Karnika Industries Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

s. Provisions, Contingent liabilities and Contingent assets

Provisions involving substantial degree of estimation in measurement, are recognized when the
present obligation of or past events gives rise to a probable outflow embodying economic benefits

on settlement and the amount of obligation can be reliably estimated.

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. Contingent liability also arises
in extremely rare cases where there is a liability that cannot be recognized because it cannot be
measured reliably. There are no contingent liability to be reported for the year

Contingent Assets are neither recognised nor disclosed in the Financial Statements

Provisions and Contingent Liabilities are reviewed at each Balance Sheet date and adjusted to
reflect the current best estimates

t. Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of twelve months or less, which are subject to an insignificant
risk of changes in value.

For the purpose of the statement of cash flows, comprise cash at bank, Cash in hand, Cheque in
hand and other permissible instruments as per AS 3.

u. Retirement and other Employee Benefits

Short Term Employee Benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified
as short term employee benefits. Benefits such as salaries, performance incentives, etc., are
recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the
year in which the employee renders the related service.

Post-Employment Benefits:

Defined Contribution Plans

The Company has defined contribution plans for post-employment benefits such as Provident
Fund & Employee’s State Insurance and Employee’s Pension Scheme, 1995. The Company
contributes to a government administered Provident Fund, state plan namely Employee’s Pension
Scheme, 1995, Employee’s State Insurance Scheme on behalf of its employees and has no further
obligation beyond making its contribution. The Company’s contributions to the above funds are
recognised in the statement of profit and loss for the year.

Defined Benefit Plans

The Company has defined benefit plan namely gratuity for all its employees. Liability for defined
benefit plan is provided based on valuations, as at the balance sheet date, carried out by an
independent actuary. The actuarial valuation method used by the independent actuary for
measuring the liability is the projected unit credit method. Actuarial losses and gains are recognised
statement of profit and loss for the year. Changes in the present value of the defined benefit
obligation resulting from plan amendments or curtailments are recognised immediately in the
statement of profit or loss as past service costs.

The Company’s liabilities on account of gratuity and leave encashment are determined at the end
of each financial year on the basis of actuarial Valuation as per requirements of Accounting
Standard 15 on “Employee Benefits”.

v. Cash Flow Statements

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the
effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with investing or financing cash
flows. The cash flows from operating, investing and financing activities of the Company are
segregated.

w. Earning Per Shares

In determining the Earnings Per share, the company considers the net profit after tax includes any
post tax effect of any extraordinary / exceptional item. The number of shares used in computing
basic earnings per share is the weighted average number of shares outstanding during the period.

The number of shares used in computing Diluted earnings per share comprises the weighted
average number of shares considered for computing Basic Earnings per share and also the weighted
number of equity shares that would have been issued on conversion of all potentially dilutive
shares.

x. Segment Reporting

Based on the principles for determination of segments given in Accounting Standard 17 “Segment
Reporting” as per Accounting Standard notified by the (Accounting Standards) Rules, 2021 under
the Companies Act, 2013, as amended, the company is mainly engaged in one segment i.e.
Manufacturing and Trading of all kinds of Readymade Garments of Babies, Boys, Gents and Ladies
and all kinds of dress materials in connection thereof, which do not materially differ in respect of
risk perception and the return realized/to be realized.

Even the geographical environment in which the company operates does not materially differ
considering the political and economic environment, the type of customers, assets employed and
the risk and return associated in respect of each of the geographical area.

The disclosure requirements pursuant to AS17 -Segment Reporting are not applicable to the
company during the year under review.

The company has only one class of shares referred to as equity shares having a par value of Rs. 10/- per share. Each holder of equity
shares is entitled to one vote per share. The dividend, if any proposed by 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, after distribution of all the preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.

29. These Financial Statement are presented in Indian Rupees "INR" or “Rs.” and all values are stated as
in Lakhs, unless indicated otherwise.

30. The balances of Debtors, Creditors, Loans & Advances and Liabilities have been taken as per books,
are subject to reconciliation / confirmation and consequential adjustments, if any.

31. The Cash Credit Facilities of the Company as reflected under Note no. 7 from Banks carry Interest
ranging between as per sanction letter, computed on daily basis on the actual amount utilized and
repayable on demand.

