b/1303, naman midtown, dr.ambedkar nagar, spenta … · 2019-09-03 · b/1303, naman midtown,...

{-Ujspenta®SPENTA INTERNATIONAL LIMITED

Corporate Office :B/1303, Naman Midtown, Dr. Ambedkar Nagar,

Behind Kamgar Kala Kendra, Senapati Bapat Marg,Elphinston (W), Mumbai- 400 013

Tel.: 022 24300010 ( 0040

Date: 3rdSeptember, 2019

To,Department of Corporate Service (DCS-CRD),BSE LimitedPhiroze Jeejeebhoy Towers,Dalal Street, Fort,Mumbai - 400001

Ref: Spenta International Limited (Scrip Code: 526161)

Sub.: Notice of 32nd (Thirty Second) Annual General Meetin2 of Spenta International Limited& Notice of Book Closure.

Dear Sir,

Pursuant to Regulation 30 read with Para A of Part A of Schedule III and Regulation 34 (1) to theSecurities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulation, 2015 ("Listing Regulations"), please find enclosed herewith the Notice of 32nd (Thirty-Second) Annual General Meeting ("AGM") of the Company scheduled to be held on Monday,September 30, 2019 at the Registered Office of the Company at Plot No. 13 to 16, DewanIndustrial Estate, Village Navali, District Palghar (W) - 401404 at 11.30 a.m. (1ST).

The Notice Of the AGM, Proxy Form and the Annual Report for the Financial Year (F.Y.) 2018-19 isenclosed herewith, which is being dispatched / sent to the Shareholders of the. Company bypermitted mode(s) and is also made available "On the website of the Company, viz.,https://www.spentasocks.com/." ~

We further wish to inform that pursuant to Section 91 of the Companies Act, 2013 and Regulation42 of the Listing Regu~ati0ns, the Register ~of Members and the Share Transfer Books of theCompany will remain dosed for the purpose of the 32nd (Thirty-Second) AGM from Tuesday,September 24, 2019 to Monday, September 30, 2019 (both days inclusive).

Kindly take the same on your record and acknowledge the same.

Thanking you,

Yours faithfully,

For SPENTA INTERNATIONAL LIMITED

Managing DirectorDIN:00203497

Factory & Regd. Office: Plot No. 13 to 16, Dewan Industrial Estate, Village Navali, BIDeD Rd.,Dist. Palghar - 401404.Tel. : 91-(2525)-254932 Fax: 91-(2525)-254932 Extn. 113. Email : [email protected] Web.: www.spentasocks.com

CIN NO.: U8129MH1986PLC0404B2

SPENTA INTERNATIONAL LIMITED

spenta

32ndAnnual Report

2018-19


spenta

nd32AnnualReport2018-19

BOARD OF DIRECTORS:

Mr. Sanjay Gadodia (DIN-00203433) : Chairman,WholeTimeDirectorcumChiefExecutiveOfficer

Mr. Danny Hansotia (DIN-00203497) : ManagingDirectorcumChiefFinancialOfficer

Mrs. Anita Koti (DIN- 08069112) : IndependentNon-ExecutiveDirector) Ms. Sunita Misri (DIN-06926975) : IndependentNon-ExecutiveDirector

BANKERS:DCBBankLimitedCitiBank,N.A

AUDITORS:A K Kocchar & AssociatesChartered AccountantsNo.601,VishveshwarNagarRd,Malad,ReserveBankofIndiaStaffQuarters,RahejaTwp,Goregaon,Mumbai-400063

SECRETARIAL AUDITORS: HSAssociates,CompanySecretaries,Mumbai

REGISTRAR & SHARE TRANSFER AGENT:Link Intime India Private Limited LinkIntimeIndiaPrivateLimited,C-101,247Park,L.B.S.Marg,Vikhroli(W),Mumbai–400083Tel:-022-49186000Fax:-022-49186060Emailid:[email protected]:-www.linkintime.co.in

LISTING OF EQUITY SHARES: BSE Limited,PhirozeJeejeebhoyTowers,DalalStreet,Mumbai-400001.

REGISTERED OFFICE & FACTORY:PlotNo.13to16,DewanIndustrialEstate,VillageNavali,DistrictPalghar(W)-401404.TelNo:7666625388/[email protected]:www.spentasocks.comCIN-L28129MH1986PLC040482

CONTENTS PageNoticeoftheAnnualGeneralMeeting 1Directors’Report 10SecretarialAuditReport 15ManagementDiscussionandAnalysisReport 33CEO/CFOCertification;DeclarationonCodeofConduct 35Auditors’Report 36BalanceSheet 43StatementofProfitandLoss 45CashFlowStatement 46NotesformingpartoftheFinancialStatements 49NominationForm,AttendanceSlip,ProxyForm&Amp;PostalBallotForm 78


spenta

NoticeisherebygiventhattheThirty-SecondAnnualGeneralMeeting(the“Meeting”)ofSpenta International Limited(“theCompany”)willbeheldonMonday, September 30, 2019 at11.30 a.m.attheRegisteredOfficeoftheCompanysituatedatPlot No. 13 to 16, Dewan Industrial Estate, Village Navali, Dist. Thane, Palghar (West) – 401 404totransactthefollowingbusinesses:

NOTICE OF AGM

ORDINARY BUSINESS:

1. Toreceive,considerandadopttheAuditedFinancialStatementsoftheCompanyfortheyearended31stMarch,2019includingAuditedBalanceSheetasat31stMarch,2019andthestatementofProfit&LossfortheYearEndedonthatdateandtheReportoftheBoardofDirectorsandAuditorsthereon.

2. TodeclareFinaldividendonEquitySharesfortheFinancialYear2018-2019.

3. ToconsiderandapprovetheappointmentofStatutoryAuditorsoftheCompanytoholdofficeforaperiodofFiveyearsuntiltheconclusionofthe37thAnnualGeneralMeetingandtofixtheirremunerationandtopasswithorwithoutmodification(s),thefollowingresolutionasanOrdinaryResolution:

“RESOLVED THATpursuanttotheprovisionsofSection139oftheCompaniesAct,2013,theCompanies(AuditandAuditors)Rules,2014,(includinganyre-enactmentormodificationthereto),andsuchotherapplicableprovisions, ifany,M/s.AKKocharAndAssociates,CharteredAccountants,Mumbai,withregistrationnumber120410WbeandareherebyappointedastheStatutoryAuditorsoftheCompanyto fill thecasualvacancycausedduetodissolutionof firmofStatutoryAuditorofM/s.RajeevShah&Co,Mumbai,ataremunerationofRs.2,00,000(TwoLakhs),plusapplicabletaxes,inconnectionwiththeworkofaudittobecarriedoutbythem,toholdofficeofStatutoryAuditortilltheconclusionoftheThirtySeventhAnnualGeneralMeeting.”

SPECIAL BUSINESS -

4. Toconsiderandifthoughtfittopasswithorwithoutmodification(s)thefollowingresolutionasaSPECIAL RESOLUTION:

“RESOLVED THATpursuanttotheprovisionsofSection4andSection13oftheCompaniesAct,2013,andotherapplicableprovisionsreadwiththerulesandregulationsmadethereunderincludinganyamendment,re-enactmentorstatutorymodificationthereof,approvalofthemembersbeandisherebyaccordedtoamendtheMemorandumofAssociationoftheCompanybydeletingtheObjectClausesoftheCompanymentionedunderClauseIII(C)–OtherObjectsandalltheclausesshallberenumberedfrom1to35(bothinclusive)ofrevisedMemorandumofAssociationoftheCompany

FURTHER RESOLVED THATinaccordancewiththeTableAoftheScheduleIoftheAct,theClauseIII(A)andIII(B)oftheMemorandumof

AssociationoftheCompany,berenamedasunder:

ClauseIII(A)–TheMainObjectToBePerusedByTheCompanyIs: ClauseIII(B)–MatterswhicharenecessaryforfurtheranceoftheobjectsspecifiedinClauseIII(A)are:

FURTHER RESOLVED THATanyDirectoroftheCompanybeandareherebyseverallyauthorizedtodoallsuchacts,deeds,mattersandthingsasmaybedeemedproper,necessary,orexpedient, including filing therequisite formswithMinistryofCorporateAffairsorsubmissionofdocumentswithanyotherauthority,forthepurposeofgivingeffecttothisResolutionandformattersconnectedtherewithorincidentalthereto.”

Registered Office:

PlotNo.13to16,DewanIndustrialEstate,

VillageNavali,DistrictThane,Palghar(West)-401404

DATE: 14th AUGUST, 2019

PLACE: PALGHAR

BY ORDER OF THE BOARD

SD/-

DANNY F. HANSOTIA

MANAGING DIRECTOR & CFO

DIN: 00203497


1


spenta

NOTES:

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF/HERSELF. AproxyneednotbeamemberoftheCompany.Proxiesinordertobeeffectivemustbereceivedby theCompanyat itsRegisteredOfficenot later than forty-eighthoursbefore theCommencementof themeeting. Proxies submitted on behalf of companies, societies etc. must be supported by an appropriateresolution/authority,asapplicable.ApersonshallnotactasProxyformorethan50membersandholdingintheaggregatenotmorethan10percentofthetotalvotingsharecapitaloftheCompany.However,asinglepersonmayactasaproxyforamemberholdingmorethan10percentofthetotalvotingsharecapitaloftheCompanyprovidedthatsuchpersonshallnotactasaproxyforanyotherperson.

2. EverymemberentitledtovoteattheAnnualGeneralMeetingoftheCompanycan inspecttheproxies lodgedattheCompanyatanytimeduringthebusinesshoursoftheCompanyduringtheperiodbeginningtwenty-fourhoursbeforethetimefixedforthecommencementoftheAnnualGeneralMeetingandendingontheconclusionofthemeeting.However,apriornoticeofnotlessthan3(three)daysinwritingoftheintentionstoinspecttheproxieslodgedshallberequiredtobeprovidedtotheCompany.

3. TheRegisterofMembersandShareTransferRegistershallremainclosedfromTuesdaySeptember24,2019toMondaySeptember30,2019(Both days inclusive.)

4. Explanatorystatementundersection102oftheCompaniesAct,2013(“Act”)whichsetsoutdetailsrelatingtoSpecialBusinessisannexedhereto.

5. FinalDividendofRs.1.50persharehasbeenrecommendedbytheBoardofDirectorsfortheyearended31stMarch,2019andsubjecttotheapprovaloftheshareholdersattheensuingAnnualGeneralMeetingisproposedtobepaidonandfrom30thSeptember,2019.

6. MembersarerequestedtoinformtheCompany’sRegistrarsandShareTransferAgentsViz.M/sLinkIntimeIndiaPrivateLimited,regardingchanges,ifanyintheirregisteredaddresswiththePINcodenumber.

7. Inordertoensuresafetyagainstfraudulentencashmentofdividendwarrants,membersholdingsharesinphysicalformarerequestedtofurnishtotheCompanyorCompany’sR&TAgents,M/s.LinkIntimeIndiaPrivateLimited,bankaccountdetailswhichwillbeprintedonthedividendwarrants.

8. AMembermayavailofthefacilityofnominationbynominatingintheprescribed“NOMINATIONFORM”,apersontowhomhis/hersharesintheCompanyshallvestintheeventofhis/herdeath.

9. MembersarerequestedtointimatetotheCompany,queriesifany,regardingtheaccountsatleast10daysbeforetheAnnualGeneralmeetingtoenabletheManagementtokeeptheinformationreadyattheMeeting.Thequeriesmaybeaddressedtocompany’sregisteredoffice(email:[email protected])MemberarerequestedtobringtheircopiesofAnnualReportstotheMeeting.

10. Membersholdingsharesinelectronicformareadvisedthataddress/bankdetailsasfurnishedtotheCompanybytherespectiveDepositoriesvizNSDLandCDSL,willbeprintedonthedividendwarrants.MembersarerequestedtoinformtheconcernedDepositoryparticipantofanychangeinaddress,dividendmandate,Etc.

11. Intermsofsection125CompaniesAct,2013,anydividendremainingunpaidforaperiodofsevenyearsfromtheduedateofpaymentisrequiredtobetransferredtoInvestorEducationandProtectionFund.MemberswhohavenotencashedtheirdividendwarrantsarerequestedtowritetotheRegistrarsandShareTransferAgents.ThedetailsofdividendunclaimedareuploadedontheCompany’swebsiteatwww.spentasocks.comforshareholder’sinformation.

12. ElectroniccopyoftheAnnualReportfor2019isbeingsenttoallthememberswhoseemailIDsareregisteredwiththeCompany/DepositoryParticipants(s)forcommunicationpurposesunlessanymemberhasrequestedforahardcopyofthesame.Formemberswhohavenotregisteredtheirmailaddress,physicalcopiesoftheAnnualReportfor2019isbeingsentinthepermittedmode.

13. ElectroniccopyoftheNoticeofthe32ndAnnualGeneralMeetingoftheCompanyinteraliaindicatingtheprocessand

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mannerofe-votingalongwithAttendanceSlipandProxyFormisbeingsenttoallthememberswhoseemail IDsareregisteredwiththeCompany/DepositoryParticipants(s)forcommunicationpurposesunlessanymemberhasrequestedforahardcopyofthesame.Formemberswhohavenotregisteredtheiremailaddress,physicalcopiesoftheNoticeofthe32nd Annual GeneralMeeting of the Company inter alia indicating the process andmanner of e-voting alongwithNominationForm,AttendanceSlipandProxyFormisbeingsentinthepermittedmode.

14. MembersmayalsonotethattheNoticeofthe32ndAnnualGeneralMeetingandtheAnnualReportfor2019willalsobeavailable on the Company’swebsitewww.spentasocks.com for their download. The physical copies of the aforesaiddocumentswillalsobeavailableattheCompany’sRegisteredOfficeatPalgharforinspectionduringnormalbusinesshoursonworkingdays.Evenafterregisteringfore-communication,membersareentitledtoreceivesuchcommunicationinphysicalform,uponmakingarequestforthesame,bypost,freeofcost.Foranycommunication,theshareholdersmayalsosendrequeststotheCompany’sinvestoremailid:[email protected].

15. Votingthroughelectronicmean

i. IncompliancewithprovisionsofSection108oftheCompaniesAct,2013andRule20oftheCompanies(ManagementandAdministration)Rules,2014,theCompanyispleasedtoprovidemembersfacilitytoexercisetheirrighttovoteatthe32ndAnnualGeneralMeeting (AGM) by electronicmeans and the businessmay be transacted through e-Voting ServicesprovidedbyCentralDepositoryServicesLimited(CDSL).Itisherebyclarifiedthatitisnotmandatoryforamembertovoteusingthee-votingfacilityandamembermayavailofthefacilityathis/her/itsdiscretion,subjecttocompliancewiththeinstructionsprescribedbelow.

PROCEDURE / INSTRUCTIONS FOR E-VOTING ARE AS UNDER:

I. The Voting period begins on Friday, the 27th September, 2019 at 09.00 a.m. and ends on Sunday, 29th September, 2019 at 05.00 p.m. During this period Shareholder of the Company holding shares either in physical form or in dematerialized form, as on cut-off date (record date) of Monday 23rd September, 2019, may cast their vote electronically. The e-voting module shall be disabled by CDSL for voting thereafter.

The “cut-off date” means a date not earlier than 7 (seven) days before the date of General Meeting for determining the eligibility to vote by electronic means or in the General Meeting.

II. In case of members receiving e-mail:

a. Opene-mail

b. Openyourwebbrowserduringthevotingperiodandlogontothee-votingwebsitewww.evotingindia.com

c. Nowclickon“Shareholders”tab

d. Now,selectthe“COMPANYNAME”fromthedrop-downmenuandclickon“SUBMIT”

e. NowEnteryourUserID

a. ForCDSL:16digitsbeneficiaryID,b. ForNSDL:8CharacterDPIDfollowedby8DigitsClientIDc. MembersholdingsharesinPhysicalFormshouldenterFolioNumberregisteredwiththeCompany.

f. NextentertheImageVerificationasdisplayedandClickonLogin.

g. Ifyouareholdingsharesindematformandhadloggedontowww.evotingindia.comandvotedonanearliervotingofanycompany,thenyourexistingpasswordistobeused.

h. Ifyouareafirst-timeuserfollowthestepsgivenbelow:

h. Ifyouareafirst-timeuserfollowthestepsgivenbelow

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i. Afterenteringthesedetailsappropriately,clickon“SUBMIT”tab.

j. MembersholdingsharesinphysicalformwillthenreachdirectlytheCompanyselectionscreen.However,membersholdingsharesindematformwillnowreach‘PasswordCreation’menuwhereintheyarerequiredtomandatorilyentertheirloginpasswordinthenewpasswordfield.Kindlynotethatthispasswordistobealsousedbythedematholdersforvotingforresolutionsofanyothercompanyonwhichtheyareeligibletovote,providedthatcompanyoptsfore-votingthroughCDSLplatform.Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.

k. ForMembersholdingsharesinphysicalform,thedetailscanbeusedonlyfore-votingontheresolutionscontainedinthisNotice.

l. ClickonrelevantEVSN 190813031 ofSpentaInternationalLimitedonwhichyouchoosetovote.

m. Onthevotingpage,youwillsee“RESOLUTIONDESCRIPTION”andagainstthesametheoption“YES/NO”forvoting.SelecttheoptionYESorNOasdesired.TheoptionYESimpliesthatyouassenttotheResolutionandoptionNOimpliesthatyoudissenttotheResolution.

n. Clickonthe“RESOLUTIONSFILELINK”ifyouwishtoviewtheentireResolutiondetails.

o. Afterselectingtheresolution,youhavedecidedtovoteon,clickon“SUBMIT”.Aconfirmationboxwillbedisplayed.Ifyouwishtoconfirmyourvote,clickon“OK”,elsetochangeyourvote,clickon“CANCEL”andaccordinglymodifyyourvote.

p. Onceyou“CONFIRM”yourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.

q. Youcanalsotakeoutprintofthevotingdonebyyoubyclickingon“Clickheretoprint”optionontheVotingpage.

r. IfDemataccountholderhasforgottenthechangedpassword,thenEntertheUserIDandtheimageverificationcodeandclickonForgotPassword&enterthedetailsaspromptedbythesystem.

• Non-Institutional shareholders (i.e. other than Individuals, HUF, NRI etc.) are required to log on tohttps://www.evotingindia.co.inandregisterthemselvesasCorporates.

PAN* Enteryour10digitalpha-numeric*PANissuedbyIncomeTaxDepartment (Applicableforbothdematshareholdersaswellasphysicalshareholders)

• Memberswho have not updated their PANwith the Company/DepositoryParticipantarerequestedtousethefirsttwolettersoftheirnameandthelast8digitsofthedemataccount/folionumberinthePANField.

• Incasethefolionumberislessthan8digitsentertheapplicablenumberof0’sbeforethenumberafterthefirsttwocharactersofthenameinCAPITALletters.Eg. If your name is Ramesh Kumar with folio number 100 then enterRA00000100inthePANField.

DOB# EntertheDateofBirthasrecordedinyourdemataccountorinthecompany recordsforthesaiddemataccountorfolioindd/mm/yyyyformat.

DividendBankDetails# EntertheDividendBankDetailsasrecordedinyourdemataccountorinthe

companyrecordsforthesaiddemataccountorfolio.

•PleaseentertheDOBorDividendBankDetailsinordertologin.Ifthedetailsare notrecordedwiththedepositoryorcompany,pleaseenterthenumberofshares held by you as on the cut-off date in the Dividend Bank details field.

For Members holding shares in Demat Form and Physical Form

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• They should submit a scanned copy of the Registration Form bearing the stamp and sign of the entity to [email protected].

• Afterreceivingthelogindetailstheyhavetocreateauserwhowouldbeabletolinktheaccount(s)whichtheywishtovoteon.

• Thelistofaccountsshouldbemailedtohelpdesk.evoting@cdslindia.comandonapprovaloftheaccountstheywouldbeabletocasttheirvote.

• TheyshoulduploadascannedcopyoftheBoardResolutionandPowerofAttorney(POA)whichtheyhaveissuedinfavouroftheCustodian,ifany,inPDFformatinthesystemforthescrutinizertoverifythesame.

• Incaseyouhaveanyqueriesregardinge-voting,youmayrefertheFrequentlyAskedQuestions(“FAQs”)ande-votingmanualavailableatwww.evotingindia.com,[email protected]

In case of members receiving the physical copy: PleasefollowallstepsfromSr.No.“b”toSr.No.“r”abovetocastvote. Other Instructions

•ThevotingperiodbeginsonFriday,the27thSeptember,2019at09.00a.m.andendsonSunday,29thSeptember,2019at05.00p.m.DuringthisperiodshareholdersoftheCompany,holdingshareseither inphysicalformor indematerializedform,asonthecut-offdatei.e.Monday23rdSeptember,2019maycasttheirvoteelectronically.Thee-votingmoduleshallbedisabledbyCDSLforvotingthereafter.The“cut-offdate”meansadatenotearlierthan7(seven)daysbeforethedateofgeneralmeetingfordeterminingtovotebyelectronicmeansorinthegeneralmeeting.

•Incaseyouhaveanyqueriesorissuesregardinge-voting,youmayrefertheFrequentlyAskedQuestions(“FAQs”)and e-voting manual available at www.evotingindia.co.in under help section or write an email [email protected]

•IncaseofanyqueriesyoumayrefertheFrequentlyAskedQuestions(FAQ’s)forshareholdersande-votingusermanualforshareholdersavailableattheDownloadsSectionofwww.evoting.CDSL.com

•IfyouarealreadyregisteredwithCDSLfore-votingthenyoucanuseyourexistinguserIDandpassword/PINforcastingyourvote.

•Youcanalsoupdateyourmobilenumberande-mailidintheuserprofiledetailsofthefoliowhichmaybeusedforsendingfuturecommunication(s).

•Thevotingrightsofshareholdersshallbeinproportiontotheirsharesofthepaid-upequitysharecapitaloftheCompanyasonthecut-offdate(recorddate)ofWednesday18thSeptember,2019.

•Mr.PrasadChavan,PartnerofHSAssociates,PracticingCompanySecretaries(MembershipNo.ACS49921COPNo.20415)hasbeenappointedastheScrutinizertoscrutinizethee-votingprocessinafairandtransparentManner.

•Thescrutinizershallwithinaperiodofnotexceeding3(Three)workingdaysfromtheconclusionofthee-votingperiodunblockthevotesinthepresenceofatleasttwowitnessesnotinemploymentoftheCompanyandmakeascrutinizersreportofthevotescastinfavouroragainst,ifany,forthwithtotheChairmanoftheCompany.

• The results of the e-voting along with the scrutinizers report shall be placed in the Company’s websitewww.spentasocks.comandonthewebsiteofCDSLwithintwoworkingdaysofpassingoftheresolutionattheAGMoftheCompany.TheresultswillalsobecommunicatedtothestockexchangeswherethesharesoftheCompanyare

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Sd/-

DANNY F. HANSOTIA


DIN: 00203497

Registered Office:

PlotNo.13to16,

DewanIndustrialEstate,

VillageNavali,DistrictThane,

Palghar(West)-401404

DATE: 14TH AUGUST, 2019

PLACE: PALGHAR

listed. •Memberswhodonothaveaccesstoe-votingfacilitymaysenddulycompletedBallotForm(enclosedwiththeAnnual

Report)soastoreachtheScrutinizerappointedbytheBoardofDirectorsoftheCompany,Mr.PrasadChavan,PartnerofHSAssociates,PracticingCompanySecretary,attheRegisteredofficeoftheCompanynotlaterthanSunday, 29th September, 2019 (05.00 p.m. IST)

•BallotFormreceivedafterthisdatewillbetreatedinvalid.

•Amembercanoptonlyforonemodeofvotingi.eeitherthroughe-votingorbyBallot.IfaMembercastsvotebybothmodes,thenvotingdonethroughe-votingshallprevailandBallotshallbetreatedasinvalid.

15. AlldocumentsreferredtointheaccompanyingNoticeandtheExplanatoryStatementshallbeopenforinspectionatthe RegisteredOfficeoftheCompanyduringnormalbusinesshours(9.00amto5.00pm)onallworkingdays,uptoand includingthedateoftheAnnualGeneralMeetingoftheCompany.

16. TheMinistryofCorporateAffairs(MCA)hastakena“GreenInitiativeinCorporateGovernance”(CircularNo.17/2011dated 21.04.2011andCircularNo.18/2011dated29.04.2011)allowingcompaniestodispatchdocumentstotheshareholders throughelectronicmode. Considering the above theme, your companyhaddecided to sendAnnual Report through electronicmode.However,ifrequiredthecopyoftheAnnualReportshallbeprovidedtotheshareholderattheAnnual GeneralMeeting.

