisions:-

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an out flow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to present value and are determine based on best estimate required to settle the obligations at the balance sheet date these are review at each balance sheet date and adjusted to reflect the best estimates.

2.18 Contingent Liabilities:-

Contingent Liabilities are determined on the basis of available information and explanations given to us and are disclosed by way of note to the accounts, if any.

(B) (i) Primary Security with Bank for Term Loan 1, Term Loan 2 and GECL

Hypotheticat Hypo thetication of Stock & Receivables

Hypothecate Hyp othecation of Plant do Machinery locate d at Wesving Unit 1, Survey N o. 297, Dholi Integrated Spinning Pork Ltd., Dholka, Ahmedabad-382240, Gujarat

(ii) Primary Security with Bank for Term Loan 3 (Wind Mill)

Hypothetication of Stock & Receivables

Hypothecation of Plant & Machinery located at Weaving Unit 1, Survey No. 297, Dholi Integrated Spinning Park Ltd., Dholka, Ahmedabad-382240, Gujarat

Hypothetication of Wind Mill and related Pland & Machinery Purchased out of the Bank Finance located at 217/1, Toluka,Savor Kundla, Amreli

(C) Collateral Security with Bank for Term Loan 1, Term Loan 2 and GECL and Term Loan 3(Wind Mill)

(i) Equitable Mortgage over immovable property at Plot No. 544 owned by M/s. Krishna Traders & 545 owned by M/s. Star Traders admeasuring 644sq. Yards each located at Survey No. 138,Vraj Garden, Nr. 200 Feet Ring Road and Shanti Asiatic School Road, Sanand, Ahmedabad -380058

(ii) Equitable Mortgage over Factory Land and Building (admeasuring 8660.36 sqft. Meteres) at Weaving Unit 1, Survey No. 297,

Dholi Integrated Spinning Park, Dholka, Ahmedabad -382240

(iii) Equitable Mortgage over Immovable property (admeasuring 598 sq. mtrs.) at Flat No./ Plot No.: Unit no. 330, Survey No. / House No.

Block No. 161, Vraj Garden, Akshat C.J. Society Ltd., behind Applewoods Scheme, Near Sahara City, Ahmedabad -380058 Owned by Vedprakash Chiripal

(iv) Pledge of Fixed Deposit Receipt of Rs.170.00(Previous year Pledge of units 741048 of SBI corporate bond fund amounting to Rs. Rs. 200,.00 ) (Refer Note No. 13 & Note No. 20.2)

Note: 31 LEASE EXPENSES

Operating Lease : Rental is expenses with reference to lease terms and other considerations

(a) The company has taken on sub- lease land at Village Likhala, Taluka Savar Kundla, District Amreli, owned by Government of India and leased by Gujrat Fluorochemicals . The total lease rent paid on the same amounting to Rs. 0.15 and taken on lease w.e.f. .29.12.2021

(b) The company has taken on lease land at Survey No. 402, Dholi Integrated Spinning Park Limited from Dholi Integrated Spinning Park Limited. The total lease rent paid on the same amounting to Rs. 0.04 and taken on lease w.e.f. 21-09-2015.

Note No. 33 Note No 33.1 During the Financial Year 2016-17 the company has provided depreciation on Air Jet Looms and ancillary machineries relying on the Chartered Engineers S.K. PATEL certificate considering the useful life of 10 years instead of 15 years as provided in Schedule II of Companies Act,2013. During the F.Y2022-23 the company has decided to provide depreciation on Air Jet Looms and ancillary machineries considering the life of 25 years relying on chartered engineers Mukesh Shah report and board resolution dated 01-04-2022. Accordingly excess depreciation provided in earlier period from 2016-17 to 2021-22 amounting to ^ 1272.94 (Phase I ^ 716.73 and Phase II ^ 556.21) has been credited to balance of profit & loss account as on 01-04-2022 under the head Reserves & Surplus and debited to respective assets account. (Refer Note No. 4.1 & 12.1 )

Note No 33.2 Further due to change in life of assets during the F.Y. 2022-23 depreciation is charged less by ^258.27 to Statement of Profit & Loss and disclosed more profit by ^ 258.27 for F.Y. 2022-23 cosidering of life of assets have not been changed. (Refer Note No.4.2 & 12.2)

Note No 33.3 The deferred tax liability arose due to such change pertaining to prior period adjustment is being given effect in Reserve & Surplus.