32 . SIDBI Machine loan stood at Rs. 200.00 Lakhs payable in 54 equal monthly instalments (after a
moratorium of 6 months). The Machine Loan is secured by way of hypothecation of the Cutting
Machine financed along with its tools, spares and accessories and amount due within 12 months
amounting to Rs. 44.44 Lakhs is shown under Short Term Borrowings in Note No. 7.

Car Loan with HDFC Bank at Rs 18.21 Lakhs payable in 60 equal monthly instalments. Car Loan is
secured against the hypothecation of car financed and amount due within 12 months Rs. 3.24 Lakhs
is shown under Short-Term Borrowing in Note no. 7.

Car Loan with HDFC Bank at Rs 45.40 Lakhs payable in 84 equal monthly instalments. Car Loan is
secured against the hypothecation of car financed and amount due within 12 months Rs. 5.28 Lakhs
is shown under Short-Term Borrowing in Note no. 7.

34. Defined Benefit Plans- General Description
Gratuity Expenses:

The company has an obligation towards gratuity, a defined benefit retirement plan covering eligible
employees. The plan provide for lump sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount equivalent to 15 days salary payable for
each completed year of services. Vesting occurs upon completion of five years of service. The
company accounts for the liability for gratuity benefit payable in future based on an actuarial valuation
the company exposed to interest risk, liquidity risk, salary escalation risk, demographic risk and
regulatory risk.

The Most Recent actuarial valuation of the plan assets and the present value of the defined value
defined benefit obligation were carried out as at 31.03.2025 by Divya Dadlani, fellow of the Institute
of Actuaries of India, partner of Willis Towers Watson Employee Benefits Actuaries LLP

37. Additional Regulatory Informations :

i. The Company do not have any transactions with struck off companies under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956.

ii. Title Deeds of all Immovable Properties as mentioned in Financial Statements are held in the name of
the Company.

iii. The Company has not revalued its Property, Plant and Equipment during the financial year.

iv. The Company has not granted Loans or Advances to promoters, directors, KMPs (as defined under

Companies Act, 2013,) either severally or jointly with any other person.

v. The company does not have Capital-Work-in Progress as at the balance sheet date.

vi. The company does not have any Intangible assets under development as at the balance sheet date.

vii. The Company does not have any benami property, where any proceeding has been initiated or pending

against the Company for holding any benami property.

viii. The Company has taken borrowings from banks or financial institutions on the basis of security of
current assets. Monthly Statements have been filed with banks are generally in agreement with the
books of accounts. As explained by the management, data provided in stock statement are as per best
available quantities subject to physical verification. There is no material difference between stock
statement submitted to bank and books of accounts, although difference can arise due to method of
valuation, physical verification, return of goods, shortage, wastage, Debit and credit notes and
reconciliation of debtors and creditors. There are no material differences which require specific
reporting.

ix. The Company is not declared wilful defaulter by and bank or financials institution or lender during the
year.

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

xi. The provisions of the number of layers prescribed under clause (87) of section 2 of the Act read with
the Companies (Restriction on number of Layers) Rules, 2017 is not applicable to the company as the
Company does not have any investments in the shares of other Companies.

xii. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230
to 237 of the Companies Act, 2013 during the year.

xiii. A. The Company has not advanced or loaned or invested any funds (either from borrowed funds or
share premium or any other sources or kind of funds) to or in any other person(s) or entity(ies),
including foreign entities (“Intermediaries”), with the understanding whether recorded in writing or
otherwise, that the intermediary shall 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
provide any guarantee, security or the like on behalf of ultimate beneficiaries.

B. The Company has not received any fund from any person(s) or entity(ies) including foreign entities
(“Funding Parties”) with the understanding whether in writing or otherwise, that such company shall
directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Parties (Ultimate Beneficiaries) or provide any guarantee, security or the
like on behalf of the Ultimate beneficiaries.

xiv. Undisclosed income- 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.

xv. The Company has neither traded nor invested in Crypto currency or Virtual Currency during the year.

xvi. The Company has complied with the provisions of section 135 of the company’s Ac t 2013 and the
details of CSR activities are given in the annual report of the company.

xvii. Ratio Analysis of the Company are enclosed in the separate sheet attached to the notes of accounts.