TheMembersarerequestedto:

I.Intimatetotheregistrars/Company,changesifany,intheirregisteredaddressatanearlydatealongwiththepincodenumber;

ii.QuoteRegisteredFolio/ClientID&DPIDinalltheircorrespondence;

iii.DematerializethesharesheldinphysicalformattheearliestastradingintheEquitySharesoftheCompanyshallbeonlyindematerializedformforalltheinvestors.

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EXPLANATORY STATEMENT

(Pursuant to Section 102 of the Companies Act, 2013)

Item No. 3

AsrequiredbySection102oftheCompaniesAct,2013(“Act”)thefollowingexplanatorystatementsetsoutallmaterial

factsrelatingtothebusinessmentionedunderitemNo.3oftheaccompanyingNotice:

TheBoardofDirectorsattheBoardMeetingheldonMay20,2019appointedM/s.AKKochar&Associates,Chartered

Accountants,FRN120410WtofillthecasualvacancycausedduetodissolutionoffirmoftheStatutoryAuditorsM/sRajeev

Shah&Co.,CharteredAccountant.

AspertheprovisionsofCompaniesAct,2013readwithrulesmadethereunderacausalvacancycausedduetodissolution

offirmofStatutoryAuditorneedstobeapprovedbythemembers.Accordingly,theBoardofDirectorshaverecommended

theappointmentofM/s.AKKochar&Associates,CharteredAccountantsMumbaitothemembersofthecompanyfortheir

approvalattheAnnualGeneralMeetingbywayofpassinganordinaryresolutiontoholdofficefromtheconclusionofthe

ensuingAnnualGeneralMeetingtilltheconclusionoftheThirtySeventhAnnualGeneralMeeting.

M/s.AKKochar&Associates,CharteredAccountants,Mumbai,haveconveyedtheirconsent tobeappointedas the

StatutoryAuditorsoftheCompanyalongwiththeconfirmationthat,theirappointment,ifapprovedbytheshareholders,

wouldbewithinthelimitsprescribedundertheAct.

YourDirectorsrecommendtheresolutionforapprovalofmembers.

NoneoftheDirectorsandKeyManagerialPersonneloftheCompanyortheirrelativesisconcernedorinterestedinthe

proposeditemno.3excepttotheextentoftheirshareholding.

Item No. 4

SpentaInternationalLimitedwasincorporatedon25thJuly,1986undertheprovisionsoftheCompaniesAct,1956.

UponenactmentoftheCompaniesAct,2013,theMemorandumofAssociationoftheCompanywererequiredtobere-

alignedaspertheprovisionsofthenewAct.

Your directors’ in its meeting held on 14th August, 2019 had approved (subject to the approval of members) the

amendmentintheMemorandumofAssociationoftheCompanywithrespecttothefollowing:

ClauseIII(A)–TheMainObjectToBePerusedByTheCompanyIs:

ClauseIII(B)–MatterswhicharenecessaryforfurtheranceoftheobjectsspecifiedinClauseIII(A)are:

ClauseIII©–OtherobjectshavebeendeletedandRenumberedfrom1to35(bothinclusive);

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ThedraftoftheamendedMemorandumofAssociationproposedforapproval,arecirculatedalongwiththisnoticeofthe

AnnualGeneralMeetingandalsoavailableforinspectionbytheshareholdersoftheCompanyduringnormalbusiness

hoursat theRegisteredofficeof theCompanyand copies thereof shall alsobemadeavailable for inspectionat the

CorporateOfficeoftheCompanyandalsoattheplaceofthemeetingonthemeetingday.

IntermsofSection4and13oftheCompaniesAct,2013,theconsentoftheMembersbywayofSpecialResolutionis

requiredforproposedamendmentsintheMemorandumofAssociationoftheCompany.

YourDirectorsrecommendpassingofthisresolutionbywayofaspecialresolution.

Noneofthedirectors,KMPs,ortheirrelativesareinterestedorconcerned,financiallyorotherwise,intheresolutionsetout

atitemno.4ofthenoticeexcepttotheextentoftheirshareholdingintheCompany.

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Sd/-

DANNY F. HANSOTIA


DIN: 00203497

Registered Office:

PlotNo.13to16,



Palghar(West)-401404

DATE: 14TH AUGUST, 2019

PLACE: PALGHAR


spenta

9

Route Map for Annual General Meeting

Landmark: Near Income Tax Office Distance from Palghar Station: 1. 8 Kilometers



spenta

DIRECTOR'S REPORTTo,TheMembers,SPENTA INTERNATIONAL LIMITED.

YourDirectorshavegreatpleasureinpresenting32ndANNUALREPORTalongwiththeAuditedBalanceSheetandProfitandLossAccount,fortheyearended31stMarch,2019.

1. FINANCIAL RESULTS:

(Rs. in Lacs)

Year ended 2018-19 Year ended 2017-18

2. DIVIDEND AND TRANSFER TO RESERVES:

YourDirectorsarepleasedtorecommendafinalDividendofRs.1.50perequityshareofthefacevalueofRs.10/-eachfortheapprovaloftheshareholders.

Thedividend,ifapprovedbytheshareholdersattheforthcomingAnnualGeneralMeetingwouldabsorbRs.41.46lacs,excludingRs.8.44lakhsastaxondividend.ThedividendwillbefreeoftaxinthehandsoftheshareholdersoftheCompany.

Noamountisbeingtransferredtoreservesduringtheyearunderreview.

3. FUTURE PROSPECTS :

Companyisintheprocessofoptimisingproductiononalltheexistingmachinesbymanufacturingoptimalproductmix.Usingbetterqualityyarnsanddoingproductinnovationbyusingdifferentfinisheswhichwillenhancetheoverallqualityandhelptoimproveourmargins.

4. THE CHANGE IN THE NATURE OF BUSINESS, IF ANY;

ThereisnochangeinthenatureofbusinessoftheCompany.

5. MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY:

TherewerenomaterialchangesandcommitmentsaffectingthefinancialpositionoftheCompanybetweentheendofthefinancialyearoftheCompanytowhichthefinancialstatementsrelateandthedateofthereport.

TotalIncome(includingOtherIncome) 4460.67 3762.17GrossProfit(beforeInterest,Depreciationandtax) 837.09 548.41

Less:Interest 199.80 159.10Depreciation 116.57 131.82:Provisionfortaxation-Current 80.00 54.00-Deferred 15.35 19.16NetProfitaftertax 225.57 184.33Balancebroughtforwardfrompreviousyear’sa/c 2274.95 2166.52Amountavailableforappropriation 2274.95 2166.52

Transfer&Appropriations: ProposedDividend 41.46 41.46DDTonproposedEquityDividend 8.44 8.44Capitalredemptionreserveonbuybackofshares NIL NIL

Balancecarriedtobalancesheet 2274.95 2166.52

Particulars

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6. DIRECTORS AND KEY MANAGERIAL PERSONNEL:

Mr.DannayF.Hansotiawasre-appointedfor3yearsasaManagingDirectorw.e.f.1stDecember,2017andMr.SanjayGadodiawerere-appointedfor3yearsasaWholeTimeDirectorw.e.f.1stJuly,2018withShareholderApprovalintheAnnualGeneralMeetingheldon27thSeptember,2018.

FurtherMr.PrasadChavan,CompanySecretaryoftheCompanywasresignedw.e.f.4thMay,2018andMs.NutanP.Bidyeappointedinreplacehimw.e.f.5thMay,2018.

7. NUMBER OF BOARD MEETINGS:

Duringthefinancialyear,theBoardhadmetTwelvetimeson4thMay2018,25thMay2018,6thAugust2018,14thAugust2018,25thSeptember2018,14thNovember2018,14thDecember2018,21stDecember2018,7thJanuary2019,11thJanuary2019,15thJanuary2019and14thFebruary2019.

8. DECLARATION OF INDEPENDENT DIRECTORS:

TheIndependentDirectorshavesubmittedtheirdisclosurestotheBoardthattheyfulfillalltherequirementsasstipulatedinSection149(7)oftheCompaniesAct,2013soastoqualifythemselvestobeappointedasIndependentDirectorsundertheprovisionsoftheCompaniesAct,2013andtherelevantrules.

9. MEETING OF INDEPENDENT DIRECTORS:

TheIndependentDirectorsmetonceduringtheyearon14thFebruary,2019toreviewtheworkingoftheCompany,itsBoardandCommittees.ThemeetingdecidedontheprocessofevaluationoftheBoardandAuditCommittee.ItdesignedthequestionnaireonlimitedparametersandcompletedtheevaluationoftheBoardbyNon-ExecutiveDirectorsandoftheAuditcommitteebyothermembersoftheBoard.ThesamewascompiledbyIndependentauthorityandinformedtothemembers.

10. DIRECTORS RESPONSIBILITY STATEMENT:

TheBoardofDirectorsherebyconfirms:

i) Thatinthepreparationoftheannualaccounts,theapplicableaccountingstandardhadbeenfollowedalongwithproperexplanationrelatingtomaterialdepartures.

ii) ThattheDirectorshaveselectedsuchaccountingpoliciesandappliedthemconsistentlyandmadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsofthecompanyattheendofthefinancialyearandoftheProfitorLossoftheCompanyforthatperiod.

iii) ThattheDirectorshavetakenproperandsufficientcareforthemaintenancesofadequateaccountingrecordsinaccordancewiththeprovisionofthisActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudandotherirregularities.

iv) ThattheDirectorshavepreparedtheAnnualaccountsonagoingconcernbasis.

v) Thatthedirectorshadlaiddowninternalfinancialcontrolstobefollowedbythecompanyandthatsuchinternalfinancialcontrolsareadequateandwereoperatingeffectively.

vi) Thatthedirectorshaddevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemswereadequateandoperating.

11. SUBSIDIARIES AND ASSOCIATE COMPANY’S:

Ason31stMarch,2019,Companyhasnosubsidiariesandassociatecompanies.

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12. DEPOSITS:

YourCompanydidnotacceptanydepositsfromthepublicduringtheyear.Therearenodepositswhichhavenotbeenclaimedbydepositorsorpaidbythecompanyafterthedateonwhichthedepositbecamedueforrepaymentorrenewal,asthecasemaybe,accordingtothecontractwiththedepositors&therearenototalamountsduetothedepositors&remainingunclaimedorunpaid.

13. INTERNAL AUDITOR

Aspersection138oftheCompaniesAct,2013,theCompanyhasappointedM/s.B.G.Dolar&Co.,internalauditorsfortheyearto2018-2019toconducttheinternalauditandtoensureadequacyoftheInternalcontrols,adherencetoCompany'spoliciesandensurestatutoryandothercompliancethrough,periodicalchecksandinternalaudit.

14. STATUTORY AUDITORS:

M/s. Rajeev Shah & Co., CharteredAccountantshavingfirmregistrationNo.108346W,vacatedasaStatutoryAuditorduetoDissolution of Firmw.e.f. 31stMarch, 2019.M/s. A K Kochar & Associates, CharteredAccountants (FRN: 120410W)appointedasStatutoryAuditorsof theCompany in theBoardMeetingheldon20thMay,2019 toholdoffice till theconclusionoftheensuingannualgeneralmeeting.

“RESOLVED THATpursuanttotheprovisionsofSection139andotherapplicableprovisions,ifany,oftheCompaniesAct,2013andotherRulesframedthereunder,andpursuanttotherecommendationoftheAuditCommitteeoftheBoardofDirectors,M/s.AKKochar&Associates.,CharteredAccountantshavingfirmregistrationno120410W,MumbaibeandareherebyappointedasStatutoryAuditorsoftheCompany,toholdofficefromtheconclusionofthisAnnualGeneralMeeting(AGM)totheconclusionofThirtySeventhAGMoftheCompany,onremunerationofRs.2,00,000/-(TwoLakhsOnly)asmutuallydecidedbytheBoardofDirectors.”

Auditors'reportisself-explanatoryandthereforedoesnotrequirefurthercommentsandexplanation.

15. STATUTORY AUDITOR’S REPORT AND QUALIFICATION:

Therearenoqualifications,reservationsoradverseremarksordisclaimersmadebyM/s.AKKochar&Associates.,StatutoryAuditors,intheirreport.TheStatutoryAuditorshavenotreportedanyincidentoffraudtotheAuditCommitteeoftheCompanyintheyearunderreview.

16. COST AUDITORS:

AsperSection148readwithCompanies(Audit&Auditors)Rules,applicabletocostauditors,thecompanywasnotliabletoappointCostauditorsforthefinancialyear2018-19.

17. SECRETARIAL AUDITOR & REPORT

TheBoardhasappointedHemantShetye,PartnerofHSAssociates,PracticingCompanySecretariesas theSecretarialAuditor of the Company for the financial year 2019-2020. Also annexed herewith secretarial Audit report (MR-3), inAnnexure-1asprovidedbyM/s.HSAssociates,forthesecretarialauditconductedbythemfortheperiod2018-19.

Auditors Observation:

1.NominationandRemunerationCommitteeisnotinCompliancewiththeprovisionsofSection178ofCompaniesAct,2013.

Directors Comment:

TheBoardisidentifyinganIndependentDirectorinordertocomplywiththenecessaryprovisionsofCompositionoftheCommittee.

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18. EXTRACT OF ANNUAL RETURN:

TheextractsofAnnualReturnpursuanttotheprovisionsofSection92readwithRule12oftheCompanies(Managementandadministration)Rules,2014isfurnishedinAnnexure-2andisattachedtothisReport.

19. PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES

TheparticularsofcontractsorarrangementswithrelatedpartiesreferredtoinSection188(1),asprescribedinFormAOC-2oftherulesprescribedunderChapterIXrelatingtoAccountsofCompaniesundertheCompaniesAct,2013,isappendedasAnnexure3.

AllRelatedPartyTransactionsarepresentedtotheAuditCommitteeandtheBoard.Omnibusapprovalisobtainedforthetransactionswhichareforeseenandrepetitiveinnature.AstatementofallrelatedpartytransactionsispresentedbeforetheAuditCommitteeonaquarterlybasis,specifyingthenature,valueandtermsandconditionsofthetransactions.

The Related Party Transactions Policy as approved by the Board is uploaded on the Company’s website atwww.spentasocks.com.

20. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES ACT, 2013

TheparticularsofinvestmentmadeunderSection186oftheCompaniesAct,2013havebeendisclosedinthefinancialstatementsinSchedule13oftheBalanceSheet.

21. CONSERVATION OF ENERGY, TECHNOLOGY & FOREIGN EXCHANGE:

Informationonconservationofenergy,technologyabsorption,foreignexchangeearningsandoutgo,isrequiredtobegivenpursuanttoprovisionofSection134oftheCompaniesAct,2013,readwiththeCompanies (Accounts)Rules,2014 isannexedheretomarkedAnnexure-4andformspartofthisreport.

22. CORPORATE GOVERNANCE REPORT

Thecompanyfallsunderthecriteria15(2)(a)oftheListingObligations&Disclosurerequirements(LODR)Regulations,2015asthePaid-upcapitalofthecompanywasbelowRs.10CroresandnetworthwasaboveRs.25Croresasonthelastdayofthepreviousfinancialyear.

Ason31stMarch,2019,theCompany’sPaidupCapitalisofRs.2,76,43,260/-(RupeesTwoCroresSeventy-SixLakhsForty-ThreeThousandTwoHundredSixtyonly)andNetworthisofRs.25,51,38,289/-(RupeesTwenty-FiveCroresFifty-OneLakhsThirty-EightThousandTwoHundredandEighty-Nineonly).

HencecompliancewithCorporateGovernanceprovisionsasperListingObligations&Disclosurerequirements (LODR)Regulations,2015isapplicablefortheFinancialYear2019-20andnotapplicabletocompanyintheyear2018-19.

23. PARTICULARS OF EMPLOYEES:

DuringthefinancialyeartherewerenoemployeesdrawingsalaryexceedingRs.5Lacs.TheinformationpursuanttoSection197oftheActreadwithRule5(1)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014relatingtomedianemployee’sremunerationisannexedheretomarkedAnnexure-5andformspartofthisreport.

24. MANAGEMENT’S DISCUSSION AND ANALYSIS REPORT

TheManagement’sDiscussionandAnalysisReportfortheyearunderreview,asstipulatedunderregulation34(3)andPartBofscheduleVoftheSEBI(ListingObligationandDisclosureRequirement)Regulation2015,isannexedtothisreport.(Annexure6)

25. RISK MANAGEMENT POLICY:

TheCompanyhasinplaceamechanismtoidentify,assess,monitorandmitigatevariousriskstokeybusinessobjectivesandthusinpursuanceofthesameithasformulatedaRiskManagementPolicytoensurecompliancewithregulation17ofSEBI

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(LODR)2015.MajorrisksidentifiedbythebusinessesandfunctionsaresystematicallyaddressedandalsodiscussedatthemeetingsoftheAuditCommitteeandtheBoardofDirectorsoftheCompany.

TheCompany’sinternalcontrolsystemsarecommensuratewiththenatureofitsbusinessandthesizeandcomplexityofitsoperations.SignificantauditobservationsandfollowupactionsthereonarereportedtotheAuditCommitteeandtheriskmanagementpolicyisavailableonthewebsiteofthecompany:www.spentasocks.com.

26. POLICY ON DIRECTORS APPOINTMENT, REMUNERATION & BOARDS PERFORMANCE:

Duringtheyear,theBoardadoptedaformalmechanismforevaluatingitsperformanceandaswellasthatofitsCommitteesandindividualDirectors,includingtheChairmanoftheBoard.TheexercisewascarriedoutthroughastructuredevaluationprocesscoveringvariousaspectsoftheBoardsfunctioningsuchascompositionoftheBoard&committees,experience&competencies,performanceofspecificduties&obligations,governanceissuesetc.SeparateexercisewascarriedouttoevaluatetheperformanceofindividualDirectorsincludingtheBoardChairmanwhowereevaluatedonparameterssuchasattendance,contributionatthemeetingsandotherwise,independentjudgment,safeguardingofminorityshareholdersinterestetc.

TheevaluationoftheIndependentDirectorswascarriedoutbytheentireBoardandthatoftheChairmanandtheNon-

IndependentDirectorswerecarriedoutbytheIndependentDirectors.

TheDirectorsweresatisfiedwith theevaluation results,which reflected theoverallengagementof theBoardand itsCommitteeswiththeCompany.

27. COMMITTEES OF THE BOARD:

Duringtheyear,inaccordancewiththeCompaniesAct,2013,theBoardre-constitutedsomeofitsCommittees.TherearecurrentlythreeCommitteesoftheBoard,asfollows:

• AuditCommittee• NominationandRemunerationCommittee• Stakeholders’RelationshipCommittee

28. WHISTLE BLOWER POLICY/VIGIL MECHANISM: The Company has established a vigilmechanism for Directors and employees to report their genuine concerns. The

Companyhas alsoprovidedadequate safeguards against victimizationof employees andDirectorswhoexpress theirconcerns.DetailsofwhichhavebeengivenintheCorporateGovernanceReportannexedtothisReport.

TheVigilMechanismPolicyisavailableatthewebsiteofthecompany:www.spentasocks.com.

29. DISCLOSURE UNDER SEXUAL HARASSMENT ACT:

As required by the Sexual Harassment ofWomen atWorkplace (Prevention, Prohibition& Redressal) Act, 2013, theCompanyhasformulatedandimplementedapolicyonpreventionofsexualharassmentatworkplacewithamechanismoflodgingcomplaints,redressalforthebenefitsofitsemployees.Currentlythereare8womenemployees’workingwiththeCompanyandaseniorwomenemployeehasbeendesignatedtoreceivecomplaintsandreportsuchcasestotheAuditCommitteeinthisbehalf.TherewerenocomplaintsfiledbyanyofthewomenemployeesoftheCompanyunderthisAct.

30. ACKNOWLEDGMENTS:

Your Directors wish to place on record their appreciation of the support which the Company has received from itspromoters,lenders,businessassociatesincludingdistributors,vendorsandcustomers,thepressandtheemployeesoftheCompany.

BY ORDER OF THE BOARDSd/-

SANJAY GADODIA (CHAIRMAN)

DIN NO: 00203433

DATE:14THAUGUST,2019PLACE:PALGHAR

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FormNo.MR-3Forthefinancialyearendedon31stMarch,2019.

[PursuanttoSection204(1)oftheCompaniesAct,2013andRuleNo.9oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014].

To,TheMembers,SPENTAINTERNATIONALLIMITED.

WehaveconductedtheSecretarialAuditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporate practices by SPENTA INTERNATIONAL LIMITED (hereinafter called "The Company"). Secretarial Audit wasconductedinamannerthatprovidedusareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingouropinionthereon.

BasedonourlimitedverificationoftheCompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintained by the Company and also the information provided by the Company, its officers, agents and authorizedrepresentativesduringtheconductofSecretarialAudit,weherebyreportthatinouropinion,theCompanyhas,duringtheaudit period ended on 31stMarch, 2019, compliedwith the statutory provisions listed hereunder and also that theCompanyhasproperBoard-processesandcompliance-mechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:

Wehaveexaminedthebooks,papersandminutebooks,FormsandreturnsfiledandotherrecordsmaintainedbytheCompanyforthefinancialyearendedon31stMarch2019,totheextentapplicableprovisionsof:

I. TheCompaniesAct,2013("TheAct")andtheRulesmadethereunder;

II. TheSecuritiesContracts(Regulation)Act,1956("SCRA")andtheRulesmadethereunder;

III. TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;

IV. ForeignExchangeManagementAct,1999andtheRulesandRegulationsmadethereundertotheextentofForeignDirectInvestment,OverseasDirectInvestmentandExternalCommercialBorrowings;

V. ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992("SEBIAct")totheextentapplicabletotheCompany:-

a. TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;b. TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;

c. TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009;

d. TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993;

e. TheCompanyhascompliedwiththerequirementsundertheEquityListingAgreementsenteredintowithBSELimited.

TheManagementhasidentifiedandconfirmedtheapplicableActs,LawsandRegulationsspecificallyapplicabletotheCompanyasmentionedbellows:

i) TheEnvironmentProtectionAct,1986;and

ii) Air(PreventionandControlofPollution)Act1981andRulesissuedbyStatePollution ControlBoard;and

iii) Water(PreventionandControlofPollution)Act1974andRulesissuedbyStatePollutionControlBoard;and

Wehavealsoexaminedcomplianceswiththeapplicableclausesofthefollowing:

Annexure - ISECRETARIAL AUDIT REPORT

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I)SecretarialStandards1and2issuedbyTheInstituteofCompanySecretariesofIndia.ii)TheSecuritiesandExchangeBoardofIndia(ListingObligationandDisclosureRequirements)Regulations,2015.

Duringtheyearunderreview,theCompanyingeneralhascompliedwiththeprovisionsoftheAct,Rules,Regulations,Guidelines, and Standardsotherwise asmentionedelsewhere in this report. etc. asmentioned above subject to thefollowingobservations:

• NominationandRemunerationCommitteeisnotinCompliancewiththeprovisionsofSection178ofCompaniesAct,2013.

Wefurtherreportthat:

TheBoardofDirectorsof theCompany isdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-ExecutiveDirectorsand IndependentDirectorsexceptCompositionofNominationandRemunerationCommittee.TherearenochangesinthecompositionoftheBoardofDirectorsweretookplaceduringtheyearunderreview.

AdequatenoticeisgiventoallDirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentatleastsevendaysinadvance,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.

We further report that there are adequate systems and processes in the company commensuratewith the size andoperationsoftheCompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.

Wefurtherreportthatduringtheauditperiod:

1. BoardApprovedResignationofMr.PrasadR.ChavanasaCompanySecretaryw.e.f.4thMay,2018andAppointedMs.NutanBidyeinhisplacew.e.f.5thMay,2018.

2. TheCompanyinits31stAnnualGeneralMeetingheldonThursday;27thSeptember,2018passedfollowingresolutions:

• RecommendedFinalDividendofRs.1.50/-persharebytheBoardofDirectorsfortheyearended31stMarch,2018.

• Re-appointmentofMr.DannyHansotiaasaManagingDirectoroftheCompanyfortheperiodof3yearsfrom1stDecember,2017to30thNovember,2020.

• Re-appointmentofMr.SanjayGadodiaasaWhole-TimeDirectoroftheCompanyfortheperiodof3yearsfrom1stJuly,2018to30thJune,2021.

• AppointmentofMrs.AnitaKoti(DIN:08069112)asanIndependentDirectorfortheperiodof5yearsfrom16thFebruary,2018to15thFebruary,2023.