Note 38: Provision for current year’s income tax aggregating Rs. 348.00 (P.Y. Rs. 255.73) has been made on estimated

basis for the accounting year ended on 31.03.2024. The actual tax liabilities of the company will be determined on the basis of taxable income of the company for F.Y year 2023-24

Note 39: During F.Y.2023-24 ,Company was converted from closely held to Public Limited Company on 18.08.2023 and

had completed its Initial Public Offering ("IPO")of 26,88,000/- new equity share of face value of Rs.10/- each at premium of Rs.60/- per equity share aggregating to Rs.1881.60 and offer for sale number of equity shares 17,76,000 of face value of Rs.10/- each at premium of Rs.60/ . expenses related to IPO Rs.136.28 was debited against securities premium Account as per Section 52 of Companies Act,2013. Pursuant to the IPO , the equity shares of company have to got listed on the SME Platform of BSE on 27th December, 2023.

Note 40: Others

40.1 In the opinion of the Board, all the current assets, Loans and advances have a value on the realization in the ordinary course of the business at least equal to the amount at which they are stated.

40.2 Balances of sundry debtors, sundry creditors and loans and advances etc., are subject to confirmation and reconciliation, and consequential adjustment, if any.

40.3 Previous year figures have been regrouped/ rearranged so as to make them comparable with current year’s figures.

Note : 41 There is no Expenditure incurred on employees in receipt of remuneration of not less than Rs.24.00(Rupees twenty four lakh only) per annum or Rs 2.00 (rupees two lac only) per month, if employed throughout the year or part of the year.

Note :42 Note No. 6.1 During the year the company has gathered information in respect of whether supplier of goods & services are coverd under the MSME Act 2006, the information has been provided as per imformations and explanation provided by the company ( Previous Year as per information and explanation the company has not gathered information as regards whether supplier of goods and or services are covered under the MSME Act, 2006. Hence, we are unable to provide the required information.)

For Management Purpose, the Company is currently organised into two major operating activities - 1) Textile Manufacturing and 2) Renewable energy : Windmill Operations and rooftoop solar energy .These divisions are the basis on which the Company reports its primary segment information

(i) Segment assets and liabilities:

Company is having two segments of business, Assets and Liabilities are bifurcated segment wise.

(ii) Segment revenue and expenses

Segment revenue and expenses are taken directly as attributable to the segment. It does not include interest income on inter- corporate deposits, Profit on sale of investments, Interest expense, Provision for Contingencies and Income-tax.

The company operates primarily in India and there is no other significant geographical segment

44.12 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 :

(i) 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

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

44.13 The company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

44.14 During the year the Income Tax department has made order u/s 147 & u/s143(3) for Assessment Year 2022-23 on 31.03.2024, raised the demand of Rs. 6.78 for Assessment year 2022-23 , the company has filled appeal with Income Tax department before CIT-A for Assessment year 2022-23. In view of preffering appeal no provision have been made of tax & interest payable total amounting to Rs.6.78 has been made in the accounts.

2) Further , the Company has received notice for scrutiny assessment for the assessment year 2023-24 on 14.02.2024 .Further the company has received notice U/ S 148 for assesment of the company for A.Y.2016-17 to 2018-19 . The scrutiny proceeding and proceddings U/S 148 have been initiated pursuant to a search & seizure operation carried by the Income Tax Authorities on Chiripal Groups and their key person on 20.07.2022 in which our company's name has been mentioned in warrant. In the opinion of management prima facie the Company does not expect additional liability as a result of scrutiny assessment, hence no provision has been made by the Comapany.

44 15 The Company has complied with the provision of section 135 of the Companies Act,2013.

1) Amount required to be spent by Company during the year Rs.9.10.

2) Amount of expenditure spent Rs.9.10 payment made to Saamarthya Foundation having project of Organisations are developing on spreading education of drug addiction in youth across India (P.Y. Not applicable )

3) Short fall at to end of the year Rs. Nil/-(P.Y. Not Applicable)

Signatures to Notes on Account Note no :1 to 44 UDIN: 24016613BJZYYK5736 For M/s ANIL SHAH & CO.

Chartered Accountants FRN : 100474W

Bharatbhushan Agarwal Rikin Agarwal

Whole Time Director & CFO Managing Director

DIN:302785 DIN: 2435645

Anil Shah

Partner Mohini Singhal

Membership No : 016613 Company Secretary

Membership No. A47724

Place: Ahmedabad

Date: 13.05.2024 Place : Ahmedabad

UDIN: 24016613BJZYYK5736 Date: 13.05.2024