Notes to Accounts of Oswal Yarns Ltd.

Mar 31, 2025

p) Provisions and contingent liabilities

A provision is recognised if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. Provisions are determined by
discounting the expected future obligation at pre-tax rate that reflects current market
assessments of the time value of money risks specific to liability. They are not discounted
where they are assessed as current in nature. Provisions are not made for future operating
losses.

Contingent liabilities are disclosed when there is a possible obligation arising from past
events, the existence of which will be confirmed only by the occurrence or non-occurrence of
one or more uncertain future events not wholly with in the control of the Company or a
present obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle or reliable estimate of the amount cannot be made.
Contingent assets are not recognised in the financial statements but disclosed, where an inflow
of economic benefit is probable.

Commitments are items that are not reported as liabilities as on reporting date. Capital
commitments are disclosed when there is a projected capital expenditure to spend on long¬
term assets over a period of time. Other commitments are disclosed when there is an
undertaking to fulfil quantified exports in future years.

Provisions, contingent liabilities and contingent assets and commitments are reviewed at the
end of each reporting date.

q) Accounting for Taxes on Income

Tax Expense comprise current and deferred tax. Provision for current tax is made in
accordance with the provisions of Income Tax Act,1961. Deferred Tax resulting from timing
differences between taxable income and accounting income that originate in one period and
are capable of reversal in one or more subsequent periods is accounted for using the tax rates
and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax
assets are recognized only to the extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets can be realized.
However, deferred tax assets arising on account of brought forward losses and unabsorbed
depreciation are recognized only when there is virtual certainty by convincing evidence that
sufficient future taxable income will be available against which such deferred tax can be
realized.

r) In respect of the trade creditors/ payables, on the basis of the information /details provided by
them about their statues under the MsME Development Act, 2006 (in Short MSmEd Act) and
in view of the terms of contracts, there is no amount which is required to be disallowed u/s
43B(h) of the Income Tax Act, 1961. However, the amount of interest, if any, payable u/s 22
of MSMED Act has neither claimed by any party nor has been paid nor any provisions for the
same has been made in the books of account.

s) Use of estimates and judgments

he preparation of the financial statements in conformity with Ind AS requires management to
make estimates, judgments and assumptions. These estimates, judgments and assumptions
affect the application of accounting policies and the reported amounts of assets and liabilities,
the disclosures of contingent assets and liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the period. Accounting estimates could
change from period to period. Actual results could differ from those estimates. Appropriate
changes in estimates are made as management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are reflected in the financial statements state
in the period in which changes are made. Differences between actual results and estimates are
recognised in the period in which the results are known/ materialized

t) Accounting policies not specifically referred to are consistant with generally accepted
accounting practices

28 Segment Reporting:

The company''s business predominantly comprises of only one segment i.e. manufacturing and trading of hosiery yarns/ cloth, therefore
there is no separate reportable segment as required by IND AS-108 on segment reporting.

29 Balances of various parties are subject to confirmation. However, in the opinion of the Board of Directors, all the Current Assets, Loans
& Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated, except
as expressly stated otherwise.

30 As a matter of prudence, deferred tax liability amounting to Rs. 0.96 Lacs (Previous year assets Rs. 2.92 Lacs) on account of
timing difference in depreciation has not been recognised in accounts.

31 The Company has given a bank guarantee to GLADA with it''s application for issue of Certificate of Registration as promoter for
engaging in development of real estate.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

32 Employee Benefits

i) The summarized position of Post-employment benefits and long term employee benefits recognized in the profit & Loss
account and Balance Sheet as required in accordance with Accounting Stabdard - 15 (Revised) are as under :-

(a) Changes in the present value of the abligation :

34 Undisclosed Income

During the year, the Company has not surrendered or disclosed as income any amount in
the tax assessments under the Income Tax Act, 1961.

35 Details of Crypto currency or Virtual Currency

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

36 Additional Regulatory Information as per Schedule III of Companies
Act,2013: -

i) The company has no such immovable properties whose title deeds are not held in the
name of the company and no such immovable property is jointly held with others.

ii) The Company has not revalued its Property, Plant & Equipment during the year.

iii) The company has not granted any loan or advances to promoters, Directors, KMPs and
the related parties (as defined under Companies Act, 2013,) either severally or jointly with
any other person.

iv) There is no capital work in progress and intangible assets under development.

Hence, ageing is not applicable

v) No proceedings have been initiated or pending against the company for holding any
benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.

vi) The company has no borrowings from banks on the basis of security of current assets.

vii) The Company is not declared as wilful defaulter by any bank or financial Institution
or other lender.

viii) The Company has no transactions with companies that are struck off under section
248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

ix) There are no charges or satisfaction of charges yet to be registered with ROC beyond
the statutory time period.

x) The Company has no subsidiary as prescribed under clause (87) of section 2 of the Act
and have no layers of subsidiaries as per the Companies (Restriction on number of
Layers) Rules, 2017.