ForHSAssociatesCompanySecretaries

Sd/-Hemant Shetye

PartnerFCSNo.:2827CPNo.:1483

DATE: 14th August, 2019PLACE: Mumbai

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To,

TheMembers,


Ourreportofevendateistobereadalongwiththisletter.

1.MaintenanceofSecretarialrecordsistheresponsibilityofthemanagementoftheCompany.Ourresponsibilityistoexpress

anopiniononthesesecretarialrecordsbasedonouraudit.

2. We have followed the audit practices and processes aswere appropriate to obtain reasonable assurance about the

correctnessofthecontentsoftheSecretarialrecords.Theverificationwasdoneonthetestbasistoensurethatcorrectfacts

arereflectedinSecretarialrecords.Webelievethattheprocessesandpractices,wefollowedprovideareasonablebasisfor

ouropinion.

3.WehavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandbooksofaccountsoftheCompany.

4. Whereeverrequired,wehaveobtainedtheManagementrepresentationaboutcomplianceoflaws,rulesandregulations

andhappeningsofeventsetc.

5. ThecomplianceofprovisionsofCorporateandotherapplicablelaws,rules,regulations,standardsistheresponsibilityofthe

management.Ourexaminationwaslimitedtotheverificationofproceduresontestbasis.

6.TheSecretarialAuditReportisneitheranassuranceastothefutureviabilityoftheCompanynorofefficacyoreffectiveness

withwhichthemanagementhasconductedtheaffairsoftheCompany.

ForHSAssociatesCompanySecretaries

Sd/-

Hemant S. ShetyePartner

FCSNo.:2827CPNo.:1483

Date: 14th August, 2019 Place: Mumbai

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Annexure - 2EXTRACT OF ANNUAL RETURN

Asonthefinancialyearendedon31stMarch2019[Pursuanttosection92(3)oftheCompaniesAct,2013andrule12(1)ofthe

Companies(ManagementandAdministration)Rules,2014]

I. REGISTRATION AND OTHER DETAILS:

I)CIN:- L28129MH1986PLC040482

ii)RegistrationDate:- 25/07/1986

iii)NameoftheCompany:- SPENTAINTERNATIONALLIMITED

iv)Category/Sub-CategoryoftheCompany 040482/Companylimitedbyshares

v)AddressoftheRegisteredofficeandcontactdetails:- Plot#13-16,DewanIndustrialestate,VillageNavali, Palghar(West),Thane-401404

vi)Whetherlistedcompany:- Yes

vii)Name,AddressandContactdetailsofRegistrar LinkIntimeIndiaPrivateLimited. andTransfer C-101,247Park,L.B.S.Marg,Vikhroli(W), Mumbai–400083. Telephone:022-49186270 Fax:022-49186060 E-mail:[email protected] Website:www.linkintime.co.in

II. PARTICULARS OF ASSOCIATE COMPANIES -

Sr. Name and address of CIN/GIN Holding/ % of Applicable No. the Company Subsidiary of shares Section the Company held

Your Company has no associate, Joint venture or subsidiary companies.

I. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated:-

Sr. Name and Description of Main NIC Code of the % to total turnover of the Company No. Product/Services Product

1. Manufactureoftextiles 13 90%


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IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)(i)Category-wiseShareHolding

Category of %shareholders Change during the year

Demat Physical Total % of Demat Physical Total % of Total Total Share Shares

A. Promoters

1) Indian

a) Individual/ HUF 1780817 - 1780817 64.42 1780817 - 1780817 64.42 -

b)CentralGovt. - - - - - - - - -

c) StateGovt(s) - - - - - - - - -

d)BodiesCorp. 1600 - 1600 00.06 1600 - 1600 00.06 -

e)Bank/FI - - - - - - - - -

f) AnyOther - - - - - - - - -

1. Directors - - - - - - - - -

2. Directors Relative - - - - - - - - -

Sub-Total (A)(1) 1782417 - 1782417 64.48 1782417 - 1782417 64.48 -

(2) Foreign

a)NRIs-Individuals - - - - - - - - -

b)Other Individuals - - - - - - - - -

c) BodiesCorp. - - - - - - - - -

d)Bank/FI - - - - - - - - -

e)AnyOther - - - - - - - - -

Sub-Total (A)(2) 0 0 0 0 0 0 0 0 -

Total 1782417 - 1782417 64.48 1782417 - 1782417 64.48 - shareholding ofPromoter (A)(A)(1)+(A)(2)

1. Institutions

a)MutualFunds - - - - - - - -

b)Bank/FI - - - - - - - -

c) CentralGovt. - - - - - - - -

d)StateGovt(s) - - - - - - - -

e)VentureCapital Funds - - - - - - - -

f) Insurance Companies - - - - - - - -

g) FIIs - - - - - - - -

h)ForeignVenture

CapitalFunds - - - - - - - -

No. of shares held at the beginningof the year

No. of shares held at the endof the year

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I) Other (specify) - - - - - - - -

Sub-Total (B)(1) - - - - - - - -

2. Non-Institutions - - - - - - - -

a) BodiesCorp. 15202 3200 18402 00.66 9668 3200 12868 00.46 -00.20

I) Indian

ii) Overseas

b)Individuals - - - - - - - -

I) Individualshare- 365843 313620 679463 24.58 327961 280220 608181 22.00 -2.58 holdersholding nominalshare capitalupto Rs.1lakh

ii) Individualshare- 208811 - 208811 7.55 273178 16000 289178 10.46 2.91 holdersholding nominalshare capitalinexcess ofRs.1lakh

c) Others(specify) - - - - - - - -

(c-I) 3341 - 3341 00.12 3489 - 3489 00.13 00.0

(c-I)CLEARING 3341 - 3341 00.12 3489 - 3489 00.13 00.01

MEMBER

(c-ii)OFFICE - - - - - - - -

BEARERS

(c-iii)NON 7830 36300 44130 01.60 8663 26300 34963 01.26 -0.34

RESIDENTINDIANS

(c-iv)HUF 27762 - 27762 1.00 33230 - 33230 01.20 00.20

Total Public share- 628789 353120 981909 35.52 656189 325720 981909 35.52 -

holding (B) (B)(1) +

(B)(2)

C. Shares held by Custodian for GDRs & ADRs

Grand Total

(A+B+C) 2411206 353120 2764326 100 2438606 325720 2764326 100 -

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No. of % of total % of Shares No. of % of total % of Shares Shares of the Pledged / Shares Shares Shares company encumbered of the Pledged / to total shares company encumbered to total shares

1. DANNYFHANSOTIA 690277 24.97 - 690277 24.97 - - 2. SANJAYSGADODIA 643133 23.26 - 643133 23.26 - -

3. FIROZEMINOCHAR HANSOTIA 118000 04.27 - 118000 04.27 - -

4. SANDEEPGADODIA 164307 05.94 - 164307 05.94 - -

5. SULOCHANAS. GADODIA 103500 03.74 - 103500 03.74 - -

6. RITASGADODIA 46000 01.66 - 46000 01.66 - -

7. AMYFHANSOTIA 13000 00.47 - 13000 00.47 - -

8. VIRAFFIROZE HANSOTIA 2600 00.09 - 2600 00.09 - -

9. JUVENILETRADING PVTLTD 1600 0.06 - 1600 0.06 - -

TOTAL 1782417 64.48 - 1782417 64.48 - -

Sr.No.

Sr.No.

Shareholder’sName

% changein share-

holding duringthe year

Shareholding at the beginningof the year

Shareholding at the beginningof the year

Cumulative Shareholding during the year

Shareholding at the end ofthe year

(ii)ShareholdingofPromoter’s:

(iii)ChangeinPromoters’Shareholding(pleasespecify,ifthereisnochange)

No. of % of total No. of % of total Shares Shares Shares Shares of the company of the company

1. DANNY FIROZE HANSOTIA

Atthebeginningoftheyear 690277 24.97 690277 24.97 DatewiseIncrease/DecreaseinPromoters Shareholdingduringtheyearspecifyingthe _____ _____ _____ _____ reasonsforincrease/decrease(e.g.allotment/ transfer/bonus/sweatequityetc):

At the End of the year 690277 24.97

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2 SANJAY SHYAMSUNDER GADODIA

Atthebeginningoftheyear 643133 23.26 643133 23.26 DatewiseIncrease/DecreaseinPromoters Shareholdingduringtheyearspecifyingthe _____ _____ _____ _____ reasonsforincrease/decrease(e.g.allotment /transfer/bonus/sweatequityetc): At the End of the year 643133 23.26

3 SANDEEP SHYAMSUNDER GADODIA

At the beginning of the year 164307 05.94 164307 05.94 DatewiseIncrease/DecreaseinPromoters Shareholdingduringtheyearspecifyingthe _____ _____ _____ _____ reasonsforincrease/decrease(e.g.allotment /transfer/bonus/sweatequityetc):


4 FIROZE M HANSOTIA

At the beginning of the year 118000 04.26 118000 04.26

DatewiseIncrease/DecreaseinPromoters Shareholdingduringtheyearspecifyingthe _____ _____ _____ _____ reasonsforincrease/decrease(e.g.allotment /transfer/bonus/sweatequityetc):


5 SULOCHANA GADODIA

At the beginning of the year 103500 03.74 103500 03.74

DatewiseIncrease/DecreaseinPromoters Shareholdingduringtheyearspecifyingthe _____ _____ _____ _____ reasonsforincrease/decrease(e.g.allotment /transfer/bonus/sweatequityetc):


6 RITA GADODIA At the beginning of the year 46000 01.66 46000 01.66 DatewiseIncrease/DecreaseinPromoters Shareholdingduringtheyearspecifyingthe _____ _____ _____ _____ reasonsforincrease/decrease(e.g.allotment /transfer/bonus/sweatequityetc): At the End of the year 46000 01.66

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7 AMY FIROZE HANSOTIA At the beginning of the year 13000 00.47 13000 00.47 DatewiseIncrease/DecreaseinPromoters Shareholdingduringtheyearspecifyingthe reasonsforincrease/decrease(e.g.allotment _____ _____ _____ _____ /transfer/bonus/sweatequityetc): At the End of the year 13000 00.47

8 VIRAF FIROZE HANSOTIA At the beginning of the year 2600 00.09 2600 00.09 DatewiseIncrease/DecreaseinPromoters Shareholdingduringtheyearspecifyingthe _____ _____ _____ _____ reasonsforincrease/decrease(e.g.allotment /transfer/bonus/sweatequityetc): At the End of the year 2600 00.09

9 JUVENILE TRADING PVT LTD At the beginning of the year 1600 00.06 1600 00.06 DatewiseIncrease/DecreaseinPromoters Shareholdingduringtheyearspecifyingthe reasonsforincrease/decrease(e.g.allotment _____ _____ _____ _____ /transfer/bonus/sweatequityetc): At the End of the year 1600 00.06

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(iv)ShareholdingPatternoftoptenShareholders(otherthanDirectors,PromotersandHoldersofGDRsandADRs):

Sr.

No.

Name & Type of No. of % of Date of No. of No. of % of Transaction Shares Total Shares Transaction Shares Shares Total Shares held of the Held of the Company Company

1 YAZDI B PESTONJAMASP 129259 04.67 - - 129259 04.67

Attheendoftheyear - - - - 129259 04.67

2 GANDHI PRATIK RAJENDRA 31200 01.13 - - 31200 01.13


3 DIPAK KANAYALAL SHAH 28000 01.01 - - 28000 01.01

Attheendoftheyear 28000 01.01

4 ANUP OMPRAKASH JUNEJA 20352 00.74 - - 20352 00.74


5 USHA NIRANJAN AGARWAL 16000 00.58 - - 16000 00.58


6 CHAITALEE MANIHAR 15200 00.55 - - 15200 00.55


7 OMPRAKASH BAGADIA 14700 00.53 - - 14700 00.53

Attheendoftheyear - - 14700 00.53

8 JAYANT GOPAL FARSWANI 12504 00.45 - - 12504 00.45


9 SHANTI MURARI MANWANI 11401 00.41 - - 11401 00.41


10 VINOD MOHANLAL SHAH 10516 00.38 - - 10516 00.38

MarketPurchase 20/04/2018 +46 10562 00.38


11 PLUTUS CAPITAL

MANAGEMENT LLP 1998 00.07 - - 1998 00.07

MarketSell 25/05/2018 -19 1979 00.07

MarketSell 01/06/2018 -98 1881 00.07

MarketSell 15/06/2018 -1 1880 00.07

MarketSell 06/07/2018 -1104 776 00.03

MarketSell 16/11/2018 -2 774 00.03

MarketSell 23/11/2018 -774 0 0.00


Shareholding at the beginningof the year - 2016

Transactions duringthe year

Cumulative Shareholding atthe end of the year - 2017

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Sr.No.

Shareholding atthe beginning

of the year

Shareholdingat the endof the year

(v)ShareholdingofDirectorsandKeyManagerialPersonnel:

No. of % of total No. of % of total Shares Shares of Shares Shares of the company the company

1. DANNYFHANSOTIA 690277 24.97 690277 24.97

2. SANJAYSGADODIA 643133 23.26 643133 23.26

For Each of the Directors and KMP

25

V. INDEBTEDNESS IndebtednessoftheCompanyincludinginterestoutstanding/accruedbutnotdueforpayment

Secured Loans Unsecured Deposits Total excluding Loans Indebtedness deposits

Indebtedness at the beginning ofthe financial year

i)PrincipalAmount 1609.38 0 0 1609.38

ii)Interestduebutnotpaid 0 0 0 0.00

iii)Interestaccruedbutnotdue 0 0 0 0.00

Total (i+ii+iii) 1609.38 0 0 1609.38

Change in Indebtedness during

the financial year

Addition 51.92 0 0 51.92

Reduction 0 0 0 0

Net Change 51.92 0 0 51.92

Indebtedness at the end of

the financial year

i)PrincipalAmount 1661.30 0 0 1661.30

ii)Interestduebutnotpaid 0 0 0 0.00

iii)Interestaccruedbutnotdue 0 0 0 0.00

Total (i+ii+iii) 1661.30 0 0 1661.30



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VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A.RemunerationtoManagingDirector,Whole-TimeDirectorsand/orManager:

Sr.No.

Name of MD/WTD/Manager Rs. in Lacs

DannyHansotia SanjayGadodia

1. GrossSalary

(a)Salaryasperprovisions 20.81 20.81 41.62 containedinsection 17(1)oftheIncomeTaxAct

(b) Valueofperquisitesu/s17(2)Income 9.19 9.19 18.38 TaxAct,1961

(c) Profitsinlieuofsalaryunder 0 0 0 Section17(3)IncomeTaxAct,1961

2. StockOption 0 0 0

3. SweatEquity 0 0 0

4. Commission -As%ofProfit 0 0 0 -Others,specify

5. Others,pleasespecify 0 0 0 Total (A) 30.00 30.00 60.00 CeilingaspertheAct 84.00 84.00 168.00

Particulars of Remuneration

B.Remunerationofotherdirectors:

26

Sr.No.

Name of Directors Total Amount

Ms. Sunita Misri Mrs. Anita Koti -

1. Independent Directors IndependentDirectors IndependentDirectors

• Feeforattendingboard committeemeetings 30,000.00 30,000.00 60,000.00

• Commission - -

• Other,pleasespecify - - -

Total (1)

Other Non-Executive Directors - - -

• Feeforattendingboard committeemeetings - - -

• Commission - - -

• Others,pleasespecify - - -

Total (2) - - -

Total (B) = (1+2) 30,000.00 30,000.00 60,000.00

Total Managerial Remuneration 30,000.00 30,000.00 60,000.00

OverallCeilingaspertheAct - - -

Particulars of Remuneration



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27

VII. PENALTIES/ PUNISHMENT/ COMPOUNDING OF OFFENCES

Type Section of the Brief Details of Authority Appeals, if any Companies Act Description Penalty/Punishment/ [RD/NCLT/COLOUR] (give details) Compounding fees imposed

A. COMPANY

Penalty - - - - -

Punishment - - - - -

Compounding - - - - -

B. DIRECTORS

Penalty - - - - -



C. OTHER OFFICERSIN DEFAULT

Penalty - - - - -



Sd/-Name:Danny HansotiaDirector:ManagingDirectorandCFODINNo:00203497

FOR AND ON BEHALF OF THE BOARD OF DIRECTORSOF SPENTA INTERNATIONAL LIMITED

Sd/-Name: Sanjay GadodiaDirector:ChairmanDINNo:00203433


C.RemunerationToKeyManagerialPersonnelOtherThanMD/Manager/WTD

Sr. ParticularsofRemuneration KeyManagerialPersonnelno. *Mr.PrasadChavan(CS) Ms.NutanBidye(CS) Total1. Grosssalary (a)Salaryasperprovisionscontainedin 25,000 2,75,000 3,00,000 section17(1)oftheIncome-taxAct,1961 (b)Valueofperquisitesu/s NIL NIL NIL 17(2)Income-taxAct,1961 (c)Profitsinlieuofsalaryundersection NIL NIL NIL 17(3)Income-taxAct,19612. StockOption NIL NIL NIL3. SweatEquity NIL NIL NIL4. Commission -as%ofprofit NIL NIL NIL -others,specify… NIL NIL NIL5. Others,pleasespecify NIL NIL NIL Total 25,000 2,75,000 3,00,000

*Mr.PrasadChavanhasresignedasaCompanySecretaryw.e.f.4thMay,2018andMs.NutanBidyeappointedinhisplaceon5thMay,2018.


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Annexure - 3FORM NO. AOC - 2

[Pursuanttoclause(h)ofsub-section(3)ofsection134oftheCompaniesAct,2013andRule8(2)oftheCompanies(Accounts)Rules,2014]

Formfordisclosureofparticularsofcontracts/arrangementsenteredintobytheCompanywiththerelatedpartiesreferredtoinsub-section(1)ofsection188oftheCompaniesAct,2013includingcertainarms-lengthtransactionsunderthirdprovisothereto.

1. Details of contracts or arrangements or transactions not at arm’s length basis:

Sr. Name of the Nature of Duration Salient terms Justification date(s) of Amount No Related contracts/ of the of the for entering approval paid as Party & arrange- contracts/ contracts or into such by the advances, Nature of ments/trans arrange- arrangements contracts or Board if any Relationship actions ments/ or transactions arrange- transactions including the ments or value, if any transactions

NIL NIL NIL NIL NIL NIL NIL NIL

Date on which the special resolution was passed in general meeting as required under first proviso to section 188

2. Details of contracts or arrangements or transactions at arm’s length basis:

Name of the Nature of Duration of the Salient terms of Amount paid asRelated Party & contracts/ contracts/ the contracts or advances, if any Nature of arrangements/ arrangements/ arrangements orRelationship transactions transactions transactions including the value, if any

NIL NIL NIL NIL NIL

Sd/-Name:Danny HansotiaDirector:ManagingDirectorandCFODINNo:00203497

Sd/-Name:Sanjay GadodiaDirector:WholeTimeDirectorDINNo:00203433

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CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO PURSUANT TO PROVISIONS OF SECTION 134 OF THE COMPANIES ACT , 2013 READ WITH THE COMPANIES (ACC OUNTS) RULES, 2014

A. CONSERVATION OF ENERGY

i. Thestepstakenorimpactonconservationofenergy:

• Maintainedthepowerfactorintherangeof0.998to0.999throughouttheyearandgotrebateinelectricitybills

• Byreplacingtoenergyconservationequipmentlikeaircompressor,dryer,andmotorsforbetterconsumptionof

electricity.

ii. Thestepstakenbythecompanyforutilizingalternatesourcesofenergy–Weareintalksforinstallationsolarpanels

andusingsolarenergytoreduceourelectricityconsumption.

iii.Thecapitalinvestmentonenergyconservationequipments.-NIL

B. TECHNOLOGY ABSORPTION

i. theeffortsmadetowardstechnologyabsorption:

a. InstallationofETPplantfortreatmentandconservationofwastewater

b. InstallationofMetalDetectorsinFinishingLinetodetectmetalcontaminationinsocks

c. InhouserepairofelectronicpartsintheKnittingmachine,thuseliminatingneedtoimportspareparts

frequently

ii. thebenefitsderivedlikeproductimprovement,costreduction,productdevelopmentorimportsubstitution:

1. Improvedsafetymeasuresandpollutioncontrol

2. Qualityandproductivityimprovement

3. CostReduction

iii.incaseofimportedtechnology(importedduringthelastthreeyearsreckonedfromthebeginningofthefinancial

year)

a. thedetailsoftechnologyimported-NIL

b. theyearofimport-NIL

c. whetherthetechnologybeenfullyabsorbed-NIL

d. ifnotfullyabsorbed,areaswhereabsorptionhasnottakenplace,andthereasonsthereof-NIL

iv. theexpenditureincurredonResearchandDevelopment–NonAscertainable

31/03/2019 31/03/2018

Foreign Exchange Earnings: NIL NIL

Foreign Exchange outgo: - -

Travelling 4.54 3.11

AdvancesforSparesandConsummables 0.00 0.00

PlantandMachinery 71.65 19.83

Spares&Consumables 3.73 1.57

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

Annexure - 4

(Rs. in lacs)

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31.3.2019 31.3.2018

Electricity

a) Purchased

Units(inlacs)(inkwh) 16.12 16.86

AmountinRupees(inlacs) 155.08 135.12

RateperUnit(inrupees) 9.62 8.01

31.3.2019 31.3.2018

Numberofpairs

Product:KnittedSocks 42,55,292 52,68,173

Electricity(kwh/pairofsocks) 0.379 0.320

Form A : Disclosure of Particulars with respect to Conservation of Energy

A. POWER & FUEL CONSUMPTION

Annexure - 5

B. CONSUMPTION PER UNIT OF PRODUCTION

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The information required under section 197 of the Act read with rule 5(1) of the Companies (Appointment and Remunerationof Managerial Personnel) Rules, 2014 are given below:

a. The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the financial year:

b. The percentage increase in remuneration of each director, chief executive officer, chief financial officer, company secretary in the financial year:

c. The percentage increase in the median remuneration of employees in the financial year: No Increase in remuneration

d. The number of permanent employees on the rolls of Company: 74

e. The explanation on the relationship between average increase in remuneration and Company Performance: Theaverageremunerationofemployeeshasremainedsameasthatoflastyearhoweverthecompany’snetprofithas

increasedfromRs.1,84,33,023toRs.2,25,57,964.

Name of the directors Ratio to median Remuneration

Non-executive directorsMrs.SunitaMisri 00.33Mrs.Anitakoti 00.33 Executive directorsMr.SanjayGadodia 16.43Mr.DannyHansotia 16.43

Directors, Chief Executive Officer, Chief Financial % increase in remuneration in the Officer and Company Secretary financial year

Mr. Sanjay Gadodia* –Mr. Danny Hansotia –Mrs. Sunita Misri –Mrs. Anita Koti --


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f. Comparison of the remuneration of the key managerial personnel against the performance of the Company:

31

Aggregateremunerationofkeymanagerial 60,00,000personnel(KMP)inFY178

Revenue 44,23,70,826RemunerationofKMPs(asa%ofrevenue) 1.36%ProfitbeforeTax(PBT) 3,20,92,968RemunerationofKMP(asa%ofPBT) 18.70%


g. Variations in the market capitalisation of the Company, price earnings ratio as at the closing date of the current financial year and previous financial year:

Particulars March31,2019 March31,2018 %ChangeMarket 21,65,84,942.1 39,65,42,564.7 -45.38Capitalisation

PriceEarnings 9.60 21.51 -55.37Ratio

h. Percentage increase over decrease in the market quotations of the shares of the Company in comparison to the rate at which the Company came out with the last public offer:

i. Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

Remunerationofemployeesandremunerationpaidtokaymanagerialpersonnelremainedsame.

j. Comparison of each remuneration of the key managerial personnel against the performance of the Company:

k. The key parameters for any variable component of remuneration availed by the directors: TherearenovariablecomponentsofremunerationprovidedtotheDirectors

l. The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during theyear: None.

Particulars March31,2019 IPO %ChangeMarketPrice(BSE) 78.35 Rs.10atPar 783.5%

(ManagingDirector) (Whole-TimeDirector&CFO)Remunerationin 30,00,000 30,00,000FY2019

Revenue : Remunerationas 0.68 0.68%ofrevenue

Profit before Tax (PBT): Remuneration 9.35 9.35


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m. Affirmation that the remuneration is as per the remuneration policy of the Company:

TheNominationandRemunerationCommitteeoftheCompanyhasaffirmedatitsmeetingheldonFebruary14,2019thattheremunerationisaspertheremunerationpolicyoftheCompany.Thepolicyisavailableonthecompany'swebsite:www.spentasocks.com

n. The statement containing particulars of employees as required under section 197(12) of the Act read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is provided in a separate annexure forming part of this report. Further, the report and the accounts are being sent to the members excluding the aforesaid annexure. In terms of section 136 of the Act, the said annexure is open for inspection at the Registered Office of the Company. Any shareholder interested in obtaining a copyofthesamemaywritetotheCompanySecretary.