Signatures for Notes of Accounts No 1 to 37 For and on behalf of the Board of Directors

Karnika Industries Limited

For A A A J & Associates

(formerly known as Uttam Agarwal & Associates)

Chartered Accountants Sd/- Sd/-

Firm Registration No.322455E Niranjan Mundhra Shiv Shankar Mundhra

DIN :5254448 DIN :2926873

Sd/- Managing Director Whole Time Director

CA Deepak Agarwal

Partner Sd/- Sd/-

Membership No . 061132 Krishan Kumar Karnani Muskan Mundhra

Chief Financial Offic er Company Secretary

Place : Kolkata

Date : 2 7.05.2025

UDIN : 25061132BMIYTN1259

---

Mar 31, 2024

s. Provisions, Contingent liabilities and Contingent assets

Provisions involving substantial degree of estimation in measurement, are recognized when the present obligation of or past events gives rise to a probable outflow embodying economic benefits on settlement and the amount of obligation can be reliably estimated.

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. Contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. There are no contingent liability to be reported for the year.

Contingent Assets are neither recognised nor disclosed in the Financial Statements.

Provisions and Contingent Liabilities are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

t. Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of twelve months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, comprise cash at bank, Cash in hand, Cheque in hand and other permissible instruments as per AS 3.

u. Retirement and other Employee Benefits

Short Term Employee Benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, performance incentives, etc., are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the employee renders the related service.

Post-Employment Benefits:

Defined Contribution Plans

The Company has defined contribution plans for post-employment benefits such as Provident Fund & Employee''s State Insurance and Employee''s Pension Scheme, 1995. The Company contributes to a government administered Provident Fund, state plan namely Employee''s Pension Scheme, 1995, Employee''s State Insurance Scheme on behalf of its employees and has no further obligation beyond making its contribution. The Company''s contributions to the above funds are recognised in the statement of profit and loss for the year.

Defined Benefit Plans

The Company has defined benefit plan namely gratuity for all its employees. Liability for defined benefit plan is provided based on valuations, as at the balance sheet date, carried out by an independent actuary. The actuarial valuation method used by the independent actuary for measuring the liability is the projected unit credit method. Actuarial losses and gains are recognised in the statement of profit and loss for the year. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in the statement of profit or loss as past service costs.

The Company''s liabilities on account of gratuity and leave encashment are determined at the end of each financial year on the basis of actuarial Valuation as per requirements of Accounting Standard 15 on "Employee Benefits".

v. Cash Flow Statements

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

w. Earning Per Shares

In determining the Earnings Per share, the company considers the net profit after tax including any post tax effect of any extraordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.

The number of shares used in computing Diluted earnings per share comprises the weighted average number of shares considered for computing Basic Earnings per share and also the weighted number of equity shares that would have been issued on conversion of all potentially dilutive shares.

x. Segment Reporting

Based on the principles for determination of segments given in Accounting Standard 17 "Segment Reporting" as per Accounting Standard notified by the (Accounting Standards) Rules, 2021 under the Companies Act, 2013, as amended, the company is mainly engaged in one segment i.e. Manufacturing and Trading of all kinds of Readymade Garments of Babies, Boys, Gents and Ladies and all kinds of dress materials in connection thereof, which do not materially differ in respect of risk perception and the return realized/to be realized.

Even the geographical environment in which the company operates does not materially differ considering the political and economic environment, the type of customers, assets employed and the risk and return associated in respect of each of the geographical area.

The disclosure requirements pursuant to AS17 -Segment Reporting are not applicable to the company during the year under review.

31 . SIDBI Machine loan stood at H200.00 Lakhs payable in 54 equal monthly instalments (after a moratorium of 6

months). The Machine Loan is secured by way of hypothecation of the Cutting Machine financed along with its tools, spares and accessories and amount due within 12 months amounting to H44.44 Lakhs is shown under Short Term Borrowings in Note No. 7.