AUDITORS'' REPORT

In terms of our Report of even date.

FOR SUBASH VIPAN & CO. for and on behalf of the Board of

CHARTERED ACCOUNTANTS OSWAL YARNS LIMITED

(SUBHASH JAIN) (TEJ PAUL OSWAL) (BHARATT OSWALL)

PARTNER (MANAGING DIRECTOR) (WHOLE TIME DIRECTOR)

Membership No. : 085224 DIN : 00781144 DIN : 00469332

Firm Reg. No.: 012898N

UDINO.: 25085224BMNYDQ1230 (BANSI LAL BHAT) (AARTI SHARMA)

PLACE : LUDHIANA CHIEF FINANCIAL COMPANY SECRETARY

DATED : 29.05.2024 ^OFFICER

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Mar 31, 2014

Rights, preferences and restrictions attaching to each class of shares

Equity Shares: The company has one class of equity shares having a par value of Rs.10 per share. Every member present in person at a general meeting shall have one vote if a resolution is put to vote by a show of hand and on a poll every member shall have one vote in respect of each share held by such member. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

Nature of Security: i. Term loan facility is secured by hypothecation of Car.

Particulars of Repayment: Repayable in 47 monthly instalments of Rs.12490/- w.e.f. 15 Sept, 2010 Nature of Security: ii. Term loan facility is secured by hypothecation of Car.

Particulars of Repayment: Repayable in 60 monthly instalments of Rs.14900/- w.e.f. 01 Jan, 2014 Nature of Security: iii. Term loan facility is secured by hypothecation of Car.

Particulars of Repayment: Repayable in 60 monthly instalments of Rs.6019/- w.e.f. 28 Feb., 2013

Amount of default in repayment of loan: NIL (Previous year : NIL),Period of continuing default in repayment of loan: NIL(Previous Year: NIL)

Default in payment of Interest : NIL (Previous year: NIL), Period of continuing default in payment of interest : NIL (Previous Year: NIL)

The unsecured loans are repayable after 12 months from the date of squaring up of bank dues. However, the company reserve the right to prepay the same earlier. During previous year also, the terms of repayment were same. Rate of interest is 12%.

Amount of default in repayment of loan: NIL (Previous year : NIL),Period of continuing default in repayment of loan: NIL(Previous Year: NIL)

Default in payment of Interest : NIL (Previous year: NIL), Period of continuing default in payment of interest : NIL (Previous Year: NIL)

Mode of valuation:

Raw materials, work-in-progress, finished goods, consumables have been valued at cost and net realizable value. The cost in respect of various items of inventory is computed as under :

- Raw materials at actual cost plus direct expenses incurred to bring the stock at its present position and location excluding VAT.

- Work-in-progress at raw material cost plus conversion cost depending upon the stage of completion.

- Finished goods at raw material cost plus conversion cost incurred to bring the goods up to their present condition and location.

- Consumables at actual cost plus direct expenses incurred to bring the stock at its present position and location excluding VAT.

- Waste has been valued at net realizable value.

a. Contingent liabilities and commitments

(i) Contingent liabilities

i. Claims against the Company not acknowledged as debt:-

Punjab State Industrial Development Corporation Ltd. (PSIDC) had made investment in the equity shares of the Company under an agreement with the promoters, for buy-back of these shares at a later date under the direct subscription scheme. Such buy-back agreement was between PSIDC and the promoters. The option to buy back was exercised by the promoters, under the OTS scheme floated by PSIDC, and was accepted by PSIDC on 02.06.2003 in full and final. It returned the share certificates along with share transfer deeds and also share certificates held as security to the promoters. However, on the basis of a later notification dated 06.02.2009 of the Government of Punjab, the PSIDC is of the view that OTS scheme was not applicable and demanded a sum of Rs. 49,11,395/- with interest upto the date of payment. On an application filed by the company and its promoters, The Hon''ble Punjab & Haryana High Court has granted stay against the proceedings before the Hon''ble Debt Recovery Tribunal in the matter of suit filed by PSIDC in this regard.

As the company was never under any obligation for buy-back of the shares, it is strongly of the view that the stand of PSIDC is not tenable and it is in no way liable for this amount and thus has not acknowledged the same as debt. However, following a good practice, disclosure has been made without, in any way, accepting the liability/obligation on this count.

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Mar 31, 2013

Inventory is taken and valued as certified by the management. Mode of valuation:

Raw materials, work-in-progress, finished goods, consumables have been valued at lower of cost and net realizable value. The cost in respect of various items of inventory is computed as under :

Raw materials at actual cost plus direct expenses incurred to bring the stock at its present position and location excluding VAT.