TheNominationandRemunerationCommitteeoftheCompanyhasaffirmedatitsmeetingheldonFebruary14,2019that

theremunerationisaspertheremunerationpolicyoftheCompany.Thepolicyisavailableonthecompany's website:www.spentasocks.com

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MANAGEMENT DISCUSSION AND ANALYSIS REPORT

A. INDUSTRY STRUCTURE AND DEVELOPMENT:

TheIndianeconomyremainsoneofthefastestgrowingeconomyintheworld.Sockshavecometobecomeanintegralpartofthedailyclothingaswellasafashionstatement.Withastablegovernment,aseriesofstrongpoliciesandmeasureswillhelpoureconomytogrowatasustainablerateandincreaseconsumption.Withurbanization,increaseinincomeandforeignbrandscomingtoIndianmarketthedomesticconsumptionisboundtoincrease.

Thesocksindustrybeingmajorlyanunorganizedandfragmentedsectortheentireindustrysizeandfigurescannotbeestimated.ThesocksandaccessoriesmarketinIndiahasgrowntremendouslyoverthedecade.Indiansocksindustryismaturingandwithurbanpopulationevolving,demandforcasuals,sportsandfashionsocksispickingup.Millenialsareverybrandconsciousanddemandforbrandedwearisontherise.ThereisgrowthintheindustryintierIandIImarketsandbrandawarenessisgrowingsignificantly.

OPPORTUNITIES AND THREATS:

ThedemandforsocksinIndiaandothercountriesisontherise.Theflowofordershasbeenprogressivelyincreasingforlastfewyears.YourCompanyiswellpoisedtoseizeopportunitiesavailableinthesockknittingindustryonaccountofitsstate-of-the-artproductionfacilities,technicalexpertise,goodqualitycultureandemphasisonproductinnovationandgrowthpotential.

MarketisshiftingtowardsBrandedGarment.YourCompanyhasbeenaheadinmakinginvestmentinplantandmachinerytomeetthegrowthandmeetthehugedemandcreationinthemarket.Yourcompanyisworkingwithinternationalbrands.Weareconstantlyexperimentingproductsmadefrominnovativeyarnsandeco-friendlychemicalsformanufacturingmostcomfortablesocksespeciallyforsports.Thesetechnicallyinnovativesocksaremuchindemandbyinternationalbrands.

Duetointernationalanddomesticeconomyslowdowncurrently,tradedisputes,Indiasigninginternationaltradetreaties,thethreatofslowdemandforfewquartersispossible.Yourcompanyisthereforeisincreasingthecustomerbaseandalsoshortlyplanningtoventureintoecommercesellingtoovercomethis.

SEGMENT-WISE OR PRODUCT WISE PERFORMANCE:

TheCompanyhasonesegmentactivitynamelysocks,inlinewiththedefinitionof“segment”asperAccountingStandard17issuedbytheInstituteofCharteredAccountantsofIndia.TheperformanceoftheCompanyisdiscussedseparatelyintheDirectors’Report.

B. OUTLOOK:

Duetoconstantinvestmentinlatestmachineryyourcompanyisabletotargetavastaudience,enhancingproductquality,improving delivery schedules and giving superior customer service. Expectations are high, prospects are bright, butcapitalizingonthenewemergingopportunitieswillbeachallengeforthesocksmanufacturingCompanies.

TheCompany’sSocksDivisionisoptimisticofgrowththroughcontinuednetworkexpansionandinnovation.TheBusinesswillcontinuetofocusonincreasingthepremiumandfashionquotientofitsofferingsonthebasisofadeepunderstandingofconsumerpreferencesanddeliveringproductsofworld-classquality.

C. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

TheAuditCommitteeoftheBoardofDirectorsactivelyreviewstheadequacyandeffectivenessofinternalcontrolsystemandsuggestsimprovementsforstrengtheningthem.TheInternalcontrolsystemisimprovedandmodifiedcontinuouslytomeetthechangesinbusinessconditions,statutoryandaccountingrequirements.YourCompanybelievesinformulatingadequateandeffectiveinternalcontrolsystemsandimplementingthesametoensurethatassetsandinterestsoftheCompanyaresafeguardedandreliabilityofaccountingdataandaccuracyareensuredwithproperchecksandbalances.

TheCompanyhasasoundManagementInformationSystemwhichisanintegralpartofthecontrolmechanism.TheAuditCommitteeoftheBoardofDirectorsandStatutoryAuditorsareperiodicallyapprisedoftheinternalauditfindingsandcorrectiveactionstaken.

D. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Duringtheyearunderreviewthetotalproductionofthesockswassatisfactory.TheProfitbeforetaxrecordedduringtheyearwasRs.320.92LakhsasagainstRs.257.49Lakhsinthepreviousfinancialyear.


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Annexure - 6


spenta

BY ORDER OF THE BOARDSd/

DANNY HANSOTIA (MANAGINGDIRECTOR&CFO)

DATE: 14TH AUGUST, 2019 PLACE: PALGHAR

34

E. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

Asalways,peopledevelopmentcontinuestobeanextremelyimportantareainyourCompany.Anchoringdevelopmentalconversationsateverylevelandensuringthatallmanagersareskilledinholdingdevelopmentalconversationshasbeenanareaoffocus.Theindustrialrelationsremainedcordialthroughouttheyear.TheemployeesoftheCompanyhaveextendedaveryproductiveco-operationintheeffortsofthemanagementtocarrytheCompanytogreaterheights.ContinuoustrainingdownthelineisanormalfeatureintheCompanytoupgradetheskillsandknowledgeoftheemployeesandworkmenoftheCompany.

F. CAUTIONARY STATEMENT:

Important factors that could make a difference to the company's operations include economic conditions affectingdemand/supplyandpriceconditionsinthedomesticandoverseasmarketsinwhichtheCompanyoperates,changesintheGovernment regulations, tax laws and other statutes and other incidental factors. Statements in the ManagementDiscussionandAnalysisdescribingtheCompany'sobjectives,projections,estimates,expectationsmaybe'forward-lookingstatements'withinthemeaningofapplicablesecuritieslawsandregulations.Actualresultscoulddiffermateriallyfromthoseexpressedorimplied.

G. RISK’s AND CONCERNS:

Themajorchallengethatthetextile,apparelandhosieryindustryfacesisofever-increasingproductioncostsarisingoutofrisingwages,powerandotheroverheads.

However,theoutlookforcottonyarnexportersisnegativeduetoaslowdownindemandforyarnparticularlyfromChina,leadingtosofteryarnrealizationsandlowercapacityutilization.CurrentlyIndiahasasmallshareintheglobaltextiletrade.IndustrytrackerssaythatIndiaiswellpositionedtogainfromweakinputpricesandgrowingdemandforapparels.

TheIndiancottontextilesectorthathasnotbeenfaringquitewellforthepastfewyearscouldseesomestabilityinthecurrentfinancialyearasperthereportbyIndiaRatingsandResearch.Thesectorisexpectedtomaintainanoverallstableoutlookledbystablespinningmarginsinthecottonyarnsegment,range-boundcottonpricesandfavorabledomesticandexportdemand.Unfavorablecotton-polyesterstaplefibrespreadshavehurtsubstitutiondemandforsyntheticfibresandsyntheticyarn.LowerexportcompetitivenessofIndiansyntheticyarnalsocontributestothesubduedoutlookasimportandcentralexcisedutycontinueonman-madefibres.

H. Ratio Analysis:

DebtorsTurnoverRatio:MarginalChangeduetoincreaseincreditperiod.

InventoryTurnoverRatio:Changeisduetobetterinventorymanagement.

InterestCoverageRatio:Changeindicatesbetterfinancialhealth.

CurrentRatio:Changeisbecauseofbetterperformance.

DebtEquityRatio:Changeisduetorepaymentofdebts.

ReturnOnNetWorth:Companyhasbeenabletogeneratebetterreturnbyregisteringalmost15%growth.


Particulars 2018-19 2017-18 ChangeDebtorsTurnoverRatio 107days 98days 9.18%InventoryTurnoverRatio 5.16 4.45 15.95%InterestcoverageRatio 4.19 3.45 21.45%CurrentRatio 2.43 1.86 30.65%DebtEquityRatio 0.23:1 0.31:1 -25.81%OperatingProfitMarginRatio(%) 20.41% 21.00% -2.81NetProfitMarginRatio(%) 5.02 4.93% 1.83ReturnonNetworth(%) 8.01% 6.94% 15.42

FOR SPENTA INTERNATIONAL LTD

Sd/-SANJAY GADODIA (CEO)

FOR SPENTA INTERNATONAL LTD

Sd/-DANNY HANSOTIA.

(CFO)


DECLARATION

I,SanjayGadodia,CEOoftheCompanyherebydeclarethatallBoardmembersandSeniorManagementpersonnel

haveaffirmedcompliancewiththecodeonanannualbasis.

FOR SPENTA INTERNATIONAL LIMITED

Sd/-SANJAY GADODIA(CEO)


CEO/CFO CERTIFICATION


spenta

To,TheBoardofDirectors,Spenta International Limited.PlotNo.13to16,DewanIndustrialEstate,VillageNavali,Palghar.

We,SanjayGadodia,ChiefExecutiveOfficerandDannyHansotia,ChieffinancialOfficeroftheCompanydoherebycertifythat:

1. Wehavereviewedthefinancialstatementandthecashflowstatementsfortheyearandthattothebestofourknowledgeandbelief:

(a) Thesestatementsdonotcontainanymateriallyuntruestatementoromitanymaterialfactorcontainstatementthatmightbemisleading;

(b) Thesestatementstogetherpresentatrueandfairviewofthecompany’saffairsandareincompliancewithexistingaccountingstandards,applicablelawsandregulations.

2. Thereare,tothebestofourknowledgeandbelief,notransactionsenteredintobythecompanyduringtheyearwhicharefraudulent,illegalorviolativeoftheCompany’scodeofconduct.

3. WeacceptresponsibilityforestablishingandmaintaininginternalcontrolsandthatwehaveevaluatedtheeffectivenessoftheinternalcontrolsystemsoftheCompanyandwehavedisclosedtotheauditorsandtheAuditCommittee,deficienciesinthedesignoroperationofinternalcontrols,ifanyofwhichweareawareandthestepswehavetakenorproposetotaketorectifythesedeficiencies.

4. WehaveindicatedtotheauditorsandtheAuditCommittee:

(a) Significantchanges,ifany,ininternalcontroloverfinancialreportingduringtheyear;

(b) Significantchanges,ifany,inaccountingpoliciesduringtheyearandthatthesamehavebeendisclosedinthenotestothefinancialstatements;and.

(c) Instances of significant fraud, if any, of which we have become aware and the involvement therein, if any, ofmanagement or an employee having a significant role in the Company’s internal control system over financialreporting.

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INDEPENDENT AUDITORS' REPORT


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36

TO THE MEMBERS OF SPENTA INTERNATIONAL LIMITED

Report on the Standalone Financial Statements We have audited the accompanying financial statements of Spenta International Limited (“the Company”), which

comprisetheBalanceSheetasatMarch31,2019andtheStatementofProfitandLoss(IncludingotherComprehensive

Income)andCashFlowStatementfortheyearthenended,andasummaryofsignificantaccountingpoliciesandother

explanatoryinformation.

Opinion Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidIndAS

financialstatementsgivetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewin

conformitywiththeaccountingprinciplesgenerallyacceptedinIndia,ofthestateofa¬ffairsoftheCompanyasatMarch

31,2019,anditsloss,totalcomprehensiveincome,itscashflowsandthechangesinequityfortheyearendedonthatdate.

Basis for Opinion

Weconductedour audit in accordancewith the StandardsonAuditing (SAs) specifiedunder section143(10) of the

CompaniesAct,2013.OurresponsibilitiesunderthoseStandardsarefurtherdescribedintheAuditor’sResponsibilitiesfor

theAuditoftheFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththe

CodeofEthicsissuedbytheInstituteofCharteredAccountantsofIndiatogetherwiththeethicalrequirementsthatare

relevanttoourauditofthefinancialstatementsundertheprovisionsoftheCompaniesAct,2013andtheRulesthere

under,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheCodeof

Ethics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion. Management’s Responsibility for the Financial Statements

BoardofDirectorsisresponsibleforthemattersstatedinSection134(5)oftheCompaniesAct,2013(“theAct”)with

respecttothepreparationofthesestandalonefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,

financial performance including other comprehensive income, cash flows and changes in equity of the Company in

accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the

Companies(IndianAccountingStandards)Rules,2015,asamended,andotheraccountingprinciplesgenerallyacceptedin

India

ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheAct

forsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionand

applicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;and

design, implementationandmaintenanceof adequate internal financial controls, thatwereoperatingeffectively for

ensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthe

standalonefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherdueto

fraudorerror.

Auditor’s Responsibilities for the Audit of the Financial Statements Ourobjectivesare toobtain reasonableassuranceaboutwhether the financial statementsasawholeare free from

materialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.



spenta

37

Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithSAswill

alwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsidered

materialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofusers

takenonthebasisofthesefinancialstatements. Aspartof anaudit inaccordancewithSAs,weexerciseprofessional judgmentandmaintainprofessional skepticism

throughouttheaudit.Wealso:

•Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,design

andperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriateto

provideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforone

resultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideof

internalcontrol.

•Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriate

inthecircumstances.Undersection143(3)(I)oftheCompaniesAct,2013,wearealsoresponsibleforexpressingour

opiniononwhetherthecompanyhasadequateinternalfinancialcontrolssysteminplaceandtheoperatingeffectiveness

ofsuchcontrols.

•Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelated

disclosuresmadebymanagement.

•Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingand,basedontheaudit

evidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubton

theCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredto

drawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor, ifsuchdisclosuresare

inadequate, tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofour

auditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern. •Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,29includingthedisclosures,and

whether the financial statements represent the underlying transactions and events in a manner that achieves fair

presentation.

Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingof

theauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringour

audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical

requirements regarding independence,and to communicatewith themall relationshipsandothermatters thatmay

reasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.

Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmost

significanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.We

describethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematteror

when,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausethe

adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such

communication.



spenta

38

Report on Other Legal and Regulatory Requirements

AsrequiredbytheCompanies(Auditor’sReport)Order,2016(‘theOrder’),issuedbytheCentralGovernmentofIndiain

termsofsub-section11ofSection143oftheCompanyAct,2013,andonthebasisofsuchchecksofthebooksandrecords

oftheCompanyasweconsideredappropriateandaccordingtotheinformationandexplanationsgiventous,wegiveinthe

Annexure,astatementonthemattersspecifiedinparagraphs3and4ofthesaidOrder. AsrequiredbySection143(3)oftheAct,wereportthat:

a) Wehaveobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryfor

thepurposeofouraudit;

b) Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromour

examinationofthosebooks.

c) TheBalanceSheetandtheStatementofProfitandLossdealtwithbythisReportareinagreementwiththebooksof

account.

d) Inouropinion,theBalanceSheetandtheStatementofProfitandLosscomplywiththeAccountingStandardsspecified

undersection133oftheAct,readwithRule7ofthecompanies(Account)Rules,2014.

e) OnthebasisofthewrittenrepresentationsreceivedfromthedirectorsasonMarch31,2019,takenonrecordbytheBoard

ofDirectors,noneofthedirectorsisdisqualifiedasonMarch31,2019,frombeingappointedasadirectorintermsof

Section164(2)oftheAct.

f) WithrespecttotheadequacyoftheinternalfinancialcontrolswithreferencetofinancialstatementoftheCompanyand

theoperatingeffectivenessofsuchcontrols,refertoourseparateReportin“Annexure2”tothisreport.

g) WithrespecttotheothermatterstobeincludedintheAuditors’Reportin accordancewithRule11oftheCompanies

(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiven

tous.

1. TheCompanyhasdisclosedtheimpactofpendinglitigationsonitsfinancialpositioninitsfinancialstatements;

2. TheCompanydidnothaveany long-termcontracts includingderivativecontracts forwhich therewereanymaterial

foreseeablelosses;and

3. Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFund

bytheCompanyduringtheyearended31March,2019.


For M/s. A K Kocchar & AssociatesChartered AccountantsFRN: 120410W

Sd/-(Hitesh Kumar S.)PartnerMembership No: 134763Date: 30th May, 2019

Annexure to Independent Auditors’ ReportSPENTA INTERNATIONAL LIMITED

spenta

39

(Referredtoinparagraphofauditreporton“OtherLegalandRegulatoryRequirements”ofevendate)

1. Inrespectofitsfixedassets:

a. TheCompanyhasmaintainedproperrecordsshowingfullparticularsincludingquantitativedetailsandsituationoffixed

assetsonthebasisofavailableinformation.

b. Accordingtotheinformationandexplanationgiventous,thefixedassetsarebeingphysicallyverifiedbythemanagement

accordingtoaphasedprogramdesignedtocoveralltheitemsoveraperiodofthreeyears,which, inouropinion, is

reasonablehavingregardtothesizeoftheCompanyandnatureofitsassets.

Pursuanttothisprogram,someofthefixedassetshavebeenphysicallyverifiedbythemanagementduringtheyear,andno

materialdiscrepancieswerenoticedonsuchverification.

c. InouropiniontheCompanyhasnotdisposedofsubstantialpartoffixedassetsduringtheyearandthegoingconcernstatus

oftheCompanyisnotaffected.

2. Inrespectofitsinventories:

a. Asexplainedtous,inventorieshavebeenphysicallyverifiedbythemanagementatregularintervalsduringtheyear.Inour

opinion,thefrequencyofsuchverificationisreasonable.

b. Inouropinionandaccordingtotheinformationandexplanationsgiventous,theproceduresofphysicalverificationof

inventoriesfollowedbythemanagementarereasonableandadequateinrelationtothesizeoftheCompanyandthe

natureofitsbusiness.

c. TheCompanyhasmaintainedproperrecordsofinventories.Asexplainedtous,thediscrepanciesnoticedonverification

betweenthephysicalstocksandthebookrecordswerenotmaterialandhavebeendealtwithinbooksofaccount.

3. Inouropinionandtothebestofourinformationandaccordingtoexplanationsgiventous,inrespectofloans,securedor

unsecured,grantedortakenbytheCompanyto/fromcompanies,firmsorotherpartiescoveredintheregistermaintained

underSection189oftheAct:

a. Thecompanyhasnotgrantedanyloans,securedorunsecuredtocompanies,firmsorotherpartiescoveredintheregister

maintainedundersection189oftheAct.

4. Inouropinionandaccordingto the informationandexplanationsgiventous,TheCompanyhasnotgivenany loan,

investment,guaranteesandsecurityforloanstakenbyothersfrombanksorfinancialinstitutions.

5. Inouropinion,andaccordingtotheinformationandexplanationsgiventous,theCompanyhasnotaccepteddepositsas

perthedirectivesissuedbytheReserveBankofIndiaundertheprovisionsofSections73to76oranyotherrelevant

provisionsoftheActandtherulesframedthereunder.

6. Inouropinionandaspertheexplanationsgiventousthecompanyisnotrequiredtomaintainaccountsandrecordsas

prescribedbytheCentralGovernmentunderSection148(1)oftheCompaniesAct,2013.

7. Inrespectofstatutorydues:

a. AccordingtotherecordsoftheCompany,undisputedstatutoryduesincludingProvidentFund,Employees’StateInsurance,

andIncomeTax,SalesTax,WealthTax,Customsduty,WorksContracttax,Cessandotherstatutorydueshavebeen



spenta

40

generallyregularlydepositedwiththeappropriateauthorities.Accordingtotheinformationandexplanationsgiventous,

noundisputedamountspayableinrespectoftheaforesaiddueswereoutstandingasat31stMarch,2019foraperiodof

morethansixmonthsfromthedateofbecomingpayable.

Accordingtotheinformationandexplanationsgiventous,noundisputedamountspayableinrespectofProvidentfund,

Employees’StateInsurance,Salestax/Valueaddedtax,Wealthtax,dutyofExcise,Incometax,Servicetax,dutyofcustoms

andothermaterialstatutorydueswereinarrearsattheyearendforaperiodofmorethansixmonthsfromthedatethey

becamepayable.b. Accordingtotheinformationandexplanationsgiventous,therearenoduesofServicetax,Wealthtax,Incometax,Sales

tax/Valueaddedtax,dutyofExciseanddutyofcustomsasattheyearendwhichhavenotbeendepositedwiththe

appropriateauthoritiesonaccountofanydispute.

c. According to the information andexplanations given tous, theCompanyhasno liabilitieswhich are required tobe

transferredtotheinvestoreducationandprotectionfundwithintheprescribedtime.

8. Accordingtotherecordsofthecompanyexaminedbyusandtheinformationandexplanationgiventous,thecompanyhas

notdefaultedinrepaymentsofduestofinancialinstitutions,banksordebentureholders.

9. Accordingtotherecordsofthecompanyexaminedbyusandtheinformationandexplanationgiventous,theCompanyhas

appliedthetermloansforthepurposeforwhichtheloanswereobtained

10. Basedupontheauditproceduresperformedforthepurposeofreportingthetrueandfairviewofthefinancialstatements

andaccording to the informationandexplanationsgivenby themanagement,wereport thatno fraudonorby the

companyhasbeennoticedorreportedduringtheyear.

11. Accordingtotherecordsofthecompanyexaminedbyusandtheinformationandexplanationgiventous,themanagerial

remunerationhasbeenpaidaspertheprovisionsofsection197readwithScheduleVtotheCompaniesAct.

12. Inouropinion,theCompanyisnotachitfund/nidhi/mutualbenefitfund/society.Therefore,theprovisionsofclause(xii)

ofparagraph4oftheOrderarenotapplicabletotheCompany.

13. Accordingtotherecordsofthecompanyexaminedbyusandtheinformationandexplanationgiventous,alltransactions

withtherelatedpartiesareincompliancewithsections177and188ofCompaniesAct,2013andthedetailshavebeen

disclosedintheFinancialStatementsasrequiredbytheapplicableaccountingstandards;

14. According to the information andexplanations given tous andon anoverall examinationof thebalance sheet, the

Companyhasnotmadeanypreferentialallotmentorprivateplacementofsharesorfullyorpartlyconvertibledebentures

duringtheyearunderreviewandhence,reportingrequirementsunderClause3(xiv)arenotapplicabletothecompany

and,notcommentedupon.

15. Accordingtotheinformationandexplanationsgivenbythemanagement,theCompanyhasnotenteredintoanynon-cash

transactionswithdirectorsorpersonsconnectedwithhimasreferredtoinSection192ofCompaniesAct,2013.

16. Asthecompanyisnotengagedinbusinessofnon-bankingfinancialinstitution,accordinglythecompanyisnotrequiredto

registeredundersection45-IAofReserveBankofIndiaAct,1934.



Sd/-(Hitesh Kumar S.)PartnerMembership No: 134763Date: 30th May, 2019

ANNEXURE “2” TO THE INDEPENDENT AUDITOR’S REPORT


spenta

41

referred to in paragraph 1(f) under the heading ‘Report on Other Legal and Regulatory Requirements’ of our report of evendate Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“theAct”)

WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofSpentaInternationalLimited(“theCompany”)as

ofMarch31,2018inconjunctionwithourauditofthestandalonefinancialstatementsoftheCompanyfortheyearended

onthatdate.

Management’s Responsibility for Internal Financial Controls

TheCompany’sManagement is responsible forestablishingandmaintaining internal financial controlsbasedon the

internalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsof

internalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbythe

InstituteofCharteredAccountantsofIndia.Theseresponsibilitiesincludethedesign,implementationandmaintenanceof

adequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofits

business,includingadherencetotheCompany’spolicies,thesafeguardingofitsassets,thepreventionanddetectionof

frauds and errors, the accuracy and completeness of the accounting records, and the timely preparationof reliable

financialinformation,asrequiredundertheCompaniesAct,2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on

our audit.

Weconductedouraudit inaccordancewiththeGuidanceNoteonAuditof InternalFinancialControlsOverFinancial

Reporting(the“GuidanceNote”)andtheStandardsonAuditingasspecifiedunderSection143(10)oftheCompaniesAct,

2013,totheextentapplicabletoanauditofinternalfinancialcontrols,bothapplicabletoanauditofInternalFinancial

Controlsand,bothissuedbytheInstituteofCharteredAccountantsofIndia.ThoseStandardsandtheGuidanceNote

requirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceabout

whetheradequateinternalfinancialcontrolswithreferencetofinancialstatementwasestablishedandmaintainedandif

suchcontrolsoperatedeffectivelyinallmaterialrespects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrols

with reference to financial statement and their operating effectiveness.Our audit of internal financial controlswith

reference to financial statement includedobtaininganunderstandingof internal financial controlswith reference to

financialstatement,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperating

effectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,

includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion

ontheinternalfinancialcontrolswithreferencetofinancialstatement.