Car Loan with HDFC Bank at H18.21 Lakhs payable in 60 equal monthly instalments. Car Loan is secured against the hypothecation of car financed and amount due within 12 months H3.25 Lakhs is shown under Short-Term Borrowing in Note no. 7.

Car Loan with HDFC Bank at H45.40 Lakhs payable in 84 equal monthly instalments. Car Loan is secured against the hypothecation of car financed and amount due within 12 months H5.28 Lakhs is shown under Short-Term Borrowing in Note no. 7.

32 . Related Parties disclosure to the extent identified by the management as per Accounting Standard 18 are given

hereunder:

i. Name of the Related Parties

a) Key Management Personal

(1) Mr. Niranjan Mundhra - Managing Director

(2) Mr. Shiv Shankar Mundhra - Whole Time Director

(3) Mr. Mahesh Kumar Mundhra- Whole Time Director

(4) Mr. Krishan Kumar Karnani - Chief Financial Officer

(5) Ms. Muskan Mundhra - Company Secretary

b) Enterprises in which key management personnel has significant influence

(1) Q Bazaar India LLP

(2) Shree Garments- (Prop. Jagdish Prasad Mundhra)

(3) Shree International- ( Prop: Jagdish Prasad Mundhra HUF)

(4) SrI Ganesh Enterprise (Prop Deepak Karnani)

(5) Niranjan Mundhra HUF

(6) Kirti Mundhra

33. Defined Benefit Plans- General Description Gratuity Expenses:

The company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provide for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of services. Vesting occurs upon completion of five years of service. The company accounts for the liability for gratuity benefit payable in future based on an actuarial valuation the company exposed to interest risk, liquidity risk, salary escalation risk, demographic risk and regulatory risk.

The Most Recent actuarial valuation of the plan assets and the present value of the defined value defined benefit obligation were carried out as at 31.03.2024 by Divya Dadlani, fellow of the Institute of Actuaries of India, partner of Willis Towers Watson Employee Benefits Actuaries LLP

36. Additional Regulatory Informations :

i. The Company do not have any transactions with struck off companies under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

ii. Title Deeds of all Immovable Properties as mentioned in Financial Statements are held in the name of the Company.

iii. The Company has not revalued its Property, Plant and Equipment during the financial year.

iv. The Company has not granted Loans or Advances to promoters, directors, KMPs (as defined under Companies Act, 2013,) either severally or jointly with any other person.

v. The company does not have Capital-Work-in Progress as at the balance sheet date.

vi. The company does not have any Intangible assets under development as at the balance sheet date.

vii. The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

viii. The Company has taken borrowings from banks or financial institutions on the basis of security of current assets. Monthly Statements have been filed with banks are generally in agreement with the books of accounts. As explained by the management, data provided in stock statement are as per best available quantities subject to physical verification. There is no material difference between stock statement submitted to bank and books of accounts, although difference can arise due to method of valuation, physical verification, return of goods, shortage, wastage, Debit and credit notes and reconciliation of debtors and creditors. There are no material differences which require specific reporting.

ix. The Company is not declared wilful defaulter by and bank or financials institution or lender during the year

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

However, as per the information and explanation provided by the management, CITI Bank N.A. will file the creation of Charge on receiving Multiple Banking arrangement approval for pari-passu charge on the Security as offered to the Other Banker.

xi. The provisions of the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 is not applicable to the company as the Company does not have any investments in the shares of other Companies.

xii. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year.

xiii. A. The Company has not advanced or loaned or invested any funds (either from borrowed funds or share

premium or any other sources or kind of funds) to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding whether recorded in writing or otherwise, that the intermediary shall 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 provide any guarantee, security or the like on behalf of ultimate beneficiaries.

B. The Company has not received any fund from any person(s) or entity(ies) including foreign entities ("Funding Parties") with the understanding whether in writing or otherwise, that such company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate beneficiaries.

xiv. Undisclosed income- 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.

xv. The Company has neither traded nor invested in Crypto currency or Virtual Currency during the year.

xvi. The Company has complied with the provisions of section 135 of the company''s Act 2013 and the details of CSR activities are given in the annual report of the company.

xvii. Ratio Analysis of the Company are enclosed in the separate sheet attached to the notes of accounts.