Work-in-progress at raw material cost plus conversion cost depending upon the stage of completion.

Finished goods at raw material cost plus conversion cost incurred to bring the goods up to their present condition and location.

Consumables at actual cost plus direct expenses incurred to bring the stock at its present position and location excluding VAT.

Waste has been valued at net realizable value.

Note No. 1

Segment Reporting:

The company''s business predominantly comprises of only one segment i.e. manufacturing and trading of hosiery yarns/ cloth, therefore there is no separate reportable segment as required by AS-17 on segment reporting.

Note No. 2

Balances of various parties are subject to confirmation. However, in the opinion of the Board of Directors, all the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated, except as expressly stated otherwise.

Note No. 3

Deferred Tax

As a matter of prudence, deferred tax assets amounting to Rs. 3.61 Lacs (Previous year Rs. 3.64 Lacs) onaccount of timing difference in depreciation has not been recognised in accounts.

Note No. 4

Previous year figures have been grouped or regrouped wherever necessary to make the figures comparable.

Note No. 5

RELATED PARTY DISCLOSURES

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:

1. List of Related Parties where controls exists and related parties with whom transactions have taken place:

Nature of Relation

KEY MANAGEMENT PERSONNAL

Sh. Tej Paul Oswal

Sh. Bharatt Oswall

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Mar 31, 2012

Inventory is taken and valued as certified by the management.

Mode of valuation:

Raw materials, work-in-progress, finished goods, consumables have been valued at lower of cost and net realizable value. The cost in respect of various items of inventory is computed as under :

- Raw materials at actual cost plus direct expenses incurred to bring the stock at its present position and location excluding VAT.

- Work-in-progress at raw material cost plus conversion cost depending upon the stage of completion. .

- Finished goods at raw material cost plus conversion cost incurred to bring the goods up to their present condition and location.

- Consumables at actual cost plus direct expenses incurred to bring the stock at its present position and location excluding VAT.

- Waste has been valued at net realizable value.

Note No. 1

Balances of various parties are subject to confirmation. However, in the opinion of the Board of Directors, all the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated, except as expressly stated otherwise.

Note No. 2 Deferred Tax

As a matter of prudence, deferred tax assets amounting to Rs. 3.64 Lacs (Previous year Rs. 3.38 Lacs) on account of timing difference in depreciation has not been recognised in accounts.

Note No. 3

Previous year figures have been grouped or regrouped wherever necessary to make the figures comparable.

Note No. 4

RELATED PARTY DISCLOSURES

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:

1. List of Related Parties where controls exists and related parties with whom transactions have taken place: Nature of Relation KEY MANAGEMENT PERSONNAL

Sh. Tej Paul Oswal

Sh. Bharatt Oswall

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Mar 31, 2010

1. Contingent liabilities not provided for NIL (Previous year nil).

2. The balance in various parties are subject to confirmation and reconciliation.

3. Debtors include Rs. 896846.00 (Previous year Rs. 896846.00 which are disputed and are pending adjudication in court. No provisions has been made in respect of these debtors as the company is hopeful of recovery of these accounts.

Interest, if any, on these amounts will be treated on receipt basis.

4. Loans & Advances include Rs. 940162/- paid on account of excise duty which the Company has disputed and has filed appeals with appropriate authorities. No provision for this amount has been made as the Company is hopeful of favourable decisions.

5. The previous year figures have been recast/regrouped wherever considered necessary to facilitate comparison.

6. There was no Small scale industrial undertaking(s) to whom company owes a sum exceeding Rs. 1.00 lac.

7. No provision for income tax has been made as there was no taxable income.

8. The Company has requested its suppliers to intimate whether they are registered under ‘The Micro Small and Medium Enterprises Development Act, 2006. Pending receipt of intimation from suppliers, the amount due to the suppliers under the said Act could not be determined.

9. In the opinion of Board of Directors, the current assets, loans and advances are having the value at which they are stated in the balance sheet, if realised in the ordinary course of business.

10. Stocks are as taken and valued by the management.

11 . Deferred Tax

As a matter of prudence, Deferred Tax asset amounting to Rs. 3.62 Lacs (Previous year Rs. 3.50 Lacs) on account of timing difference in depreciation has not been recognised in accounts.

12. Related Party Disclosures in accordance with the Accounting Standard - 18. (i) Transactions with Related Parties : NIL

13. The Companys business predominantly comprises of only one segment i.e. Manufacturing and Trading of Hosiery yarns/Cloth, therefore there is no separate reportable segment as required by AS-17 on Segment Reporting.

14. Additional information pursuant to provisions of part II of the schedule VI to Companies Act, 1956 to the extent releven.

The installed capacity is certified by the management and has not been verified by auditors, being a technical matter :

d) Value of imported and indigeneous materials consumed and percentage thereof :