Meaning of Internal Financial Controls over Financial Reporting

Acompany's internal financialcontrolover financial reporting isaprocessdesignedtoprovidereasonableassurance

regarding the reliability of financial reporting and the preparation of financial statements for external purposes in

accordancewithgenerallyacceptedaccountingprinciples.Acompany'sinternalfinancialcontroloverfinancialreporting

includesthosepoliciesandproceduresthat;



spenta

42

(1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and

dispositionsoftheassetsofthecompany;

(2) providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsin

accordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeing

madeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and(3) Providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionof

thecompany'sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Becauseof the inherent limitationsof internal financial controlswith reference to financial statement, including the

possibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmay

occurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolswithreferencetofinancial

statementtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontrolwithreferencetofinancialstatement

may become inadequate because of changes in conditions, or that the degree of compliance with the policies or

proceduresmaydeteriorate.

Opinion

Inouropinion,theCompanyhas,inallmaterialrespects,anadequateinternalfinancialcontrolswithreferencetofinancial

statementandsuchinternalfinancialcontrolswithreferencetofinancialstatementwereoperatingeffectivelyasatMarch

31,2019,basedon the internal controlover financial reportingcriteriaestablishedby theCompanyconsidering the

essentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancial

ReportingissuedbytheInstituteofCharteredAccountantsofIndia.


Sd/- (Hitesh Kumar S.)PartnerMembership No: 134763Date: 30th May, 2019


Balance Sheet as at 31 March 2019

ASSETS

1. Non-current assets(A)Property,PlantandEquipment(B)Capitalwork-in-progress(C)lnvestmentProperty(D)Goodwill(E)OtherIntangibleassets(F)Intangibleassetsunderdevelopment(G)BiologicalAssetsotherthanbearerplants(H)FinancialAssets(i)Investments(ii)Tradereceivables(iii)Loans(iii)Others(I)Deferredtaxassets(net)(J)Othernon-currentassets

2. Current assets(A)Inventories(B)FinancialAssets(i)Investments(ii)Tradereceivables(iii)Cashandcashequivalents(iv)Bankbalancesotherthan(iii)above(v)Loans(vi)Others(C)CurrentTaxAssets(Net)(D)Othercurrentassets

TOTAL ASSETS

EQUITY AND LIABILITIES

1. Equity(a)EquityShareCapital(b)OtherEquity

2. Liabilities(I) Non-current liabilities(A)FinancialLiabilities(i)Borrowings(i)Tradepayables(i)Otherfinancialliabilities(B)Provisions(C)DeferredTaxLiabilities(Net)(c)Othernon-currentliabilities

2

3

4

56

7

8910111213

14

1516

17

18

Sch.As at year ended 31 March 2019

As at year ended 31 March 2018

(Amount in Rs.)


spenta

175,718,612-

11,389,083----

--

3,050,000-

996,17213,362,866

204,516,733

85,680,556

7,540,539138,642,551

2,829,46540,608,9431,501,0413,828,737

-10,702,227

291,334,059

495,850,792

27,643,260227,495,029 255,138,289

62,485,552--

8,341,863--

70,827,415

175,168,701-

11,387,983----

--

2,650,000-

2,396,37723,679,002

215,282,062

83,097,965

7,961,672104,523,166

1,798,29639,032,8762,448,7075,054,611475,570

7,320,697

251,713,560

466,995,622

27,643,260216,652,780244,296,040

80,405,226--

3,835,354--

84,240,580

43nd32

AnnualReport2018-19

Stand alone statement of assets & liabilities

Balance Sheet as at 31 March 2019

(II) Current liabilities(A)FinancialLiabilities(i)Borrowings(ii)Tradepayables(iii)Otherfinancialliabilities(B)Othercurrentliabilities(C)Provisions(D)CurrentTaxLiabilities(Net)

TOTAL EQUITY AND LIABILITIES

Significant Accounting Policies"ThenotesreferredtoaboveformanintegralpartofFinancialStatements"

1920212223

1

Sch.As at

31 March 2019As at

31 March 2018

(Amount in Rs.)


spenta

103,644,61254,882,2085,114,7055,787,830455,733

-

169,885,089

495,850,792

0

80,532,49349,145,5924,438,1483,128,0081,214,761

-

138,459,002

466,995,622

(1)

44

Asperourattachedreportofevendate

For M/s. A K Kochar & Associates Chartered Accountants

For and behalf of the Board

Sd/-

(CA Hitesh Kumar S.)

Partner

Membership No.: 134763

Firm Registration No. 120410W

Sd/-Sanjay S. Gadodia(Chairman / CEO) DIN - 00203433

Sd/-Danny F. Hansotia (Managing Director/CFO)DIN - 00203497

Place:-MumbaiDate:30thMay,2019

Place:-PalgharDate:30thMay,2019


INCOME

RevenuefromoperationsOtherincome

Total revenue (1+2)

OPERATING EXPENDITURE(a)Costofmaterialsconsumed(b)Purchasesofstock-in-trade(c)Changesininventoriesoffinishedgoods,WorkinProgress&StockinTrade(d)Employeebenefitsexpense(g)Financecharges(e)Depreciationandamortizationexpense(f)Power&FuelCost(h)Otherexpenses

Total Expenses

PROFIT BEFORE TAXTax expense:(a)Currenttax(b)Deferredtax

Profit / (Loss) after tax

Other Comprehensive IncomeA(i)Itemsthatwillnotbereclassifiedtoprofitorloss(ii)IncometaxrelatingtoitemsthatwillnotbereclassifiedtoprofitorlossB(i)Itemsthatwillbereclassifiedtoprofitorloss(ii)Incometaxrelatingtoitemsthatwillbereclassifiedtoprofitorloss

Total Comprehensive Income for the Period

Earnings per share (of Rs.10/- each):(a)Basic(incl./excl.exceptionalitems)(b)Diluted(incl./excl.Exceptionalitems)

Significant Accounting Policies"ThenotesreferredtoaboveformanintegralpartofFinancialStatements"

2425

2627

282930

3233

34

35

1

Note No.

442,370,8263,696,091

446,066,917

243,051,02957,958,523

(3,734,810)37,679,19819,980,56511,657,65415,799,06231,582,729

413,973,950

32,092,968

8,000,0001,535,004

22,557,964

(349,742)--

(349,742)

22,208,222

8.168.16

For the year endedMarch 31, 2019

For the year endedMarch 31, 2018


spenta

Statement of Profit and Loss Account for the year ended 31 March 2019 (Amount in Rs.)

370,090,7376,126,699

376,217,436

220,001,00430,622,095

(1,909,229)27,336,75615,910,57013,181,79713,859,50531,465,365

350,467,862

25,749,574

5,400,0001,916,551

18,433,023

(378,186)173,634

(204,552)

18,228,471

6.676.67

45




Sd/-


Partner








CASH FLOW STATEMENT ANNEXED TO THE BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2019

A. CASH FLOW FROM OPERATING ACTIVITIES NetProfit/(Loss)beforetaxandextraordinaryitems 32,092,968 25,749,574 Adjustmentsfor: Depreciation 11,657,654 13,142,077Amortisation - 39,720NonCashandoperatingItems-others 853,003 (107,786)Interestincome (3,371,668) (3,625,859)FinanceCost 19,980,565 15,910,570Dividendincome (40,485) (32,570)(Profit)/LossonSaleofFixedAssets - 48,778(Gain)/LossonFairvalueofinvestments - (273,962) 29,079,069 25,100,967 OperatingProfitbeforeWorkingCapitalChanges 61,172,037 50,850,542

Adjustmentsfor: (Increase)/decreaseininventories (2,582,591) (12,564,120)(Increase)/decreaseinTradereceivable (34,119,385) (47,255,250)(Increase)/decreaseinFinancialassets 2,173,540 3,351,030(Increase)/decreaseinothercurrentassets (9,756,886) (3,501,936)Increase/(decrease)intradepayable 5,736,617 17,932,442Increase/(decrease)infinancialliabilities 676,557 229,762Increase/(decrease)inprovisions 3,397,739 149,068(Increase)/decreaseinothercurrentliabilities 2,659,822 (31,814,587) 1,574,648 (40,084,356) 29,357,450 10,766,185

Cash generated from / used in operations DirectTaxespaid (8,092,200) (5,725,612)Net cash generated from / (used in) operating activities (A) 21,265,250 5,040,573 B. CASH FLOW FROM INVESTING ACTIVITIES PurchaseofFixedAssetsincludingCWIP - -Purchase/SaleofFixedAssets (12,207,565) (99,513,710)AdvanceforFixedAssets - -MovementinNonCurrentInvestments - -MovementinCurrentInvestments - -(Increase)/decreaseinLongtermloansandadvances 9,916,135 935,171(Investmentin)/MaturitiesofFixedDeposits (1,576,067) 26,195,204Dividendincome 40,485 32,570Interestincome 3,371,668 (455,344) 3,625,859 (68,724,906)Net cash (used) in investing activities (B) (455,344) (68,724,906)

C. CASH FLOW FROM FINANCING ACTIVITIES Interestpaid (19,980,565) (15,910,570)Dividendspaid (4,990,617) (4,325,201)Netincrease/(decrease)inlongtermborrowings (17,919,674) 50,791,571Netincrease/(decrease)inShorttermBorrowings 23,112,119 (19,778,738) 32,518,233 63,074,033 Netcash(usedin)fromfinancingactivities (C) (19,778,738) 63,074,033 NetCashFlowfortheyear 1,031,168 (610,299)CashandcashEquivalentsasat31.03.2018 1,798,296 2,884,166CashandcashEquivalentsasat31.03.2019 2,829,464 2,273,867

As at 31 March 2019 As at 31 March 2018

(Amount in Rs.)


spenta

46nd32

AnnualReport2018-19

Statement of financial results

Note : 1) TheCashFlowStatementshasbeenpreparedunderthe“IndirectMethod”assetoutinAccounting

Standard-7onCashFlowStatementissuedbytheInstituteofCharteredAccountantsofIndia.

2)Previousyearsfigureshavebeenregrouped/rearrangedwherevernecessary.

CASH FLOW STATEMENT

ANNEXED TO THE BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2019


spenta

47




Sd/-


Partner








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nd

32

AnnualReport2018-19

Particulars

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spenta

49

Summary of the significant accounting policies and other explanatory information for the year ended 31 March 2019Note 1: Significant Accounting Polices


Company Overview

SpentaInternationalLimited(TheCompany)isaPublicLimitedCompanydomiciledinIndiaandincorporatedundertheprovisionsoftheCompaniesAct,1956.Thecompanyisengagedinmanufacturingandtradingofsocks.

1 Significant Accounting Policies

a)Basis for preparation of financial Statements

ThesefinancialstatementshavebeenpreparedinaccordancewiththeIndianAccountingStandards(“IndAS”)asprescribedbyMinistryofCorporateAffairspursuanttoSection133oftheCompaniesAct,2013(“theAct”),readwiththeCompanies(Indian Accounting Standards) Rules, 2015 (as amended), other relevant provisions of the Act and other accountingprinciplesgenerallyacceptedinIndia.

b) Basis of measurement

TheCompanymaintainsaccountsonaccrualbasisfollowingthehistoricalcostconvention,exceptforfollowings:

ØCertainFinancialAssetsandLiabilities ismeasuredatFairvalue/Amortizedcost (referaccountingpolicy regarding financialinstruments);ØDefinedBenefitPlans–Planassetsmeasuredatfairvalue.

c) Functional and Presentation Currency

TheFinancialStatementsarepresentedinIndianRupee(INR),whichisthefunctionalcurrencyoftheCompanyandthecurrencyoftheprimaryeconomicenvironmentinwhichtheCompanyoperates.

d) Use of Estimates and Judgements ThepreparationoffinancialstatementsinconformitywithIndASrequiresjudgements,estimatesandassumptionstobe

madethataffectthereportedamountofassetsandliabilities,disclosureofcontingentliabilitiesonthedateofthefinancialstatementsandthereportedamountofrevenuesandexpensesduringthereportingperiod.Differencebetweentheactualresultsandestimatesarerecognizedintheperiodinwhichtheresultsareknown/materialized.

e) Presentation of Financial Statements

TheBalanceSheetandtheStatementofProfitandLossarepreparedandpresentedintheformatprescribedintheScheduleIIItotheCompaniesAct,2013(“theAct”).TheStatementofCashFlowshasbeenpreparedandpresentedaspertherequirementsofIndAS7“StatementofCashflows”.ThedisclosurerequirementswithrespecttoitemsintheBalanceSheetandStatementofProfitandLoss,asprescribedintheScheduleIIItotheAct,arepresentedbywayofnotesformingpartofthe financial statements along with the other notes required to be disclosed under the notified Indian Accounting StandardsandtheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(asamended.

f) Operating Cycle for current and non-current classification

Allassetsandliabilitieshavebeenclassifiedascurrentornon-currentaspertheCompany'snormaloperatingcycleandothercriteriasetoutintheScheduleIIItotheCompaniesAct,2013andIndAS1.TheCompanyhasascertaineditsoperatingcycleastwelvemonthsforthepurposeofcurrentandnon-currentclassificationofassetsandliabilities.

DeferredTaxAssetsandLiabilitiesareclassifiedasnon-currentassetsandliabilitiesrespectively.

g) Measurement of Fair Values

AnumberoftheCompany’saccountingpoliciesanddisclosuresrequirethemeasurementoffairvalues,forbothfinancialandnon-financialassetsandliabilities.

Notes forming part of the financial statements at & for the year ended 31st March 2019


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Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarket participants at the measurement date. The fair value measurement is based on the presumption that thetransactiontoselltheassetortransfertheliabilitytakesplaceeither:ØIntheprincipalmarketfortheassetorliability,orØIntheabsenceofaprincipalmarket,inthemostadvantageousmarketfortheassetorliability.

TheprincipalorthemostadvantageousmarketmustbeaccessiblebytheCompany.Thefairvalueofanassetoraliabilityismeasuredusingtheassumptionsthatmarketparticipantswouldusewhenpricingtheassetor liability,assumingthatmarketparticipantsactintheireconomicbestinterest.Afairvaluemeasurementofanon-financialassettakesintoaccountamarketparticipant’sabilitytogenerateeconomicbenefitsbyusingtheassetinitshighestandbestuseorbysellingittoanothermarketparticipantthatwouldusetheassetinitshighestandbestuse.

TheCompanyusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataareavailabletomeasurefairvalue,maximisingtheuseofrelevantobservableinputsandminimisingtheuseofunobservableinputs.

Allassetsandliabilitiesforwhichfairvalueismeasuredordisclosedinthefinancialstatementsarecategorisedwithinthefairvaluehierarchy,describedasfollows,basedontheinputthatissignificanttothefairvaluemeasurementasawhole:

ØLevel1—Quoted(unadjusted)marketpricesinactivemarketsforidenticalassetsorliabilitiesØLevel2—ValuationtechniquesforwhichthelowestlevelinputthatissignificanttothefairvaluemeasurementisdirectlyorindirectlyobservableandØLevel3—Valuationtechniquesforwhichthelowest level inputthat issignificanttothefairvaluemeasurement isunobservable.

h) New Standards / Amendments to Existing Standard issued and effective upto the date of issuance of the Company’s Financial Statement are disclosed below:

On28thMarch,2018,theMinistryofCorporateAffairs(MCA)hasnotified IndAS115-RevenuefromContractswithCustomersandcertainamendmenttoexistingIndAS.TheseamendmentshavebeenapplicabletotheCompanyfrom1stApril2018.

ØInd AS 115-Revenue from Contracts with Customers IndAS115supersedesIndAS11,ConstructionContractsandIndAS18,Revenue.IndAS115requiresanentitytoreport

information regarding nature, amount, timing and uncertainty of revenue and cash flows arising from contractwithcustomers.TheprincipleofIndAS115isthatanentityshouldrecognizerevenuethatdemonstratesthetransferofpromisedgoodsandservicestothecustomersatanamountthatreflectstheconsiderationtowhichtheentityexpectstobeentitledinexchangeforthosegoodsandservices.

BasedonpreliminaryassessmentperformedbytheCompany,theimpactoftheapplicationofthestandardisnotexpectedtobematerial.

Ø Amendment to Existing issued Ind AS IndAS12-IncomeTaxes IndAS21-TheEffectsofChangesinForeignExchangeRates IndAS28-InvestmentinAssociatesandJointVentures IndAS112-DisclosureofInterestsinOtherEntities

Theimpactoftheabovestandardsonthefinancialstatements,asassessedbytheCompany,isnotexpectedtobematerial.

I) Inventories

Inventoriesarevaluedatthelowerofcostandnetrealizablevalue(NRV).Costismeasuredbyincluding,unlessspecificallymentionedbelow,costofpurchaseandothercosts incurred inbringing the inventories to theirpresent locationandcondition.Howevermaterialsandotheritemsheldforuseintheproductionofinventoriesarenotwrittendownbelowcostifthefinishedproductsinwhichtheywillbeincorporatedareexpectedtobesoldatorabovecost.NRVistheestimatedsellingpriceintheordinarycourseofbusiness,lessestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethesale.CostisascertainedonFirstinFirstoutbasisforallinventoriesexceptforbyproductsandscrapmaterialswhicharevaluedatnetrealizablevalue.


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j) Cash And Cash Equivalents

Cashandcashequivalentinthebalancesheetcomprisecashatbanksandonhandandshorttermdepositswithanoriginalmaturityofthreemonthsorless,whicharesubjecttoaninsignificantriskofchangeinvalue.

Forthepurposeofthestatementofcashflows,cashandcashequivalentsincludescashonhand,termdepositsandothershort-termhighlyliquidinvestment.

k) Income Tax Theincometaxexpenseorcreditfortheperiodisthetaxpayableonthecurrentperiod’staxableincomebasedonthe

applicableincometaxrateforeachjurisdictionadjustedbychangesindeferredtaxassetsandliabilitiesattributabletotemporarydifferencesandtounusedtaxlosses.Currentanddeferredtaxisrecognizedinthestatementofprofit&loss,excepttotheextentthatitrelatestoitemsrecognizedinothercomprehensiveincomeordirectlyinequity.Inthiscase,thetaxisalsorecognizedinothercomprehensiveincomeordirectlyinequity,respectively.

l) Current Tax

Currenttaxliabilities(orassets)forthecurrentandpriorperiodsaremeasuredattheamountexpectedtobepaidto(recoveredfrom)thetaxationauthoritiesusingthetaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenacted,attheendofthereportingperiod.

m) Deferred Tax

ØDeferredTaxassetsandliabilitiesismeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettledbasedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedbytheendofthereportingperiod.

ØDeferredtaxisrecognizedinrespectoftemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandthecorrespondingamountsusedfortaxationpurposes(i.e.,taxbase).Deferredtaxisalsorecognizedforcarryforwardofunusedtaxlossesandunusedtaxcredits.

ØDeferredtaxassetsarerecognizedtotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,andthecarryforwardofunusedtaxcreditsandunusedtaxlossescanbeutilized.

ØThecarryingamountofdeferredtaxassetsisreviewedattheendofeachreportingperiod.TheCompanyreducesthecarryingamountofadeferredtaxassettotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowthebenefitofpartorthatentiredeferredtaxassettobeutilized.Anysuchreductionisreversedtotheextentthatitbecomesprobablethatsufficienttaxableprofitwillbeavailable.

n) Property, plant and equipment (including Capital work-in-progress)

Freeholdlandiscarriedathistoricalcost.Allotheritemsofproperty,plantandequipmentarestatedathistoricalcostlessdepreciation.Historicalcostincludesexpenditurethatisdirectlyattributabletotheacquisitionoftheitems.

Subsequentcostareincludedintheasset’scarryingamountorrecognizedasaseparateasset,asappropriate,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheCompanyandthecostoftheitemcanbemeasured reliably. The carrying amount of any component accounted for as a separate asset is derecognisedwhenreplaced.Allotherrepairsandmaintenanceexpensesarechargedtoprofitorlossduringthereportingperiodinwhichtheyareincurred.

AssetsacquiredbutnotreadyforuseareclassifiedunderCapitalworkinprogressandarestatedatcostcomprisingdirectcostandrelatedincidentalexpenses.

Ontransitionto IndAS, theCompanyhaselectedtocontinuewiththecarryingvalueofallof itsproperty,plantandequipmentrecognisedasat01April2016measuredasperthepreviousGAAPandusethatcarryingvalueasthedeemedcostoftheproperty,plantandequipment.


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o) Depreciation and Amortization

ØDepreciationonProperty,Plant&EquipmentisprovidedonStraightLineMethodintermsoflifespanofassetsprescribedinScheduleIIoftheCompaniesAct,2013orasreassessedbytheCompanybasedonthetechnicalevaluation.

ØIncasethecostofpartoftangibleassetissignificanttothetotalcostoftheassetsandusefullifeofthatpartisdifferentfromtheremaininguseful lifeoftheasset,depreciationhasbeenprovidedonstraight linemethodbasedoninternalassessmentandindependenttechnicalevaluationcarriedoutbyexternalvaluers,whichthemanagementbelievesthattheusefullivesofthecomponentbestrepresenttheperiodoverwhichitexpectstousethosecomponents

ØDepreciationonFixedAssetshasbeenprovidedonStraight-LineMethod(SLM)inaccordancewiththeratesprescribedunderScheduleIIoftheCompaniesAct,2013overthelifeoftheassets.

p) Revenue recognition Revenueisrecognizedbasedtotheextentitisprobablethattheeconomicbenefitwillflowtothecompanyandrevenuecan

be reliablymeasured regardless ofwhen the payment is beingmade. Revenue ismeasured at the fair value of theconsiderationreceivedorreceivable,takingintoaccountcontractuallydefinedtermsofpayment,andexcludestaxes&dutiescollectedonbehalfoftheGovernmentandisreducedforestimatedcustomerreturns,rebatesandothersimilarallowances.

q) Sale Of Product

The Company recognizes revenuewhen the amount of revenue can be reliablymeasured, it is probable that futureeconomicbenefitswillflowtotheCompanyandsignificantriskandrewardincidentaltosaleofproductsistransferredtothebuyer,usuallyondeliveryofthegoods.

r) Revenue from rendering of services

Revenuefromrenderingofservicesisrecognizedonpro-ratabasisovertheperiodofcontractandwhentheperformanceofagreedcontractualtaskhasbeencompleted.

s) Other Income

ØInterest Income:Foralldebtinstrumentsmeasuredeitheratamortizedcostoratfairvaluethroughothercomprehensiveincome(FVTOCI),interestincomeisrecordedusingtheeffectiveinterestrate(EIR).EIRistheratethatexactlydiscountstheestimatedfuturecashreceiptsovertheexpectedlifeofthefinancialinstrumentorashorterperiod,whereappropriate,tothegrosscarryingamountofthefinancialasset.

ØDividend Income:Dividendincomeisaccountedintheperiodinwhichtherighttoreceivethesameisestablished.

ØOther Income:Otheritemsofincomeareaccountedasandwhentherighttoreceivesuchincomearisesanditisprobablethattheeconomicbenefitswillflowtothecompanyandtheamountofincomecanbemeasuredreliably.

t) Employee Benefits

ØShort Term Benefits:Shorttermemployeebenefitobligationsaremeasuredonanundiscountedbasisandareexpensedastherelatedservicesareprovided.Liabilitiesforwagesandsalaries,includingnon-monetarybenefitsthatareexpectedtobesettledwhollywithintwelvemonthsaftertheendoftheperiodinwhichtheemployeesrendertherelatedservicearerecognizedinrespectofemployees’servicesuptotheendofthereportingperiod.

ØOther Long Term Employee Benefits:Theliabilitiesforearned/privilegeleavethatarenotexpectedtobesettledwhollywithintwelvemonthsaremeasuredasthepresentvalueoftheexpectedfuturepaymentstobemadeinrespectofservicesprovidedbyemployeesuptotheendofthereportingperiodusingtheprojectedunitcreditmethod.Thebenefitsarediscountedusingthegovernmentsecurities(G-Sec)attheendofthereportingperiodthathavetermsapproximatingtothetermsofrelatedobligation.Remeasurementsastheresultofexperienceadjustmentandchangesinactuarialassumptionsarerecognizedinstatementofprofitandloss.


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ØPost-Employment Benefits:TheCompanyoperatesthefollowingpost-employmentschemes

Defined Contribution Plan:DefinedcontributionplanssuchasProvidentFund,EmployeeStateInsuranceetc.arechargedtothestatementofprofitandlossasandwhenincurredandpaidtoAuthority.

Defined Benefit Plans:TheliabilityorassetrecognizedintheBalanceSheetinrespectofdefinedbenefitplansisthepresent

valueofthedefinedbenefitobligationattheendofthereportingperiodlessthefairvalueofplanassets.TheCompany’snetobligationinrespectofdefinedbenefitplansiscalculatedseparatelyforeachplanbyestimatingtheamountoffuturebenefitthatemployeeshaveearnedinthecurrentandpriorperiods.ThedefinedbenefitobligationiscalculatedannuallybyActuariesusingtheprojectedunitcreditmethod.

Theliabilityrecognizedfordefinedbenefitplansisthepresentvalueofthedefinedbenefitobligationatthereportingdate

lessthefairvalueofplanassets,togetherwithadjustmentsforunrecognizedactuarialgainsorlossesandpastservicecosts.Thenetinterestcostiscalculatedbyapplyingthediscountratetothenetbalanceofthedefinedbenefitobligationandthefairvalueofplanassets.Thebenefitsarediscountedusingthegovernmentsecurities(G-Sec)attheendofthereportingperiodthathavetermsapproximatingtothetermsofrelatedobligation.

Remeasurementsofthenetdefinedbenefitobligation,whichcompriseactuarialgainsandlosses,thereturnonplanassets

(excludinginterest)andtheeffectoftheassetceiling,arerecognizedinothercomprehensiveincome.Remeasurementsrecognizedinothercomprehensiveincomeisreflectedimmediatelyinretainedearningsandwillnotbereclassifiedtothestatementofprofitandloss.

u) Foreign Currency Transactions:

ØForeigncurrency(otherthanthefunctionalcurrency)transactionsaretranslatedintothefunctionalcurrencyusingthespotratesofexchangesatthedatesofthetransactions.Monetaryassetsandliabilitiesdenominatedinforeigncurrenciesaretranslatedatthefunctionalcurrencyspotrateofexchangesatthereportingdate.

Ø Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation ofmonetaryassetsandliabilitiesaregenerallyrecognizedinprofitorlossintheyearinwhichtheyariseexceptforexchangedifferenceson foreigncurrencyborrowingsrelatingtoassetsunderconstruction for futureproductiveuse,whichareincludedinthecostofthosequalifyingassetswhentheyareregardedasanadjustmenttointerestcostsonthoseforeigncurrencyborrowings,thebalanceispresentedintheStatementofProfitandLosswithinfinancecosts.

ØNon-monetaryitemsarenotretranslatedatperiodendandaremeasuredathistoricalcost(translatedusingtheexchangerateatthetransactiondate).

v) Borrowing Costs:

ØBorrowingCostsconsistsofinterestandothercoststhatanentityincursinconnectionwiththeborrowingsoffunds.Borrowingcostsalsoincludesforeignexchangedifferencetotheextentregardedasanadjustmenttotheborrowingcosts.

ØBorrowingcostsdirectlyattributabletotheacquisitionorconstructionofaqualifyingassetarecapitalizedasapartofthecostofthatassetthatnecessarilytakesasubstantialperiodoftimetocompleteandpreparetheassetforitsintendeduseorsale.

ØTransactioncostsinrespectoflongtermborrowingareamortizedoverthetenureofrespectiveloansusingEffectiveInterestRate(EIR)method.Allotherborrowingcostsarerecognizedinthestatementofprofitandlossintheperiodinwhichtheyareincurred.

w) Financial Instruments:

Afinancial instrumentisanycontractthatgivesrisetoafinancialassetofoneentityandafinancial liabilityorequityinstrumentofanotherentity


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Ø Financial Assets :

1. Recognition and Initial Measurement:

All financial assets are initially recognizedwhen the company becomes a party to the contractual provisions of theinstruments.Afinancialassetisinitiallymeasuredatfairvalueplus,inthecaseoffinancialassetsnotrecordedatfairvaluethroughprofitorloss,transactioncoststhatareattributabletotheacquisitionofthefinancialasset.

2. Classification and Subsequent Measurement: Forpurposesofsubsequentmeasurement,financialassetsareclassifiedinfourcategories:

oMeasuredatAmortizedCost oMeasuredatFairValueThroughOtherComprehensiveIncome(FVTOCI) oMeasuredatFairValueThroughProfitorLoss(FVTPL);and oEquityInstrumentsdesignatedatFairValuethroughOtherComprehensiveIncome(FVTOCI).

Financialassetsarenotreclassifiedsubsequenttotheirinitialrecognition,exceptifandintheperiodtheCompanychangesitsbusinessmodelformanagingfinancialassets

oMeasuredatAmortizedCost:Adebtinstrumentismeasuredattheamortizedcostifboththefollowingconditionsaremet §Theassetisheldwithinabusinessmodelwhoseobjectiveisachievedbybothcollectingcontractualcashflows;and

§Thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterest(SPPI)ontheprincipalamountoutstanding.

Afterinitialmeasurement,suchfinancialassetsaresubsequentlymeasuredatamortizedcostusingtheeffectiveinterestrate(EIR)method.AmortizedcostiscalculatedbytakingintoaccountanydiscountorpremiumonacquisitionandfeesorcoststhatareanintegralpartoftheEIR.TheEIRamortizationisincludedinfinanceincomeinthestatementofprofitorloss.Thelossesarisingfromimpairmentarerecognizedintheprofitorloss.Thiscategorygenerallyappliestotradereceivables,cashandbankbalances,loansandotherfinancialassetsofthecompany

oMeasuredatFVTP:FVTPLisaresidualcategoryfordebtinstruments.Anydebtinstrument,whichdoesnotmeetthecriteriaforcategorizationasatamortizedcostorasFVTOCI,isclassifiedasFVTPL.Inaddition,thecompanymayelecttodesignateadebtinstrument,whichotherwisemeetsamortizedcostorFVTOCIcriteria,asatFVTPL.DebtinstrumentsincludedwithintheFVTPLcategoryaremeasuredatfairvaluewithallchangesrecognizedinthestatementofprofitandloss.Equityinstrumentswhichare,heldfortradingareclassifiedasatFVTPL.

3. Derecognition:

TheCompanyderecognizesafinancialassetontradedateonlywhenthecontractualrightstothecashflowsfromtheassetexpire,orwhenittransfersthefinancialassetandsubstantiallyalltherisksandrewardsofownershipoftheassettoanotherentity

4. Impairment of Financial Assets:

TheCompanyassessesateachdateofbalancesheetwhetherafinancialassetoragroupoffinancialassetsisimpaired.IndAS–109requiresexpectedcreditlossestobemeasuredthroughalossallowance.Thecompanyrecognizesimpairmentlossfortradereceivablesthatdonotconstituteafinancingtransactionusingexpectedcreditlossmodel,whichinvolvesuseofaprovisionmatrixconstructedonthebasisofhistoricalcreditlossexperience.Forallotherfinancialassets,expectedcreditlossesaremeasuredatanamountequaltothe12monthexpectedcreditlossesoratanamountequaltothelifetimeexpectedcreditlossesifthecreditriskonthefinancialassethasincreasedsignificantlysinceinitialrecognition.

ØFinancial Liabilities:

1. Recognition and Initial Measurement:

Financialliabilitiesareclassified,atinitialrecognition,asatfairvaluethroughprofitorloss,loansandborrowings,payablesorasderivatives,asappropriate.Allfinancialliabilitiesarerecognizedinitiallyatfairvalueand,inthecaseofloansandborrowingsandpayables,netofdirectlyattributabletransactioncosts.


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2. Subsequent Measurement:

FinancialliabilitiesaremeasuredsubsequentlyatamortizedcostorFVTPL.AfinancialliabilityisclassifiedasFVTPLifitisclassifiedasheld-for-trading,oritisaderivativeoritisdesignatedassuchoninitialrecognition.FinancialliabilitiesatFVTPLaremeasuredatfairvalueandnetgainsandlosses,includinganyinterestexpense,arerecognizedinprofitorloss.Otherfinancialliabilitiesaresubsequentlymeasuredatamortizedcostusingtheeffectiveinterestratemethod.Interestexpenseandforeignexchangegainsandlossesarerecognizedinprofitorloss.Anygainorlossonderecognitionisalsorecognizedinprofitorloss.

3. Derecognition:

Afinancialliabilityisderecognizedwhentheobligationundertheliabilityisdischargedorcancelledorexpires.

x) Earnings Per Share:

BasicEarningspershare(EPS)amountsarecalculatedbydividingtheprofitfortheyearattributabletoequityholdersbytheweightedaveragenumberofequitysharesoutstandingduringtheyear.DilutedEPSamountsarecalculatedbydividingtheprofitattributabletoequityholdersadjustedfortheeffectsofpotentialequitysharesbytheweightedaveragenumberofequitysharesoutstandingduringtheyearplustheweightedaveragenumberofequitysharesthatwouldbeissuedonconversionofallthedilutivepotentialequitysharesintoequityshares.

y) Impairment of Non-Financial Assets: TheCompanyassesses,ateachreportingdate,whetherthereisanindicationthatanassetmaybeimpaired.Anassetis

treatedasimpairedwhenthecarryingcostoftheassetexceedsitsrecoverablevaluebeinghigherofvalueinuseandnetsellingprice.Valueinuseiscomputedatnetpresentvalueofcashflowexpectedoverthebalanceusefullivesoftheassets.Forthepurposeofassessingimpairment,assetsaregroupedatthelowestlevelsforwhichthereareseparatelyidentifiablecashinflowswhicharelargelyindependentofthecashinflowsfromotherassetsorgroupofassets(CashGeneratingUnits–CGU).

AnimpairmentlossisrecognizedasanexpenseintheStatementofProfitandLossintheyearinwhichanassetisidentifiedasimpaired.Theimpairmentlossrecognizedinearlieraccountingperiodisreversediftherehasbeenanimprovementinrecoverableamount.

z) Provisions, Contingent Liabilities and Contingent Assets

ØProvisions Provisionsarerecognizedwhenthereisapresentobligation(legalorconstructive)asaresultofapasteventanditis

probablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationandareliableestimatecanbemadeoftheamountoftheobligation.

ØContingent Liabilities

Contingentliabilityisapossibleobligationarisingfrompasteventsandtheexistenceofwhichwillbeconfirmedonlybytheoccurrenceornon-occurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontroloftheCompanyorapresentobligationthatarisesfrompasteventsbutisnotrecognizedbecauseitisnotpossiblethatanoutflowofresourcesembodyingeconomicbenefitwillberequiredtosettletheobligationsorreliableestimateoftheamountoftheobligationscannotbemade.TheCompanydisclosestheexistenceofcontingentliabilitiesinOtherNotestoFinancialStatements.

ØContingent Assets

Contingentassetsusuallyarisefromunplannedorotherunexpectedeventsthatgiverisetothepossibilityofaninflowofeconomicbenefits.ContingentAssetsarenotrecognizedthougharedisclosed,whereaninflowofeconomicbenefitsisprobable.


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aa) Intangible Assets:

ØRecognition and Measurement

Intangibleassetarestatedatcostoninitialrecognitionandsubsequentlymeasuredatcostlessaccumulatedamortizationandaccumulatedimpairmentloss,ifany.

ØAmortization

1. Software’sareamortizedoveraperiodofthreeyears.2. Theamortizationperiodandtheamortizationmethodarereviewedatleastattheendofeachfinancialyear.Iftheexpected

usefullifeoftheassetsissignificantlydifferentfrompreviousestimates,theamortizationperiodischangedaccordingly.

bb) Operating Segment

Intangibleassetarestatedatcostoninitialrecognitionandsubsequentlymeasuredatcostlessaccumulatedamortizationandaccumulatedimpairmentloss,ifany.

ØAmortization

1. Software’sareamortizedoveraperiodofthreeyears.2. Theamortizationperiodandtheamortizationmethodarereviewedatleastattheendofeachfinancialyear.Iftheexpected

usefullifeoftheassetsissignificantlydifferentfrompreviousestimates,theamortizationperiodischangedaccordingly.

bb) Operating Segment

Operatingsegmentsarereportedinamannerconsistentwiththeinternalreportingprovidedtothechiefoperatingdecisionmaker. The chief operating decision maker of the Company is responsible for allocating resources and assessingperformanceoftheoperatingsegmentsandaccordinglyisidentifiedasthechiefoperatingdecisionmaker.

TheCompanyhasidentifiedonereportablesegment“KnittedSocks”basedontheinformationreviewedbytheCODM.

cc) Significant Judgments And Key Sources Of Estimation In Applying Accounting Policies

Estimatesandjudgmentsarecontinuallyevaluated.Theyarebasedonhistoricalexperienceandotherfactors,includingexpectationsoffutureeventsthatmayhaveafinancialimpactontheCompanyandthatarebelievedtobereasonableunder the circumstances. Information about Significant judgements and Key sources of estimationmade in applyingaccountingpoliciesthathavethemostsignificanteffectsontheamountsrecognizedinthefinancialstatementsisincludedinthefollowingnotes:

ØRecognition of Deferred Tax Assets TheextenttowhichdeferredtaxassetscanberecognizedisbasedonanassessmentoftheprobabilityoftheCompany’s

futuretaxableincomeagainstwhichthedeferredtaxassetscanbeutilized.Inaddition,significantjudgementisrequiredinassessingtheimpactofanylegaloreconomiclimits.

ØClassification of Leases TheCompanyentersintoleasingarrangementsforvariousassets.Theclassificationoftheleasingarrangementasafinance

leaseoroperatingleaseisbasedonanassessmentofseveralfactors,including,butnotlimitedto,transferofownershipofleasedassetatendofleaseterm,lessee’soptiontopurchaseandestimatedcertaintyofexerciseofsuchoption,proportionofleasetermtotheasset’seconomiclife,proportionofpresentvalueofminimumleasepaymentstofairvalueofleasedassetandextentofspecializednatureoftheleasedasset.

ØDefined Benefit Obligation (DBO) Employeebenefitobligationsaremeasuredonthebasisofactuarialassumptionswhichincludemortalityandwithdrawal

ratesaswellasassumptionsconcerningfuturedevelopmentsindiscountrates,medicalcosttrends,anticipationoffuturesalaryincreasesandtheinflationrate.TheCompanyconsidersthattheassumptionsusedtomeasureitsobligationsareappropriate.However,anychangesintheseassumptionsmayhaveamaterialimpactontheresultingcalculations.


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ØProvisions and Contingencies

The assessments undertaken in recognising provisions and contingencies havebeenmade in accordancewith IndianAccountingStandards(IndAS)37,‘Provisions,ContingentLiabilitiesandContingentAssets’.Theevaluationofthelikelihoodofthecontingenteventsisappliedbestjudgementbymanagementregardingtheprobabilityofexposuretopotentialloss.

ØImpairment of Financial Assets

TheCompanyreviewsitscarryingvalueofinvestmentscarriedatamortizedcostannually,ormorefrequentlywhenthereisindicationofimpairment.Ifrecoverableamountislessthanitscarryingamount,theimpairmentlossisaccountedfor.

ØAllowances for Doubtful Debts

The Company makes allowances for doubtful debts through appropriate estimations of irrecoverable amount. Theidentificationofdoubtfuldebts requiresuseof judgmentandestimates.Where theexpectation isdifferent fromtheoriginalestimate,suchdifferencewillimpactthecarryingvalueofthetradeandotherreceivablesanddoubtfuldebtsexpensesintheperiodinwhichsuchestimatehasbeenchanged.

ØFair value measurement of financial Instruments

Whenthefairvaluesoffinancialassetsandfinancialliabilitiesrecordedinthebalancesheetcannotbemeasuredbasedonquotedpricesinactivemarkets,theirfairvalueismeasuredusingvaluationtechniquesincludingtheDiscountedCashFlowmodel.Theinputtothesemodelsaretakenfromobservablemarketswherepossible,butwherethisnotfeasible,adegreeofjudgementisrequiredinestablishingfairvalues.Judgementsincludeconsiderationsofinputssuchasliquidityrisk,creditriskandvolatility.

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-

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6,236,894

-

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6,236,894

2

Buildings&CivilWorks

13,076,760

-

-13,076,760

1,425,493

-

712,745

2,138,23810,938,52211,651,267

3

OldFactoryShed

430,636

-

-

430,636

42,155

-

21,077

63,232

367,404

388,481

4

New

FactoryShed

730,639

-

-

730,639

59,470

-

29,735

89,205

641,434

671,169

5

OfficePremises

24,694,211

-

-24,694,211

1,617,858

-

808,929

2,426,78722,267,42423,076,353

6

Plant&M

achinery

50,678,2679,889,288

-60,567,55512,554,085

-

6,032,34318,586,42841,981,12838,124,182

7

OfficeEquipmen

ts

343,822

115,455

-

459,277

125,730

-

106,217

231,947

227,330

218,092

8

Computer

259,308

-

-

259,308

184,812

-

60,249

245,061

14,247

74,496

9

FurnitureandFixtures

4,565,870

889,469

-

5,455,339

1,195,366

-

619,131

1,814,497

3,640,842

3,370,504

10Misc.Fixed

Assets

5,230,2571,313,353

-

6,543,610

798,246

-

814,962

1,613,208

4,930,402

4,432,011

11Veh

icles

5,407,461

-

-

5,407,461

1,596,287

-

1,072,160

2,668,447

2,739,014

3,811,174

12FlatatPalghar

567,870

-

-

567,870

55,988

-

27,994

83,982

483,888

511,882

13FlatatLodha

83,594,885

-

-83,594,885

992,690

-

1,352,111

2,344,80181,250,08482,602,196

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32

AnnualReport2018-19

58


spenta

Notes forming part of Financial Statements as at and for the year ended March 31, 20193 ) INVESTMENT PROPERTY

As at March 31, 2019

Flats at Palghar*Naman Midtown - Share Application Money

TOTAL

11,387,9831,100

11,389,083

11,387,983

11,387,983


59

*Companyhasnotyetreceivedpossessionofpropertiesanditisstillwork-in-progress.Hence,thereisnodepreciationprovidedonInvestmentproperty.

Valuation process Thebestevidenceoffairvalueiscurrentpriceinanactivemarketforsimilarproperties.Wheresuchinformationisnotavailable,Companyconsiderscurrentpriceinanactivemarketforpropertiesofdifferentnatureorrecentpricesofsimilarpropertiesinlessactivemarket,adjustedtoreflectthosedifferences.Wehaveconsideredratesavailablefrompropertymarketwebsitestoarriveatfairvalue.Theyareclassifiedaslevel1fairvaluesinthefairvaluehierarchy.

Fair valueAsat31March2017 10,585,253Asat31March2018 10,744,032Asat31March2019 10,822,000

(Amount in Rs.) 4) LONG TERM LOANS AND ADVANCES

Unsecured, considered good unless otherewise statedAdvancetoJobWorkersTOTAL



3,050,000

3,050,000

2,650,000

2,650,000

(Amount in Rs.)

(Amount in Rs.)

5) DEFERRED TAX ASSETS (NET)

6 ) OTHER NON CURRENT ASSETS

DeferredTaxAsset-OpeningDeferred Tax Asset for the yearTotalDeferredTaxLiabilitiy/(Assets)(Net)

TOTAL

DeferredExpensesnotwrittenoffAdv.Tax-AY2003-04toAY2017-18NetofProvisionforTaxCapitalAdvance-PurchaseofFixedAssetsTOTAL

(2,396,377)1,400,205(996,172)(996,172) (996,172)

-3,719,1179,643,749

13,362,866

(4,211,890)1,815,514

(2,396,377)(2,396,377) (2,396,377)

-12,172,64611,981,926

24,154,572



Particulars

Particulars

Particulars

Particulars





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60

CURRENT ASSETS

FINANCIAL ASSETS

7 ) INVENTORIES

8) CURRENT INVESTMENT



Stock in HandRawMaterialsRawMaterials-JobWorkRawMaterials-GoodsinTransitFinishedGoodsPackingMaterialsStores&Spares(IncludingConsumables)

TOTAL

Investment in Equity shares of Domestic Companies(a)Traded,Quoted

i)ACCLtd300(PreviousYear300)EquitySharesoffacevalueofRs.10eachfullypaidup

ii)CenturyTextileLtd100(PreviousYear100)EquitySharesoffacevalueofRs.10eachfullypaidup

iii)TataGlobalBeveragesLtd(formerlyTataTeaLtd)4434(PreviousYear4434)EquitySharesoffacevalueofRs.1eachfullypaidup

iv)EngineersIndiaLtd1000(PreviousYear1000)EquitySharesoffacevalueofRs.5eachfullypaidup

v)TataMotorsLtd1500(PreviousYear1500)EquitySharesoffacevalueofRs.2eachfullypaidup

vi)TataSteelLtd1050(PreviousYear1050)EquitySharesoffacevalueofRs.10eachfullypaidup

(b) Intercorporate Deposit

25,179,55622,863,6681,632,310

31,255,3993,949,623800,000

85,680,556

499,890

93,310

904,314

234,600

261,375

547,050

2,540,539

5,000,000

5,000,000

7,540,539

27,906,20024,125,743

-27,520,5892,745,433800,000

83,097,965

452,460

114,525

1,145,967

158,100

491,175

599,445

2,961,672

5,000,000

5,000,000

7,961,672



Particulars

Particulars



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61

9 ) TRADE RECEIVABLES

10 ) CASH AND CASH EQUIVALENTS

11 ) BANK BALANCE OTHER THAN ABOVE

12 ) SHORT TERM LOANS AND ADVANCES

13 ) OTHER FINANCIAL ASSETS






(Unsecured and Considered Good)Over6months&aboveOthers

TOTAL

Cash on handBalanceswithbanksi)Incurrentaccounts

TOTAL

ii) In Fixed Deposit Account -Maturitywithmorethan12months-Maturitywithin12months

TOTAL

Advances to Employees -UnsecuredConsideredgoodLoansAndAdvancesToCorporate&Others(CapitalGoods) TOTAL

DepositsInterestReceivableOtherReceivable

TOTAL

2,442,402136,200,149

138,642,551

2,554,924274,539

2,829,463

-40,608,943

40,608,943

534,800966,241

1,501,041

1,957,0321,871,705

-

3,828,737

1,979,919102,543,247

104,523,166

1,161,605636,691

1,798,296

-39,032,876

39,032,876

1,292,2381,156,469

2,448,707

1,760,7952,932,033361,783

5,054,611






Particulars

Particulars

Particulars

Particulars

Particulars

14 ) OTHER CURRENT ASSETS


Advance To SuppliersOtherReceivablesStatutory&OtherReceivables(TDS/GST/MVAT)

TOTAL

3,369,23719,429

7,313,561

10,702,227

3,086,763272,917

3,961,017

7,320,697


Particulars



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62

15 ) EQUITY SHARE CAPITAL

a. Reconciliation of equity shares and amounts outstanding

c. Details of shareholders holding more than 5 % shares in the Company.

EQUITY

Authorised CapitalEquitysharesofRs.10eachwithvotingrightsIssuedShareCapitalEquitysharesofRs.10eachSubscribedandfullypaid-upEquitysharesofRs.10each

Total

At the beginning of the yearAdd:AllotmentmoneyreceivedLess:SharescancelledonbuybackofEquitySharesAt the end of the year

1. Danny Hansotia

2. Sanjay Gadodia

3. Sandeep Gadodia

Particulars

Particulars

Particulars

(Amount in Rs.)

(Amount in Rs.)

(Amount in Rs.)

(Amount in Rs.)


No.ofShares No.ofShares(Amt.inRs.) (Amt.inRs.)

No.ofShares No.ofShares%ofHolding %ofHolding

No.ofShares No.ofShares(Amt.inRs.) (Amt.inRs.)






27,643,260--

27,643,260

24.97%

23.27%

5.94%

27,643,260--

27,643,260

24.97%

23.27%

5.94%

35,000,000

27,643,260

27,643,260

27,643,260

3,500,000

2,764,326

2,764,326

2,764,326

2,764,326

-

2,764,326

690,277

643,133

164,307

35,000,000

27,643,260

27,643,260

27,643,260

3,500,000

2,764,326

2,764,326

2,764,326

2,764,326--

2,764,326

690,277

643,133

164,307

b. Terms /rights attached to equity shares TheCompanyhasonlyoneclassofequityshareshavingaparvalueofRs.10.Theequityshareshaverights,preferencesandrestrictionswhichareinaccordanceprovisionsoflaw,inparticulartheCompaniesAct,2013.

16 ) OTHER EQUITY

a) Retained earnings



a) Retained earnings

b) Other comprehensive income

TOTAL

Balance at the beginning of the yearAdd: Profit for the year

Less: Dividend including Dividend Distribution TaxBalance at the end of the year

228,339,716

(844,687)

227,495,029

217,147,72522,557,964(6,375,356)(4,990,617)

228,339,716

217,147,725

(494,945)

216,652,780

203,039,90318,433,023

(4,325,201) 217,147,725



Particulars

Particulars



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63

b) Other comprehensive income

a) FINANCIAL LIABILITIES

17 ) BORROWINGS



Balance at the beginning of the year Add: Remeasurement of Defined Benefit Obligation (Net of tax) Balance at the end of the year

a)SecuredloanFromBanksRelianceFinanaceLtdTTermLoan1FromDCBBankTermLoan2FromDCBBankEasyBusinessTermLoan1fromDCBBankEasyBusinessTermLoan2fromDCBBankTermLoan3fromDCBBankTermLoan4fromDCBBank

TOTAL

(494,945)(349,742)

(844,687)

-----

13,781,53148,704,021

62,485,552

(290,393)(204,552)

(494,945)

48,082,619-

1,992,25115,941,076

227,73114,161,549

80,405,226



Particulars

Particulars

NotesformingpartofthefinancialstatementsasatandfortheyearendedMarch31,2019 LIABILITIES - NON CURRENT LIABILITIES

Term Loan 3 From DCB Bank Ltd :

Details of Security :- Termloan3istakenfromDCBBankforpurchaseofmachineryand securedby:a)HypothectionofMachineryandOtherAssetspurchasedunderthistermloan,b)EquitablemortgageonthefactoryLandandBuildingonPlotnos.13to16standinginthenameoftheCompanyatDewan,Palghar-PlotArea:5398.24sqmtandc)HypothecationofentirePlant&Machinery,Furniture&Fixturesincludingspares,tools,accessoriesetc Terms of Repayment :-LoantoberepaidOnDemand/In48equatedmonthlyinstalmentbeginningfrom31.10.2016andendingtill30.09.2020 Term Loan 4 From DCB Bank Ltd :

Details of Security :- Termloan4istakenfromDCBBankfortakeoverofTermLoanfromRelianceHomeFinanceLtdand securedby:a)EquitableMortgageOfPropertyAtFlatNo802,8thFloor,AWing, LodhaEvoq,NewCuffeParade,WadalaEast,Mumbai,b)EquitablemortgageonthefactoryLandandBuildingonPlotnos.13to16standinginthenameoftheCompanyatDewan,Palghar-PlotArea:5398.24sqmt andc) HypothecationofentirePlant&Machinery,Furniture&Fixturesincludingspares,tools,accessoriesetc Terms of Repayment :- LoantoberepaidOnDemand/In166equatedmonthlyinstalmentbeginningfrom10.02.2019andendingtill10.12.2032

(Amount in Rs.)



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64

CURRENT LIABILITIES

FINANCIAL LIABILITIES


a)Secured:WorkingCapitalLoans-CashCredit-SalesLCBD-OverdraftagainstFD-OverdraftagainstProperty

TOTAL

58,751,30618,750,81010,183,16015,959,336

103,644,612

54,868,84916,743,510

-8,920,134

80,532,493


Particulars

19 ) SHORT TERM BORROWINGS


MicroandsmallenterpriseOthers

TOTAL

5,977,96848,904,240

54,882,208

5,021,13844,124,454

49,145,592


Particulars

20 ) TRADE PAYABLES

Details of Security:- 1)Workingcapitalloan,-CashCredittakenfromDCBBankissecuredbyparipassuchargebywayof:a)HypothecationofInventoriesandBookDebts/Receivablesandothercurrentassets,2)WorkingCapitalLoan-SalesLCBDissecuredbyHypothecationofInventoriesandaccompaniedbyacceptedInvoiceandGRNfromparty,3)WorkingCapitalLoans-CCandLCBDarefurthersecuredbya)EquitablemortgageonthefactoryLandandBuildingonPlotnos.13to16standinginthenameoftheCompanyatDewan,Palghar-PlotArea:5398.24sqmt;b)EquitableMortgagageofFlatNo.302,ShriRajApartments,PalgharinthenameoftheCompanyandc) HypothecationofentirePlant&Machinery,Furniture&Fixturesincludingspares,tools,accessoriesetc.4)WorkingCapitalLoan-OverdraftagainstFDissecuredbyLienOnFixedDepositwithDCBBank.5)WorkingCapitalLoan-OverdraftagainstPropertyissecuredbyEquitablemortgageonthefactoryLandandBuildingonPlotnos.13to16standinginthenameoftheCompanyatDewan,Palghar. Details of Security:- Workingcapitalloans-CCandLCBDtakenfromCitiBankaresecuredby:a)Firstparipasuchargeonpresentandfuturecurrentassetsofthecompany,b)BilldiscountingfacilityiswithrecoursetotheCompany;c)ExclusiveChargebywayofEquitableMortgageofofficepremises locatedatB1303,NamanMidtown,Mumbai400013andd)PersonalGuaranteesofPromoterDirectorsoftheCompany-Mr.SanjayGadodiaandMr.DannyHansotia.

(Amount in Rs.)

(Amount in Rs.)


Notes forming part of the financial statements as at and for the year ended March 31, 2019

18) LONG TERM PROVISIONS


Provisionforemployeebenefits-ProvisionforGratuity

TOTAL

-8,341,863

8,341,863

3,835,354

3,835,354


Particulars

ProvisionforGratuityismadeontheassumptionthatsuchbenefitsarepayableonterminationofemploymentandmethodadoptedforitscalculationhasbeenworkedonActurialValuationbasis.

(Amount in Rs.)


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65

DISCLOSURES UNDER SECTION 22 OF THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT 2006.






Principalamountremainingunpaidtosuppliersasattheendyear.Interestdueontheabovementionedprincipalamountremainingunpaidtoanysupplierasattheyearend.AmountoftheinterestpaidbytheCompanyintermsofSection16AmountofinterestdueandpayablefortheperiodofdelayinmakingpaymentbutwithoutaddingtheinterestspecifiedundertheMSMAct.Amountofinterestaccruedandremainingunpaidattheendoftheaccountingyear.

EmployeeRelatedLiabilitiesOthers

TOTAL

OtherCurrentliabilitiesStatutoryduespayableProvision-ProposedDividend

TOTAL

ProvisionforEmployeebenefits

TOTAL

Sale of productsDomesticsale-SocksExportsale&Entitlement-ThirdpartyExports-SocksYarnSaleforSocksPurchase/Re-processingSaleofWastage

TOTAL

5,047,34367,362

5,114,705

3,743,5862,044,244

-

5,787,830

455,733

455,733

404,179,896222,245

37,926,59442,092

442,370,826

4,382,48655,662

4,438,148

761,9522,361,859

4,197

3,128,008

1,214,761

1,214,761

317,910,59631,760,54520,377,129

42,468

370,090,737






Particulars

Particulars

Particulars

Particulars

Particulars

Duestomicroandsmallenterpriseshavebeendeterminedtotheextentsuchpartieshavebeenidentifiedonthebasisofintimationreceivedfromthe"suppliers"regardingtheirstatusundertheMicro,smallandMediumEnterprisesDevelopmentAct,2006.TheCompanyhasnotreceivedanysuchintimationduringtheyear.21 ) OTHER FINANCIAL LIABILITIES

22 ) OTHER CURRENT LIABILITIES

23 ) SHORT TERM PROVISIONS

24 ) REVENUE FROM OPERATIONS

(Amount in Rs.)

(Amount in Rs.)

(Amount in Rs.)

(Amount in Rs.)

5,977,968

----

5,021,138

----



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66




(a) Raw Material ConsumedOpeningStocksAdd:Purchases

Less:ClosingStocks

(b) Packing Material ConsumedOpeningStocksAdd:Purchases

Less:ClosingStocks

(c) Job Work Material ConsumedOpeningStocksAdd:JobWorkcharges

Less:ClosingStocks

TOTAL

TradedGoods-Socks

TOTAL

OpeningStocksFinishedGoodsSpares&Consumables

Less:ClosingStocksFinishedGoodsSpares&Consumables

TOTAL

27,906,200165,326,817193,233,01726,811,866

166,421,151

2,745,43326,412,56829,158,0013,949,623

25,208,378

24,125,74350,159,42474,285,16722,863,66851,421,499

243,051,029

57,958,523

57,958,523

27,520,589800,000

28,320,589

31,255,399800,000

32,055,399 (3,734,810)

24,277,811158,883,990183,161,80127,906,200

155,255,601

1,711,10324,035,68825,746,7912,745,433

23,001,358

18,133,57147,736,21665,869,78724,125,74341,744,044

220,001,004

30,622,095

30,622,095

25,611,360800,000

26,411,360

27,520,589800,000

28,320,589 (1,909,229)




Particulars

Particulars

Particulars

26 ) Cost of Materials Consumed

27 ) PURCHASE OF STOCK IN TRADE

28 ) CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS & STOCK IN TRADE


InterestIncomeDividendProfit/(Loss)onsaleofFixedAssetsCashDiscountMiscellaneousIncomeNetgain/(loss)onFairvalueofEquityinstrumentsDutyDrawbackTOTAL

3,371,66840,485

--

283,938--

3,696,091

3,625,85932,570

(48,778)99,453

488,796273,962

1,654,837 6,126,699


Particulars

25 ) OTHER INCOME (Amount in Rs.)

(Amount in Rs.)

(Amount in Rs.)

(Amount in Rs.)



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67



BankchargesInterestpaid1)ToBanks-OnTermLoan-OnWorkingCapital-OnInlandBillPurchase2)ToOthers-OnFixedDeosits-OnUnsecuredLoans-OnCarLoans3)ForBillDiscounting

TOTAL

PowerCost-MSEDCLDieselCost-DGSet

TOTAL

-

10,031,6255,513,593

-

---

4,435,348

19,980,565

15,507,739291,323

15,799,062

-

6,205,1894,954,028

-

---

4,751,354

15,910,570

13,692,630166,875

13,859,505



Particulars

Particulars

30 ) FINANCE COST

32 ) POWER & FUEL COST


EmployeesSalary&wagesContractors'PaymentsProvidentFundEmployer'sContributionGratuitytoEmployeesBonustoEmployeesESICEmployer'sContribution

TOTAL

18,535,78512,885,1301,402,2213,476,164929,967449,931

37,679,198

13,656,94610,393,7811,373,438763,972840,566308,053

27,336,756


Particulars

29 ) EMPLOYEE BENEFITS EXPENSES


a. MANUFACTURING EXPENSESCarriageInwardCommissiononPurchaseConsumablesStores&SparesEmbroideryChargesFactoryExpensesHamaliChargesOilPurchasesRepairandMaintenance-Plant&MachineryStaffUniformExpensesServiceTaxonTransportchargesTestingChargesWashingChargesPrintingCharges

1,903,984399,366

1,650,709-

118,740149,163131,380

1,481,403189,750

-27,448

1,565,542-

7,617,486

1,790,042340,813

1,139,6816,700

259,30062,736

127,9802,119,316

5,680233,742237,899698,08435,000

7,056,972


Particulars

33 ) OTHER EXPENSES

(Amount in Rs.)

(Amount in Rs.)

(Amount in Rs.)

(Amount in Rs.)



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68


b. SELLING AND DISTRIBUTION EXPENSESBusinessPromotionExpensesCarriageOutwardClaims&ShortagesRentonGalaatBhiwandiPackingMaterialSalesPromotionExpenses

c. ADMINISTRATIVE AND OTHER EXPENSESAdvertisement&PublicityAnnualGeneralMeetingExpAccPaymenttoAuditorsBankChargesCarInsuranceCommunicationExpensesConveyanceCourier&PostageChargesDonationDirector'sremunerationDirector'sSittingFeesElectricityExpensesInsuranceLegal&ProfessionalFeesLegalLicenseFeesListingFeesMembership&SubscriptionMiscellaneousExpensesMunicipalTaxOfficeExpensesPrinitng&StationeryProfessionalTaxRepair&MaintenanceSalesTaxSecurityChargesITExpensesTransferAgentFeesTravellingExpensesVehiclesRunningExpensesWaterChargesWellfare-Employees'benefits

TOTAL (A+B+C)

275,0406,402,320155,346274,000

-739,484

7,846,190

31,608197,753167,000

1,206,307125,710265,663145,358174,01842,800

6,000,00060,000

150,490388,499

1,031,8181,126,002250,00091,501

-253,32966,065

249,5682,500

617,712-

1,028,040100,014134,710928,284549,260

-735,043

16,119,053

31,582,729

299,5985,820,869465,456370,500197,330304,302

7,458,054

23,760251,441236,000

1,090,908183,254338,613159,824196,35231,101

6,000,000125,000113,430437,030

1,381,501990,828287,500141,604444,453290,79285,325

308,9212,500

321,9647,183

952,37119,282

227,1481,088,993384,14011,750

817,371

16,950,338

31,465,365


Particulars


CurrentTaxDeferredTax

Total

8,000,0001,535,004

9,535,004

5,400,0001,916,551

7,316,551


Particulars

34 ) Tax Expenses (Amount in Rs.)



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69


ProfitbeforeincometaxexpenseEstimatedincometaxexpense

TaxeffectofadjustmentstoreconcileexpectedIncometaxexpensetoreportedIncometaxexpenseExpensesnotDeductibleExpensesdeductibleExemptincomeOthersTotaltaxexpense

32,092,9688,928,264

81,089

-(11,263)536,915

9,535,005

25,749,5747,094,651

42,46513,440(8,974)174,969

7,316,551


Particulars



Basic earning per shareProfitaftertax(AmtinRs.)Weightedaverageno.ofequitysharesNominalvalueofeachequitysharesBasic earning per share (in Rs.)Diluted earnings per share (in Rs.)

22,557,9642,764,326

108.168.16

18,433,0232,764,326

106.676.67



Particulars

Particulars

35 ) EARNINGS PER SHARE:

36 ) CONTINGENT LIABILITIES:

i) Claims against the Company not acknowledgement as debts a)IncometaxmattersdisputedinITATappeal - 72,270TheCompanyhasfiliedanAppealbeforeIncomeTaxAppellateTribunal,MumbaiagainstIncomeTaxDemandofRs.74,46,117/- forA.Y.2005-06andA.Y.2006-07andpaidRs.28,61,057/-againstthese.ThesaidITATappealdecidedinfavorofcompanywide consolidatedITATAppealorderdated15/09/2016. ThecompanyhasfiledforITATAppealEffecton15/09/2016andACITpassedtheappealeffectorderdated31/03/2017for AY2005-06andpendingforAY2006-07asondate. ii) Bank guarantee a)GuaranteeissuedtoCustomsDepartmenttowardsimportofCapitalgoodsunderEPCGschemeforwhichtheCompanyishopefultomeetitsobligationsasperschedule 3,915,000 3,915,000


ManagingDirectorWholetimeDirectors

Total

3,000,0003,000,000

6,000,000

3,000,0003,000,000

6,000,000

As at March 31, 2018Director Remuneration (Salaries and Allowances)

37 ) Director Remuneration

34.1 Reconciliation of estimated Income Tax expense at Indian statutory Income tax rate to income tax expense reported in statement of Profit & Loss

(Amount in Rs.)

(Amount in Rs.)

(Amount in Rs.)



spenta

70


AuditFeesTaxationMattersCertificationandotherchargesTotal

200,000--

200,000

200,000--

200,000

As at March 31, 2018Payment to Auditor

38 ) Auditors Remuneration

39)Someofthesundrydebtors,sundrycreditorsandloans&advancesaresubjecttoconfirmationandreconciliation. Consequentialadjustmentthereof,ifany,willbegiveneffectintothebooksofaccountsintheyearofsuchadjustment.

40) In theopinionof theBoard, theCurrentAssets, Loans&Advancesareapproximatelyof thevaluestatedandarerealizableintheordinarycourseofbusiness 41) Theitemsofinventoriesaremeasuredatlowerofcostornetrealizablevalueafterprovidingforobsolescence,ifany.Costofinventoriescomprisesofcostofpurchase,costofconversionandothercostsincurredinbringingthemtotheirrespectivepresentlocationandcondition.RawmaterialcomprisesofYarnandpackingmaterialatcost,Wastageisvaluedatnetrealizablevalue.CostofRawmaterial,finishedgoods,SpareandConsumablesaredeterminedonFirstinForstoutbasis.(FIFO)

42)Previousyearfigurehavebeenregroped/reclassifiedtoconfirmwithcurrentyearpresentation,wheneverconsiderednecessary.

InstalledcapacityhasbeencalculatedonthebasisofmachinesrunningonproductionofpouchHeelSocks&realHeelSocks.FortheyearthenumberofmachinesmakingsuchproductionasofMarch31,2019is0&224respectively(previousyearasofMarch31,2018is2&194respectively).Duringtheyear30newmachineswereputtouseand2existingmachineshavebeenwithdrawnfromproduction. Installedcapacityofmachinespurchasedduringtheyearistakenonaproratabasisbasedonthenumberofdaysmachineswereputtouse. 44InsuranceclaimofRs.89.35LacsalongwithinteresttheronuptodateofsettlementisfiledbythecompanyonaccountoffireoccurredattheCompany'sGodownatAliyali-Palghar,Maharashtraon26thAugust,2008damagingcompleteBuildingandStockinhandandthesameisstillpendingwiththeinsurancecompany.TheCompanyhasfilledacaseagainsttheinsurancecompanyintheNationalConsumerCourt,NewDelhi.ThecaseisstillpendingforhearingasonMarch31,2019. 45TheCompanyhastofulfilexportobligationsunderEPCGlicencegrantedtothesameonconversionfromEOUstatustoDTAstatus. SincetheMachineriesrequiredforcompletionofthesaidobligationhasdestroyedinfireinDec'2004,theCompanyhastakenupthematterwiththerelevantauthoritiesforcancellationofthesaidLicence.ThematterisstillpendingwithrelevantAuthorityasonMarch31,2019.



InstalledCapacityActualProduction

Spares&ConsumablesPlant&Machinery

11,114,2509,960,759

530,3299,148,241

10,960,00010,125,394

861,93112,999,812



Capacities and Production

C.I.F. Value of Imports

43 ) Capacities and Production

46 ) Additional Information

(Amount in Rs.)



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71



ForeignExchangeEarning(F.O.B.ValueofExports)ForeignExchangeOutgo-Travelling-AdvanceforSparesandConsummables-Plant&Machinery-Spares&Consumables

OpeningStockPurchasedduringtheyearConsumptionduringtheyearClosingStock

-

453,826-

7,164,859373,251

2,745,43326,412,56825,208,378

3,949,623

-

311,068-

1,983,382157,078

1,711,10324,035,68823,001,358

2,745,433



Foreign Exchange Earning & Outgo

Raw Material (Packing Material)

Quantitative Details:

OpeningStockPurchasedduringtheyear(Netofreturns)YarnSalesIssuedforJobWorkduringtheyearConsumptionduringtheyearClosingStock

OpeningStockIssuedforJobWorkduringtheyearReceiptfromJobWorkduringtheyearClosingStock

Raw Material (Yarn)

Raw Material (At Job Work)

(Amount in Rs.)

(Amount in Rs.)

(Amount in Rs.)

(Amount in Rs.)

(Amount in Rs.)





24,277,811158,883,99020,377,12965,418,47069,460,00227,906,200

18,133,57165,418,47059,426,29824,125,743

27,906,200165,326,81737,926,59463,326,31865,168,23926,811,867

24,125,74363,326,31864,588,39322,863,668

70,999.414524,099.30959,946.610

242,614.115209,286.12683,251.872

51,834.697242,614.115222,672.14171,776.671

83,251.872509,479.988110,157.951211,675.823196,426.28274,471.804

71,776.671211,675.823219,564.608

63,887.886

Qty.(kgs.)

Qty.(kgs.)

Amount(Rs.)

Amount(Rs.)

Qty.(kgs.)Amount(Rs.)

Qty.(kgs.)Amount(Rs.)

OpeningStockProduction/JobWorkduringtheyearSocksPurchasedSales(NetofReturns)ClosingStock

Finished Goods (Socks)As at

March 31, 2019As at

March 31, 2018

25,611,360320,958,27530,622,095

349,671,14127,520,589

27,520,589350,178,42857,958,523

404,402,141 31,255,399

972,38310,125,3941,012,293

10,997,9921,112,078

1,112,0789,960,7592,196,116

12,143,439 1,125,514

No.ofPairs Amount(Rs.) No.ofPairsAmount(Rs.)



spenta

72

Key Management Personnel

Cur. Yr. Prev. Yr.

Remuneration*Mr.DannyFHansotiaMr.SanjayS.Gadodia

IndependentDirectorSittingFeesMrs.SunitaMisriMrs.AnitaPrasadKoti

30.0030.00

0.300.30

30.0030.00

0.300.08

Nature of Transaction

*Remunerationisbeingdisclosedbasedonactualpaymentmadeonretirement/resignationofservices,butdoesnotincludesprovisionmadeonactuarialbasisasthesameisavailableforalltheemployeestogether.� Note:RelatedpartyrelationshipisasidentifiedbytheCompanyandrelieduponbytheAuditors 48) Segment Reporting

OperatingsegmentsaredefinedascomponentsofanenterpriseforwhichdiscretefinancialinformationisavailablethatisevaluatedregularlybytheChiefOperatingDecisionMaker,indecidinghowtoallocateresourcesandassessingperformance.Operatingsegmentsarereportedinamannerconsistentwiththeinternalreportingprovidedtothechiefoperatingdecisionmaker.BasedonthemanagementapproachasdefinedinIndAS108,theChiefOperatingDecisionMakerevaluatestheCompany’sperformancebasedononlyonesegmenti.e.KnittedSocks

DuringtheFY18-19,2customersaccountedfor60.69%ofrevenue(FY17-18,2customersaccountedfor55.11%ofrevenue)

Relationship

Mr.DannyFHansotiaMr.SanjaySGadodiaMrs.SunitaMisriMrs.AnitaPrashantKotiMs.NutanPrakashBidye

OrientSocknit(India)PrivateLimitedJuvenileTradingPrivateLimitedCarnivalPropertiesPrivateLimitedSpentaWoolensLimitedVishwalaneTextilePrivateLimited

KeyManagementPersonnel

EnterpriseoverwhichKeyManagementPersonnelareabletoexercise

significantInfluence

Name of the Related Party

47 ) Related party disclosures

(Amount in Lakhs)



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73

49) Financial instruments by category

31-03-19 31-03-18

2,540,539

180,940

2,721,479

2,961,672

184,625

3,146,297

5,000,000138,642,5514,551,04143,438,4061,957,0321,871,705

195,460,735

160,937,71949,145,5924,438,148

214,521,459

5,000,000104,523,1665,098,70740,831,1721,937,9532,932,033

160,323,031

77,627,91531,213,1504,208,386

113,049,451

FVPL FVPL FVOCI FVOCI Amortised cost Amortised cost

Financial assets

(i)InvestmentsEquityinstrumentsIntercorporateDeposit(ii)Tradereceivables(iii)Loansandadvances(iv)CashandCashEquivalents(v)SecurityDeposit(vi)Interestreceivable

Total financial assets

Financial liabilities

(i)Borrowings(ii)Tradeandotherpayables(iii)Employeerelatedliabilities

Total financial liabilities

Particulars


49.1Themanagementassessedthatthefairvaluesofcashandcashequivalents,tradereceivables,tradepayables,currentborrowings,currentloansandotherfinancialassets&liabilitiesapproximatestheircarryingamountslargelyduetotheshort-termmaturitiesoftheseinstruments.

49.2ThemanagementconsidersthatthecarryingamountsofFinancialassetsandFinancialliabilitiesrecognisedatnominalcost/amortisedcostintheFinancialstatementsapproximatetheirfairvalues.

49.3Noncurrentborrowingshasbeencontractedatfloatingratesofinterest,whichareresetatshortintervals.Fairvalueoffloatinginterestrateborrowingsapproximatestheircarryingvaluesubjecttoadjustmentsmadefortransactioncost. 50 Fair Value Hierarchy

Thefollowingarethejudgementsandestimatesmadeindeterminingthefairvaluesofthefinancialinstrumentsthatare(a)recognizedandmeasuredatfairvalueand(b)measuredatamortizedcostandforwhichfairvaluearedisclosedinthefinancialstatements.Toprovideanindicationaboutthereliabilityoftheinputsusedindeterminingfairvalue,thecompanyhasclassifiedits financial instruments into the three levels of fair valuemeasurement as prescribed under the Ind AS 113 "Fair ValueMeasurement".Anexplanationofeachlevelfollowsunderneaththetables.

31-03-19 31-03-18

2,540,539

-

2,540,539

2,961,672

2,961,672

-

-

-

-

-

-

-

184,625

184,625

2,961,672

184,625

3,146,297

-

180,940

180,940

2,540,539

180,940

2,721,479

Level (I) Level (I)Level (ii) Level (ii)Level (iii) Level (iii)Total Total

Financial assets

Financial Investment at FVPLListedequityinvestments

SecurityDeposits

Total financial assets

Particulars


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74

50.1DuringtheyearendedMarch31,2019andMarch31,2018,therewerenotransfersbetweenLevel1andLevel2fairvaluemeasurements,andnotransferintoandoutofLevel3fairvaluemeasurements. 50.2 Explanation to the Fair Value hierarchy TheCompanymeasuresFinancialinstruments,suchas,quotedinvestmentsandinterestfreesecuritydepositatfairvalueateachreportingdate.Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Allassetsandliabilitiesforwhichfairvalueismeasuredordisclosedinthefinancialstatementsarecategorisedwithinthefairvaluehierarchybasedonthe lowest level inputthat issignificanttothefairvaluemeasurementasawhole.Thevaluationofquotedshareshavebeenmadebasedonlevel1inputsasperthehierarchymentionedintheAccountingPolicies.ThevaluationofquotedequityinstrumentshavebeenvaluedbasedontheclosingpriceateachreportingdatefromBSE.Thevaluationofinterestfreesecuritydeposithavebeenmadebasedonlevel3inputsasperthehierarchymentionedintheAccountingPolicies.Thevaluationofinterestfreesecuritydeposithavebeenvaluedbasedonvaluationtechniqueapplicable. 51 Financial risk management objectives and policies "TheCompany’sprincipalfinancialliabilitiescompriseborrowings,tradeandotherpayables.ThemainpurposeofthesefinancialliabilitiesistofinancetheCompany’soperations.TheCompany’sprincipalfinancialassetsincludetradeandotherreceivables,andcashandcashequivalentsthatderivedirectlyfromitsoperations.TheCompanyalsoholdsinvestments.Variouskindsoffinancialrisksandtheirmitigationplansareasfollows:" 51.1 Market Risk Marketriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketprices.MarketriskcomprisesofForeignExchangeRiskandInterestRateRisk. 51.1.1 Foreign Exchange Risk ForeignExchangeRiskistheexposureoftheCompanytothepotentialimpactofthemovementinforeignexchangerate.TheCompanydoesnothaveanymaterialforeigncurrencyexposureatthebalancesheetdate.TheForeigncurrencyexposureisUnhedgedatthebalancesheetdate. 51.1.2 Interest Rate Risk "Interestrateriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketrates.Thecompany'sexposuretotheriskofchangesinmarketinterestraterelatesprimarilytocompany'sborrowingwithfloatinginterestrates.TheCompanydonothaveanysignificantinterestrateriskonitscurrentborrowingduetotheirshorttenure.TheCompanyisalsoexposedtointerestrateriskonsurplusfundsparkedinloans.Tomanagesuchrisks,suchloansaregrantedforshortdurationswithfixedinterestrateinlinewiththeexpectedbusinessrequirementsforsuchfunds."

Exposuretointerestraterisk

31st March 2019 31st March 2018

62,485,552 62,485,552

80,405,226 80,405,226

NoncurrentBorrowingatfloatingrate TOTAL

Particulars



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75

31st March 2019

31st March 2019 31st March 2018Sensitivity Analysis

Sensitivity Analysis

Impact on Impact on

Profit before tax Profit before taxOther Equity Other Equity

31st March 2018

2,540,539 2,540,539

(624,856)624,856

(804,052)804,052

1%1%

1%1%

2,961,672 2,961,672

(451,021)451,021

(582,536)582,536

InvestmentinEquityinstrumentsTOTAL

InterestRateIncreasebyInterestRateDecreaseby

Particulars

Particulars

Sensitivity Analysis Profitorlossissensitivetohigher/lowerinterestexpensefromborrowingsasaresultofchangesininterestrates.Thisanalysisassumesthatallothervariables,inparticularexchangerates,remainconstantandignoresanyimpactofforecastsalesandpurchases.

51.1.3 Price risk Thetablebelowsummarisestheimpactofincrease/decreesoftheindexonthegroup'sequityandprofitfortheperiod.Theanalysisisbasedontheassumptionthattheequityindexhadincreasedordecreesby7%withallothervariableconstant,andthatallthegroup'sequityinstrumentsmovedinlinewithindex


31st March 2019 31st March 2018Sensitivity Analysis

Sensitivity Analysis

Impact on Impact on

Profit before tax Profit before taxOther Equity Other Equity

177,838(177,838)

207,317(207,317)

7%7%

7%7%

128,363(128,363)

150,196(150,196)

InterestRateIncreasebyInterestRateDecreaseby

Particulars

51.2 Liquidity Risk TheCompanydeterminesitsliquidityrequirementintheshort,mediumandlongterm.Thisisdonebydrawingupcashforecastforshorttermandlongtermneeds. TheCompanymanageitsliquidityriskinamannersoastomeetitsnormalfinancialobligationswithoutanysignificantdelayorstress.Suchriskismanagedthroughensuringoperationalcashflowwhileatthesametimemaintainingadequatecashandcashequivalent position. Themanagement has arranged for funding from banks and inter corporate and adopted a policy ofmanagingassetswithliquiditymonitoringfuturecashflowandliquidityonaregularbasis.ThetablebelowsummarisesthematurityprofileofCompany’sfinancialliabilitiesbasedoncontractualundiscountedpayments. 51.2.1 Maturity Analysis for financial liabilities

31st March 2019

On demand <6 months 6 to 12 months >1 year Total

103,644,612 8,470,3985,114,70554,882,208

8,470,398 45,544,756 166,130,1645,114,70554,882,208

BorrowingsOtherfinancialliabilitiesTradepayables

Particulars


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76

31st March 2018

On demand <6 months 6 to 12 months >1 year Total

80,532,493 9,457,8204,438,14849,145,592

9,527,982 61,419,424 160,937,7194,438,14849,145,592

BorrowingsOtherfinancialliabilitiesTradepayables

Particulars

Theinterestpaymentsonvariableinterestrateloansinthetablesabovereflectmarketforwardinterestratesattherespectivereportingdatesandtheseamountsmaychangeasmarketinterestrateschange.Exceptforthesefinancialliabilities,itisnotexpectedthatcashflowsincludedinthematurityanalysiscouldoccursignificantlyearlier,oratsignificantlydifferentamounts.Whentheamountpayableisnotfixed,theamountdisclosedhasbeendeterminedwithreferencetoconditionsexistingatthereportingdate. 51.3 Credit Risk “Thecreditriskistheriskoffinanciallossarisingfromcounterpartyfailingtodischargeanobligation.Thecreditriskiscontrolledbyanalysingcreditlimitsandcreditdurationforcustomersoncontinuousbasis.Further,inordertomanagethecreditrisk,thesecuritydepositsareobtainedfromcustomerswhereeverconsiderednecessary.OnaccountofadoptionofIndAS109,theCompanyusesanexpectedcreditlossmodeltoassesstheimpairmentloss.TheCompanyusesaprovisionmatrixtocomputetheexpectedcreditlossallowancefortradereceivables.Thecreditriskistheriskoffinanciallossarisingfromcounterpartyfailingtodischargeanobligation.Thecreditriskiscontrolledbyanalysingcreditlimitsandcreditdurationforcustomersoncontinuousbasis.Further,inordertomanagethecreditrisk,thesecuritydepositsareobtainedfromcustomerswhereeverconsiderednecessary.OnaccountofadoptionofIndAS109,theCompanyusesanexpectedcreditlossmodeltoassesstheimpairmentloss.TheCompanyusesaprovisionmatrixtocomputetheexpectedcreditlossallowancefortradereceivables."

Theageingoftradereceivablesandexpectedcreditlossanalysisonthesetradereceivablesisgiveninbelowtable:

Theexpectedcreditlossanalysisonthesetradereceivablesisgiveninbelowtable:

Particulars 0-90days 91-180days 181-365days above365 daysTotal

Asat31March2019 98,635,441.00 38,771,763.00 1,687,130.00 755,272.00 139,849,606.00Asat31March2018 81,985,978.00 21,624,620.00 1,270,091.00 709,828.00 105,590,517.00Asat01April2017 48,290,596.00 5,969,211.00 2,137,043.00 647,297.00 57,044,147.00

Particulars AmountAs at 01 April 2017 635,467 Changeinallowance 391,884As at 31 March 2018 1,027,351 Changeinallowance 149,704As at 31 March 2019 1,177,055

52 Capital Management Riskmanagement TheCompany’sobjectiveswhenmanagingcapitalareto -safeguardtheirabilitytocontinueasagoingconcern,sothattheycancontinuetoprovidereturnsforshareholdersandbenefitsforotherstakeholders,and -maintainanoptimalcapitalstructuretoreducethecostofcapital. Inordertomaintainoradjustthecapitalstructure,Companymayadjusttheamountofdividendspaidtoshareholders.



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77

Particulars Cashandcashequivalents Non-currentborrowings Currentborrowings TotalNetdebtason31-Mar-18 1,798,296 (80,405,226) (80,532,493) (159,139,424)Cashflows 1,031,168 17,919,674 (23,112,119) (4,161,276)Netdebtason31-Mar-19 2,829,464 (62,485,552) (103,644,612) (163,300,700)

Particulars 31-Mar-19 31-Mar-18Cashandcashequivalents 2,829,465 1,798,296Non-currentborrowings (62,485,552) (80,405,226)Currentborrowings (103,644,612) (80,532,493)Netdebt (163,300,700) (159,139,424)

Particulars 31-Mar-19 31-Mar-18Netdebt 163,300,700 159,139,424Equity 255,138,289 244,296,040CapitalandNetdebt 418,438,988 403,435,463Gearingratio 39.03% 39.45%

52.1 Net debt Reconciliation

53"TheBoardofDirectorsatitsmeetingheldon30thMay,2018recommendedfinaldividendofRs1.5perequityshareoffacevalueofRs.10eachforthefinancialyearended31stMarch,2019.Thesameamountsto�Rs.4,990,617(includingdividenddistributiontax).TheaboveissubjecttoapprovalattheensuingAnnualGeneralMeetingoftheCompanyandhencenotrecognizedasaliability."





Sd/-


Partner



Sd/-Sanjay S. Gadodia(Chairman/CEO) DIN - 00203433

Sd/-Danny F. Hansotia (ManagingDirector/CFO)DIN - 00203497



52.2


spenta


CIN - L28129MH1986PLC040482

Regd. Office: Plot No.13 to 16, Dewan Industrial Estate, Village Navali, District: Thane, Palghar (West) – 401 404.

Tel No: 7666625388/7666025388

[email protected] ; Website: www.spentasocks.com

ATTENDANCE SLIP

Shareholdersattendingthemeetinginpersonorbyproxyarerequestedtocompletetheattendanceslipandhanditoverattheentranceofthemeetinghall.

FolioNo.:____________DPIDNo.________________ClientIDNo.__________________

NameoftheMember________________________________Signature_________________

NameoftheProxyholder_____________________________Signature_________________

Note:

1. PleasefillthisattendanceslipandhanditoverattheentranceoftheHall.

2. Members/ProxyHolders/AuthorizedRepresentativesarerequestedtoshowtheirPhotoIDProofforattendingthe

Meeting.AuthorizedRepresentativesarerequestedtoshowproperauthorizationissuedintheirfavour.

3. Member/Proxyholdershouldbringhis/hercopyoftheAnnualReportforreferenceattheMeeting.

I/Weherebyrecordmy/ourpresenceatthe32nd ANNUAL GENERAL MEETINGoftheCompanyatRegd.OfficePlotNo.13To16,DewanIndustrialEstate,VillageNavali,DistrictThane,Palghar(West)–401404oftheCompanyonMonday,30thSeptember,2019.

78nd32

AnnualReport2018-19

PROXY FORM


spenta

(PursuanttoSection105(6)oftheCompaniesAct,2013andRule19(3)oftheCompanies(ManagementandAdministration)Rules,2014)


CIN - L28129MH1986PLC040482

Regd. Office: Plot No.13 to 16, Dewan Industrial Estate, Village Navali, District: Thane, Palghar (West) – 401 404.

Tel No: 7666625388/7666025388

[email protected]; Website: www.spentasocks.com

***************************************************************************

NameoftheMember(s): ______________________________________________

Registeredaddress: ______________________________________________

E-mailId: ______________________________________________

FolioNo./ClientIDNo.: ______________________________________________

DPIDNo.: ______________________________________________

I/We,beingtheMember(s)of___________Sharesoftheabovenamedcompany,herebyappoint:

1. Name :

Address :

E-mailId :

Signature :

orfailinghim/her

2. Name :

Address :

E-mailId :

Signature :

orfailinghim/her

3. Name :

Address :

E-mailId :

Signature :

asmy/ourproxytoattendandvote(onapoll)forme/usandonmy/ourbehalfatthe32ndAnnualGeneralMeetingofthe

CompanytobeheldonMonday,30thSeptember,2019at11.30a.m.atPlotNo.13,to16,DewanIndustrialEstate,Village

Navali,Dist.Thane,Palghar(W)–401404andatanyadjournmentthereofinrespectofsuchresolutionsasareindicated

below:

FormNo.MGT-11

79nd32

AnnualReport2018-19


spenta

Note:

1) ThisformofproxyinordertobeeffectiveshouldbedulycompletedanddepositedattheRegisteredOfficeofthe

Company,notlessthan48hoursbeforethecommencementoftheMeeting.

2) ThoseMemberswhohavemultiplefolioswithdifferentjointholdersmayusecopiesofthisAttendanceslip/Proxy.

AFFIX

REVENUE

STAMP

ResolutionNo.

Resolution

Ordinary Business For Against

1 AdoptionofStatementofProfitandLoss,BalanceSheet,Reportof BoardofDirectorsandAuditorsfortheyearendedMarch31,2019.

2 TodeclareFinaldividendonequitysharesfortheFinancialYear2018-2019

3 AppointmentofStatutoryAuditorfortheFinancialYear2019-20 Special Business

4 ToadoptionofnewsetofMemorandumofAssociationasperCompanies Act,2013

80

Signedthis______thdayof____________,2019

_________________________________________SignatureofshareholderSignatureofProxyholder(s)



spenta

Form No. SH-14Cancellation or Variation of Nomination

[Pursuant to section 72 of the Companies Act, 2013 and rule 19(1) of the Companies (Share Capital and Debentures) Rules 2014]

To,

Spenta International Limited,

PlotNo.13to16,



Palghar(West)–401404.

I/Weherebycancelthenomination(s)madebyme/usinfavor

of………………………………………………………………………………………………………………………………………...(nameandaddressofthe

nominee)inrespectofthebelowmentionedsecurities

Or

I/We hereby nominate the following person in place of ……………….…………………. as nominee in respect of the below

mentionedsecuritiesinwhomshallvestallrightsinrespectofsuchsecuritiesintheeventofmy/ourdeath

(1) PARTICULARSOFTHESECURITIES(inrespectofwhichnominationisbeingmade)

(2) PARTICULARSOFNOMINEE(S)—

Name:………………………………………………………………Nationality:…………………………………………………………..

DateofBirth:………………………………………………………..Address:…………………………………………………………….

Father’s/Mother’s/Spouse’sname:……………………………….E-mailId:……………………………………………………………

Occupation:………………………………………………………...Relationshipwiththesecurityholder:----------------------------------

INCASENOMINEEISAMINOR-

dateofBirth:………………………………………………………Nameofguardian:………………………………………………….

Dateofattainingmajority:……………………………………….Addressofguardian:-----------------------------------------

Nameandaddressofsecurityholder(s) Signature

Nameandaddressofwitness Signature

Natureofsecurities Folio.No No.ofsecurities CertificateNo. DistinctiveNo

81nd32

AnnualReport2018-19


spenta

Please fill this Nomination form in Duplicate after carefully reading the instruction given below:

1. TheNominationcanbemadebyindividual’sonlyholdingssharessinglyorjointly.Non-individualsincludingSociety,

Trust, Body Corporate, Partnership firm, Karta of Hindu Undivided Family and Power of Attorney holder cannot

nominate.

2. ThenomineeshallnotbeaTrust,Society,BodyCorporate,andPartnershipfirm,KartaofHinduUndividedFamilyand

powerofattorneyholder.

3. Theshareholder[s]cannominateaminorasanomineeandinthateventthenameandaddressoftheguardianshallbe

provided.

4. Aspersection72ofCompaniesAct2013,ifthesharesareheldbymorethanonepersonjointly,thenthejointholders

maytogethernominateapersontowhomalltherightsinthesharesoftheCompanyshallvest,intheeventofdeathofall

thejointholders.

5. Ifthesharesareheldjointly,subsequenttothedeathofanyoneoftheholders,theshareswouldnotberegisteredin

favourofthenomineebutwouldbetransferredinthenameofthesurvivingshareholders.

6. Thenominationformfilledin“duplicate”shouldbelodgedwiththeRegistrarandSharetransferAgentoftheCompany

i.e.M/s.LinkIntimeIndiaPvtLtd.,C-101,247Park,L.B.S.Marg,VikhroliWest,Mumbai-400083.Tel:02249186000

Email:[email protected].

7. Theshareholder[s]candeleteorchangeanearliernominationbyexecutingFormNo.SH-14(CancellationorVariationof

Nominationform)

8. Nominationstandscancelledwheneverthesharesinthegivenfolioaretransferred/dematerialized.Alsoincaseof

changeinfolioduetoconsolidation/transmissionanewnominationhastobefiled.

9. ThenominationmadethroughFormNo.SH-13willbeconsideredvalidifthenominationmadebytheholder[s]ofthe

sharesisregisteredwiththecompanybeforethedeathoftheregisteredholder[s]oftheshares.

10. Kindlynotethatthenominationbeingalegaldocumentshouldbedatedbythenominatorandthewitnessshouldcertify

thatthenominatorhassignedtheformintheirpresence.FurthermorethedateofexecutionontheNominationForm

shouldmatchwiththedateofwitness,witnessingthedocument.

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spenta

Nomination Form

[Pursuant to Section 72 of the Companies Act, 2013 and Rule 19(1) of the Companies(Share Capital and Debentures) Rules, 2014]

To,

Spenta International Limited,

PlotNo.13to16,



Palghar(West)–401404.

I/We______________________________________theholder(s)ofthesecuritiesparticularsofwhicharegiven

hereunderwishtomakenominationanddoherebynominatethefollowingpersonsinwhomshallvest,alltherightsin

respectofsuchsecuritiesintheeventofmy/ourdeath.

(1) PARTICULARSOFTHESECURITIES(inrespectofwhichnominationisbeingmade)

(2) PARTICULARSOFNOMINEE(S)—

a) Name:

b) DateofBirth:

c) Father’s/Mother’s/Spouse’sname:

d) Occupation:

e) Nationality:

f) Address:

g) E-mailid:

h) Relationshipwiththesecurityholder:

(3) INCASENOMINEEISAMINOR—

a) Dateofbirth:

b) Dateofattainingmajority:

c) Nameofguardian:

d) Addressofguardian:

Natureofsecurities Folio.No No.ofsecurities CertificateNo. DistinctiveNo

83

Name:____________________________________________________________________________________________

Address:___________________________________________________________________________________________

NameoftheSecurityHolder(s):________________________________________________________________________

Signature:_________________________________________________________________________________________

Witnesswithnameandaddress:_______________________________________________________________________


SignatureoftheMemberOr

AuthorisedRepresentative


spenta

CIN - L28129MH1986PLC040482Regd. Office: Plot No.13 to 16, Dewan Industrial Estate, Village Navali, District: Thane, Palghar (West) – 401 404.

Tel No: 7666625388/[email protected]; Website: www.spentasocks.com

******************************************************************************************32nd ANNUAL GENERAL MEETING

ASSENT/ DISSENT FORM FOR VOTING ON AGM RESOLUTIONS

1.Name(s)&RegisteredAddress :ofthesole/firstnamedMember

2.Name(s)oftheJoint-Holder(s) :Ifany

3.RegisteredFolioNo./DPIDNo&ClientIDNo. :[ApplicabletoMembersholdingsharesindematerializedform]

4.NumberofShares(s)held :

5.I/We,herebyexercisemy/ourvoteinrespectofOrdinary/Specialresolutionenumeratedbelowbyrecordingmy/ourassentordissenttothesaidresolutioninthefollowingmanner:

Place:

Date:

84

ResolutionNo.

Resolution

Ordinary Business For Against

1 AdoptionofStatementofProfitandLoss,BalanceSheet,ReportofBoardof DirectorsandAuditorsfortheyearendedMarch31,2019.

2 TodeclareFinaldividendonequitysharesfortheFinancialYear2018-2019

3 AppointmentofStatutoryAuditorfortheFinancialYear2019-20 Special Business

4 ToadoptionofnewsetofMemorandumofAssociationasperCompanies Act,2013



spenta

Notes:i) Ifyouopttocastyourvotebye-voting,thereisnoneedtofillupandsignthisform.ii) LastdateforreceiptofAssent/DissentForm:September29,2019(5.00pmIST)iii) Pleasereadtheinstructionsprintedoverleafcarefullybeforeexercisingyourvote.General Instructions

1. Shareholders have option to vote either through e-voting i.e. electronic means or to convey assent/dissent. If ashareholder has opted for physicalAssent/Dissent Form, thenhe/she should not votebye-voting and vice versa.However,incaseShareholderscasttheirvotethroughphysicalassent/dissentformande-voting,thenvotecastthroughe-votingshallbetreatedasvalid.

2. ThenoticeofAnnualGeneralMeetingisdispatch/e-mailedtothememberswhosenamesappearontheRegisterof

Membersason23rdSeptember,2019andvotingrightsshallbereckonedonthepaid-upvalueofthesharesregisteredinthenameoftheshareholdersasonthesaiddate.

3. Voting throughphysicalassent/dissent formcannotbeexercisedbyaproxy.However, corporateand institutionalshareholdersshallbeentitledtovotethroughtheirauthorisedrepresentativeswithproofoftheirauthorization,asstatedbelow.

Instructions for voting physically on Assent / Dissent Form

1. AmemberdesiringtoexercisevotebyAssent/Dissentshouldcompletethis(nootherformorphotocopythereofispermitted)andsendittotheScrutinizer,attheircosttoreachtheScrutinizerattheregisteredofficeoftheCompanyonorbeforethecloseofworkinghoursi.e.5.00pmon29thSeptember,2019.AllFormsreceivedafterthisdatewillbestrictlytreatedasifthereplyfromsuchMemberhasnotbeenreceived.

2. ThisFormshouldbecompletedandsignedbytheShareholder (asperthespecimensignatureregisteredwiththeCompany/DepositoryParticipants).Incaseofjointholding,thisFormshouldbecompletedandsignedbythefirstnamedShareholderandinhisabsence,bythenextnamedShareholder.

3. Inrespectofsharesheldbycorporateandinstitutionalshareholders(companies,trusts,societiesetc.)thecompletedAssent/ Dissent Form should be accompanied by a certified copy of the relevant Board Resolution/ appropriateauthorization,withthespecimensignature(s)oftheauthorizedsignatory(ies)dulyattested.

4. Theconsentmustbeaccordedbyrecordingtheassentinthecolumn“FOR”ordissentinthecolumn“AGAINST”byplacingatickmark(√)intheappropriatecolumnintheForm.Theassentordissentreceivedinanyotherformshallnotbeconsideredvalid.

5. MembersarerequestedtofilltheForminindelibleinkandavoidfillingitbyusingerasablewritingmedium(s)likepencil.

6. TherewillbeoneAssent/DissentFormforeveryfolio/Clientidirrespectiveofthenumberofjointholders.

7. AmembermayrequestforaduplicateAssent/DissentForm,ifsorequiredandthesamedulycompletedshouldreachtheScrutinizernotlaterthanthespecifiedunderinstructionNo.1above.

8. MembersarerequestednottosendanyotherpaperalongwiththeAssent/DissentForm.TheyarealsorequestednottowriteanythingintheAssent/Dissentformexceptgivingtheirassentordissentandputtingtheirsignature.IfanysuchotherpaperissentthesamewillbedestroyedbytheScrutinizer.

9. TheScrutinizersdecisiononthevalidityoftheAssent/DissentFormwillbefinalandbinding.

10. Incomplete,unsignedorincorrectlytickedAssent/DissentFormswillberejected.

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b/1303, naman midtown, dr.ambedkar nagar, spenta … · 2019-09-03 · b/1303, naman midtown,...

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